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That anyone ever thinks a school is going to willingly take less money never fails to astonish me.Not really.
They can make a multiple of whatever the Big East pays out by staying in whatever the Big 12 looks like going forward.
Clearly you didn't read the article.That anyone ever thinks a school is going to willingly take less money never fails to astonish me.
Clearly you didn't read the article.
"With their conference crumbling around them and no sign of the Big 12 being able to restore itself to the financial success it had been seeing the last few years, it’s becoming rapidly apparent that the remaining eight athletic programs in the league need to make the best decision for themselves going forward."
"You don’t have to be a calculus wizard to see that Big East basketball is more valuable to their television partners than Big 12 basketball is to theirs. It is currently in Kansas basketball’s best financial interest to jump from whatever remains of the Big 12 to the Big East. In fact, Kansas making that move would actually improve the value of the Big East when it’s time for a new contract."
Generally agree, but keep in mind the BE's deal is nearing its end (Spring 2026 maybe?). It is very likely to increase.If at this point, after watching realignment over the past 20 years you cannot figure out how the very simple math works for the universities, then perhaps your time would be better spent elsewhere.
Kansas receives approximately $28 million per year from its current TV contract. That contract is in place for four more seasons. When TX and OK leave, the conference projects that the conference will lose half of its value (Big 12’s Revenue Could Be Cut In Half With Departures). Half of 28 million is 14 million. The current Big East media contract pays approximately 4.6 million annually (The Big East’s Media Marriage: Life Beyond 2025 with FS1). That is 9.4 million less than the $14 million the broken Big 12 expects to pay, even without TX and OK.
If Kansas joins the Big East, it's basketball program will have to bring approximately $112.8 million (9.4 million x 12) annually in new money to break even with the Big 12’s projected nightmare scenario because every team will get the same share.
If Kansas could do that, then it would not have any problems at all. It would already be in the Big 10 or any conference that it wants. Kansas is not going to makes its football team go independent (or drop to FCS like this asinine article suggests) and pay to fly all their non-revenue sports to the East Coast for substantially less money annually when the remnants of the Big 12 is 1) still a pretty good basketball conference and 2) will pay them a lot more to incur fewer expenses.
Actually reading his argument, no where does he suggest Kansas leave to make less money, and certainly not before 2025.If at this point, after watching realignment over the past 20 years you cannot figure out how the very simple math works for the universities, then perhaps your time would be better spent elsewhere.
Kansas receives approximately $28 million per year from its current TV contract. That contract is in place for four more seasons. When TX and OK leave, the conference projects that the conference will lose half of its value (Big 12’s Revenue Could Be Cut In Half With Departures). Half of 28 million is 14 million. The current Big East media contract pays approximately 4.6 million annually (The Big East’s Media Marriage: Life Beyond 2025 with FS1). That is 9.4 million less than the $14 million the broken Big 12 expects to pay, even without TX and OK.
If Kansas joins the Big East, it's basketball program will have to bring approximately $112.8 million (9.4 million x 12) annually in new money to break even with the Big 12’s projected nightmare scenario because every team will get the same share.
If Kansas could do that, then it would not have any problems at all. It would already be in the Big 10 or any conference that it wants. Kansas is not going to makes its football team go independent (or drop to FCS like this asinine article suggests) and pay to fly all their non-revenue sports to the East Coast for substantially less money annually when the remnants of the Big 12 is 1) still a pretty good basketball conference and 2) will pay them a lot more to incur fewer expenses.
The subsidizing will not indefinitely bridge the financial gap. Ultimately, the remaining Big 12 schools will do whatever will make them the most money annually.Generally agree, but keep in mind the BE's deal is nearing its end (Spring 2026 maybe?). It is very likely to increase.
Also you analysis didn't include OU and Texas' exit fees which are sizeable, I think something in excess of $150M. Those fees can be used subsidize the remaining teams earnings, much the way the C7's fees subsidized UConn, Cinci and the Florida schools.
We are in agreement. The existing OU/TX exit fees are an incentive to stay in the little 12, not to leave it.The subsidizing will not indefinitely bridge the financial gap. Ultimately, the remaining Big 12 schools will do whatever will make them the most money annually.
They way it is looking, the best "financial decision" will be keeping whatever remains of the Big 12 alive (projected $14m per year). I understand that this assumes the Big 12 will continue to exist and receive a new media rights deal. The Big 12 believes it will happen and it probably will. It has a top 5-6 football conference (even after the raid) and a top 5-6 basketball conference. It is still better than the AAC, MWC, or MAC, which all have media rights deals.
There is just no incentive for any Big 12 school to abandon that much money going forward to join any conference that is not the B1G, ACC, or PAC. Sadly, none of them appear to have any chance at that.
We are in agreement. The existing OU/TX exit fees are an incentive to stay in the little 12, not to leave it.
There will only be exit fees if UT & OU leave early.The subsidizing will not indefinitely bridge the financial gap. Ultimately, the remaining Big 12 schools will do whatever will make them the most money annually.
They way it is looking, the best "financial decision" will be keeping whatever remains of the Big 12 alive (projected $14m per year). I understand that this assumes the Big 12 will continue to exist and receive a new media rights deal. The Big 12 believes it will happen and it probably will. It has a top 5-6 football conference (even after the raid) and a top 5-6 basketball conference. It is still better than the AAC, MWC, or MAC, which all have media rights deals.
There is just no incentive for any Big 12 school to abandon that much money going forward to join any conference that is not the B1G, ACC, or PAC. Sadly, none of them appear to have any chance at that.
No there will be additional fees if they leave early. The $150M is just the cost to leave the conference in 2025 (IIRC.)There will only be exit fees if UT & OU leave early.
I misunderstood you then. My bad.We are in agreement. The existing OU/TX exit fees are an incentive to stay in the little 12, not to leave it.
Details on the transitionI misunderstood you then. My bad.
Absolutely not. The exit fees are only if they leave early.No there will be additional fees if they leave early. The $150M is just the cost to leave the conference in 2025 (IIRC.)
Yeah, I don't that says what you think it says. Here, try this, it is a little more clear.Absolutely not. The exit fees are only if they leave early.
The whole purpose of notifying them that are leaving at the end of the contract is to avoid exit fees
From the article attached above:
Texas and Oklahoma's days in the Big 12 Conference are numbered, as both programs informed the league Monday they will not renew their media rights with the league in 2025 before the two formally applied to join the Southeastern Conference on Tuesday. Of course, it is difficult to see the Longhorns and Sooners staying within the Big 12 up until that expiration date should the move to the SEC indeed be approved in the coming days ... even if that entails paying the Big 12 a hefty exit fee.
But with that in mind, could there be an avenue in which the Longhorns and Sooners can mitigate any burdens that would come with paying $70 million apiece to leave the conference? Outside of a scenario in which the Big 12 dissolves and there are no exit fees owed, Horns247's Chip Brown reported Tuesday that the Longhorn Network -- the network is controlled by ESPN -- could end up virtually cancelling out those fees if ESPN was to pay out the remainder of its contract.
"A source close to the situation said the buyout money for Texas and Oklahoma to leave the Big 12 before 2025 could come from the roughly $160 million Texas is still owed by ESPN for the final 10 years of ESPN's 20-year, $300 million contract with Texas for the Longhorn Network," Brown reported Tuesday.
You’re confusing the cost for leaving early (GOR) which is tied to the tv contract, and the exit fee which is tied to simply being in the conference.Absolutely not. The exit fees are only if they leave early.
The whole purpose of notifying them that are leaving at the end of the contract is to avoid exit fees
From the article attached above:
Texas and Oklahoma's days in the Big 12 Conference are numbered, as both programs informed the league Monday they will not renew their media rights with the league in 2025 before the two formally applied to join the Southeastern Conference on Tuesday. Of course, it is difficult to see the Longhorns and Sooners staying within the Big 12 up until that expiration date should the move to the SEC indeed be approved in the coming days ... even if that entails paying the Big 12 a hefty exit fee.
But with that in mind, could there be an avenue in which the Longhorns and Sooners can mitigate any burdens that would come with paying $70 million apiece to leave the conference? Outside of a scenario in which the Big 12 dissolves and there are no exit fees owed, Horns247's Chip Brown reported Tuesday that the Longhorn Network -- the network is controlled by ESPN -- could end up virtually cancelling out those fees if ESPN was to pay out the remainder of its contract.
"A source close to the situation said the buyout money for Texas and Oklahoma to leave the Big 12 before 2025 could come from the roughly $160 million Texas is still owed by ESPN for the final 10 years of ESPN's 20-year, $300 million contract with Texas for the Longhorn Network," Brown reported Tuesday.
His argument is built on Kansas taking less money. He does the math and says the new Big 8 would pay out $18 million, but only $3 million is basketball related so they might as well make $4 million in the Big East. Except Kansas would still need a football tv contract. So unless they can get $15 million on the open market for Jayhawk football (hint, they can’t), it’s better to package both programs together under the new Big 8 umbrella.Actually reading his argument, no where does he suggest Kansas leave to make less money, and certainly not before 2025.
For the same reasons as Creighton, Marquette, Butler and Xavier. Sure Kansas would much more prefer the competition of the B1G, just as UCONN would prefer the B1G or ACC. Kansas joining the New Big East for basketball is akin to UCONN having joined the New Big East for basketball. UCONN never joined the AAC, it was already a member.Full Disclosure:
I am a Connecticut native, resident, UConn alumnus ('74), long-time hockey season ticketholder, and died-in-the-wool Husky fan. So I am far from unbiased, but..................the notion that Kansas might join the Big East is fantasy.
Let's, for the moment, dispense with the analysis of $$$$$$. Look, I have spent my entire adult life as a self-employed investment/insurance broker, so I pay attention to every nickel and dime I am able produce, without any union or taxpayer safety net. So, for the moment, let us just look at some of the non-financial aspects of a potential move from the Big12 to the Big East for Kansas.
Why would Kansas want to send its men's baseball, cross country, golf, and track & field teams to Providence, UConn, St. John's, Seton Hall, Villanova, Georgetown, or any other East Coast school? And its women's soccer, volleyball, cross country, golf, rowing, swimming tennis and track & field teams to the same? They (if the opportunity presented itself) would much prefer the better competition from geographically, and culturally comparable, BiG schools such as Nebraska, Iowa, Minnesota, Wisconsin, Illinois, Northwestern, etc, etc, etc.
Kansas joining the Big East for basketball is akin to UConn having joined the AAC for football.............shortsighted.
Let’s start with UConn is not joining the Big East.Kansas is not coming to the Big East.
It’s not a great school, but they’re good at simple math and that’s enough to show them that they will make more in the reconstituted Big 12 than they can in the Big East.