Realignment Megathread (All The Moves)

FriendlySpartan

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According to stanfords endowment, the endowment supports athletics, including day to day operations.
I’m sure a portion of it does or is allowed to be used. Even if it’s not or is an incredibly small amount no one should be worried about Stanford athletics. 3 phone calls could fund the athletic dept for a generation.
 
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Gonzo

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According to stanfords endowment, the endowment supports athletics, including day to day operations.
Yeah all endowments probably say something like that but to actually access the funds is another story. Most of those $$$ are specifically earmarked for things not related to athletics, and a huge chunk is probably in the form of real estate and other assets. Iowa State has around a $1.9 billion endowment, but during Covid a $40 million shortfall in athletics wreaked havoc, similar to other schools. Programs were cut, employees were laid off, because of a $40-$50 million hit. That amounts to a rounding error when compared to $1.9 billion. If it were as easy as just tapping into the endowment everyone would've done it. It's just not how it works.

 

1UNI2ISU

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I’m sure a portion of it does or is allowed to be used. Even if it’s not or is an incredibly small amount no one should be worried about Stanford athletics. 3 phone calls could fund the athletic dept for a generation.
Was in a meeting with Bob Bowlsby when he was interim AD at UNI and he said he forgot how hard real fundraising is because there's no one just showing up at your office looking to write you a check like there is at Stanford.
 
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FriendlySpartan

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Yeah all endowments probably say something like that but to actually access the funds is another story. Most of those $$$ are specifically earmarked for things not related to athletics, and a huge chunk is probably in the form of real estate and other assets. Iowa State has around a $1.9 billion endowment, but during Covid a $40 million shortfall in athletics wreaked havoc, similar to other schools. Programs were cut, employees were laid off, because of a $40-$50 million hit. That amounts to a rounding error when compared to $1.9 billion. If it were as easy as just tapping into the endowment everyone would've done it. It's just not how it works.

Ehh 2-3% of a total endowment isn’t exactly insignificant considering the return they are expecting.

Also Stanford has one of the largest endowments in the world at 37bil so it’s a little different.

Endowments are a better indicator of the wealth of the alumni which is why a deficit is never a concern for a school like that
 
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isucy86

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But why would they stretch if the networks are willing to give them 40% more for what they already have?

If somebody hands me $10B, I'm not going to run around looking to add extra ways to spend it when I could keep a larger portion for myself.

I am saying:
  1. TV folks would be willing to give the Big10 let's say 30% more because of market pricing on the existing 18 team conference.
  2. Plus there are still schools among ND, ACC and Big12 that in 2030 the networks would pay to televise and be accretive to the exisitng 18 schools- another 10%.
  3. Plus a wildcard. Do deep pocketed streaming players take the 40% (#1 & #2) and make it a 50% or 60% bump?
IMO the Big10 wanted to add more schools than Oregon & Washington in 2023 and a streaming player like Amazon would have paid enough to make the existing 16 teams more than whole. However, that streaming player would have wanted equal ability to show OSU, Michigan, Penn State, USC, Oregon. But that would have reduced the number of games that FOX, CBS and NBC could televise those 5 schools. NBC & CBS didn't pay hundreds of millions annually to televise Iowa vs. Wisconsin or Michigan State vs. Minnesota.

But the money would be there, if instead of 5 elite properties (OSU, Michigan, PSU, USC and Oregon), there were 8 elite properties with ND, FSU and Clemson added. Plus a new partner might be willing to pay similar $ as NBC and CBS for a dedicated timeslot, maybe Fridays at 7pm.

I just think it's going to be easier for the Big10 to structure a deal for a 20, 22 or 24 team conference that is accretive for the existing 18 teams if they are holding a open auction for their Media Rights in 2030. But again, market forces have make that possible. There's no guarantee networks and streamers are going to be willing to pay 30% more than today.
 

Gonzo

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Ehh 2-3% of a total endowment isn’t exactly insignificant considering the return they are expecting.

Also Stanford has one of the largest endowments in the world at 37bil so it’s a little different.

Endowments are a better indicator of the wealth of the alumni which is why a deficit is never a concern for a school like that
Yeah I get that. Just saying endowments aren't like a rainy day fund or bank account that schools can just dip into whenever for whatever. Those funds are bound to very specific uses mandated by the donors.
 

FriendlySpartan

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**** all the way off with that Big Ten. I hope this is fake or nothing comes from it because that is the stupidest thing I’ve heard the conference do in a long time.

I hope the presidents come down like a hammer on this. They got pissed with the last media deal so they better stop this **** asap
 

Kinch

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I’m sure a portion of it does or is allowed to be used. Even if it’s not or is an incredibly small amount no one should be worried about Stanford athletics. 3 phone calls could fund the athletic dept for a generation.
One phone call probably .Phil Knight has recently given the endowment $1 billion, some restricted some not.
 

Kinch

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Yeah I get that. Just saying endowments aren't like a rainy day fund or bank account that schools can just dip into whenever for whatever. Those funds are bound to very specific uses mandated by the donors.
Agree. Right now, depending on what source you read between $4 billion and $10 billion is unrestricted, so the athletic department can’t depend on an unlimited spigot from the endowment, but it’s quite a big security blanket.
 

Die4Cy

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Seems like all the ranting and raving and lawsuits by FSU (and to a lesser extent Clemson) has resulted in giving them a better negotiating position, which they have now capitalized on.

We don't know the details but they get more money, and probably a "get out of jail free-ish" card in case they get picked up by the P2.

So the ranting and raving worked, for now. It all sounds very Texas-esque.
Yep.

We've seen this play out EXACTLY in our own conference. Odds are it works out about the same (although movement options have become more limited).
 
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FinalFourCy

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**** all the way off with that Big Ten. I hope this is fake or nothing comes from it because that is the stupidest thing I’ve heard the conference do in a long time.

I hope the presidents come down like a hammer on this. They got pissed with the last media deal so they better stop this **** asap

Didn’t we discuss this not even a month ago?

I’m not sure what you don’t understand.

If the BIG doesn’t use PE, PE will use Big 10 institutions (aka poach and marginalize the BIG)
 

Die4Cy

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Didn’t we discuss this not even a month ago?

I’m not sure what you don’t understand.

If the BIG doesn’t use PE, PE will use Big 10 institutions (aka poach and marginalize the BIG)
They think they can start the money race but can also tell us all when it stops apparently!
 

FinalFourCy

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They think they can start the money race but can also tell us all when it stops apparently!

If/when the P2 get in bed with PE, instead of PE doing a takeover of college athletics, it’s going to expedite the end of the P4 era
 

FriendlySpartan

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Didn’t we discuss this not even a month ago?

I’m not sure what you don’t understand.

If the BIG doesn’t use PE, PE will use Big 10 institutions (aka poach and marginalize the BIG)
Yep and I said and stand by that PE ruins everything it touches and higher education institutions shouldn’t touch this with a ten foot pole. You want to get in bed with the cancer of modern society go ahead but I pray that someone will the common sense puts a stop to this before it infects the schools I love.
 

Die4Cy

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If/when the P2 get in bed with PE, instead of PE doing a takeover of college athletics, it’s going to expedite the end of the P4 era
No doubt about it. We all bought the ticket though. So we take the ride.

The only actual way off is to get the antitrust exemption for the sport, collectively bargain with the players, and negotiate on behalf of everyone. But since that wouldn't allow for top programs to peacock by flashing a monetary advantage that proves to everyone how special they are, it doesn't get better until it gets a lot worse.
 
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cykadelic2

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I just think it's going to be easier for the Big10 to structure a deal for a 20, 22 or 24 team conference that is accretive for the existing 18 teams if they are holding a open auction for their Media Rights in 2030. But again, market forces have make that possible. There's no guarantee networks and streamers are going to be willing to pay 30% more than today.
Fox owns B10 rights well beyond 2030. The only thing expiring are the NBC and CBS sublicense deals which both got hosed on.
 

HouClone

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Look forward to the fine details of this ESPN-ACC deal. Expect it to be a deal where the schools generating the best ratings are paid more. Then we'll hear that FSU, Clemson, and Miami will be on ABC/ESPN prime slots and also against ND yearly. Then voila, end of the year, the ACC will trot out the revenue distribution calculation and FSU, Clemson, and Miami "earned" the lion share of the revenue.
 

Kinch

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Yep and I said and stand by that PE ruins everything it touches and higher education institutions shouldn’t touch this with a ten foot pole. You want to get in bed with the cancer of modern society go ahead but I pray that someone will the common sense puts a stop to this before it infects the schools I love.
THEEE Ohio state used to put academics ahead of athletics. Woody Hayes changed that.
 

Clonehomer

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Look forward to the fine details of this ESPN-ACC deal. Expect it to be a deal where the schools generating the best ratings are paid more. Then we'll hear that FSU, Clemson, and Miami will be on ABC/ESPN prime slots and also against ND yearly. Then voila, end of the year, the ACC will trot out the revenue distribution calculation and FSU, Clemson, and Miami "earned" the lion share of the revenue.

Will we ever see those details? The ACC has a history of not allowing a contract to be sent in a manner that opens it up to FOIA acts. Which is partially why they are in this mess because schools didn’t know what was being agreed to. But I’d expect that to happen again because college athletics are dumb sometimes.
 
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