Conference Realignment Thread v. 2016

[Jet915]

I'm fine with adding UCONN and staying at 11 to preserve the round robin. We just need to put stipulations in the agreement, if/when they leave, we get all their NCAA tournament credits and all the TV money gets paid back.

[stever20]

I'm fine with adding UCONN and staying at 11 to preserve the round robin. We just need to put stipulations in the agreement, if/when they leave, we get all their NCAA tournament credits and all the TV money gets paid back.

The NCAA credits are automatic(that's how the system works) For instance if UConn left the AAC after this year, the AAC would still get like 3 more years of getting paid for UConn's title from 2014.

The TV money though- no chance that the Big East would demand that.

[Fieldhouse Flyer]

Look at this from a business point of view. It's a slam dunk.

I agree. A look from a business point of view necessarily entails a look at financial information – specifically, annual revenue and profit/loss.

Big East TV Contract: ($ 500 million) / (12 years) / (10 schools) = $ 4.17 million per-year, per-school

UConn's subsidizing of athletics jumps as other revenues sag – May 18, 2016

The per-year, per-school average of the television contracts for the P5 leagues runs from $14.6 million (SEC) to $20.7 million (Big Ten). The Big 12 has a per-year, per-school average of $20 million in television revenue. What the Huskies generate via television rights, less than $2 million per year, is a pittance in comparison.

The financial impact of championship basketball – April 6, 2016

Data that UConn submitted to the U.S. Department of Education shows that for the 2014-2015 academic year, UConn's men's basketball team, which has won the national title four times since 1999, cost UConn $8.6 million while it earned $9.6 million in revenue – a profit of $ 1.3 million. Expenses for the school's lower-profile football team were $ 14.2 million, which overshadowed its $ 8.3 million in revenue – a loss of $ 5.9 million.

With a 2015 Revenue of $ 9.6 million and a 2015 Profit of $ 1.3 million, UConn did not make the Forbes list of College Basketball's 20 Most Valuable Teams. Please note that in the excerpt below, I have intentionally omitted Team Values, as Forbes’ valuation methodology has not been disclosed.

College Basketball's 20 Most Valuable Teams - 2016 - Forbes - March 14, 2016

17. Dayton – 2015 Revenue: $ 12.9 million. 2015 Profit: $ 7.2 million.

19. Xavier – 2015 Revenue: $ 12.1 million. 2015 Profit: $ 6.6 million.

20. Marquette – 2015 Revenue: $ 15.3 million. 2015 Profit: $ 6.3 million.

From a business point of view, it makes no sense whatsoever for UConn to further downgrade their football program and move their basketball team to the Big East. If UConn did so, the financial gains made by their basketball team would not offset the even greater losses incurred by their football team as an ‘independent’ or FBS-conference member, which would be necessary collateral damage, as no FCS conference would accept UConn's football team without UConn’s basketball team.

Furthermore, UConn football enjoys wide-spread support from the State’s Governor, the State’s Legislators, UConn’s President, the University of Connecticut Board of Trustees, the UConn Foundation, the UConn student body, and many very wealthy donors to both the UConn Foundation and to elected State officials. Therefore, downgrading UConn’s football program in the foreseeable future is not a political possibility, no matter how logical it might be.

For those of you who might question the financial figures above, please read the entire article excerpted below:

Dayton Basketball Enters Round of Eight Beating UConn in Revenue – Bloomberg – March 28, 2014

The University of Dayton’s basketball team is flying high on the court and off, competing with -- and out earning -- powerhouses with bigger athletic programs.

Even though it spends less on its program than any other school remaining in college basketball’s national tournament, Dayton ranked eighth in profit among the 16 teams that made it to the second weekend of the National Collegiate Athletic Association tournament, according to data schools submit to the U.S. Department of Education.

Athletic Director Tim Wabler credits the school’s fans -- who contribute $3.3 million annually in required season ticket donations and have kept the program’s attendance among the country’s top 30 for the past 17 years.

Dayton, a Catholic university with an undergraduate enrolment of 8,000, brings in 84 percent more men’s basketball revenue than three-time NCAA Tournament champion University of Connecticut, with about half the expenses.

“Flyers fans have really always been there for this team,” Wabler said in a telephone interview. “In a lot of ways, with this year’s success they are being rewarded for their longstanding support.” Dayton had advanced to the round of 16 with upsets of sixth-seeded Ohio State and No. 3 Syracuse, earning congratulations on Twitter from U.S. President Barack Obama.

Basketball Revenue

Dayton’s basketball team generated $11.3 million in revenue in fiscal 2013, against $3.9 million in expenses, according to the documents on the Equity in Athletics Data Analysis website. The program has returned $2.72 in revenue for every dollar it spent on men’s basketball over the past five years, trailing only Ohio State, Arizona, North Carolina, and Louisville in college basketball’s top division.

Andrew Zimbalist, a sports economist who wrote the book “Unpaid Professionals: Commercialism and Conflict in Big-Time College Sports,” said Dayton’s location in the central U.S. -- what Wabler called “basketball country” -- as well as marketing and avid fans boost revenue. He also said the school’s lack of top-division football may help. “It concentrates attention and energy on basketball,” Zimbalist said in a telephone interview.

Fan Support

“If you’re a player at our place, you experience the same stuff that you can experience at a Syracuse in terms of the way they’re cared about and treated,” said Flyers coach Archie Miller.

Dayton requires a donation to the basketball program from anyone buying one of the roughly 6,000 season tickets in the lower portion of University of Dayton Arena. The donations amount to $3.3 million in annual revenue, according to Wabler. Combine that with the roughly $3.5 million the program receives from ticket sales, and fans getting in the door account for more than half the program’s revenue total.

“The real key for us is that there’s such a demand for arena seating that it gave us that opportunity,” Wabler said.

Corporate Sponsorships

The program also receives more than $2 million in annual corporate sponsorships at the 13,455-seat arena, according to Wabler. The school owns the arena, which includes eight suites and lounges.

Traveling Fans

Outside of Dayton, Flyers fans have a reputation among invitational tournaments as a passionate group that follows the team to away games. Dayton played in the Maui Invitational last November, and will travel to the Puerto Rico Tip-Off next season.

Program - Basketball Expenses - Basketball Revenue – Basketball Profit/Loss

Dayton - $ 3.98 million - $ 11.30 million - $ 7.32 million profit
UConn - $ 7.29 million - $ 6.15 million - $ 1.14 million loss

3-Year Average Final RPI Ranking - Team ( 2013-14 Final RPI Ranking • 2014-15 Final RPI Ranking • 2015-16 Final RPI Ranking )

29 - Dayton ( 33 • 29 • 25 )
39 - UConn ( 5 • 81 • 33 )

3-Year Average Home Game Attendance - Team ( 2013-14 Attendance • 2014-15 Attendance • 2015-16 Attendance )

12,658 - Dayton ( 12,316 • 12,718 • 12,942 )
10,411 - UConn ( 10,134 • 10,687 • 10,413 )

[Xudash]

UC getting reamed over athletic spending, and it isn't pretty:

http://www.cincinnati.com/story/opinion/contributors/2016/08/13/uc-spending-athletic-arms-race-irresponsible/88584650

[Gopher+RamFan]

MuddyWaters,

What is Dayton's media rights deal?

Thanks.

[Fieldhouse Flyer]

UC getting reamed over athletic spending, and it isn't pretty:

http://www.cincinnati.com/story/opinion/contributors/2016/08/13/uc-spending-athletic-arms-race-irresponsible/88584650

UC’s athletic program loses more than $20 million per year. This $20 million deficit is covered by taking $20 million from the academic side of UC.

The UC’s athletic department’s total debt is now $139 million.

By comparison, UConn’s athletic department lost only $17.9 million last year:

UConn's subsidizing of athletics jumps as other revenues sag – May 18, 2016

In the final year of the Big East, 2012-13, the UConn athletic department's subsidy from the university was $ 9.1 million. In the first year of the American Athletic Conference, that number jumped to $17.3 million. It was $17.9 million in 2014-15.

[DudeAnon]

UC getting reamed over athletic spending, and it isn't pretty:

http://www.cincinnati.com/story/opinion/contributors/2016/08/13/uc-spending-athletic-arms-race-irresponsible/88584650

UC’s athletic program loses more than $20 million per year. This $20 million deficit is covered by taking $20 million from the academic side of UC.

The UC’s athletic department’s total debt is now $139 million.

By comparison, UConn’s athletic department lost only $17.9 million last year:

UConn's subsidizing of athletics jumps as other revenues sag – May 18, 2016

In the final year of the Big East, 2012-13, the UConn athletic department's subsidy from the university was $ 9.1 million. In the first year of the American Athletic Conference, that number jumped to $17.3 million. It was $17.9 million in 2014-15.

They are both making a bet on big time football. If UC gets in the Big 12 then those losses turn into revenues and the bet paid off. If not, then who knows what happens in the end.

[BEX]

MuddyWaters,

What is Dayton's media rights deal?

Thanks.

Deal signed in 2012 with espn, Nbc and Cbs for 40 million over 8 yrs. or about 350k per team.

[UD Flyer Fanatic]

Makes the program's financial success and value even more impressive doesn't it. I must say I do imagine how much better our program could get with the sweet deal the BE has deservedly received. Kudos.

[stever20]

Makes the program's financial success and value even more impressive doesn't it. I must say I do imagine how much better our program could get with the sweet deal the BE has deservedly received. Kudos.

the thing with the tv deal that is huge isn't really the money. 4 million dollars isn't that huge of a deal...

but it's the exposure that kills Dayton(and the A10). they had 1 ESPN game all year long, 3 ESPN2, 3 NBCSN, and 7 on CBSSN(not including the exempt tournament-all 3 on ESPN2 or their road game that was on ESPNU). They had 11 games that weren't aired nationally- including 5 conference games. That kills the A10.