ElDonBDon wrote:Couldn't we also add that the more members we have, the more members we have to split revenues with (eg tourney credits)?
Like you, I would like to expand if and only if we get a powerhouse program in the process (eg ND, Zags, UCONN)
I think the thought is that a 10-team league, while great as an optimal number from the perspective of scheduling, east/west balance, etc., it may not be the optimal number from a television standpoint. The arguments that I hear in favor of expansion seem to revolve around Fox needing more teams in the conference to fill up air space. Or at least, give Fox more options for broadcasting.
However, I believe that the BigXII has an awesome TV rights deal and they have 10 teams.
TV rights/revenues is far from my area of expertise, so I won't say much more, but all arguments for expansion seem to center around 'it's necessary for television'
Personally, I think we have 7 tournament caliber teams this year, potentially 8 next year (looking at you Hall). It sucks that one of them will have to finish in the bottom half of the league and not get in. Adding more teams potentially helps get those teams into the tourney. Revenue aside, that's more prestige for the league. The more schools get a better reputation, the better for those schools and the league as a whole.
That being said, I believe the revenue generated by NCAA bids is actually a really under-appreciated reason. Yes, if you add 2 teams and get 1 more bid it is easy math to say the proportion is the same, but look at it closer. Every team we get in is a greater potential for wins. The NCAA pays you per teams you get in and for wins in the tournament. Some years that team is going to be 1 and done, keeping it proportional to the league. Some years that team could go to the elite 8 and add 4 more credits to our NCAA money. It is the potential created that makes it attractive.
There is also the tv contract aspect. I'm also not an expert, but it appears that more teams will mean more revenue. Overhead is also lowered by adding teams. Take our current tv contract. $500 million for 12 years split among 10 teams (that's the number everyone is throwing around anyway). That comes to $4.17 million/team/year. Lets say our overhead for the league office is 5 million a year. That cuts our revenue per team to $3.67 M/team/year. Add 2 more teams and we get to keep $3.75 M/team/year. It's not a huge difference on paper, but maybe that extra $80,000 is an important faculty member's salary, maybe it's the budget for some new gym equipment, maybe you just save it for a rainy day. To a president working a budget, that can be very important.
This is my opinion. There are many like it, but this one is mine.
Class of '16