Yeah, if you're only increasing revenue by $3mil/yr per school and changing your whole brand name/legacy/image, that's a big risk. While people adapt, there is value in the name "Big 12".
Now, if you're talking about $10mil/yr per school, that's a different discussion.
On one hand, we're screwed because the only way to increase revenue is by either selling rights (i.e. name) or getting in bed with private equity. People need to realize that Private Equity is awesome for startups, but is like a cash advance for a large enterprise. They either cut costs to increase profits or they wait until the value is high and sell... at which point the "Allstate 12 Sponsored by Dr Pepper" won't get that increased value, the PE firm does.
On the other hand, we're falling further behind the big dogs far more than people realize. It isn't just the big dollar amount of the media deal, it's also going to be iterative gaps like playoff payout, etc that keep adding extra $5mil/yr here and $4mil/yr there, etc. That means that what $3mil/yr means to Iowa State is peanuts for what it means for Iowa. That means we have to do things that would normally feel gross in order to keep the gap somewhat manageable.
You now calculate another $22mil/yr out of the AD budget and bam, massive gap. You think that $22mil/yr is going to be made up by increased donors at a school like Iowa State? Think again. The P1 will be more likely to backfill. That ignores the fact that NIL is never going away - it is endorsement money that is largely beyond regulation/limitations.
The only other option is the P2 stops trying to compete with the P1 and accepts it's basically now Division 2 - which sucks too.
Now, if you're talking about $10mil/yr per school, that's a different discussion.
On one hand, we're screwed because the only way to increase revenue is by either selling rights (i.e. name) or getting in bed with private equity. People need to realize that Private Equity is awesome for startups, but is like a cash advance for a large enterprise. They either cut costs to increase profits or they wait until the value is high and sell... at which point the "Allstate 12 Sponsored by Dr Pepper" won't get that increased value, the PE firm does.
On the other hand, we're falling further behind the big dogs far more than people realize. It isn't just the big dollar amount of the media deal, it's also going to be iterative gaps like playoff payout, etc that keep adding extra $5mil/yr here and $4mil/yr there, etc. That means that what $3mil/yr means to Iowa State is peanuts for what it means for Iowa. That means we have to do things that would normally feel gross in order to keep the gap somewhat manageable.
You now calculate another $22mil/yr out of the AD budget and bam, massive gap. You think that $22mil/yr is going to be made up by increased donors at a school like Iowa State? Think again. The P1 will be more likely to backfill. That ignores the fact that NIL is never going away - it is endorsement money that is largely beyond regulation/limitations.
The only other option is the P2 stops trying to compete with the P1 and accepts it's basically now Division 2 - which sucks too.
