As I wrote earlier, the Big 12 finds itself in a bit of conflict over revenue sharing. The high-revenue schools, such as Texas, Oklahoma, Nebraska, and Texas A&M see no problem with the status quo, where half of football and non-conference basketball television money are distributed to the schools based on appearances. Up until now, it’s been an issue, but not a deal-breaker. A school such as Texas is bringing in about $1.5 million more per year under this setup, than they would if all revenues were shared equally. With the advent of the new, more lucrative, TV contract, this becomes more of an issue with the Kansas States of the world.
As I mentioned earlier, the new commissioner will have to broker a deal that will please everyone. In a perfect world, Texas, OU, and Nebraska shouldn’t have to give up revenue they have earned from having high-profile football programs. At the same time, it would cost one of these schools more money to switch conferences than they would give up through equal revenue sharing. Equal revenue sharing helps build the conference by treating all members equally, instead of as Texas, Oklahoma and Friends. It hasn’t hurt Ohio State and Michigan to help Northwestern. Ohio State now has an athletic budget of over $100,000,000. I have read that Northwestern is getting more from the new Big Ten TV deal than Notre Dame will from their exclusive deal with NBC. I don't know if that's true, but it’s pretty incredible for that to even be a possibility. By and large, the schools and alumni/population bases of the Big 12 are smaller than those of the Big Ten, therefore not commanding the same amount of money. Nonetheless, the schools of the Big 12 can work together toward solutions that benefit everyone.
There needs to be a major BCS conference in the middle of the country. Texas and OU need conference mates and true partners, not merely patsies to fill schedules in multiple sports. I'm not saying that the other ten schools are patsies in every sport. However, there is a big difference in revenue generated and spent. All-around athletic success tends to correlate with money for facilities, coaches, travel, etc. Here are some figures for athletic expenditures for 2006, from midmajority.com:
Texas: $83,600,248
Oklahoma: $64,322,580
Nebraska: $63,695,480
Texas A&M: $61,419,536
Texas Tech: $53,337,768
Kansas: $47,554,572
Colorado: $45,731,544
Missouri: $45,184,836
Oklahoma State: $44,061,812
Baylor: $36,228,960
Kansas State: $34,834,468
Iowa State: $32,541,236
I am as big of a free-market capitalist as there is out there. I hate socialism. But, when it comes to sports leagues, the NFL has proven that revenue sharing benefits everyone. In the NFL, what helps Green Bay eventually helps New York. New York doesn’t benefit from a weak franchise in Green Bay.
A league is no stronger than its weakest link.
To come: Options for conference members, in case of a breakup.
1 comment:
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