The Allstate 12 Conference?
- Thread starter Poolside Knight
- Start date
Changing the name to the Allstate Big12 Conference will not cause B12 teams to fail to compete for a national championship.
On the contrary, even if it is only $2 - $3 million per year, it's $2 - $3 million we didn't have before to pay players when that goes into effect in the next year or two.
The teams in that conference know how to penetrate the backfield
Agreed. UCF is going to need 20-22 million A YEAR to pay it’s players in the not-so-distant future. That fact alone is going to separate the men from the boys in CFB. Any program that can’t afford that kind of number will be self-selecting themselves out of any top tier discussions.
Personally, I think the XII would be underselling itself for 3 mil per team. But Yormark is smart to explore all options to raise revenues. Any new money UCF can get to help offset its looming budgetary expectations down the road is a start.
That name is hard to swallow*
Hoping they don’t lock themselves in to a contract longer than 5 years. Would suck to sign for 10 years and realize you could have received a lot more in 2 years.
Pride doesn’t pay the bills. We’re already over $30 million PER YEAR behind the Big 10 and SEC. Why is FSU trying to break the “Unbreakable” GOR to leave the ACC?
Because it’ll be difficult to compete without getting closer to SEC/Big 10 $$$$. The Big 12 must continue to create and find value in order to see a significant increase in the next TV contract. If the new $$ payouts from a name change/private equity helps the Big 12 attract big name schools/markets it’ll help us get a bigger payday next TV contract.
This is a no brainer, How are we to pay the expected $22 million payout to players every year?
Because it’ll be difficult to compete without getting closer to SEC/Big 10 $$$$. The Big 12 must continue to create and find value in order to see a significant increase in the next TV contract. If the new $$ payouts from a name change/private equity helps the Big 12 attract big name schools/markets it’ll help us get a bigger payday next TV contract.
This is a no brainer, How are we to pay the expected $22 million payout to players every year?
Every sports league contract nowadays in a gamble. You want it long enough to secure some financial stability but -- as we've seen -- in today's ever-changing landscape, you don't want to lock yourselves into a bad deal either.
Problem is there is no metric to gauge what we should get in terms of revenue. Nobody has sold their conference name rights.
I trust BY will get us a good deal. I don't really care about this, I'm more concerned about the news that they may be entertaining selling a 20% stake to venture capitalists/private equity firm.
I trust BY will get us a good deal. I don't really care about this, I'm more concerned about the news that they may be entertaining selling a 20% stake to venture capitalists/private equity firm.
Yep, putting a valuation on a 20% stake in the open market has a high risk/reward.....
selling 20% of the conference is the kind of short term thinking that all the decision makers involved will agree with and then later on they're trashing the conference commish like they weren't involved in it when everyone is trying to abandon ship because of this bad deal. see larry scott and the pac 12 network (and even the acc and this long term ESPN deal). don't make long term mistakes because of a nice cash payout in the short term. always remember that private equity firms are smarter than you.
Since no one knows the details of any potential deal, no one is in a position to declare whether it is a good idea or not.
It is possible that someone with Yorkman's extensive background in this sort of thing (not to mention any advisors he uses) can put together a deal that has the potential to benefit both the B12 and the PE firm. If they can...great, if not...don't do it.
Like it or not, college sports is business. The P2 is trying to relegate both the ACC and B12 to the equivalent of G5 status. You either fight to find a way to stay relevant, or you accept your role as an irrelevant entity.
It won't cause teams not to compete. It does establish a market value for the conference, which by all accounts seems to be relatively low and the sentiment is "It's better than nothing." We'll see how everything plays out, but right now I think this is setting up for the SEC/B10 to establish a bigger gap. When we start hearing SEC/B10 being offered 5x-10x.
Right now would anyone be surprised if ACC came out and got a matching or better deal than that, nevermind the two big conferences?
No one is giving the ACC a deal until the status of FSU/Clemson/N Carolina is figured out.
The SEC and B10 don't get 5x - 10x the TV revenue as the B12, I don't see why a company would pay them 5X - 10X larger than the B12 to rename their conference. The SEC and B10 are also much more traditional. I don't anticipate them being as open to the idea of rebranding away from the SEC and B10 brands...though it is certainly possible.
I'm always in favor of whoring ... in all of it's forms . But yes the price has to be right, and what is being published does not reach that level.
I agree that college sports is big business. But I don't agree the P2 are trying to relegate the ACC and XII.
What the Big Ten and the SEC are guilt of is looking out for their own interests. Like everyone else, they are working to build up their revenue streams knowing the pricetag for playing the game at the highest level is going up 20-plus million dollars annually in the not-so-distant-future.
The future is less about further B1G/SEC expansion than it is how many programs, outside of the P2, can afford to still play. THAT is the real decider going forward for UCF and the rest of the XII--and its why Yorkman is 'thinking outside the box.' Still, its damn risky.
I am in favor for $5M+ and I think if he can make it happen he's a genius. You have to think outside the box if you're anyone other than the SEC/B10 and unfortunately it's ugly but we'd still survive another decade (is the hope).
Private Equity being involved is probably the bigger deal but both have some cause for concerns
college football is so fragmented now and it is constant chaos. Lawsuits and constant threats of blowing up Conferences.
college football is so fragmented now and it is constant chaos. Lawsuits and constant threats of blowing up Conferences.
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