Coast to Coast Conference - More Money for the Pac-12?

[Jon Joseph]

Fact - The Pac-12 decided not to expand after the SEC added and the B12 lost, Oklahoma and Texas

 

Fact - The B12 is adding BYU, Cincinnati, Houston and UCF

 

Fact - Media renegotiations are upcoming for college conferences in this order - B1G, Pac-12, B12.  The SEC has already concluded its new deal with Disney/ESPN. The ACC, unless Notre Dame joins the conference as a full time football member, is locked in with Disney/ESPN through 2036; a deal that provides each ACC school with only $17M a season.

 

Fact - The B1G and the SEC distribute a good deal more money to their member schools than does the ACC, B12 and the Pac-12. These two conferences will increase their financial advantage after the new round of media negotiations. Finance-wise, it is the Power 2 and everyone else. 

 

Fact - The ACC, B1G and the SEC each have their own network. FOX owns 51% of the B1G Network. Disney/ESPN own 100% of the ACC and the SEC networks and 'profit share' with the 2 conferences. All three networks are well in the black; especially, the BIG and SEC networks. The B12 does not have a network. The Pac-12 has a network owned by conference members that is financially insolvent and has never attained even the lowest projected revenues.

 

Fact - The Pac-12 will score a better media deal in the near future, a better deal than the ACC's, likely better than the B12's deal, but nowhere close to the B1G/SEC deals.

 

Query - Would it financially behoove the Pac-12 to merge with the B12 and form the Coast to Coast Conference (CTCC), structured as follows:

 

Pac-8 Division - CAL, Oregon, Oregon State, Stanford, UCLA, USC, Washington, Washington State

 

Big 8 West Division - Arizona, ASU, BYU, Colorado, Kansas, Kansas State, Oklahoma State, Utah

 

Big 8 East Division - Baylor, Cincinnati, Houston, Iowa State, TCU, Texas Tech, UCF, West Virginia

 

While not ipso facto germane to media negotiations, in 2021 the CTCC would have had 4 NY6 bowl teams -

 

Cincinnati - lost playoff semifinal in the Cotton Bowl to Alabama/ Utah - lost in the Rose Bowl to Ohio State/ Baylor defeated Ole Miss in the Sugar Bowl/ Oklahoma State defeated Notre Dame in the Fiesta Bowl. 

 

Instead of $6M in NY6 direct playoff participant money going to the 12, Pac-12 teams, $26M would have gone to the 24 CTCC teams.

 

This money does not include the significant, additional money that the CTCC would have received from broadcast rights and other bowl related income. 

 

2021/2022 NCAA CBB Tournament to date - Pac-12 alone - 3 teams - 4 -1. CTCC - 9 teams -- Pac-8 - 2 teams - 2-1; Big 8 West - 2 teams - 4-0; Big 8 East - 5 teams - 8-2.  6 CTCC Sweet 16 teams. 2 Pac-12 Sweet 16 teams.

 

The above is simply a snapshot. But I believe it shows that the Pac-12 schools in the money ball sports would not suffer financially per capita and would likely benefit financially per capita, if in the CTCC.

 

FACT - The CTCC would cover all 4 continental USA time zones. The CTCC would add much needed subscribers to the Pac-12 Network and as the CTCC Network, the network would likely find an equity media partner and be available on all cable outlets coast to coast.

 

The Pac-12/B12 would not merge without a detailed evaluation first being preformed by an Investment Banker(s) including an analysis by media experts. As was the case when Maryland, Rutgers and Nebraska joined the B1G, revenue adjustments could be phased in or valued annually and distributed according to what each respective school delivered to the bottom line.

 

From a management and human analysis prospective, Bob Bowlsby, at 71 years of age is close to retirement, thus setting the stage for George Kliavkoff to be the CTCC Commissioner. The Pac-12 is already planning to move its headquarters and network operations out of San Francisco. ($92M in rent paid to date!) In the event the CTCC was formed, the current B12 offices in Dallas would make sense as the HQ for the CTCC.

 

I doubt we will see the CTCC come to fruition. But I believe the money spent to study such a merger would be well worth the expenditure and that such a merger, if the numbers proved up, would keep the CTCC within reasonable financial distance of the B1G and the SEC, and move the Pac-12 Network into the black.

 

Your thoughts?

[ICamel]

Good "outside the box" thinking Jon.

 

Unfortunately the Pac12 is stuck inside the box

[Jon Joseph]

On 3/24/2022 at 2:30 PM, ICamel said:

Good "outside the box" thinking Jon.

 

Unfortunately the Pac12 is stuck inside the box

Sad and so very true. At least the conference is (finally) escaping Larry's SFO box.

[30Duck]

A big thanks for coming up and sharing this idea with us Jon, too bad these kinds of ideas aren't coming from the Pac-12 office. I don't see maintaining the status quo being an option for the Pac-12 if it wants to remove itself permanently from "After Dark" status.

 

The SEC was already the dominant conference, then it added Texas and Oklahoma! The Pac-12 is treading water while the SEC expands even more, The SEC's attitude of doing what's best for them is a big part of why college football has eroded overall, but the SEC doesn't care about that for now. Oregon and USC do not, and should not, go down with the Pac. 

[Jon Joseph]

On 3/24/2022 at 3:21 PM, 30Duck said:

A big thanks for coming up and sharing this idea with us Jon, too bad these kinds of ideas aren't coming from the Pac-12 office. I don't see maintaining the status quo being an option for the Pac-12 if it wants to remove itself permanently from "After Dark" status.

 

The SEC was already the dominant conference, then it added Texas and Oklahoma! The Pac-12 is treading water while the SEC expands even more, The SEC's attitude of doing what's best for them is a big part of why college football has eroded overall, but the SEC doesn't care about that for now. Oregon and USC do not, and should not, go down with the Pac. 

Agree with all of your points 30.

 

I share your concern. Will the 3 Pac-12 'money ball teams,' those ranked in the top 25 financially in CFB, go down with the Pac-12? The 3 being the 2 you so noted, OR and SC, plus UW.

 

If nothing else I hope that President Schill and Mullens will keep their powder dry? Do not pledge Oregon's future media rights to the Pac-12 before knowing the deal(s) GK is able to secure. And Oregon and SC in particular, should give GK a negotiating bottom line. And particulars in regard to broadcast times, games shown on the Pac-12 network, games not bumped for truck races, etc.

 

Also, SC and Oregon need to seriously consider whether an equal share of the revenue they receive should go the other conference members. Especially, to the schools that come nowhere close to what SC and Oregon spend on CFB and CBB.

 

Remaining as-is, what is the plan to save the Pac-12 network? To at least save Oregon's and the other member schools capital invested in the network?

 

It may have been and probably was, a low ball bid from ESPN to take over ownership and operation of the network. But I do not see how the Pac-12 is better off having rejected this offer? Especially, with the conference later deciding not to move into the Central time zone.

 

Under ESPN's aegis, the network would have been professionally operated and managed and available coast-to-coast.

 

IMO, the deals these people have and have not made, should confound and confuse anyone with a scintilla of business sense.

Edited March 24, 2022 by Jon Joseph

[The Kamikaze Kid]

Great post Jon. Far better than most articles on other sites. I think the biggest problem the PAC has isn’t inside the box thinking. It’s more like inside the yacht thinking.

 

if the view from the top is of an elite club instead of a conference competing for national relevance, then we are truly in a hopeless situation.

 

Too bad the decision makers don’t share your thoughts on expansion. I’d love to see your ideas come to life.

[Jon Joseph]

On 3/24/2022 at 4:00 PM, The Kamikaze Kid said:

Great post Jon. Far better than most articles on other sites. I think the biggest problem the PAC has isn’t inside the box thinking. It’s more like inside the yacht thinking.

 

if the view from the top is of an elite club instead of a conference competing for national relevance, then we are truly in a hopeless situation.

 

Too bad the decision makers don’t share your thoughts on expansion. I’d love to see your ideas come to life.

TKK , I could not agree more. When the conference decided to stay as is and GK said, 'The Pac-12 is an exclusive club,' I wanted to ... [fill in however you so like.]

 

It's all about the Benjies today. A nd has been the case since the Conference of Champions threw the Rose Bowl into the BCS mix for trinkets.

 

 

[olcodgerduck]

On 3/24/2022 at 11:20 AM, Jon Joseph said:

Your thoughts?

My thoughts are to nominate Jon Joseph to any negotiating team that is focused on making our situation better!  Love your takes and your insights, and appreciate your passion for all things Ducks!

 

Go Ducks!!