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Another C-USA/Belt Merger Article from Footballscoop.com


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On 5/27/2020 at 1:48 PM, GrandGreen said:

I hope ESPN is is around to honor that contract, but I certainly wouldn't bet on it. 

As long as we have sports, ESPN will definitely be around well into the future.

In just one year, (Q1 2019 - Q1 2020) ESPN+ grew their monthly membership from 1.4M subscribers to 6.6M subscribers. To date ESPN+ has a subscriber count of 7.9M, and climbing. This rapid growth is not a sign of a struggling business model.

https://www.statista.com/statistics/1054451/espn-plus-subscriber-us/

7.9M subscribers x $4.99 monthly fee = $39.4M per month in revenue, which equates to $473M per year... and climbing. And this doesn't even factor in the millions of dollars of revenue generated from corporate TV advertising sales.

Disney has wisely position ESPN+ to be the Netflix of sports entertainment and they are leading the pack by several miles. ESPN+ allows ESPN to go straight to the consumer and cut out the expensive cable company. That is a recipe for more profits, not less. 

 

 

Edited by C Rod
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22 hours ago, C Rod said:

I agree. IMO, this is the most plausible path for us to jump to the AAC. We need Tulsa to fold like a deck of cards so we can take their place. 

I don't think you'll have to wait long there. Tulsa has many, many problems.  Or, perhaps, you'd like to attend its Institute of Trauma, Adversity, and Injustice. You know, where they survey students regularly looking for "exclusionary, intimidating, offensive, and/or hostile conduct" at the university. 

Anyway, so you need Tulsa to fail.  That'll happen, but you need a few more things.  You need the MWC to hold together.  If enough schools can't keep it together, the big ones in that conference will bolt to become football-only members in the American.  In a strange twist, your moving conferences may be tied to Fresno State and New Mexico keeping it together.

Then, of course, you have to get past your own competition in CUSA to move up.

Edited by Blue Horse
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2 minutes ago, Blue Horse said:

I don't think you'll have to wait long there. Tulsa has many, many problems.  Or, perhaps, you'd like to attend its Institute of Trauma, Adversity, and Injustice. You know, where they survey  students regularly looking for "exclusionary, intimidating, offensive, and/or hostile conduct" at the university.

Tulsa has always had problems.  Rice made a whole lot of sense but UofH didn't want another school in Houston.  Tulsa is a very small private school that has no business in the current environment spending as much as the do on football.  They should be way more concerned about keeping their doors open in a post Covid world.  Average small private colleges that charge a ton of money in tuition are in big big trouble.  Tulane is similar but offers access to New Orleans and has a better academic reputation than Tulsa.  I don't see East Carolina offering a lot of value either. 

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A friend of mine is plugged into Tulsa athletics at a high level and they have no intention of going anywhere. Why would giving up $7million  per year in AAC television money for Zip in CUSA make any sense. Yes, the University as a whole needs to get back on track financially and they will. We keep asking for an invitation to a party[ACC,MWC] where we are neither wanted nor needed. It would appear to me that we can either reshuffle the deck with SBC to reduce travel expenses and hopefully create regional rivals that will generate more gate revenue, or play the long game and wait until 2025 and see what happens. I must admit that at 77 I might not make it until 2025, but that seems to be a better play if we can hang on financially. If we have less revenue[ college attendance dropping nationally] and higher expenses [ flight costs are going to skyrocket] we may be forced to do something sooner.

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13 minutes ago, wardly said:

A friend of mine is plugged into Tulsa athletics at a high level and they have no intention of going anywhere. Why would giving up $7million  per year in AAC television money for Zip in CUSA make any sense.

I will bet you infinity billion dollars that Tulsa drops football. Don't worry, I went to SMU, I'm good for it.

Seriously though, I don't think it's a matter of dropping to CUSA, but dropping football down to D2 or whatever it's called now.  

Now I did a little research into the AAC budgets.  As a private school, Tulsa does not have to release the same sort of financial records to the public that they would if they were a state school.  I've seen figures in the $40 million range for the entire athletic department, though, and I have reason to believe that's about right.  Now, football is technically a revenue sport, and sure the $7 million ever year from the conference is great, but it's just not enough.  

It's true, most schools lose money playing football and just roll with it.   It's something of a luxury as well as a means of keeping your brand relevant.  To keep things running, Tulsa provides its athletic department with a $9 million annual subsidy. The university's total deficit in 2016 was $26 million.

And all of this was pre-coronavirus.  Things will be worse in that regard.  And given the history of Tulsa as a town, I would wager that oil taking a hit will really take its toll on their boosters and school.

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Maybe you are right, although I think they would drop football rather than drop down. And even if they did the AAC could remain at 10 programs instead of 11 and play the long game , waiting 5 years to see in Big 12 implodes and they can pick up a few "left behinds."  At present we bring nothing to the table to warrant an invitation.

 

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Even if Tulsa dropped out of the AAC, which I do not anticipate, why would UNT even be on the short list of schools to replace it?  The conference already has SMU in the same metro area, and does not need the added exposure of having another school.

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56 minutes ago, MrAlien said:

Even if Tulsa dropped out of the AAC, which I do not anticipate, why would UNT even be on the short list of schools to replace it?  The conference already has SMU in the same metro area, and does not need the added exposure of having another school.

Beats me, I just hate Tulsa.

There would have to be some sort of scenario where they just had to get to 12 or even 14 (14 is better).  Twelve used to be the magic number for conferences, but some are moving beyond that now to 14.  In this scenario, for whatever reason (TV, pressure from NCAA, scheduling, conference mates wanting a bigger presence in Texas, security against a future raid by preemptively adding members), the AAC decides that's their magic number. 

It's an odd time for the American as it seems to be on the verge of losing members to budget cuts.  I think it's fair to say that such sports casualties will happen across college football.  Just for arguments sake, let's look at the budgets of CUSA schools.  Note: I recognize these might not be 100% accurate.  

ODU- $44,271,033
North Texas- $38,002,376
Charlotte- $37,919,619
FIU- $35,631,959
MT- $35,353,956
FAU- $35,275,379
UAB- $34,736,287
UEP- $32,855,303
Marshall- $30,612,153
WKU- $30,595,026
UTSA- $30,368,193
Southern Miss- $24,248,720
LA Tech- $23,672,886

The issue starts to be that SMU-North Texas isn't the only overlap.  If the conference needs five schools, and they can't take the MWC schools (which they really, really want), who do they take? First, please don't let it be UTEP.  Second, LA Tech and Southern Miss., even if they don't drop football, don't have the budgets to compete.  You guys know the problem with these schools better than I do.  North Texas appears potentially more capable of weathering the coming storm than your conference mates.  SMU may not like it, but at some point they may have to admit that North Texas is the most attractive girl at the dance because there's just no one else left and their grandfather had one of those wacky wills where they have to get married to inherit a million dollars.

And yes, I did some real mental gymnastics to make this work.  It's a lot easier for you to move up if SMU isn't there.

Edited by Blue Horse
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1 hour ago, Blue Horse said:

Beats me, I just hate Tulsa.

There would have to be some sort of scenario where they just had to get to 12 or even 14 (14 is better).  Twelve used to be the magic number for conferences, but some are moving beyond that now to 14.  In this scenario, for whatever reason (TV, pressure from NCAA, scheduling, conference mates wanting a bigger presence in Texas, security against a future raid by preemptively adding members), the AAC decides that's their magic number. 

It's an odd time for the American as it seems to be on the verge of losing members to budget cuts.  I think it's fair to say that such sports casualties will happen across college football.  Just for arguments sake, let's look at the budgets of CUSA schools.  Note: I recognize these might not be 100% accurate.  

ODU- $44,271,033
North Texas- $38,002,376
Charlotte- $37,919,619
FIU- $35,631,959
MT- $35,353,956
FAU- $35,275,379
UAB- $34,736,287
UEP- $32,855,303
Marshall- $30,612,153
WKU- $30,595,026
UTSA- $30,368,193
Southern Miss- $24,248,720
LA Tech- $23,672,886

The issue starts to be that SMU-North Texas isn't the only overlap.  If the conference needs five schools, and they can't take the MWC schools (which they really, really want), who do they take? First, please don't let it be UTEP.  Second, LA Tech and Southern Miss., even if they don't drop football, don't have the budgets to compete.  You guys know the problem with these schools better than I do.  North Texas appears potentially more capable of weathering the coming storm than your conference mates.  SMU may not like it, but at some point they may have to admit that North Texas is the most attractive girl at the dance because there's just no one else left and their grandfather had one of those wacky wills where they have to get married to inherit a million dollars.

And yes, I did some real mental gymnastics to make this work.  It's a lot easier for you to move up if SMU isn't there.

LOL I think of SMU as the rick jerk at the dance that's girlfriend leaves to date another boy

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4 hours ago, MrAlien said:

Even if Tulsa dropped out of the AAC, which I do not anticipate, why would UNT even be on the short list of schools to replace it?  The conference already has SMU in the same metro area, and does not need the added exposure of having another school.

LMAO, I'm glad you don't run UNT's marketing department. 

Here is the case I would make to AAC Commissioner, Mike Aresco.

UNT is a university on the rise. Just look at our expansion in DFW. We now have campuses in Denton, Frisco, Fort Worth, and Dallas. A Tier One research university with nearly 40,000 students makes us one of the nation's largest universities; which better positions us to survive economic downturns. (Fingers crossed)

Our facilities are top-notch and both our football and basketball teams have had success in recent years. Sure, we're not where we want to be just yet, but our improvements can't be denied. 

I know SMU likes to drape Dallas on the front of their jersey and remind us we're not the prettiest girl at the dance, but truth is, we're the one's f*cking the prom king. https://www.unt.edu/notices/unt-dallas-cowboys-partner-offer-professional-mba-cowboys-way-official-notice-president. Being a strategic partner with the most valuable football franchise in the world is a clear win and advantage over other schools from C-USA, MWC, and Sun Belt. President Neil Smatresk understands the power of the halo effect and he's using it masterfully to our advantage. 

It's no secret the AAC is moving their headquarters to Dallas. https://www.dallasnews.com/business/real-estate/2020/05/20/college-athletic-conference-finalizes-plans-for-more-to-north-texas/ Do a quick Google Maps search and you'll see their new headquarters will literally be 3 minutes down the road from the current Big 12 headquarters. This is a brilliant power move by Mr. Aresco and the AAC. If I were him, I would take it a step further and drop Tulsa and add UNT in order to lock up the DFW Metroplex. Suck on that Big 12. Let's not forget that DFW is projected to lead the nation in population growth this coming decade. The battle for the DFW Metroplex is just getting started.  https://dallas.culturemap.com/news/city-life/01-09-20-dfw-lead-population-growth-2020-2029-cushman-wakefield/ 

As AAC Commish, I would be cautious of raiding the MWC and enlarging the AAC travel footprint even further. The new landscape of college football is seeking to reduce travel costs, not add to them. This aggressive action could also open the door to the MWC gaining a strategic foothold in Texas by swooping up UTEP and UNT as replacements. Unintended consequences can be a bitch.

My last point is rivalries matter and put cheeks in seats. The annual UNT vs SMU game only grows in importance if both schools reside in the same conference/division. Why not lean into the local rivalry and pour gasoline on the bonfire? Move the annual game to the end of the season, and it takes on a whole new level of intensity and local interest. Thanksgiving game, anyone?

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10 hours ago, C Rod said:

As long as we have sports, ESPN will definitely be around well into the future.

In just one year, (Q1 2019 - Q1 2020) ESPN+ grew their monthly membership from 1.4M subscribers to 6.6M subscribers. To date ESPN+ has a subscriber count of 7.9M, and climbing. This rapid growth is not a sign of a struggling business model.

https://www.statista.com/statistics/1054451/espn-plus-subscriber-us/

7.9M subscribers x $4.99 monthly fee = $39.4M per month in revenue, which equates to $473M per year... and climbing. And this doesn't even factor in the millions of dollars of revenue generated from corporate TV advertising sales.

Disney has wisely position ESPN+ to be the Netflix of sports entertainment and they are leading the pack by several miles. ESPN+ allows ESPN to go straight to the consumer and cut out the expensive cable company. That is a recipe for more profits, not less. 

 

 

I subscribe and enjoy it. I just wish as part of the subscription you did not have to watch all of the commercials.

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2 hours ago, El Paso Eagle said:

How do you know? Maybe everything is not blasted out on social media.

The MWC could have invited anyone from Texas after TCU left, especially someone in the DFW area to fill in that market they lost. Not even an iota of interest in us...

The AAC lost UConn. Their leadership looked around at the current landscape and decided to stay at 11, because there was no one to add value, especially a team that would duplicate those DFW market.

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