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The New Big 12-2: How Do We Stack Up In TV Markets?

Whether he is analyzing the last five years of the AP rankings for BCS conferences or playing mind games with a dead philosopher, Scipio is giving us a breakdown of just how the perception of the Big12-2 might effect a National Championship run.

Me? I would like to take on the conundrum of how a sleeker (i.e. smaller) Big 12 can draw bigger TV bucks. First step is to look at the basics -- the primary and secondary TV markets in the leagues.

For the purposes of this analysis, a primary market is simply the TV market where the University is located. The secondary markets are either the Designated Market Area (DMA) that the University is in or a large market where there is a history of supporting one or more of the programs in a conference.

Big 12-2 TV Markets

While there isn't much in terms of Top 20 markets, at least they are markets where there is little or no pro competition. Iowa State may be in a decent market, but they are losing the battle for the hearts and minds of Iowans to the University of Iowa.

The secondary markets of Dallas-Ft. Worth, Houston and San Antonio are the prime reason Texas holds the balance of power in the league -- and key factors as to why we wanted nothing to do with a Big 12 Network and why the Longhorn Network is a priority.

I have a hard time imagining that this lineup will produce $130 million a year from Fox.

SEC TV Markets

Like any other corporation, conferences need to create a brand or identity. The Southeastern Conference is the gold standard of branding. They have an emotional and cultural connection with their fan base, while also creating a strong and distinctive image of who they are (the best conference in the nation) and what their product is (championships). With the help of their media partners (ABC/ESPN) they have higher perceived value than its competitors across the nation.

LOCATION, LOCATION, LOCATION

That is another strong factor in favor of the SEC. They dominate the landscape in their primary markets and while their large secondary markets (Atlanta, Orlando, New Orleans) may have a pro presence, they also have strong tradition of supporting college football. Florida may be in a very small market, but they have their own network that produces extra millions because it has strong statewide appeal in areas such as Tampa, Jacksonville, and even Miami.

ACC TV Markets

Some people have expressed disbelief that the ACC could have a better TV contract that the old Big 12 but this list is a pretty good explanation. The top markets are pro dominated, but the league's strength is in markets in the 20-40 range. College is king in those markets and they get good enough numbers in those Top 20 markets to make them a positive influence on the bottom line.

Big 10 TV Markets

Ohio State and Michigan drive the Big 10 bus, which is why the league leaders would love Rich Rodriguez succeed in Ann Arbor. Those secondary markets are the key to the quick success of the Big 10 Network. The BTN collects 70 cents per subscriber per month in states where they have a University. Those Top 25 markets turned out to have a lot of Big 10 alumni more than willing to pay the fee. The Big 10 is now distributing almost $22 million in TV revenue annually to its 11 current members. Adding Nebraska is a safe move. Omaha may only be 72nd in TV market size, but their fanbase will purchase the BTN at a much higher rate than that.

A cursory look at the TV markets in these conferences makes it easy to predict that the Big 12-2 is not a long term solution. Texas will take the opportunity to use the Big Ten Network as a template to establish the Longhorn Network, which could take 3-5 years, just in time for another round of TV talks and expansion.

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Thanks for the analyses and commentary, srr50. You’re the gold standard for me on this issue.

Too many raw and disappointed emotions amongst Longhorns fans and others at the moment for many to consider the idea that maybe, just maybe, our brass did the smart thing at this time. Short term deep breath with a possibly lesser overall product for a better shot at a future bigger. better, more lucrative position for the University of Texas.

We remain in the cat bird’s seat.

by beowulf on Jun 17, 2010 9:57 PM CDT reply actions  

5 years from now when UT has the network up and running do they go independent? The big 12 can’t contain you. At this point you’re the freakishly large peewee football player that all the other parents are concerned about. No fault of your own but most of us hate you and fear you’ll kill our kids.

I understand why you don’t want to revenue share with ISU KSU and OSU but would you be willing to split with Illinois or Oregon State or Mississippi State? As an outsider I get the impression you wouldn’t.

by Ibas water bottle on Jun 17, 2010 10:43 PM CDT reply actions  

Name Brands and Traditional Powers matter more than TV markets.

by Groundhog Day on Jun 17, 2010 11:07 PM CDT reply actions  

TV markets matter when you are selling your name brand on the dual revenue streams of cable.

by srr50 on Jun 17, 2010 11:14 PM CDT reply actions  

Have you done some sort of analysis on the Pac-10 previously? I ask because they didn’t make it onto this list.

by the technicals on Jun 17, 2010 11:32 PM CDT reply actions  

I just didn’t get to it tonight, I’m sure I will soon.

by srr50 on Jun 17, 2010 11:54 PM CDT reply actions  

Depends on the definition of TV markets. OU, ND, Neb, Tenn, etc. all disagree as they reside in states without a large city for TV markets. Quite frankly, I don’t even know what we are debating. The Big 10 just paid big bucks for a team that’s a traditional heavy weight that resides in a state of 700k.

by Groundhog Day on Jun 17, 2010 11:54 PM CDT reply actions  

SRR, I didn’t mean for that to come off as surly. I just don’t know what I’m debating.

by Groundhog Day on Jun 18, 2010 12:08 AM CDT reply actions  

Very fascinating stuff, srr. Thank you.

by Cricketslayer on Jun 18, 2010 2:10 AM CDT reply actions  

Groundhog,

Remember picking up Nebraska gets the Big 10 a Conference Championship game, so there was some desperation in getting to 12 (just like the Pac-10 has done). Nebraska seemed to be the best national bet in a rather weak pool of willing applicants. If Nebraska doesn’t return to prominence then the gamble could look foolish in 5 years, especially if the conference can’t get Texas on board and they continue to get punished in BCS games. Nebraska still has national cache but if they don’t become the Big 10 West’s big dog they might turn into another Pittsburgh or Syracuse, two once prominent programs that seem unlikely to ever return to their glory days.

by Ricky on Jun 18, 2010 6:01 AM CDT reply actions  

“College is king in those markets”

Really? College is king in the Boston market? That is complete and total nonsense. Boston College is an afterthought in Boston – the ACC’s largest TV market.

by Newy25 on Jun 18, 2010 6:27 AM CDT reply actions  

He said college is king in the 20-40 range markets.

Which is true for 3 of the 4 (not Baltimore).

by Huckleberry on Jun 18, 2010 6:34 AM CDT reply actions  

How incredibly lame. We are better off re tv markets than we were before and no worse than we would have been in a diluted PAC16.

And fuck the Big10. They have nothing to offer except a murderer’s row every year. UNL will disappear up their own assholes in the league.

by Clay Travis on Jun 18, 2010 6:39 AM CDT reply actions  

Marketing 101 says there are 2 paths to success – a great market or a great product

The SEC has been around for 75 years & as srr correctly points out, they have done a fantastic job of promoting their brand. Disagree all you want about the football being played, the perception is that the SEC is the best product on the market today.

The Big 10 took the alternate route and capitalized on TV markets/size to find success.

The new Big 12 does not have the Big 10’s market or the SEC’s product. Short-term that isn’t going to change.

by Matt Cotcher on Jun 18, 2010 9:40 AM CDT reply actions  

Srr50-

You know I love ya, but U Maryland is actually located in the close-in DC Maryland Suburbs, so DC is it’s primary market, not Baltimore. It’s a straight shot up Rhode Island Avenue in the District onto Rt. 1 into College Park.

It’s a common misperception that all things Maryland are Baltimore, a perception the legislature in Annapolis is only happy to feed.

The two most populous counties in Maryland are Montegomery and Prince George’s (PG-Holla!!!), which wrap entirely around the District. College Park is located in the North Western part of PG, about 15 minutes from my house right on the DC/Maryland line.

by Bateshorn on Jun 18, 2010 10:00 AM CDT reply actions  

Will be interesting to see the PAC -10 numbers. They are going to have some very large media markets (LA, San Diego, San Francisco, Seattle, now Denver), but that list is also probably going to be the most college football appathetic markets. Of course that probably doesn’t matter much as long as you can sell into those cable markets – all or nothing.

On a side note, I find it interesting that I currently get the Big 10 Network as part of my standard package on U-verse in San Antonio.

by Horncasting on Jun 18, 2010 10:24 AM CDT reply actions  

Look, I think one thing that you are leaving out of the analysis is the impact that name brand teams playing head-to-head have on national viewing. I’m a Texas kid that did a one year grad program at a Big-10 school, but I’m still more likely to watch a Big-10 matchup than a Big-12 matchup, simply because I at least have a “feel” for who is playing (ie, people will watch Penn State, Iowa, maybe even Wisconsin, even when they aren’t that great because of name recognition.) The same holds true for the SEC, and many of the Pac-10 games.

The Big 12-2 doesn’t have much of this. Recall, even when Mizzou and Kansas were playing good ball, they didn’t have a “name brand,” and no one wanted to watch. This is why the Big 12-2 doesn’t work. Nebraska and Colorado going down the shitter really hurt us. They had national names, and were teams that people knew. I think, in addition to those losses, the change in Tech’s coaches will probably hurt viewership, and I’ll get to that later in my post.

On average, there will be a maximum of a half a dozen or so match ups worth watching in the Big 12-2 over the course of the whole season, and on a year to year basis, only a handful of those matchups will not include Texas.

The only teams with any semblance of national recognition, and let’s face it, even Texas media market recognition, are OU, A&M and Tech. (OU because they win, A&M because they were kind of okay in the 80’s and 90’s when most current viewers were growing up, and you’re going to crucify me for this one, but Tech because of the kind of offense they run(ran?).

You simply can’t run a conference on that few interesting matchups and make TV money.

by redfoot on Jun 20, 2010 2:44 PM CDT reply actions  

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