...and then, Profit!

Damn. In about 5 years, this could get really ugly for A&M. I’m almost starting to feel bad for them!

Wow, Taylor, that’s impressive. I’ve had these thoughts ruminating at a macro “gut feel” level, but you provided the goods with the details. Good job and vaya con dios suckers!

If they embark on a ten year period of winning akin to Texas from 2000 – 2009, they’ll be just fine. If they instead average 8 – 5 or worse, it will get ugly as hell.

So the bottomline, (no pun intended), is A&M needs to win early and often in the SEC, or they become Greece?

Unfortunately, I understand this much better than Longhorn Scott’s game breakdowns. A&M is tied to the on the field success of their programs to a greater extent than UT (in the short term at least).

I’m sure a lot of the 2%’s would love to see the home schedule for 2 years be played in Houston or Dallas, but that would not do much for the spirit of Aggieland.

Just out of curiosity, what is the endowment of the Longhorn Foundation?
Thanks for a great write-up and the accompanying links.

I wish Texas would make a run at their track and field coach. Basically offer him a bundle. It is a win/win. They either lose their best coach currently or they get bled a little more. Couple of moves like that and I think you will see the aggies shut up pretty quickly.

I have been making this exact argument for the past few months. Another HUGE risk is hanging out there that also hasn’t ben factored in by most people – what if rules changes change the business models of the various conferences?

http://chronicle.com/article/NCAA-to-Consider-Sweeping/129483/

The NCAA is proposing reducing the season IN ALL SPORTS by 10%. That means one less football game per year. Will the reduction come in conference games or non-conference games? We are looking at a potential trainweck in the BCS at the end of the season if a one loss team jumps one or more undefeated teams to get into the MNC game. Will the reduction of the season and hatred of the BCS create an opening for a playoff system? If so, a requirement to win the conference to qualify for the playoff would blow up the superconference model (winning a 10 member conference title is easier than winning a 16 member conference title). Would a change in the conference model mean A&M could be left out in a redesigned SEC so that they wouldn’t have a conference and would then get shuffled into playing in a version of Conference USA with no rival, a schedule that generates no ratings and no broadcast revenue?

In short, this is one HUGE gamble being played out by our friends in Farmville. Making enemies on the way out the door isn’t a smart move. With the winds of change blowing in college sports, I would think the best thing to do is to hold off a few years and see how the landscape looks before betting the future of a school’s athletics program. Then again, we are talking about the agroids.

Wow … Loftin is like Captain Smith on the Titanic … despite the fact of the icebergs in his path (and revenue is arguably the biggest), his own hubris wouldn’t let him slow down and truly reflect on the route he was about to take.

Barring something remarkable, I can’t see a scenario where a$m doesn’t play .500 football or worse over the next several seasons, at least within the SEC, and then the icy waters will truly start to flood the SS Whoop.

For Halloween this year, I dressed up as (Bowtie) Loftin and I carried a top ten list of reasons that A%m is moving to the SEC.. They are:

10. It’s all Texas’ fault.
9. See number 10.
8. More sheep per capita than in the Big XII.
7. We get to yell SEC! SEC! at football games.
6. A&M will bask in the glory of a national title in football when LSU, Alabama, or Florida wins one again.
5. Our all-male cheerleaders, I mean “yell leaders”, will feel right at home when we visit Arkansas. It’s like “Deliverance”, but it’s real.
4. A&m will be competitive in the SEC. At least we can beat Missouri… Crap! Well, at least we can beat Vanderbilt!
3.(Moving to the SEC) was a hundred year decision that took us a few months to make and we probably won’t regret for at least a couple weeks.
2. Deloss Dodds is our daddy.
1. At least someone will appreciate our national title in “Meat Judging”

The overall response was positive. I even ran into a group of Aggies that posed for pictures with me, and they didn’t understand the reasons for the move either.

I don’t know, soliver. That info is hard to find. I don’t know of a required public IRS or SEC filing for non-profits. I saw a report saying the 12th Man Foundation endowment had dropped in recent years from $65 million to $45 million (note- these endowments take in millions each year. Some is passed to the athletic department, and some is kept to “grow” the endowment). You can take the endowment income line ($1.4 million for Texas, $1.1 million for LSU, and $0.1 million for TAMU) and make a guess.

Excellent work TTR. I know that Byrne knows these numbers backward and forward. That’s why he has been out of the public eye in this deal.

The Ags’ first road trip out of the B12 is to the Land of Unintended Consequences.

And yet, Byrne could have avoided these approaching problems had he spent more time considering the benefits of that Lone Star Network thing that DeLoss Dodds called him about. Had he gone all in, that thing very well could be up and running by now. Long story short, A&M never would have considered the SEC, because it would have at least a share of a functioning Tier 3 network, and interests even more aligned with those of the University of Texas.

Instead, the Ags were left to claim they’d somehow been blindsided, and looked for a few extra bucks where they could find them. Maybe the SEC Network blossoms and A&M comes out all right. But as you note, it’s not that easy.

That’s why Texas, Baylor, Texas Tech, and TCU have to work together and police recruiting violations. Then they must be exposed quickly and very publicly and political pressure needs to be asserted onto the NCAA for action.

Byrne is going to have to start punctuating his sentences differently:

“Our friends in the state: Capital is needed.”

That’s a whole lot to bet on winning for a program that is is a historical failure in that department.

Bob in Houston – “And yet, Byrne could have avoided these approaching problems had he spent more time considering the benefits of that Lone Star Network thing that DeLoss Dodds called him about.”

At that time no one could have known ESPN would overpay 4-5x the value for these rights. What became a quaint $2-3m annual enterprise turned into a $12-15m endeavor overnight. Texas saw the big picture and was planning on expanding its video content no matter what, even if it didn’t make a profit. As you can see from the grim economics TaylorTRoom laid out, A&M could ill-afford to speculate on ventures, especially with its mortal enemy.

It’s like a scene from Moneyball. The Yankees and Red Sox can spend $10mil on an extra left-handed bat. The A’s have to pinch pennies, utilize sabermetrics and can’t make any mistakes. Of course, A&M’s culture doesn’t provide many opportunities for cutting-edge strategies. There’s no way Byrne could have sold a joint Texas cable network even if he believed in it at the time.

It sounds as if ATM will essentially forfeit one years worth of TV revenue from the conference. I think that would be a pretty difficult hit for most schools. CU was a bit of an exception, because they weren’t making that much in the Big 12 anyway and would probably have been in the lower tier prior to equal revenue sharing. The PAC 12 deal was heaven sent for them (except for the on field results which haven’t been so promising).

But ATM was clearly in the top two or three schools in income from the big 12 and was still having difficulties funding their program. I imagine the hit will be significant, especially with the need to pay back the 16 mil they borrowed from the school .

It’s certainly a big gamble. The stadium sells out for the UT game, I’m not sure what other games sell out Tech maybe? I wonder if they can sell out games in the SEC? I doubt they will have the same amount of visitors in the stands after the first year or two.

Even so, I think it’s probably worth the gamble. They’ve essentially been second fiddle to UT since their founding with the exception of a few years of cheating in the 90’s, If they can become equal to LSU, Bama or Florida, the upside is unbelievable.

I personally think they don’t have the coaches on staff right now to make that transition, But one place where moving to the SEC will have an effect is on attracting coaches. I can see that job would be very interesting to some talented young guys. Of course the problem there is that they would have to buy out Sherm at the same time they lose the conference TV money and I’m not sure that’s realistic.

How many more years is sherm under contract?

Are they still paying Fran?

Taylor,

Thanks,

A $100k return on an endowment of $45 million is pretty weak – 0.2%, must be a lot of realized losses (Greek and Czarist Russia bonds).

The LHF endowment is probably north of $200 million.

So it will be bad if they open SEC play going 7-5. Its very possible that is how they’ll end their good bye tour in the Big 12. The year they were supposed to be going to a BCS game and possible dark horse for the NC. I guess the newness of the SEC might help them get over that.

I think I am missing something in the A&M article with Loftin. Namely, the explination on what happened between 2010 and August 2011? A&M signed up for the big12 TV contract in 2010 and nothing changed between that time and August 2011.

Don’t say the LHN changed the big12 since Loftin stated he knew our intentions at that time.

soliver, it’s possible that the 12th Man Foundation kept most of the investment income, and didn’t give it all to the TAMU AD.

Really, really good post TTR. Well done.

Yeah, obviously Loftin is full of crap. The Texas BoR are all appointed by Rick Perry, and serve at his pleasure. Texas was involved in no conference discussions without Perry’s knowledge and approval, and the same goes for the Ags.

This is the part I’ve never understood, and TTR, great job highlighting it: If you’re A&M, and it basically costs you one year of playing without TV revenue to move, where and how does that money get made up? If the SEC’s payouts were wildly higher, I’d get it. Do they anticipate making that much more if SEC restructures their Tier 1 and 2 agreements? That’s the only way I see it going up. Even a Tier 3 network isn’t likely to pay anything north of half the Tier 1 and 2 annual payouts…

Thanks for the spade-work, TTR.

But… I think you’re preaching to the choir, here. Very few readers had any doubts that the economics of the agy move were even worse than the competitional aspects. It’s nice to have confirmation, and I do understand the fascination of numbers, but the end result will be more no-win argumentation as to correctness and applicability.

Just by commenting, I’m breaking an agreement I made with myself to cease responding to any notice of aggynesses. Now I feel dirty. Pray with me that all traces of agy are erased from our consciousness… the sooner, the better. No, wait… arrggghhhh, it’s got me! I swear I meant: the quicker, the better.

“If they can become equal to LSU, Bama or Florida, the upside is unbelievable.”

That they could ever become equal to LSU, Bama or Florida is unbelievable.

TexanNick -

They’ll be renegotiated.

Lurker -

LSU and Florida are not traditional powers. Cycles come and go.

TTR -

Interesting breakdown. I hope we can afford to keep the lights on.

http://www.agsforkyle.com/

ColradoAg, that’s an interesting comment, given that the Kyle Field (see link) stadium lighted letters have been dark for 15 years due to stadium electrical issues that have yet to be addressed.

The SEC media deals are below market (Based on Pac 12 renegotiations) and will be adjusted—Mike Slive will see to that. Look for $22.5M per year, per institution a year after Team 14 becomes final.

The next phase of revenue will be the SEC Network. And your cable providers will not balk at it like they have the Longhorn Network. Probably good for another $5M per year, per institution. 2014-15 is the projected start date for that.

And God shall provide Quail and Manna…

“The next phase of revenue will be the SEC Network. And your cable providers will not balk at it like they have the Longhorn Network. Probably good for another $5M per year, per institution. 2014-15 is the projected start date for that.”

As a fomer cable rep, I can tell you that the SEC Network will enjoy many of the same carriage issues that the LHN are seeing. That the Big 10 Network had at first. The NFL Network. ESPN U and ESPN Classics, etc, etc. It’s more about money than about content for cable and satellite.

I’m not privy to what Mike Slive knows, but I’m not sure the incentive why ESPN and CBS would have to renegotiate a 15-year deal, especially if SEC Network cannibalizes what they currently get. I think SEC Network is a red herring to help SEC negotiate.

Long-term moving to the SEC is a wise-move financially because at some point it’ll rain. That being said, A&M’s financial woes do not seem like an easy-fix. Also, TCU and UH’s move into BCS conference also provides more competitors, along with LSU and Arkansas’ increased Texas footprint. This 100-year decision may resemble the Chicago Cubs last hundred years.

Dugg,

Not impossible that Henry would come to Texas, but do that you have to do three things and the third one is going to be a bitch.

1) Bubba retires and goes back to Keller or maybe moves to Jamaica since he loved to recruit there when he was at TCU.

2) Build a world class indoor track facility. A&M has one of the best if not the best indoor facilty in the country. This has allowed them to hold multiple NCAA indoor championships and that was a huge advantage for them this past year. Mike Meyer is a far better outdoor facility than what A&M has and Henry has outwardedly complained that the most successful program on the campus could not properly honor the most decorated group of athletes in the schools history by hosting their final meet at A&M because the outdoor facility is not up to the standards required by the NCAA. Henry would also have the pleasure of hosting the state meet at his home track if he came to Austin. There is just one small problem……

3) Bev Kearney………yes, the accident was tragic and her recovery remarkable. Friends I know will tell you that prior to the accident she was one of the most miserable, arrogant people to deal with and that hasn’t changed. The coach who has rebuilt the men’s distance program in Austin and helped the Horns place 3rd in a VERY STRONG conference for cross country was basically run out of Austin by Bev after he built a women’s cross country with basically no scholarships. Henry heads the Ags men’s and women’s teams and I don’t see him coming to Austin and just heading up the men especially if Bev is around. Friends have told me HATE my not be too far off base when you discuss how they feel about each other.

The tricky part on Bev is that her boss really doesn’t seem to give a damn how the Texas’ women’s coaches perform regardless of the money spent, facilities, and recruiting potential.

The best part is going to back to the old thread and reading Colorado Ag’s smack talk right before their season went into the toilet. Texas currently has a better record and is ranked higher. Not to mention we have already played our two hardest games.

I wonder what fan enthusiasm in College Station will be when they are 5-5/6-4 two weeks from now? Will they still chant SEC! SEC! SEC! ?

I have my doubts.

And I really do think their fans understand how precarious their financial situation really is.

Never understood why the Aggies threw so much money at non-revenue sports. Is your life really that pathetic that it’s worth risking your football future so you can log onto TexAgs and brag about your Women’s track, and Men’s golf programs?

Jagvocate-

You think the SEC network goes from not even being discussed to up and running in 24 months?

Um, ok.

Very informative write up TTR. It is almost like you were conversing Telephonically with some of the major players.

I’m going to say use of the word telephonically leads me to support your nerd theory.

TTR, really enjoyed this post. All in all, the Ags have made what is basically a lateral move for no reason other than pique. I hope no one in our conference plays them again in anything.

“Jagvocate-

You think the SEC network goes from not even being discussed to up and running in 24 months?"

Not only that, but it will apparently make a profit of $70 million per year.

Regarding the travel, either Loftin or Byrne estimated it at an additional $1 million per year in the SEC vs. their current travel costs in the Big 12. There’s another million dollars they have to find annually.

Tim,

Look at what Byrne did at Nebraska and you will see he did the very same thing there.

“The SEC media deals are below market (Based on Pac 12 renegotiations) and will be adjusted–Mike Slive will see to that. Look for $22.5M per year, per institution a year after Team 14 becomes final.”

Guess what, sport. Pac 12 teams were earning $8M per team last year. Talk about below market. Why was that? It was because they had signed a binding LT contract for their Tier 1 and Tier 2 rights. That SEC has done the same. If they want to up the payout, then they will have to wait until 2023/24 when their current contracts expire. ESPN will likely increase the payout on the current contract only enough to avoid dilution. They said that they would do that with the addition of A&M. Will they do the same for Missouri? Who knows. They certainly won’t do more than that.

Taylor, you forgot bat defestation expenses at Dead Dog Field.

Davey – Thanks for the response. I agree with all of what you said especially about Bev. It seems to have passed her by. I don’t even know what to say about Davis.

My thinking was just to throw some money at Henry. Even if he doesn’t go, you can make him pretty expensive for A&M and they will pay since he is giving them some measure of relevance.

Eskimo: I write that even without the ESPN “overpayment.”

If Fox had bought the rights for $3-5, A&M’s share of that (actually, possibly a little more, with more content) is still that much more than they were getting for Tier 3 (which is nothing), plus the ancillary benefits that Texas is counting on from the LHN.

What I was getting at is that having the network presence with Texas would bring the schools closer together, and much harder to split when things went crazy last year.

Raise your hand if your school has $225M+ in debt to service …

Good Stuff TTR.

How does the current SEC Network package currently fit in? Are they 3rd tier games picked up by ESPN?

Just an FYI, the $16 million is in the 3rd year of repayment of a 10 year repayment plan. The AD pays $400,000 per quarter back on the loan.

Jagvocate -

Others have already poked at how optimistic your numbers are, so I won’t repeat that. But just for the sake of argument, take your numbers and try to answer the questions that TTR poses in his post. Even optimistically, you’re looking at $7.5M/year over what you would have gotten in the Big12 (and even that assumes your Tier-3 revenue was to stay completely flat), and you haven’t even scratched the surface on (a) penalty for B12 contract breach, (b) stadium renovations, © increased coaching staff salaries or (d) increased travel costs.

All rivalry and trash-talking aside, we Texans need you guys as a vibrant and viable University option. The more detail that is revealed behind the numbers, the more concerned I am for A&M’s long-term future. Either the boosters need to step up to the tune of roughly 4x their current contribution, or you guys need some serious help from the underwear gnomes.

“If Fox had bought the rights for $3-5, A&M’s share of that (actually, possibly a little more, with more content) is still that much more than they were getting for Tier 3 (which is nothing), plus the ancillary benefits that Texas is counting on from the LHN.”

Yes, but Texas had already invested in infrastructure throughout the university for video content. A&M still didn’t have the staff or infrastructure to make it possible. They’d need to make a capital investment, then hope that someone would pick it up regionally. Then hope that it’d break even early on. And a business partner with their “friends” at the state capitol? Dodds may have been serious about this venture, but there’s no way it was happening at A&M, not now, not in 1999, not in 1939.

TTR.
 Great info. Maybe Loftin meant it’s a 100 year PAYOFF?
Understanding that we look at the future through the bias of today I just can’t see how the second best state school in Texas can continually compete & beat the powers in the SEC, especially the SEC west. From a football perspective they currently aren’t the second choice of the state of Texas’ best recruits. Being in the SEC will only attract recruits if they win big & even then they won’t be our best recruits favorite if we do our job. Thier current team’s best players are seniors so it’s probable they won’t be as strong next year. Even without knowing next year’s schedule it’s probable they suffer 5 loses in the SEC & maybe more. All this is to say they are in a very difficult financial position.

On Loftin
“Either he is a lifetime nerd tripping on the attention he’s getting from the cool kids,”
What’s the over / under on how may SEC rednecks grab him by the bowtie & tell him he’s got “a purdy mouth”? He’ll soon lose that shit eating grin.

tx2step:

There is no contract breach with the Big 12. The Big 12 HAS NO CONTRACT, only by-laws. There is an exit fee, which we are in the process of negotiating.

The increase in travel costs will not be as great as many are making it out to be.

A&M on the road in the Big 12:
Baylor – 92 miles
Austin – 107 miles
OU – 358 miles
OSU – 436
Texas Tech – 441
KSU – 659
KU – 686
Mizzou – 778
Iowa St – 949

A&M on the road in the SEC West:
LSU – 338 miles (closer than Lubbock, Norman, Stillwater, and all Big 12 North teams)
Arkansas – 512 (if played in Arlington, 187 miles)
Ole Miss – 565
Miss St – 576
Alabama – 632 (still closer than ALL Big 12 North teams)
Auburn – 754
If UF is our East ‘rival’ – 923 (still closer than Iowa State)

So the only travel “hit” we’ll take is any East teams we play on the road, which will be one game a year with a 9 game conference schedule, and we won’t have one road game a year just 90 to 100 miles up the road. That isn’t very severe. I think we’ll survive.

But you can all just “be concerned” for us. I know it’s genuine.

“Raise your hand if your school has $225M+ in debt to service …”

Is this another one of your stupid snide comments or is the intended purpose to point out that Texas is not in a good situation financially?

Because if it is, man I do not know what to tell you.

Rex Racer-

You cannot be serious. You just dismissed the difference between 90 and 500 miles like the cost difference between a bus and plane is narrow.

Don’t say the LHN changed the big12 since Loftin stated he knew our intentions at that time.

Just thinking out loud, but “we want a network” vs “ESPN is paying $300” is a big difference.

Are they still paying Fran?

As Fran is somehow now employed we shouldn’t be.

As a fomer cable rep, I can tell you that the SEC Network will enjoy many of the same carriage issues that the LHN are seeing.

To an extent, sure, but you’re kidding yourself if you don’t think there’d be a whole lot more demand for the SEC Network than the LHN is seeing. BTW, in the weeks leading up to LHN launch you might recall a whole lot of Texas fans were certain that these deals always happened at the last minute. I was called an idiot for questioning that it would happen.

Texas currently has a better record and is ranked higher. Not to mention we have already played our two hardest games.

Do you actually think Texas is a better team?

As a whole, interesting analysis. I think there’s some missing pieces, we’re already seeing increased licensing from the SEC move and in the past Former Students have given even when the team was awful so I don’t think you’ll see any sort of dramatic dropoff there. My assumption is that the numbers won’t be favorable immediately, largely due to exit fees, but that in a few years time things will even out and we’ll start to see a financial benefit. Athletic success will certainly help that.

I’d be curious to see budgetary comparisons to programs other than two of the biggest in the country. The 2010-111 numbers should also be interesting to see what the changes were after a positive football season.

I’m just wondering what Florida will say to a deal that takes away their third tier rights and shares them with Mississippi State.

By the way, Florida may not be a traditional power, like Alabama or Texas, but they certainly have all the characteristics of a power football program. Large state university located in prime recruiting grounds, in a very nice college town. ATM has two of those characteristics. I doubt they’re moving out of College Station any time soon though.

Um…so I’m really not great with Math and most of that post is chinese to me. Somebody give me the cliffnotes…

“You cannot be serious. You just dismissed the difference between 90 and 500 miles like the cost difference between a bus and plane is narrow.”

He also completely forgot about every sport except for football.

And the million dollar increase in travel is coming from the A&M administration.

I’m glad they aren’t in that “too big to fail” category.

I have several Aggy friends that are fine. In groups, however, Aggies are delusional. Accept that and it all makes sense.

Cliff Notes:
 
If A&M wins at a 8-4 to 10-2 level in the SEC consistently, this will prove a good financial move for them. If they struggle and begin to see support and revenue wither, they’re in a lot of hurt because their debt sheet looks like Bill Byrne’s tampon.

Rex Racer:

Seriously, no one is worried that the football program can pay for their travel. The issue is all your non-revenue sports. I hate to break this to you, but you’re going to be playing “more than one game a year in a nine game conference schedule.”

Basketball, baseball, softball, soccer etc.. All these sports have more extensive schedules than football and will likely travel to more than one SEC east destination each year. I have no idea how much your travel costs will increase, but it will happen.

“If A&M wins at a 8-4 to 10-2 level in the SEC consistently, this will prove a good financial move for them.”

But would it be a better move than if they’d gone in on the joint network? That is the real question.

Talk to your new friends in West Virginia about travel costs. We’ll be OK. The concern really is heartwarming though.

Texas issued bonds for the North End Zone project. The bonds were rated by the bond ratings agencies, and coupons are paid by revenues (extra seats and suites) from the project. That is different from what Byrne did- getting a pre-paid credit card from dad so he can make the house payment, and then acting surprised when dad asked him to pay it back.

Rex Racer, Waco and Austin are bus rides away from B/CS. I think there are direct flights from B/CS to Lubbock and OKC. I know there are no SEC trips you can take by bus, and most will require a bus to Houston to take a flight, followed by another bus trip. I know football (and sometimes basketball) takes charters. It’s all the other sports that will be affected.

Scipio, that’s right. I wrote the post because I keep hearing my Ag friends say the SEC move is a financial no-brainer. I think it’s risky as hell.

Seriously, no one is worried that the football program can pay for their travel. The issue is all your non-revenue sports. I hate to break this to you, but you’re going to be playing "more than one game a year in a nine game conference schedule."

Basketball, baseball, softball, soccer etc.. All these sports have more extensive schedules than football and will likely travel to more than one SEC east destination each year. I have no idea how much your travel costs will increase, but it will happen.[/quote]

Sure they will. But our revenues will increase, as well. Have fun playing West Virginia.

“To an extent, sure, but you’re kidding yourself if you don’t think there’d be a whole lot more demand for the SEC Network than the LHN is seeing. BTW, in the weeks leading up to LHN launch you might recall a whole lot of Texas fans were certain that these deals always happened at the last minute. I was called an idiot for questioning that it would happen.”

I wasn’t one of those fans who thought a deal was getting done. This isn’t the Borg (Star Trek Next Generation reference to a collective thought). There was a lot of interest in the Big 10 Network, and as a start-up they had more flexibility to carriage agreements in Big10 country. Their national roll-out corresponded with increased football games and carriage fees. It took many years and patience to get national carriage.

ESPN’s strategy is different. They already have leverage and must-have content that they will bundle with LHN. It’s a waiting game for them. While that doesn’t help UT fans this year, with Disney’s backing the LHN will get universal carriage. Make fun of LHN all you want, Texas will still cash the checks and re-invest that money into better facilities, coaches and academics.

I don’t see an SEC Network happening but I could be wrong. It would already have happened. I see it as leverage against ESPN and CBS to open up negotiations. Just as Mizzou and A&M entrance into the SEC provide leverage (and supposed tv markets).

Eventually A&M will get big-time tv dollars via the SEC, but they’re taking a risk unless Don Adams $100million really was contingent on the move to the SEC (only an aggy would hold himself hostage).

At least West Virginia road trips have moonshine.

I will say, to everyone having a good time with the turkey shoot that is Agro-Americans, beating up on ColoradoAg is the wrong way to go because that dude is funnier than you. There is plenty of low-hanging fruit elsewhere.

Eskimo, you may be correct there. Personally I think the real value for the future is in conference networks vs individual school networks. It’s hard to argue with the ESPN money, but at the same time I really don’t see the content or viewership demand for it (particularly at it’s current price). Time will tell.

You do hit on another point though, the $20m in Big 12 revenue is the renegotiated deal. The $20m for the SEC is the previous deal that has yet to be renegotiated with the addition of new schools and media markets. It’s a matter of when, not if, the SEC payout increases fairly substantially. (I realize you’re not disagreeing on this.)

Here’s hoping Adams’ checkbook is weighing him down these days.

Adding 2 more teams means that the SEC deal would have to increase by $40 million per year just to keep every team at the current level. Seems like a big increase for a contract that is fairly new.

Any chance A&M and/or Mizzou get the Utah treatment from the SEC where the “equal” revenue is phased in after a few years?

So TTR comes up with a well-reasoned post complete with real numbers and stuff and all the Ag replies are along the lines of “We’ll be fine” or “We’ll make more”? I don’t see any numbers to refute TTRs post.

Bueller? Bueller? Bueller?

"Newy25 said:

November 3rd, 2011 at 1:20 pm

Rex Racer-

You cannot be serious. You just dismissed the difference between 90 and 500 miles like the cost difference between a bus and plane is narrow."

I’m sure those are “as the crow flies” miles and not at all taking into consideration interstate highways and byways.

I said we’d be giving up ONE road game per year (in football) that is 90 miles. But we have road games in the Big 12 that are already 500+ miles. The point is, it isn’t going to break us, as this article implies.

Texas was wanting to join the Pac 10 each of the past two years. If travel was a killer, they wouldn’t have been willing to do that.

Rex Racer -

I know math is hard and all, but comparing your new SEC buddies with the closest 7 of the Big 12 is only an increase of 1521 miles (or almost 55%). I guess that isn’t a big change. (?)

“Sure they will. But our revenues will increase, as well. Have fun playing West Virginia.”

While it’s likely your TV revenues increase, all other revenue sources are tied to winning. I’d also say (based on your fight song and rituals) part of the mission of A&M is to compete and beat Texas. You now need to re-define yourselves, create opportunities to rally support and engage your members and fans.

If your finances were rosey, I’d say aggy would stand a chance of winning in the SEC. As it sits now, it does not appear you have an elite coaching staff or facilities in football. In the past 10 years, the SEC’s gauntlet and home field advantages is good for at least one more loss per year, maybe 1.5 if you go to a 9-game conference schedule. A&M will need to upgrade its coaching staff, recruiting budgets and facilities to compete in the SEC and recruit effectively (also hold off Arkansas, LSU, TCU, Houston, Tubberville at Tech and Briles at Baylor). And, you won’t be able to do that without winning. Chicken/Egg debate.

If this move is so bad, why is so much energy being spent here poo-pooing it?

Just let us wither on the vine.

If it was so good, why are you here at all?

Just let us wither on the vine.

Done deal. Now, go away.

Consider me gone.

Enjoy your home schedule next year.

I’m guessing the Ags have big money donors lined up. That’s the only way they could think about a Kyle Field refurb, I would wonder where these guys have been, as the contributions over the last 6 years have been up and down.

Or they could be selling a shitload of Aggie pillow pets.

“Rex Racer said:

November 3rd, 2011 at 2:16 pm

If this move is so bad, why is so much energy being spent here poo-pooing it?

Just let us wither on the vine."

Aggie logic. Bad ideas or decisions aren’t worth talking about

Rex Racer said: November 3rd, 2011 at 2:30 pm
[quote]If it was so good, why are you here at all?[/quote]

Consider me gone.

Enjoy your home schedule next year.
—

Will do. Enjoy your road schedule.

Rex Racer-

The reason we study and look at odd things like data and facts and do weird rituals like “analysis” is we want to always look at relevant case study to determine what action we should take in the future to ensure success.

The “why” something works or does not work is far more important than the result. If one were trying to predict the future outcome, that is. And Texas may be forced to make a conference move at some point in the future in which this kind of information is important to us. We will not make it based on macho male bravado like you just did.

Rex Racer said:
November 3rd, 2011 at 2:30 pm
[quote]If it was so good, why are you here at all?[/quote]

Consider me gone.

Enjoy your home schedule next year.

As though getting pounded by good teams at home is a more desirable option.

“If this move is so bad, why is so much energy being spent here poo-pooing it?”

I’m now convinced; the move is a great idea. Such elegance of reasoning.

Ag96 incorrectly said:
“The $20m for the SEC is the previous deal that has yet to be renegotiated with the addition of new schools and media markets. It’s a matter of when, not if, the SEC payout increases fairly substantially. (I realize you’re not disagreeing on this.)”

Wrong. Adding new schools does not negate the SEC’s current contracts. They will be negotiating with ESPN and ESPN alone. If Texas had given Fox exclusive bidding rights on the LHN, the 15 year contract would have been for $45M rather than $300M. The SEC may get a big payout, but it will be after the 2023-24 season.

Eskimo: I agree that the LSN would have been a risky venture, and that A&M was going to have to come up with cash that it probably did not have. In that respect, Byrne probably fulfilled his fiduciary duty. But if there was something worth going in the hole for, this was it.

I also agree that his distrust of all things Texas made this a shorter conversation than it should have been for him.

VaHorn: LHN deal is for 20 years.

Rex Racer, the Big 12 members have a contractual relationship which A&M is breaching. The contract anticipates that schools might leave at points of extension of the contract and considers such action damaging and hence remedied by the payment of liquidated damages. A&M is breaching between rather than at an extension and hence is not protected by the preset ld sum. How much A&M ends up paying has yet to be determined, but do not let your ignorance persist any longer in this regard: you are in breach.

Any chance A&M and/or Mizzou get the Utah treatment from the SEC where the "equal" revenue is phased in after a few years?

I suppose Mizzou is yet to be determined but it’s been stated that A&M will be a full conference member from day 1.

Wrong. Adding new schools does not negate the SEC’s current contracts. They will be negotiating with ESPN and ESPN alone. If Texas had given Fox exclusive bidding rights on the LHN, the 15 year contract would have been for $45M rather than $300M. The SEC may get a big payout, but it will be after the 2023-24 season.

Never said negate but there is a look in clause that could certainly be triggered according to things I’ve read. I have to think the SEC wouldn’t add members if it didn’t seen an increase in revenue in the cards.

So TTR comes up with a well-reasoned post complete with real numbers and stuff and all the Ag replies are along the lines of "We’ll be fine" or "We’ll make more"? I don’t see any numbers to refute TTRs post.

Bueller? Bueller? Bueller?

I don’t personally have the time nor the numbers to break down and analyze everything to be able to refute the argument.

Either way the argument looks to be “if the Aggies win they should be ok, if they lose they’re in trouble.” That all remains to be seen.

Just thinking out loud, but "we want a network" vs "ESPN is paying $300″ is a big difference.

Why?

Texas is passing along nearly half of its LHN take to the University for academics. (That is, it did not need that money for athletics.) Are you saying that only getting $3 mil to $5 mil (from Fox) would have kept A&M from leaving?

There is a Bloomberg news article from a few years ago (I’m too lazy to look for it) that details the bond issue UT floated for the stadium expansion and noted how the additional ticket revenue (after deducting debt cost) far exceeded the return Texas received on the PUF investment since the equity markets sucked in the latter part of the last decade.

What amazes me about the agroid/ SEC argument is that our farmer friends seem to think every tv set in Texas will suddenly be tuned in to watch aggie football and CBS/ Fox will pay on that basis for the rights. The addition of the Texas market to the SEC package will be valued on the market share the ags deliver. Every SEC game is already available every week in the Houston market. The ags ain’t bringing much new to the conference.

Never said negate but there is a look in clause that could certainly be triggered according to things I’ve read.

What have you read? What I’ve read says that the look-ins are designed to protect the networks, (e.g., in case of a mass exodus), not the leagues. As pointed out above, maybe the carriers even up the distribution. But they don’t have to.

Thats it in nutshell, ag96. Now, tell me what your realistic expectations are for the Aggies to be able to compete in the SEC West? If things go well for you there, we’ll just have to tip our hat and say you were right. But somehow, I really, really doubt it. Just watch Saturday and get a good look at what you up against. And its not just you, Oklahoma would have a hell of a time playing there too. This game just sucks if you lose a lot of games….just sayin. If good money and being able to chant SEC, SEC, SEC at the end of the season does it for you, fine.

If A&M is going to have such financial problems, how the hell is West Virginia ever going to make it in the Big 12? Every conference road game for them will be traveling halfway across the country. Apply the same logic to that situation.

Re: Travel costs.

The average travel distance for A&M to Big 12, which is 9 schools on that list is 500 miles
average travel distance for A&M to SEC listed by Rex Racer is 614 miles.

That’s 20% additional travel, which is 20% more gas, 20% more time, etc.

Additionally, prior to the Big 12 blowing up, A&M’s travel was mainly to Big 12 South schools. Those old Big 12 South schools were:
Baylor – 92 miles
Austin – 107 miles
OU – 358 miles
OSU – 436
Texas Tech – 441
1434 total miles, 287 average driving distance

vs your new schools:
LSU – 338 miles (closer than Lubbock, Norman, Stillwater, and all Big 12 North teams)
Arkansas – 512 (if played in Arlington, 187 miles)
Ole Miss – 565
Miss St – 576
Alabama – 632
Auburn – 754
3377 total miles, 563 average driving distance,

In other words, Aggie fans have only had to endure a more demanding travel schedule for one year. And the athletic department hasn’t fully experienced the long term effects of increased travel costs as well.

Let’s see how they feel about it in 2 years if the team’s not doing so well.

2 things. The network is under no obligation to pay the SEC more. The contract is not written that way. Most likely out-come is that they add to the contract on a per school basis, ie 20mm per for 12 members=240mm, now 20mm for 14=280mm. Remember these are public companies their obligation is to shareholders, not the SEC

SEC is considering a network. I can tell you they will have some internal issues. UK makes around 9mm and they are in no rush to share that. Bama has it’s own TV station to broadcast it games, does it need another distribution method. Florida has it’s own deal also. They will all need to have assurances that going to a network will not cost them money.

WVU will make a lot more by coming to the Big 12 than the Aggies will by leaving it. I think the current Big East payout is something like $6 million per season (though they get to renegotiate in 2013). They will get something on the order of $15 million per season by coming to the Big 12. Extra travel costs be damned if you can more than double your TV revenue.

Where to start?

Some big money former students are going to make up the shortfall in tv revenue the Ags will receive as a penalty for leaving the Big 12. That was assured before the move was made.

Texas has received money for their 3rd tier rights from IMG.

The Aggies will receive money for their 3rd tier rights from the SEC Network. I think it is a safe assumption that the network will make more money than the Big 10 Network which pays member schools approximately $11-13 million per year. That means that A&M will likely get paid more for their 3rd tier rights than Texas does for the LHN.

It is laughable the way everyone keeps making so much about a $16 million loan. The Aggies make enough of a profit to pay that off today.

You are not taking into account the fact that A&M set a record for season ticket sales this year. They will either match or extend that in the first year in the SEC in 2012. A&M will see a nice increase in revenue this year.

A&M will receive a $10 million increase in revenue each year from a re-negotiated SEC tv package.

ToddS said: November 3rd, 2011 at 4:21 pm
If A&M is going to have such financial problems, how the hell is West Virginia ever going to make it in the Big 12? Every conference road game for them will be traveling halfway across the country. Apply the same logic to that situation.

W. Virginia was fleeing a weak conference. A&M had a choice to help build this conference. Instead, A&M has chosen a tougher road, literally.

November 3rd, 2011 at 2:11 pm

Texas was wanting to join the Pac 10 each of the past two years. If travel was a killer, they wouldn’t have been willing to do that.[i]

You seem to understand something fundamental: Texas has plenty of money. Travel to the west coast was not an issue, financially.

Fyi- Nebraska budgeted an additional $1 mil/ year in extra travel costs when they moved to the Big 12.
What I don’t understand is why the ags believe they will be getting more dollars for their tv rights. No one in Texas is going to quit being a Tech, UT , Baylor or whatever fan and start watching aggie football simply because the ags are playing Ole Miss or Vandy. OU/ a&nm will always outdraw a&m Tennessee (or whichever school) in Texas because we have more Big 12 alums in Texas than SEC alums. Ags playing SEC schools will be interesting only to ags in Texas. I just don’t see the huge increase in revenues to the ags unless they obtain national prominence.

They are making a fundemental business mistake. They are basis the move on “business synergy”. A rtheory based on rosie out-comes. They are not budgeting for the event there is no re-negotiated contract or network. Simply based on hope

One could make another point. TAMU gets more bang for the buck than we do.

I must have missed all of their conference champtionships, BCS games, and MNC game appearances in the last 10 years.

Miketag, the laughable thing is that an athletic dept at a school its size needed such a loan. What a fucking embarrassment.

I don’t understand all the aggy baiting. No matter what you think your chart says, they will be better off financially over the long haul in the SEC than they would have been in the Big12 for no other reason than the Big12 is a dead man walking. Why should aggy wait for the final mad rush for the door when they can go now and get a head start on the inevitable next three SEC additions?

Good stuff TTR….. love the blog.

Flash.. I do not understand that logic and it seems to be pervasive. If TAMU is a viable commodity why would they leave now? If the Big 12 fails, the SEC will be there waiting. There could also be a big 10 offer, Pac 10, or a whole new conference. Why would you decide now, when much of the benefits are based on possible out comes, not fact

I hope the Ag’s fair better than most of us predict. I have family members who are are die-hard Ag’s, and they will be crushed is this is an idiotic move.

So let me get this straight. West Virginia will make less in the Big 12 than A&M will in the SEC, but since they will double their current revenue, they will be rolling in the dough, even though they will travel more miles than A&M will, but A&M will go bankrupt.

Okaaaay…

Related:

http://www.burntorangenation.com/2011/10/11/2475768/pundit-roundup-false-equilibrium-and-the-culture-of-equality

Comprehensive treatment and inclusion of BC’s Realignmentality.

Todd, WVU will pay a mere $5 million dollars to get out of the Big East. It will also make $9 million more a year by adding $1 million in travel. This deal works out for them even in the first year. A&M’s travel expenses are merely fuel on the fire and the added expense doesn’t really matter that much in and of itself, but it adds to the red side of the ledger and A&M may not actually see a return on the investment for some time. As miketag has noted above, they are completely relying on donors, who have been noticeably tight during all these years of financial hardship, to back fill the losses accrued by switching conferences.

ADs don’t go bankrupt, in fact most schools lose money on athletics, but its hard to compete at a high level when you don’t have the money to buy the best coaches and facilities as A&M has learned in its years in the Big 12.

Non Revenue Sports is misnamed. Revenue Deficit Sports is more like it.

ToddS -

Are you the new Aggie Rick?

I had been wondering why the urgency to keep the game with UT, when I’d hear talk about the value of revenue from that game. Hummm..now I’m beginning to see.

Just read the article + every comment. It’s quite possible that we are witnessing the most epic Munson-ing in history. And apparently, not one Aggie is remotely worried, yet; however, now that the specter of a 5-6 loss season has sobered them up, that may change.

Question: If A&M were to lose to OU, Texas, and their bowl game, could A&M afford to can Sherman? What would that do to their financial model?

The problem with relying on donors for big capital expenditures is this- if you need the money (to fire a coach and hire a new one, to start a big stadium project, to keep from having to “borrow” from the university), the donor can (and usually does) insist on being a “partner” with you on big decisions. In the past, that’s how various Ag Big Cigars drove coaching hires.

Miketag already penciling in a mega 200 million per year contract for the SEC network which would rival their tier 1 deal with CBS.

I would like to bet the under on all of miketag’s numbers…..any takers?

Don’t forget about buying players. Trent Richardson didn’t come cheap.

Maybe add a Street Agent column on the balance sheet.

Vasherized, buying players usually happens from the donor end. Instead of cleaning up the bat shit and donating nice facilities that take time to build, desperate Ag donors will likely resort to buying players when they realize their investment isn’t going to pay off with immediate success. They will be stuck with Sherman and will probably still only get 9 wins by purchasing talent. Then it will all come crumbling down because unlike the other SEC states, the other Texas schools will come down hard on cheating. The Ags aren’t going to successfully buy LA, AL, GA, FL talent out from under their new brethren.

Assuming the Big-12 wants $15 million in exit fees, plus a return of A&M’s share of the NU/CU exit fees, A&M should owe the Big-12 around $20 million or so.

In the first 2 years as a member of the SEC, A&M will be earning a total of around $8 million or so than it would have earned as part of the Big-12. So the total hit will be about $25 – $30 million.

Money wise I don’t think A&M will have a problem, as I believe they have been promised $100 million by some rich alum or alums. More than enough to make up for the financial hit associated with moving the SEC.

I don’t see how Mizzou can afford the move. Particularly since for the state of Missouri its a double whammy or having the suffer the losses from moving to the SEC, (exit fees, lower revenues in the first two years), plus the loss of the Big-12 tournament in the KC.

There is no $100 million dollar donation looming. That’s just internet rumor.

“ToddS -

Are you the new Aggie Rick?"

I don’t know who that is, nor do I care. But I love the logic that WVU is going to be okay with adding about $1 million in travel expenses, but A&M adding less than that is somehow going to break us.

Are you guys aware that UT-Austin (the school, not the athletic department) ran a $37 million deficit in FY 2011? And a $34 million deficit in FY 2010? Perhaps you should clean up your own academic side before worrying about A&M’s athletic department.

It’s all right here in the UT System Budget Summaries on page 17:
http://www.utsystem.edu/News/files/2011BudgetSummary.pdf

ToddS-

Did you just invent an argument? Did anyone here actually say West Virginia will not have higher travel costs?

The difference there is WVU will see a material TV upgrade immediately. Not projected in some deal in 2023 but in year 1.

Todd, shouldn’t you be worrying about your team and your school rather than trolling on a UT website? Your strawman arguments have now reached idiotic levels. Go troll an LSU or Bama board.

So now your school’s huge deficits are strawman arguments. I love it. Clean your own house up.

“Todd, shouldn’t you be worrying about your team and your school rather than trolling on a UT website?”

This website brought my school up. I didn’t just come over here and start crap.

Todd, here is the deal. The Athletic Department is a division of the university. Texas’ AD runs a surplus, and returns money to the university. TAMU’s AD has to scrape to avoid being bailed out by the university.

If you’re comparing ADs, what does the budget of the parent organization have to do with it?

Great article Taylor. Thanks for all of your research. For those of you who are trying to argue with Aggies using math and logic – Good Luck.

Todd, once last thing. This article isn’t criticizing A&M because they are in bad financial state right now. The article is criticizing A&M because your President is making a very risky financial move for your AD while your AD is not in good financial shape.

When you have evidence that President Powers is making a financially risky move for the University of Texas while running a deficit for 2 years, then come back and let us know. Until then take your medicine and shut your mouth.

“The difference there is WVU will see a material TV upgrade immediately. Not projected in some deal in 2023 but in year 1.”

And their exit fee will only be $5 million as opposed to the $18 million that the Big 12 has formally presented them with.

This is why the SEC move is crucial and smart for them. They will be able to generate much more in donation money, and charge more for tickets with the renewed interest intheir program. And it will flow in.

As much as we crow aobut our revenue genrating. Most of it is built on goodwill of donations. That is what puts it over th top. The LHF money we get is far in excess of what the 12th man can through preferred ticket treatment.

This move will immediately up the amounts people will pay for preferred seating. And fill their stadium.

ATM wins with this move and by comparison we will lose. Georgia coming to play in your pen is a much better sell than kansas. And Florida beats Tech. And LSU beats Ok st. and on and on. Their fans are set up for a generation of intersting football. It will only intersting for us on the rare occasions we have an undefeated opportunity and can play a big bowl game.

Scipio summarized it well in his Cliffs Notes version, and I strongly doubt that A&M consistently goes 8-4 to 10-2 in the SEC.

fear_the_cow — It will be interesting for a while. But after several beatdowns on the field, the interest and donation $ will start to wane.

“Todd, here is the deal. The Athletic Department is a division of the university. Texas’ AD runs a surplus, and returns money to the university. TAMU’s AD has to scrape to avoid being bailed out by the university.

If you’re comparing ADs, what does the budget of the parent organization have to do with it?"

I could argue it’s WORSE! UT is a state school that is tens of millions in the red the last two years at least. As a tax payer, you should care.

That sounds an awful lot like a Chewbacca defense there, ToddS.

You continue to brush off the REAL hole your school is in.

I’ll continue to brush off the imagined hole my school’s AD is in.

Deal?

Miketag, the BTN’s payout to member schools $7.9 million per school (up from $6.5 million the previous year). The BTN took two years to get up and running. IF the SEC gets a conference network going, it will be quite a while before the payouts surpass what Texas receives from the LHN.

Ag96, the look-in provision isn’t even designed to increase the payout. ESPN has said that they will increase the revenue amount to avoid dilution (that is a huge increase given that there are 13 years still to run), but not more than that.

And if that’s Slive’s intent [to ask for more money], it could make for some very interesting discussion at these “look-ins.” Because when asked to comment on the SEC’s contract in June, ESPN official Burke Magnus didn’t sound particularly open to altering the basic terms of the contract (emphasis added):

“We knew when we made a 15-year deal that time was not going to stand still so we purposely built in these look-ins,” Magnus said. “They don’t reopen the deal. There’s no outs. It’s an opportunity for both of us to really take stock of where we are and see what we could be doing better.”

“Deal?”

Will it get you and your attempts at distraction from the original subject to leave the thread? Then yeah, deal.

ToddS-

I guess I just fail to see a connection. You seem to invent tangent arguments that have little to do with the original post or any of the analysis behind it. And worse, no one disagrees with you yet you seem to feel the need to repeat your point.

In other words, you are the Aggie echeese.

ToddS -

You seem to be a little more book smart than your regular aggie. So what do you think about a “t-sip” calling the shots at your school because he’s pal$ with Gov. Rick?

Miketag -

Congrats on selling out your season tickets for the FIRST time. I’m sure that will happen again next year no matter how many second half leads you blow this year. However, if the SEC prison rape happens to you next year like some are predicting, it will be back to Byrne holding those 3rd tier type games off of TV so he can potentially fill the stadium.

After they get there ass whipped several times and have a losing recording in conference for a few years the bandwagon will flip over on its head, mark it down!

And then the Ag’s will point the finger at Texas and tell how they would be winning the B12 if they were still in our conference.

ToddS -

You suggested that the University of Texas is going broke at the rate of $37 million per year. UT’s endowment is $7.2 billion. At that rate, UT will go broke in 194 years. In the meantime, aggie football stadium is falling apart, and your administration can’t afford to fix it.

It’s 2011. The paying for talent thing in A&M’s case is a fucking reach.

We should allocated funds to have this crew consult us on how to balance an athletic budget.

Get the fuck out of here. We’re fine, you’re fine. There is enough juice to keep us all fat and giggly. If you don’t care, then fucking act like it.

Meanwhile, we’ll wait for your next AD to have the stones to schedule us. He will. Unless it is that dyke Plonksy.

Sorry. I was a beverage deep. I do like BC. I like that people care.

We’ll be passing Aggie Unicef cartons around at Thanksgiving so we can escape our inevitable doom. Be gracious. Please.

“Meanwhile, we’ll wait for your next AD to have the stones to schedule us. He will. Unless it is that dyke Plonksy.”

ColoAg — Dodds won’t schedule A&M because continuing the series will benefit A&M more than it benefits UT. No argument from me regarding Plonsky, but at least her significant other doesn’t baaa (unless you really have some inside scoop).

I like the information in this article. Personally, all it does is reinforce the notion that aggie leaving the Big XII is motivated more by personal feelings than any business decision. I don’t know that anyone, besides aggie, believed that moving to the SEC would benefit aggie’s finances or would make aggie’s sports programs more competitive. The notion that they will magically be able to recruit better because they are playing LSU and Alabama, rather than Texas or Oklahoma, is ridiculous, too. I have to admit, though, my answer to your final question was: “Who f-ing cares?”

ColoradoAg -

If you want to play Texas so badly, write Bowtie Loftin and ask him to reapply for membership in the Big 12. Texas doesn’t need A&M, and most Texas fans couldn’t care less if we never played the aggies again.

alright, Aggs will come back because they’re SEC strong. That alone is worth a 5 score disadvantage. They’re just waiting for the 4th quarter to begin their march to infamy.

can’t believe this blog isn’t going nuts after the aggy loss yesterday, hookem

You left out the part where
 SEC renegotiates all it’s contracts due to addition of Texas and st louis markets.

When Loftin commited to B12 in 2010, it had 12 members, a chance at a coferrnce network, and LHN network was small potatoes only run in Austin. All of those things changed by December.

That’s specifically why Loftin said “we commit to B12 with it’s current rules and membership.”. He knew if things changed, he would xhange his mind.

Taylor, Great article and unbiased numbers, I enjoyed it. I’d be interested in anyone’s educated guess on what SEC revamped Tier1and possible network revenue might be.

Texas saves -

Bowtie Loftin is a liar. His “commitment” to the Big 12 was based on weasel words that he never had any intention of honoring.

A&M did not leave the Big 12 because Nebraska and Colorado left.

A&M did not leave the Big 12 because of Longhorn Network – even John Sharp admits that.

A&M left because Bowtie Loftin saw an opportunity to make a measly $4 million per year more in the SEC – it’s as simple as that.

So please stop whining about how Texas drove you out of the conference. Nobody here believes your bullshit.

Here is a more simplified version of the Big 12 Conference finance picture:

http://businessofcollegesports.com/2011/03/20/whos-making-money-in-big-12-football/#more-20

The bottom line is that in the period of July 1 2009 – June 30 2010, Texas generated $95mil from its football program and spent $25 million to field the team for a net profit from football of $70million. a&m generated $42 million and spent $16.5 million on expenses.

Our friend Todd needs to wake up and understand the numbers. One reason a&m is under performing is that they haven’t shown a long term commitment to spend the money on football that the top tier programs spend. Texas sports make a ton of money. UT football is the most profitable team in college sports. In the ‘09-’10 year, the entire athletic department profit was almost $30mil, so Todd’s bullshit that the program is in trouble is FAR off base. Lets not forget that Texas is now adding LHN revenues.

What amazes me is that the average team in the SEC spends approx $20mil on its football program. The top schools spend close to $30mil. If a&m wants to compete, they have to start paying their coaches (Sherm gets $2.5mil/yr. That is less than the coach at Rutgers, Wake, Ole Miss or TCU http://www.coacheshotseat.com/SalariesContracts.htm). They will have to pay assistant coaches. They have to find a way to upgrade their stadium. They have to pay the exit fee. They have to spend about $1mil/yr (based on Nebraska’s adjustment) for additional travel. They will have to deal with be blackballed by other schools in their main recruiting ground. All that, for an additional $2mil/ year or so in additional tv revenues.

The $95mil number Texas posted lifted eyebrows all across college athletics. a&m commissioned a study to see what they needed to do to reach somewhere close to that number. They study identified the fact that outside the State of Texas they had little, if any, brand recognition. The move to the SEC was made to give the school a platform to separate itself from UT and start generating additional revenues. They wanted to copy what UT had done. Well, they did it.

If a&m was willing to spend an additional $10mil/yr on its program, it would have been able to do so in the Big 12 and arguably would have been in a position to enhance its brand. It wasn’t. They wanted to spend a middle of the pack amount ($16.5mil/yr) and they have obtained middle of the pack results. (DeRuyter gets $400k/yr and Sherm is the OC. At Texas, We spend $1.3combined on coordinators on Diaz and Harsin.

Bottom line. Todd is as much of an uninformed jackass as most agroids.

I would not define our interest in this matter as “concern”. But rather as enjoyment of yet further behavior that has made the aggy the butt of jokes for generations.

Thank God for aggy. If they did not exist we would have to invent them for entertainment purposes alone.

For decades aggy has been trying to one up Texas. Anytime UT expands DKR after years of thought and financial planning aggy rushes to expand Kyle Field with the only concern being remaining “the equal” of Texas. Cut forward fifty years and you have an aesthetic eye sore of a stadium, decrepit, physical plant on the verge of collapse, picnic chairs on the surface formerly known as the track, bleachers straight from the High School Bleacher Company catalog in one end zone, and seating plans whose sole purpose is make them smaller so that the facility “rivals” DKR in size. In Austin people come to see the nightly emergence of the bats from the Congress St Bridge. At Kyle Field people curse the smell of bat feces as they step over the guano. Kyle Field is only a first class facility if your only dictum is a sense of deja vu for torture chambers from the Spanish Inquisition.

And the vast majority of the aggy nation, ESPECIALLY those who are leading them to the promised land, fiddle while Kyle Field crumbles.

Once again we address this not from concern but breathless anticipation of how quickly your new brethren in the SEC catch on to your second class attitudes and actions.

Enjoy the ride. I promise you that we will.

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Looks like A&M won’t go broke after all. :-)

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