(05-26-2014 06:02 PM)BRtransplant Wrote: It isn't personal, it's business. You want CUSA members to see things from an SBC prospective, which just won't happen. You want a geographic realignment because you live with the fear that UL-L,TX St, GA St, or AState will be invited to join CUSA and you're smart enough to know that that would be disastrous for the SBC. I don't blame an App St fan for feeling this way. I would too. Right now, CUSA has no presence in Arkansas or Georgia, so AState and GA St have that going for them, but any of the four mentioned SBC members would fit nicely into CUSA's footprint.
It is business.
Unfortunately, most the leadership in the G5 leagues don't realize it, but they are in the buggy whip business competing with Henry Ford.
If you look closely and carefully at what has happened with the AAC and CUSA (Sun Belt while making similar ill-advised actions, did so for different reasons) they are responding to the the lessons of the SWC, Big 8 and Big XII.
Those lessons being you have to increase geographic reach, gain large TV markets, and stop being hyper-regional.
It isn't 1994 any more. The Big XII formed when ESPN2 was 5 months old and the people in Bristol thought there was a large market for cool youth oriented niche sports. Fox had just signed the NFL to their fledgling network. CSTV (later CBS Sports) was nearly a decade away.
In 1994 the bulk of ESPN's revenue came from advertising. Two decades later, advertising is 25% of their revenue.
Remember the Big XII combined to get on ABC. How did ABC distribute the Big XII at that time? Regionally. Affiliates received one of multiple feeds based on location. The Big 8 feed went to places like Omaha, Kansas City, St. Louis, Ames, Topeka, Tulsa, Oklahoma City. The SWC feed went to Dallas, Houston, San Antonio, Tyler, etc. Combined into the Big XII there was one feed serving all those cities instead of two feeds.
Why did AAC's TV contract come in at one-third of the estimate? Their TV consultants badly misunderstood the state of the TV economy. The value in Nebraska or Texas or Clemson is more in having a product that consumers will not do without. I have satellite TV for two reasons. My wife wants HBO and I want sports. If HBO produces some loser programs when her vampire and sword fight shows play out, she won't want HBO. If I had an alternative for sports (legal) I'd dump my package with ESPN/ESPN2/FS1/CBSS/NBCS/FoxSW.
In a TV market economy AAC is worth a lot more than they are getting. In a TV ratings (ie. ad supported) economy AAC is easily worth the $6 million per they were looking for. But we are in a carriage fee economy and the number of people who no longer care if they get ESPN if AAC isn't on isn't that significant of a number.
We are already moving beyond the now traditional carriage fee economy to a digital rights model. Major League Soccer will get a 5X bump in rights next year and per my conversations with a league official, the majority of that increase is from ESPN buying the league's digital rights which they will move from the subscription based MLS Live platform to the carriage fee based ESPN3 platform.
The G5 leadership fails to understand that mimicking the P5 model they are going to lose out even more in trying to keep up with the P5.
You aren't going to beat Wal-Mart by carrying a broad inventory and trying to match them in volume. Instead whole new groups of retailers are emerging who have learned to find a niche and beat Wal-Mart on service or selection or by creating smaller stores with small selections of many products and having a store you can easily walk across and park near the front door.
Pick your niche(s) and win them.
See next post.