SMU does have one angle to get in the Big XII
Posted: Fri Jul 22, 2016 9:56 amMost of the commentary on the Group of 5 schools trying to be chosen for the Big XII has focused on Boren's comment about reaching out to schools about "what proposals they might make" and figured that "proposals" just meant their pitch as to why their teams, academics, fan base, TV market etc are the best available.
But what if "proposals" really means proposals for how little money they will accept for how many years? We all know TCU and West Virginia took reduced shares for years (they only get full shares around now, I believe). We also know that the Big XII TV contract goes through 2025, and *requires* their broadcast partners to pay an additional $23MM/year for each school added--the "pro rata" clause that's talked about here:
http://www.cbssports.com/college-footba ... expanding/
Now, that article and most like it still assume that entering schools will get that $23MM pro rata share. I think that may be an erroneous assumption. It's more likely to me that the Big XII is really asking applicants, how little will you take for how long? And if SMU is willing to be an outlier in terms of low bids, maybe it can get in, because the current members will profit more from paying SMU $10MM/year and splitting the rest than they will paying BYU the full $23MM/year.
See this article about the ACC Network for how I stumbled onto this idea:
http://www.usatoday.com/story/sports/nc ... /87413384/
Key quote: "It’s not a coincidence that the Big 12’s expansion plan is transparently a short-term cash grab. The league essentially asked wanna-be members to submit their best proposal – meaning in part, 'How little would it take for you to join us?' The Big 12’s TV deals stipulate a pro rata rights fee increase with each new member. It’s why there’s a push to add not just two but four schools (and hey, why stop there?). New members would get only partial shares for several years, while the 10 current members would divide some percentage of that extra money."
But what if "proposals" really means proposals for how little money they will accept for how many years? We all know TCU and West Virginia took reduced shares for years (they only get full shares around now, I believe). We also know that the Big XII TV contract goes through 2025, and *requires* their broadcast partners to pay an additional $23MM/year for each school added--the "pro rata" clause that's talked about here:
http://www.cbssports.com/college-footba ... expanding/
Now, that article and most like it still assume that entering schools will get that $23MM pro rata share. I think that may be an erroneous assumption. It's more likely to me that the Big XII is really asking applicants, how little will you take for how long? And if SMU is willing to be an outlier in terms of low bids, maybe it can get in, because the current members will profit more from paying SMU $10MM/year and splitting the rest than they will paying BYU the full $23MM/year.
See this article about the ACC Network for how I stumbled onto this idea:
http://www.usatoday.com/story/sports/nc ... /87413384/
Key quote: "It’s not a coincidence that the Big 12’s expansion plan is transparently a short-term cash grab. The league essentially asked wanna-be members to submit their best proposal – meaning in part, 'How little would it take for you to join us?' The Big 12’s TV deals stipulate a pro rata rights fee increase with each new member. It’s why there’s a push to add not just two but four schools (and hey, why stop there?). New members would get only partial shares for several years, while the 10 current members would divide some percentage of that extra money."
