I agree but you’ve added to it. Below is testimony from the Baylor AD speaking specifically about Texas and Oklahoma leaving.
Rhoades said the financial implications could put into question upcoming projects -- including the building of a new basketball arena -- and affect academic opportunities for students. Rhoades said the school, like others impacted, will also struggle to attract and keep talent on the field and in coaching staffs.
"The economic impact is real," Rhoades said less than four months after the men's basketball team won the NCAA championship. "If we are no longer a member of a Power Five, we will sell less tickets, we will sell less merchandise, we will raise less money and we will have less corporate sponsorship."
You cannot lose your two best assets and backfill with schools who were previously deemed to dilute the value of the league. The Big 12 already makes nearly less than half of what the SEC makes and then halve that number again. You are no longer power 5 if you make roughly $18 million and other schools are making $70 million. If you think bowl revenue and tier 3 rights make up for it you’ve never actually looked into it. For instance, the SEC which is the best football conference, took home $80 million to be spilt amongst there members.
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So at best the Big 12 will get $6-$7 million a year. And estimated tier 3 rights in 2018 were between $6-$8 million for the remaining teams in the Big 12.
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The best scenario is that they will be making $30 million all in per year and likely with the drop off in football quality, closer to $25-28 million. Better than us but not power 5 money.
If you are a private university like Baylor with AD budget of roughly $110 million how the heck do you keep afloat on $28 million per year? There are no public subsidies to prop you up. Tickets don’t get you there. You better have amazing boosters I guess?