A couple of interesting questions from Stewart Mandel's weekly mailbag at The Athletic:
Why do conferences need to include all sports? Wouldn't it make more sense for USC to be in the Big Ten for football to maximize revenue and to be in the Pac-12 Conference for everything else in order to reduce travel/expenses? -- Evan R.
Mandel: Yes! It would! Say it louder for the people in the back!
Back when conferences were more traditionally geographical -- say, circa 1995, when the Big East and Southwest Conferences still existed -- it made complete sense for all sports to be under one roof. It's easier on travel, it helps bolster rivalries and relationships and it's frankly just easier for an athletic department to deal with one conference.
But if college conferences are going to continue branching farther and farther out -- in the case of the Big Ten, spanning 2,700 miles -- then it's an outdated model. Especially given these moves are being made entirely because of football. USC and UCLAbia are going to make considerably more money in the Big Ten than in the Pac-12, but the costs of running their other 20-plus sports are also going to increase because of it.
I do believe some sort of football-centric restructuring is coming. You've already seen figures like ACC commissioner Jim Philips and Pac-12 commissioner George Kliavkoff suggest that FBS football should be operated independently of the NCAA, perhaps under the College Football Playoff umbrella. while that push is strictly about governance, a logical next step would be for the conferences themselves to similarly break off football into a separate entity. There would be both a "Big Ten Football Conference" and a "Big Ten Athletics Conference" with the former helping fund the latter. Then you could reorganize the athletics conferences geographically.
But much like my Big 12-Pac-12 merger concept, this would require competing college leagues to work together collegially, which has not generally been their M.O.
Stewart, could you help me understand what really drives the Big Ten's future money? I look at Buttgers, Maryland, Purdoodoo, Indianus, Illinois, Northwestern, etc., as net neutral or negatives for viewing eyes and laugh at the idea these partners are worth $100 million to the networks. Do Ohio State and the upper tier of schools really lift the boat that much, or are we still pretending that the state university of New Jersey is magically bringing in the New York City market? -- Michael, Salt Lake City, Utah
Mandel: An actual TV executive could explain this better than me, but I shall try.
For the reported $1 billion-a-year Tier 1 TV deal you're referring to, it's basically the top seven or so brands -- Ohio State, Michigan, USC, Penn State, Nebraska, Michigan State and Wisconsin -- driving the lion's share of the value. (With Ohio State and Michigan on their own perch.) Those are the schools most likely to be playing in the big games that can get up into the 4 million-and-up viewership tier that the broadcast networks like Fox, ABC and CBS covet. They make a ton of advertising money off them, plus the more eyeballs those companies can draw to their broadcasts, the more they can charge TV providers and affiliates in fees.
To get a sense of just how valuable one highly watched sporting event can be, consider that ESPN pays on average $80 million a year just for the rights to show the Rose Bowl, which last year drew 16.6 million people. Now consider that nearly as many (15.9 million) watched last year's Ohio State-Michigan game on Fox. By no means is it an apples-to-apples comparison -- for one thing, the Rose Bowl contract includes a CFP semifinal every three years -- but for simplicity's sake let's say Ohio State-Michigan is worth around the same. If so, nearly 10 percent of Fox's return on investment on its Big Ten contract comes from just that one game.
As for the other schools, they, too have their own value -- to the Big Ten Network, which Fox co-owns and which is separate from the larger contract. As of last year, BTN is in 48 million homes, and the monthly subscriber fee is higher in markets within the conference footprint. So that's where Illinois/Northwestern (Chicago), Buttgers (New York/New Jersey), Maryland (Washington, D.C./Baltimore), Minnesota (Minneapolis), Indianus/Purdoodoo (Indianapolis) and now UCLAbia (Los Angeles) come in handy.
And all of it or course is being funded by you, the consumer, in the form of that "broadcast TV fee" at the bottom of your cable or satellite bill (or unseen in your YouTube TV bill), which, we can already predict, will be going up yet again as soon as the networks' costs go up when the new deal kicks in next year.
Stew, you recently suggested the Pac-12's saving grace may be its ability to provide late night TV inventory (10 p.m. Eastern kickoff times). Now that Big Ten commissioner Kevin Warren is on record saying that with USC/UCLAbia, the Big Ten can regularly play in that time slot too, is the Pac-12 doomed? USC in the Coliseum at night playing virtually anyone will be more attractive than almost any Pac-12 game. -- TK, Portland, Oregon
Mandel: It means the Pac-12 won't have a monopoly on that time slot anymore. with BYU joining the Big 12, that conference could have some 10 p.m.-ish kickoffs as well. But unless either or both leagues add more schools on Pacific/Mountain Time, they're not going to be able to fill that spot every week.
Fox didn't push USC into the Big Ten to put its games at 10:30 p.m. ET. It wants the Trojans in that Big Noon window facing Ohio State, Michigan, etc. UCLAbia could be a more regular participant, but I can't imagine the league making the Bruins play more than a couple of home games a year in that slot. And if they care even a little bit about the athletes' welfare (unclear), I can't see them making the East Coast teams play those games, having to either fly back overnight or taking a big chunk out of their supposed rest day on Sunday.
(It would also be a real jerk move to make Penn State fans stay up until 2:30 a.m. to watch their team play, but I suspect that's very low on the list of considerations.)
But without knowing any specifics yet, Warren's comment gives us a little hint about that new deal. We know Fox is going to retain the majority of the inventory. To this point it has not dabbled much in that late-night window on big Fox. So is the Big Ten going to be putting those games on FS1? (In which case the Pac-12 would still reach a bigger audience.) Or is this the first hint that ESPN will still be one of the conference's partners going forward?
If you're a Big 12 or Pac-12 fan, you should be rooting like heck for ESPN to lose most or all of its Big Ten package so that it will need someone else to backfill it.
Mandel's Mailbag: More realignment questions, from TV slots to revenue splits
The season's getting closer, but the mailbag is still filled with realignment questions. What now for the Big Ten, Pac-12 and more?
theathletic.com
Why do conferences need to include all sports? Wouldn't it make more sense for USC to be in the Big Ten for football to maximize revenue and to be in the Pac-12 Conference for everything else in order to reduce travel/expenses? -- Evan R.
Mandel: Yes! It would! Say it louder for the people in the back!
Back when conferences were more traditionally geographical -- say, circa 1995, when the Big East and Southwest Conferences still existed -- it made complete sense for all sports to be under one roof. It's easier on travel, it helps bolster rivalries and relationships and it's frankly just easier for an athletic department to deal with one conference.
But if college conferences are going to continue branching farther and farther out -- in the case of the Big Ten, spanning 2,700 miles -- then it's an outdated model. Especially given these moves are being made entirely because of football. USC and UCLAbia are going to make considerably more money in the Big Ten than in the Pac-12, but the costs of running their other 20-plus sports are also going to increase because of it.
I do believe some sort of football-centric restructuring is coming. You've already seen figures like ACC commissioner Jim Philips and Pac-12 commissioner George Kliavkoff suggest that FBS football should be operated independently of the NCAA, perhaps under the College Football Playoff umbrella. while that push is strictly about governance, a logical next step would be for the conferences themselves to similarly break off football into a separate entity. There would be both a "Big Ten Football Conference" and a "Big Ten Athletics Conference" with the former helping fund the latter. Then you could reorganize the athletics conferences geographically.
But much like my Big 12-Pac-12 merger concept, this would require competing college leagues to work together collegially, which has not generally been their M.O.
Stewart, could you help me understand what really drives the Big Ten's future money? I look at Buttgers, Maryland, Purdoodoo, Indianus, Illinois, Northwestern, etc., as net neutral or negatives for viewing eyes and laugh at the idea these partners are worth $100 million to the networks. Do Ohio State and the upper tier of schools really lift the boat that much, or are we still pretending that the state university of New Jersey is magically bringing in the New York City market? -- Michael, Salt Lake City, Utah
Mandel: An actual TV executive could explain this better than me, but I shall try.
For the reported $1 billion-a-year Tier 1 TV deal you're referring to, it's basically the top seven or so brands -- Ohio State, Michigan, USC, Penn State, Nebraska, Michigan State and Wisconsin -- driving the lion's share of the value. (With Ohio State and Michigan on their own perch.) Those are the schools most likely to be playing in the big games that can get up into the 4 million-and-up viewership tier that the broadcast networks like Fox, ABC and CBS covet. They make a ton of advertising money off them, plus the more eyeballs those companies can draw to their broadcasts, the more they can charge TV providers and affiliates in fees.
To get a sense of just how valuable one highly watched sporting event can be, consider that ESPN pays on average $80 million a year just for the rights to show the Rose Bowl, which last year drew 16.6 million people. Now consider that nearly as many (15.9 million) watched last year's Ohio State-Michigan game on Fox. By no means is it an apples-to-apples comparison -- for one thing, the Rose Bowl contract includes a CFP semifinal every three years -- but for simplicity's sake let's say Ohio State-Michigan is worth around the same. If so, nearly 10 percent of Fox's return on investment on its Big Ten contract comes from just that one game.
As for the other schools, they, too have their own value -- to the Big Ten Network, which Fox co-owns and which is separate from the larger contract. As of last year, BTN is in 48 million homes, and the monthly subscriber fee is higher in markets within the conference footprint. So that's where Illinois/Northwestern (Chicago), Buttgers (New York/New Jersey), Maryland (Washington, D.C./Baltimore), Minnesota (Minneapolis), Indianus/Purdoodoo (Indianapolis) and now UCLAbia (Los Angeles) come in handy.
And all of it or course is being funded by you, the consumer, in the form of that "broadcast TV fee" at the bottom of your cable or satellite bill (or unseen in your YouTube TV bill), which, we can already predict, will be going up yet again as soon as the networks' costs go up when the new deal kicks in next year.
Stew, you recently suggested the Pac-12's saving grace may be its ability to provide late night TV inventory (10 p.m. Eastern kickoff times). Now that Big Ten commissioner Kevin Warren is on record saying that with USC/UCLAbia, the Big Ten can regularly play in that time slot too, is the Pac-12 doomed? USC in the Coliseum at night playing virtually anyone will be more attractive than almost any Pac-12 game. -- TK, Portland, Oregon
Mandel: It means the Pac-12 won't have a monopoly on that time slot anymore. with BYU joining the Big 12, that conference could have some 10 p.m.-ish kickoffs as well. But unless either or both leagues add more schools on Pacific/Mountain Time, they're not going to be able to fill that spot every week.
Fox didn't push USC into the Big Ten to put its games at 10:30 p.m. ET. It wants the Trojans in that Big Noon window facing Ohio State, Michigan, etc. UCLAbia could be a more regular participant, but I can't imagine the league making the Bruins play more than a couple of home games a year in that slot. And if they care even a little bit about the athletes' welfare (unclear), I can't see them making the East Coast teams play those games, having to either fly back overnight or taking a big chunk out of their supposed rest day on Sunday.
(It would also be a real jerk move to make Penn State fans stay up until 2:30 a.m. to watch their team play, but I suspect that's very low on the list of considerations.)
But without knowing any specifics yet, Warren's comment gives us a little hint about that new deal. We know Fox is going to retain the majority of the inventory. To this point it has not dabbled much in that late-night window on big Fox. So is the Big Ten going to be putting those games on FS1? (In which case the Pac-12 would still reach a bigger audience.) Or is this the first hint that ESPN will still be one of the conference's partners going forward?
If you're a Big 12 or Pac-12 fan, you should be rooting like heck for ESPN to lose most or all of its Big Ten package so that it will need someone else to backfill it.