Realignment Megathread (All The Moves)

[Mr.G.Spot]

I don't believe he sold WOI becuase of that reason. Pomerantz, President of the BOR did that. It was his wrangling on the BOR that fated WOI. Pomerantz, and his UofI cronies, was interested in making ISU a division of UofI basically and ISU having a TV station didn't fit that mold. At that time people were wondering why ISU had a business school, but there was no talk about UofI's "engineering" school. It was a bad time in BOR history.

A lot of those conversations really did gain some traction and the politics behind them were frightening. If you look at the history, there was one person and institution that fought against us being named Iowa State University versus Iowa State College. It was the president of the University of Iowa that was against it. They are born and bred with an inferiority complex and are scared to death of the continued growth of the Iowa State brand, even to this day.

Deep down, they know their strengths lie in a liberal arts University and they see a direct conflict to have a stem-based university 2 hours away. This initiative, as directed by the Board of Regents and Pomerantz, wanted to strip Iowa State of its College of Business and the hardcore focus of research dollars and spending in the sciences. Thank goodness common sense prevailed.

As was previously stated, Iowa State stood up and said if you take the College of Business, we want all computer and science undergrad majors to be taken from Iowa and concentrated in Ames. The theory was that the state was spending too many dollars having two colleges of businesses, two computer science programs, etc.

We stood on our hind legs and the initiative died a slow death. This was the last real attempt by Iowa, the Board of Regents, and whoever else hates the rise of Iowa State to its role in the state and particularly in stem-based majors.

 

[MountainManHawk]

The 'kick out' part has logistical nightmares. It'd be more likely, they work with the SEC kingpins to create a new conference. And, even then they'll be subject to antitrust scrutiny. That said, eliminating amateur status is probably more likely. But, even that brings on a whole new high level risk. I don't think, in the remainder of my lifetime, I'll see any of those.

There is some precedent for schools being kicked out - look at Temple, who got kicked out of the Big East for failure to invest in football. But as you mentioned it would probably be too much of a logistical nightmare to make it worthwhile except in extreme cases.

A lot more likely IMO would be once the conference is 20 or 24 members is you could have the top 12 or 16 threaten to just break away and form a new conference. But my guess is once that got floated the bottom teams would just sign up for unequal revenue sharing to keep the thing together.

 

[isucy86]

Ok, now time to discuss the many million dollar question. Anyone know what our current GOR is? Is it only as long as the current media contract? Or has someone stepped outside the box and buffered the GOR on either side? Does it have provisions to be modified to evade the same principles that other GORs may be broken over (assuming FSU wins)? Are the penalties only the media ownership? As we approach the next negotiation period it'll be essential to lasso those trying to leave. Unless, of course, we have a better plan to let them to leave.

The GOR really can't be any longer than the current TV deal. It wouldn't be smart to sign a financial agreement where the financial aspects are unknown. That's why there is also an exit fee.

Not sure I would want to lasso schools that have better opportunities. ISU might be one of those schools. In the future, the Big12 as a 3rd conference should have plenty of choices from the ACC. And also grab emerging G5 programs.

 

[aauummm]

We stood on our hind legs and the initiative died a slow death. This was the last real attempt by Iowa, the Board of Regents, and whoever else hates the rise of Iowa State to its role in the state and particularly in stem-based majors.

However, the hoks continue to try to encroach on us but in a sneaky way. Like the ill-fated attempt to turn AIB into U of I Des Moines and when that failed they put a branch of their business school in downtown Des Moines. They'll never give up on trying to take us over.

**** the hoks.

 

[Cloneon]

There is some precedent for schools being kicked out - look at Temple, who got kicked out of the Big East for failure to invest in football. But as you mentioned it would probably be too much of a logistical nightmare to make it worthwhile except in extreme cases.

A lot more likely IMO would be once the conference is 20 or 24 members is you could have the top 12 or 16 threaten to just break away and form a new conference. But my guess is once that got floated the bottom teams would just sign up for unequal revenue sharing to keep the thing together.

If the B1G has that option, don't discount that as a strategy. That said, you and I are probably not 'brain trust' type material so that's probably already written into the contract to prevent it. But, who knows.

 

[Cloneon]

Or twist the knife and have unequal revenue sharing. Then it's almost like having a sub conference under the same brand.

A handful making almost NFL money and a set in line with the Big 12 and ACC

Looking at you, Rutgers

Unequal revenue sharing only works if they have somewhere else to go of higher value.

 

[isucy86]

I don’t get the idea that the bottom schools in the ACC would just agree to disband the conference.

If you are the bottom 9-10 schools, the best possible deal you could get is to have 6~ teams leave, take their 100 million buyouts, and just distribute it to the remaining members along with whatever you could negotiate from their GoR buyouts. They’d make more on that than any TV rights. Then just continue as a 9-10 team league with your ESPN contract and a massive financial windfall.

Any AÇC not destined for SEC/Big10 has a lot of reasons($), to not dissolve until they negotiate a buyout. That buyout could easily be $200-$300M per school bound for Big10/SEC.

The only part I would question is the 9-10 teams continuing with the exiting ESPN deal. IMO ESPN would allow Big12 to peel off desirable schools.

 

[KnappShack]

Unequal revenue sharing only works if they have somewhere else to go of higher value.

Keep the value of the contract the same and lay the screws to Rutgers by funneling more cash to OSU.

Easy as pie.

 

[cysmiley]

Just some perspective of TV viewership under the new conference alignments.
View attachment 115258

Yeah, 2015-2019, and we lost our two major teams that got the best time slots for TV. The ACC still has FSU and Clemson listed, who have roaming eyes and still get the good slots.

 

[SolterraCyclone]

Ok, now time to discuss the many million dollar question. Anyone know what our current GOR is? Is it only as long as the current media contract? Or has someone stepped outside the box and buffered the GOR on either side? Does it have provisions to be modified to evade the same principles that other GORs may be broken over (assuming FSU wins)? Are the penalties only the media ownership? As we approach the next negotiation period it'll be essential to lasso those trying to leave. Unless, of course, we have a better plan to let them to leave.

The costs for FSU to break the GOR are going to be astronomical, it really isn’t going to be feasible for other schools. And I give it a 0.25% chance of being feasible for FSU.

FSU is literally raising capital to be able to do it. I cannot believe they are doing that, and that is such a horrible mistake. With private equity comes a board of directors, valuation, shares of equity. The school would be giving up whatever financial gain it would get by moving conferences to private investors, all while mitigating (or giving up entirely) control of its own athletics program. They truly are idiots for even exploring that path.

 

[SCNCY]

The costs for FSU to break the GOR are going to be astronomical, it really isn’t going to be feasible for other schools. And I give it a 0.25% chance of being feasible for FSU.

FSU is literally raising capital to be able to do it. I cannot believe they are doing that, and that is such a horrible mistake. With private equity comes a board of directors, valuation, shares of equity. The school would be giving up whatever financial gain it would get by moving conferences to private investors, all while mitigating (or giving up entirely) control of its own athletics program. They truly are idiots for even exploring that path.

I think FSU is worried about falling too far behind that they won’t be able to catch up. Which is why they want to get out and join the SEC (or Big 10). Be interesting what they do, but sounds like they want to finance their buyout in order to potentially double their annual media payout in a different conference.

 

[SolterraCyclone]

I think FSU is worried about falling too far behind that they won’t be able to catch up. Which is why they want to get out and join the SEC (or Big 10). Be interesting what they do, but sounds like they want to finance their buyout in order to potentially double their annual media payout in a different conference.

Couldn’t they pursue a loan then to finance a buyout? As I understand it, they’re looking at JP Morgan for a round of funding.

 

[Acylum]

This is a heart wrenching listen. Especially if you imagine it being CW speaking to us two years ago.

 

[SEIOWA CLONE]

I think this round of expansion is over, after taking out the P12, that leaves only the ACC left to be picked over, and the only thing holding that back is their GOR which runs another 10 to 12 years. No way FSU comes up with $200 to $300 million to buy their way out of that contract, and no way the bottom teams will go along with dissolving the contact unless they are guaranteed by ESPN to be picked up by one of the other three conferences.

So, we enter another period of stability, before the final round or maybe two. Once the ACC is put out to pasture do they then end up with three leagues, the Big easy, B12 and the SEC and stay that way or is it at that point when the blue bloods decide now is the time to break away and form a new 30 to 40 team super league.

I see no way that the Ohio States/Alabama's of the world are going to be OK with the Indiana's and Rutgers getting an equal share of the pie, when the premium schools are bringing in the money.

 

[ISUTex]

I don’t know anybody who has stayed outside of a short distance from P&L.

If it was in Vegas I’d never go. Honestly Vegas is fine but it’s not a destination for me.

I wouldn't go either. We don't have to put everything in Vegas. JFC! Keep it in KC you ******* degenerates.

 

[SCNCY]

Couldn’t they pursue a loan then to finance a buyout? As I understand it, they’re looking at JP Morgan for a round of funding.

Possible a traditional loan wouldn’t want to do this kind of deal, which may be why they have to go to private equity to find private investors to do it. It’s a unique situation.

 

[alarson]

The costs for FSU to break the GOR are going to be astronomical, it really isn’t going to be feasible for other schools. And I give it a 0.25% chance of being feasible for FSU.

That's the thing that makes this all the more unlikely.

OUT could buy out of a year because it was a short timeline and it was kind of mutual at that point. The big 12 wanted to be able to move on and be free to make moves like just happened this week.

If FSU wants to negotiate a buy out, the remaining ACC members have no reason to do anything but demand maximum payout. Because not only will they be damaged, but even mid-range teams that we'd think might have options like the big 12 will still have the large exit fee and still be chained to that GOR, but now with an even worse conference.

 

[ISUTex]

Name a school that wouldn’t be hair-on-fire for getting a call to the BIG?

Point being, we all know this, so it isn’t irony.

Notre Dame. I win.

 

[exCyDing]

Wow, landing the Holiday Bowl might make all the pro-SDSU people finally give that a rest.

 

[dafarmer]

Love it that iOwa is right down there with Oregon in all categories or lower even. It looks like iOwa doesn't fit the "big 10 model" either!

We all know that without Nike money, Oregon would still be in the Pac 5.