Williams & Blum: Recapping a crazy 10 days

[FinalFourCy]

I did like Blum sharing some of the economic data using the COVID "no fan" year vs regular to show the true impact. I don't see a scenario where the university would pay any (given funding concerns overall for education). Would be interesting if somehow there could be greater support from Ames. Maybe some type of hotel tax type deal? Just spit balling

They should. Ames is essentially a company town in the sense it only exists in its current form because of ISU.

But unfortunately unlike in company towns, the company is not reaping the rewards from much of the commerce occurring in its town.

This is why it was long overdue to do something like CyTown. A mini company town

Cyclone fans likely spend nearly as much in going to games and tailgating as they do in tickets and concessions. Heck, they spend way more on trips to KC, bowls, and games in places like Maui/Ireland than they give to NIL, despite the latter having a far bigger impact on the university.

It’s vital the AD start to get more of that

 

[FinalFourCy]

I don't know. If you've been paying attention, we knew that the schools without a massive donor base would have to ease into all of this. Jamie saw all of this happening in 2020 when he started building CyTown - which will provide extra revenue to make up for it. Why I said on the show multiple times that maxing out as soon as possible should be the goal. It never felt like that would be realistic in year one.

Only because of too much indulgence in non-revenue activities and a lack of foresight.

They’ve been sitting on some of the more valuable commercial properties for years without public-private actions. And they’ve failed to have any successful lobbying to get things change at the State level, similar to what’s allowed at competitors

It’s estimated the revenue sharing will hit $33 million in 10 years, so we better start cutting the fat

 

[mkadl]

For anyone who wants us to voluntarily “separate” from the Big 10/SEC, take a moment to think if you want the current landscape or to be UNI/Drake.

Because that is what would happen.

I mentioned seperating because, I don't believe the current landscape is static at all and I don't want the crumbs that we are allowed to have as our postion deteriorates as this takeover continues. Thats my 2 cents.

I 100% guarantee it would hurt TV revenues at the next round of negotiations. Having "access" to the playoff, even if it's mostly symbolic, is hugely important for the Big XII's relevance. Officially being completely separate from the sport's biggest brands would destroy interest over time.

The big ten and sec need first round opponents. We saw a glimpse of the football playoffs in the NCAA basketball tourney. Few upsets. Let them ruin the game, or maybe just let it ride as it is and see where it lands. And why would the Big XII be excluded from the football playoffs? Just a conversation.

 

[ClubCy]

I mentioned seperating because, I don't believe the current landscape is static at all and I don't want the crumbs that we are allowed to have as our postion deteriorates as this takeover continues. Thats my 2 cents.


The big ten and sec need first round opponents. We saw a glimpse of the football playoffs in the NCAA basketball tourney. Few upsets. Let them ruin the game, or maybe just let it ride as it is and see where it lands. And why would the Big XII be excluded from the football playoffs? Just a conversation.

Before going further I guess I would have to genuinely ask to you and others what does a voluntary separation look like?

Is it ACC and Big 12 together? Is it individual schools choice? Is it anyone outside of the top 20 brands, which won’t happen, even the Minnesota’s of the world would never walk away from that money.

 

[cycloneworld]

I don't know. If you've been paying attention, we knew that the schools without a massive donor base would have to ease into all of this. Jamie saw all of this happening in 2020 when he started building CyTown - which will provide extra revenue to make up for it. Why I said on the show multiple times that maxing out as soon as possible should be the goal. It never felt like that would be realistic in year one.

By all accounts, we have ~$115 million total revenue. Carving out $20 million (which might be $15 million if WeWill can still kick in $5 million) should be doable sooner rather than later, right? While no business likes cutting costs by 15%, seems like a must-do, even if those cuts are painful.

If we aren’t going to cut, it’s going to be a long process to get an extra $20 mil purely from revenue growth…

Not downplaying the significance of finding the $20 mil somewhere but seems like it should be #1 priority because without it, it will be hard to be competitive and retain coaches.

 

[NWICY]

How does Women's T&F/XC have that much additional revenue vs. Men's T&F/XC?

Only Fans earnings. The true NIL.

 

[mkadl]

Before going further I guess I would have to genuinely ask to you and others what does a voluntary separation look like?

Is it ACC and Big 12 together? Is it individual schools choice? Is it anyone outside of the top 20 brands, which won’t happen, even the Minnesota’s of the world would never walk away from that money.

We need to word it correctly. The big 10 and sec already left. Everyone else is still here.

 

[CycloneSpinning]

I did like Blum sharing some of the economic data using the COVID "no fan" year vs regular to show the true impact. I don't see a scenario where the university would pay any (given funding concerns overall for education). Would be interesting if somehow there could be greater support from Ames. Maybe some type of hotel tax type deal? Just spit balling

I’m not saying we can’t entertain some of these ideas, but it’s crazy how far we are willing to go to find money to pay 18-22 year olds to play basketball and football.

 

[CloneJD]

You can win recruits when you have a great culture even if your facilities maybe aren’t as nice. That doesn’t work anymore when you are paying them 66 cents on the dollar.

 

[NATEizKING]

Even if we don't max out for a couple years, won't we be a lot closer than we were this year to the top in terms of payment? KU, KSU, BYU, TTU, AZ, BU basketball probably all had 1 player that cost more than our whole roster. We'll be a lot closer in pay even if we only get to something like $15 mil.

 

[Cyclonsin]

We need to word it correctly. The big 10 and sec already left. Everyone else is still here.

I think I understand now. When I read you say...

Let the big ten and sec play with themselves. If they want to play out of those two conferences they have to make the game a buy in game including expenses. Tell them to take their toys and go away. I believe all the other schools would make do. Would it make BIG XII TV revenues go down? I doubt it.

...I assumed you meant separate even further from them and, essentially, form our own level of CFB (presumably with the ACC and G5 schools) with our own separate playoff. Which would be devastating, IMO.

But if what you mean is we don't play them in OOC football games, it's suspected the P2 already wants that and is moving towards that on their own. We don't have an ounce of leverage, unfortunately. We either play their game by their rules, or we become completely irrelevant.

 

[werdnamanhill]

You can win recruits when you have a great culture even if your facilities maybe aren’t as nice. That doesn’t work anymore when you are paying them 66 cents on the dollar.

This is the problem...I just can't comprehend how schools with less revenue can make it work and we can't. It shows a commitment to maintaining mostly normality in how the athletic department operates. Which is not what this situation calls for. In for a rude awakening if we truly are "not close" next year

 

[VeloClone]

This is helpful. So seems the answer there is to either cut M&W TF or volleyball + wrestling. Either would save about $4M.

About a $500K difference in favor of the latter. But those sports mean more at ISU so may be better to keep them.

EDIT: I only looked at cutting one men’s and one women’s sport here to satisfy Title IX regulations and maintain the minimum number of sports needed

Cutting M&W T&F is not cutting two sports it is cutting 6 - M&W Cross Country, Indoor Track, Outdoor Track.

 

[CapnCy]

They should. Ames is essentially a company town in the sense it only exists in its current form because of ISU.

But unfortunately unlike in company towns, the company is not reaping the rewards from much of the commerce occurring in its town.

This is why it was long overdue to do something like CyTown. A mini company town

Cyclone fans likely spend nearly as much in going to games and tailgating as they do in tickets and concessions. Heck, they spend way more on trips to KC, bowls, and games in places like Maui/Ireland than they give to NIL, despite the latter having a far bigger impact on the university.

It’s vital the AD start to get more of that

You know, that's an interesting thought. As we know, years ago it was about "who travels to bowls?" as a deciding factor for some good bowls, etc. And of course our fans are known to "show up" to places like that, Maui, etc. But it would be interesting if there was a "hey fans, this year, instead of going to the pre-season tourney in vegas (unless you already live near).....give half of what you would have spent to the department for our budget.

But 100% on point that CyTown will at least directly bring back revenue to ISU vs generate soley for others.

 

[ZorkClone]

You know, that's an interesting thought. As we know, years ago it was about "who travels to bowls?" as a deciding factor for some good bowls, etc. And of course our fans are known to "show up" to places like that, Maui, etc. But it would be interesting if there was a "hey fans, this year, instead of going to the pre-season tourney in vegas (unless you already live near).....give half of what you would have spent to the department for our budget.

But 100% on point that CyTown will at least directly bring back revenue to ISU vs generate soley for others.

IMO This would be a horrible selling point on its own. "Give half of what you would spend on a vacation to us and in return you get to not go on vacation!" The AD would need to pair that message with being open about making big cuts and showing that they are doing everything to max out that revenue sharing.

 

[Cyclone06]

$21M of additional annual expense funded by fans/donors only. If you are wondering why ISU cannot max out, it is because fans are seemingly, and were already prior to NIL, maxed out. Of all those involved in college sports, the universities, administrators, coaches, fans/donors, and media partners, any additional funding for NIL has come from one source, fans/donors.

I'm sure there will be some fluff response regarding coaches taking less in favor of NIL funding, puff puff gas light, but it the the grand scheme of $21M... Id wager coaches collectively have chipped in no more than 3% of the max out.

So if you are concerned about not maxing out, just blame yourself because joe fan is the only way to get there.

 

[isu81]

$21M of additional annual expense funded by fans/donors only. If you are wondering why ISU cannot max out, it is because fans are seemingly, and were already prior to NIL, maxed out. Of all those involved in college sports, the universities, administrators, coaches, fans/donors, and media partners, any additional funding for NIL has come from one source, fans/donors.

I'm sure there will be some fluff response regarding coaches taking less in favor of NIL funding, puff puff gas light, but it the the grand scheme of $21M... Id wager coaches collectively have chipped in no more than 3% of the max out.

So if you are concerned about not maxing out, just blame yourself because joe fan is the only way to get there.

I think television revenue increases may have something to say about this.

 

[CloneJD]

So if you are concerned about not maxing out, just blame yourself because joe fan is the only way to get there.

Not buying it. With $122M in revenue it’s a choice not to max out.

 

[OscarBerkshire]

Revenue just isn't a solvable problem in the short term, and if we can't max out we are sincerely cooked. I think cutting sports is a real discussion unfortunately. And wrestling will not be on the chopping block despite its cost, imo. It is one of the few sports where we have true history.

 

[Cyclone06]

I think television revenue increases may have something to say about this.

The TV contracts were happening prior to NIL, there has been no increases because NIL has arrived and I find it hard to believe media partners will just fork over more because "oh you pay the players now?" There is only one source for new money.