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For Texas, It's All About Protecting The Brand Name

That is what the talk of Conference Realignment is about. Protecting the brand name that has led to a revenue stream that is the envy of College Athletics. As recently as last December, Forbes Magazine listed the Texas football program as the most valuable college football team/business in the nation.

Forbes ranked the programs on three basic after-expenses "dividends": what's left to help fund other athletic department sports, what's left to help the University, and what is the economic impact on the local community from live events.

Forbes estimated the Texas football program capitalized value at $119 Million, $11 Million more than second-ranked Notre Dame.

The rest of the Top Ten were:
Penn State
Nebraska
Alabama
Florida
LSU
Ohio State
Georgia
Oklahoma

Conference realignment is about protecting and consolidating power. It is about expanding media revenue streams, either through conference-owned networks or national network packages. It is about getting a stronger, wider national footprint in media. It isn't just about getting your conference channel on in St. Louis or Dallas, its about getting it on in Los Angeles and Chicago and Atlanta, or anywhere else.

Which is why Texas, the top Brand in college athletics at this moment, is dealing from a position of strength when considering its future.


Success on the field combined with such factors as a distinctive mascot, distinctive color, and distinctive logo have helped Texas build a national brand.

Tim Stephens of the Orlando Sentinel has an excellent piece that explains why conference realignment is coming and why Texas is the biggest fish in the consolidation ocean.

There are several factors that are building this "Perfect Storm" for conference realignment, one of the biggest of which is the economy.

There is a growing gap among all college athletic programs between the haves and have nots. Many schools are facing drops in donations and ticket sales while at the same time having to spend more to keep up with the facilities arms race.

Thanks to ESPN and the SEC there is also a growing revenue gap among the BCS conferences as well. This financial gap will drive other BCS conferences to expand -- if they can attract programs that will enhance their brand to the networks. The depth of competition will become more important, and being able to have three or four attractive matchups each week will eventually drive conferences and individual teams to have stronger schedules.

If this all unfolds as many believe it will, the Big 12 (with its top-heavy membership) will be gutted as other conferences raid it. It will also be interesting to see how consolidation to, say four Super Conferences, also affects a possible playoff.

It would make it easier to set one up, but then again, maybe the slimmed-down BCS conferences would rather protect their regular season and BCS Bowl system -- where it controls the purse strings -- rather than take part in a playoff system where there would be billions to be made, and billions to be split among a lot of teams who don't help generate those billions.

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“The depth of competition will become more important, and being able to have three or four attractive matchups each week will eventually drive conferences and individual teams to have stronger schedules.”

I really, really, hope this is true. However, given that most fans are addicted enough to watch their team beat the phlegm out of North-West-Central Idaho Tech whether or not they grouse about how lame the game is, I doubt it. Same reason the BCS hasn’t been toppled yet – people may be upset about it, but they’ll still watch. Well, maybe not the Orange Bowl.

Better matchups MIGHT capture more casual viewers, but would it really make a difference for these types of people if Texas was playing UCLA or Wyoming?

by fitzhume on Feb 18, 2010 4:59 PM CST reply actions  

Same reason the BCS hasn’t been toppled yet – people may be upset about it, but they’ll still watch.

They watch because it’s the best they can get.

by Bob in Houston on Feb 18, 2010 5:49 PM CST reply actions  

As purely a multiple of revenues, that cap. number actually looks low.

by Horncasting on Feb 18, 2010 7:38 PM CST reply actions  

A&M and Oklahoma end up in a conference that has made it illegal to report infractions of other teams. The 80’s will seem quaint in comparison.

by Dave on Feb 18, 2010 8:44 PM CST reply actions  

“Better matchups MIGHT capture more casual viewers, but would it really make a difference for these types of people if Texas was playing UCLA or Wyoming?”

Hell yes. I am far more than a casual fan and I barely caught half of the LuLaLa, UCF, UTEP, etc…. games. It is very hard to convince your wife that you can’t play with the kids because its 47-3 and you really need to watch Garret Gilbert hand off. My wife has heard of UCLA, and assumes that it is at least reasonable that I should spend all day watching/attending a UCLA/Texas game.

UCLA/Texas could easily be a prime time match up and draw five to ten times the eyes that a Wyoming/Texas game on the Mountain West Channel.

by holdem on Feb 18, 2010 9:07 PM CST reply actions  

Great read srr. I think these two paragraphs were key

There is a growing gap among all college athletic programs between the haves and have nots. Many schools are facing drops in donations and ticket sales while at the same time having to spend more to keep up with the facilities arms race.

Thanks to ESPN and the SEC there is also a growing revenue gap among the BCS conferences as well. This financial gap will drive other BCS conferences to expand — if they can attract programs that will enhance their brand to the networks. The depth of competition will become more important, and being able to have three or four attractive matchups each week will eventually drive conferences and individual teams to have stronger schedules.

This is the old BOHICA adage in college football. If the trend continues, you will see again the dynasties form in football. This is because the have-nots will no longer be dealing from a position of relative strength because they have a big conference backing them up. They won’t be able to negotiate television deals, because really…who wants to see UTEP vs KSU? As the TV revenue starts to dry up, they don’t get the exposure, athletes that were able to get on TV whether they played at Texas or Rutgers will now choose Texas because they want to get on the tube. Which means shitty games become even more shitty, because the talent level drops. Thursday and Friday night CFB games go the way of the dodo, and C-USA’s, MAC’s, and Sun Belt’s will fade away with nary a whisper, only appearing on TV when they play the UF’s USC’s, UT’s, etc of the world.

by Mister Mike on Feb 19, 2010 8:24 AM CST reply actions  

I like playing the cup cakes. There is a lot less stress to kicking ULaLa’s ass than trying to sit thru a nail biter with Ohio State. There are enough nail biters in conference play for me thank you.

As for a play-off, there will not be one unless the BCS conferences can structure it so that their payoff is not reduced.

My guess is that what is now called the FBS will be reduced from 120 teams to maybe 60 that would have an opportunity to be in any playoff.

by Bill Bixby on Feb 19, 2010 8:27 AM CST reply actions  

Greatness again, Srr.
I put that up on my page on fb, and that’s not the first of yours. Really like the way you present the info.

by SlickStreet on Feb 19, 2010 4:40 PM CST reply actions  

Will add that you’re right about that Orlando Sentinel blogpost. That’s some thorough stuff that makes ya realize realignment is inevitable.

by SlickStreet on Feb 19, 2010 5:09 PM CST reply actions  

Like this blog, Texas isn’t about “peace and love”. Texas will go to great lengths to kick ass when it comes to its PR campaign.

by Tom S on Feb 19, 2010 6:40 PM CST reply actions  

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