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Does The Pac-12 TV Deal Affect Likelihood Of A College Football Playoff?

The Pac-12 television contract has longstanding ramifications not just for Cal, not just for the other teams in the conference, but also the entire college football landscape. It could potentially be the next step toward what many sports fans have dreamed of--the dissolution of the creaky BCS and a playoff system being put in its place. There are plenty of hurdles to cross before we move to that particular dream scenario, but it is something that feels a little closer than it did previous to the deal.

However, there are two sides to this argument, and we definitely should explore both of them thoroughly. Thankfully, Stewart Mandel [representing the establishment, I guess] has already written the anti-playoff side in his Sports Illustrated Mailbag, so I'll fill in the blanks when it comes to the pro-playoff side after the jump.

Does the Pac-12 TV deal make it more likely, less likely, or doesn't change the probability of a college football playoff replacing the BCS?

Star-divide

Now that more of these huge TV megadeals like the Pac-12's are coming in from different conferences based largely on the popularity of college football's extremely popular regular season, how much money do you think is really being left on the table by not going to a playoff? -- Taylor Cooke, Austin, Texas

You hit the nail on the head, Taylor, and it's something I touched on in my column from last week's BCS meetings. The playoff zealots keep telling us that the schools and conferences are committing a grave injustice by refusing to pursue the hypothetical windfall that would come from a hypothetical playoff. Well, there's nothing hypothetical about the Pac-12's staggering new contracts with ESPN and Fox. According to The New York Times, the deals are worth a combined $250 million per year -- and that's before additional revenue from a forthcoming Pac-12 Network.

And you wonder why these guys talk so much about protecting the regular season?

I'm not sure if this is a case of "protecting the regular season" Stu. Are you trying to argue that these huge contracts wouldn't be possible if there was a playoff in place? Yes, the regular season contracts have been astronomical, but they're tied into the value of individual conferences. The BCS has been proven ad infinitum to be bad for universities, bad for conferences, and good for scummy executives who are taking advantage of a very peculiar system. If conferences like the Pac-12 start marketing their own self-worth (as Larry Scott has done here), then they could find the possibilities for positive financial models much much greater.

Now, it's not like these numbers would go down if college football suddenly adopted a playoff tomorrow (in most cases the contracts are locked in for 12-15 years). And some estimates do suggest that a playoff would net three to four times what the BCS contract does. But first of all, that doesn't mean each of the conferences would automatically make three to four times as much. An NCAA-sponsored tournament would require certain operating costs, would likely follow a performance-based distribution method and would be spread more evenly among all 11 conferences. And the well for TV sports properties is going to dry up at some point.

So we should base our decisions for future conflicts based on "what could be" rather than "what is". Well, let's take the "what could be" argument further. The fact that Larry Scott expanded the conference by two teams in two years could hint at further expansion toward the super-conference model. The often hinted-at "four conference, sixteen teams in each conference" model would definitely encourage a playoff system, as the best from each could be taken in.

So if you're the Big 12 or Pac-12 and you're already reasonably pleased with the sport the way it is, and now the networks are suddenly tripling and quadrupling your revenue stream the way it is -- what's your incentive for change?

Answer: There isn't one.

I'll phrase this very leading question another way. Now that the regular season makes the bulk of revenue dollars?for each college football conference, why should the be beholden to some alien organization like the BCS to bestow them their title? Why can't they go their own way and do something that's best for the conferences and the schools within them?

To put it plainly, what's the incentive for staying the same when so many more possibilities for revenue are out there? 

Answer: There isn't one.

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the current structure of 1-A means that it’s almost impossible to put together a playoff that excludes the non-AQ’s. So if you want a playoff you need to either find a way to exclude them (either by leaving NCAA or forming a much more exclusive super-1-A), or allow them meaningful access, as well as allowing them (as well as the AA’s, D2’s, D3’s etc) to take for themselves a substantial percentage of the revenue generated from the playoff.

Right now, I don’t think that the power programs have the stomach for the fallout of fully abandoning the non-AQ’s (as well as possibly a few current AQ’s). And I definitely don’t think that they have any inclination whatsoever to allow the non-AQ’s (as well as D2 D3 etc) to get their hands on the playoff money. Ever.

Therefore, a playoff is unlikely to be imminent. The only real (IMO) way that could change is if the power programs ever made the collective decision to walk. And they’re making enough money as it is that I don’t think they have the incentive. Though if the non-AQ’s keep making trouble (and the anti-BCS lawsuit is a big example of this), then things could very well change in a big way.

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by MrPacTen on May 17, 2011 10:56 AM PDT reply actions  

I guess the big question to me is this 12-15 year contract time. I think that the Pac-12 would make it more likely for a playoff. However, would the Pac-12 media rights contract make it LESS likely for a playoff?

Are they locked in for years on these media deals or can they be amended in some way if a playoff comes around?

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by TwistNHook on May 17, 2011 10:57 AM PDT reply actions  

This is the key question

And I think a playoff became more likely due to the way Larry Scott negotiated the media rights

As I understood it previously, a key, if not the key impediment to a playoff is who would hold the rights to televise the game? Who would NBC/CBS/ESPN/FOX be negotiating with? By getting each Pac-12 school to agree to transfer media rights to the conference, Scott has created a single entity who can negotiate on behalf of all participants, at least for the purposes of the regular season + conference championship game. An interesting/open question is if the same negotiating rights apply for the post-season. Since any playoff plan will perforce include the Pac-12 champion, this eliminates the previous problem of not knowing the actual champion beforehand. I have no idea how this would affect games after the first round, but I’m guessing it’d probably be easier for one entity to negotiate on behalf of twelve than for each to negotiate separately.

Off the top of my head I don’t know whether the other major conferences have similar media rights arrangements. I foresee more problems within the Big XII conference due to the independent network Texas has been allowed to create.

As Avi points out, there is tons and tons of money available. It’s just always been about how they could find a way to distribute it.

by Nashville on May 17, 2011 8:14 PM PDT up reply actions  

Great thoughts. I think one impedient to a playoff is that Texas makes SO much money by dominating its own little pond there. If they have to split up the money and distribute it more evenly, they might not like it as much.

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by TwistNHook on May 18, 2011 8:55 AM PDT up reply actions  

Super-Conferences

Since college football is now utterly obsessed with this national championshit thing, the idea of consolidating conferences in order to facilitate a playoff system is completely logical. I don’t know whether having four 16-team super conferences are any better than having eight 12-team conferences, since the superconference system will still have to have some sort of play-in component to accommodate deserving teams not in that group of 64. But nonetheless, having conference champs meet in a playoff is as elegant and simple a way to do it as there is.

Of course, this may likely result in a culling of the number of bowl games (not necessarily a bad thing), and definitely result in some bowls losing all their prestige (potentially a bad thing). But that’s just the price of doing business if the trend is to place the focus on the national champs.

For the record, I honestly prefer the old system of regional bowls and individual bowl champions and would like nothing better than to see all this national title / bcs / playoff nonsense just vanish. It seems there wasn’t much that much less honor or prestige in being Rose Bowl champs than in being National champs. But then, I know I am in a very small minority on this.

I'm thinking of having a little party down in Newport.

by SoCal Oski on May 17, 2011 11:35 AM PDT reply actions  

If it is genuinely true that in the past the focus was less on winning some national championship and more on having a good season, beating your rival, and winning a bowl game, then I kinda do like that better. Expectations are not as insane.

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by TwistNHook on May 17, 2011 11:40 AM PDT up reply actions  

Oh, if only I could transport you back three decades or more to show you a more innocent and playful time …

I'm thinking of having a little party down in Newport.

by SoCal Oski on May 17, 2011 11:43 AM PDT up reply actions  

When we lost all the time?

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by TwistNHook on May 17, 2011 11:49 AM PDT up reply actions  

Or a time when Cal was Pac-8 co-champion, had the #1 offense in the country, had a budding star QB, and had the #2 votegetter for the Heisman.

And got no bowl bid.

Keeping January 1 open. You know, just in case.

by Ohio Bear on May 17, 2011 11:51 AM PDT up reply actions  

So, basically nostalgia isn’t all its cracked up to be.

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by TwistNHook on May 17, 2011 11:56 AM PDT up reply actions  

It made the Rose Bowl that much more important.

I'm thinking of having a little party down in Newport.

by SoCal Oski on May 17, 2011 11:57 AM PDT up reply actions  

Its been a rough 50 years is what you are saying.

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by TwistNHook on May 17, 2011 1:00 PM PDT up reply actions  

Pasadena or bust!
I’ve seen too much bust.

"Our hearts shall sing and our voices ring for the dear old Blue and Gold!"

by Joe Bandsmen on May 17, 2011 3:15 PM PDT up reply actions  

I wonder if we had made the Rosebowl in 2004 if this tune might be different

Say it like Ron Burgandy signing off: "Stay Classy, Bears!"

by PlayClassyBears on May 17, 2011 4:25 PM PDT up reply actions  

PS

Mandel’s arguments just make him sound a bcs stooge.

I'm thinking of having a little party down in Newport.

by SoCal Oski on May 17, 2011 11:35 AM PDT reply actions  

2024

I was reading this article from Rivals, and if you do the math, three conferences television rights are set to expire at the same time. In 2024, the Pac-12, Big-12 (texas version), and SEC will all expire.

The ACC is set to expire in 2022, and the Big-10 in 2017. I wonder if this was a conscious effort by the networks to drive down the conference asking price during the next negotiations.

by chowder on May 17, 2011 3:19 PM PDT reply actions  

Interesting assertion. What's the basis?
I’m not sure if this is a case of “protecting the regular season” Stu. Are you trying to argue that these huge contracts wouldn’t be possible if there was a playoff in place? Yes, the regular season contracts have been astronomical, but they’re tied into the value of individual conferences. The BCS has been proven ad infinitum to be bad for universities, bad for conferences, and good for scummy executives who are taking advantage of a very peculiar system. If conferences like the Pac-12 start marketing their own self-worth (as Larry Scott has done here), then they could find the possibilities for positive financial models much much greater.

I’m not sure what is meant by the bolded passage. I infer that money is largely at issue here. But is it only about money?

Allow me to state a contrary view: the BCS is good for the universities and the conferences. Essentially, the universities and the conferences created the BCS through a series of steps intending to avoid the creation of a Division I-A college football playoff.

University presidents have wanted to avoid a playoff in Division I-A (later known as FBS). The why of this is subject to much speculation and there may be a variety of reasons why university presidents don’t want a playoff. But I think that it’s safe to say that money is at the root of this desire to keep FBS college football as it is with a bowl system. I think that university presidents fear killing off the goose that continues to lay golden eggs. Or to put it another way, and in very stark terms, they’re junkies and FBS football is the metaphorical equivalent of heroin.

Why else would dozens of Athletic Departments in NCAA Division I-A continue to run deficits in the millions each and every year to be Divisions I-A members? Why would Division I-A see its membership increase, drawing new members from Division I-AA even at the risk of losing money as FBS members? Why would FBS schools agree to ticket guarantees even if they failed to break even on participating in a bowl game?

My bottom line assertion: we continue to have a bowl system because university presidents thinks it benefits their institutions more than a playoff would. And the conferences go along with this because they cease to exist without the support of the university presidents.

by FiatSlug on May 17, 2011 8:43 PM PDT reply actions  

There's no way the the conferences and the universities will make less

If they control rights to a NCAA playoff.

It is all about the money and that’s why whether it’s a playoff or not, the BCS will be out of business sooner or later. BCS just does not have add enough value. The conferences will eventually want to control all the revenue they generate in a postseason of bowls or playoffs instead of sharing it with the BCS.

by JSML on May 17, 2011 10:11 PM PDT up reply actions  

The universities have made it abundantly clear

…that they do not want an NCAA Division I-A football playoff.

If the university presidents of the Big Six conferences (ACC, Big East, Big Ten, Big XII, Pac-12 and the SEC) plus Notre Dame wanted an NCAA Div. I-A Playoff, it would happen. But they plainly don’t want it to happen because they’ve decided to keep moving on with the BCS model.

What might change the model is if the university presidents came to the conclusion that the bowl system, and the BCS bowls in particular, were cheating them of money they could otherwise have through a playoff. If the NCAA could do the job more efficiently than the current bowl system, the BCS would cease to exist.

The bowl system also preserves tradition and builds excitement. The TV ratings numbers prove it and the money keeps flowing. An NCAA Playoff would not have any of that tradition, and would not necessarily build as much excitement. As much as fans like to gripe about the unfairness or the incomprehensibility of the BCS system, they continue to watch the games and they continue to revel in the bowl game traditions.

The recent Pac-12 contracts help to maintain the bowl game system.

by FiatSlug on May 17, 2011 11:42 PM PDT up reply actions  

I haven’t read this book, but NorCalNick reviewed a book that looked at how the BCS sucks.

    The Sugar Bowl, for instance, received $3 million in direct funding from the Louisiana state government . . . The government gravy train is so important to the Sugar Bowl that the game pays a lobbying firm in Baton Rouge to ensure its public financing. With the bowl receiving so much, then, it stands to reason that what (Alamo Bowl CEO and BCS defender Derrick) Fox considers a charitable group would reciprocate the giving. The organization brought in 34.1 million in revenue in fiscal 2007 . . . The Sugar Bowl gave nothing. Not a buck to the Hurricane Katrina reconstruction effort. Not a dime to a New Orleans after school program.

    In 2008, the Papajohns.com Bowl advertised a payout of 300,000 per team, yet required each school to sell 10,000 tickets, which cost both athletic departments 400,000 . . . For 300,000 and a pizza bowl appearance, N.C. State spend 730,000 and Rutgers spent almost 1.2 million.

    Let’s be clear on the scam that’s going on here: Lower-tier bowls exist solely because athletic directors are willing to lose their employers’ money to prop the games up. There is no bowl game without the university’s open checkbook to buy tickets they won’t sell and support other expenses. Yet the Ads have persuaded their employers to handsomely reward them for going to an even that wouldn’t exist without the school

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by TwistNHook on May 18, 2011 9:00 AM PDT up reply actions  

That's not an argument for a playoff

That’s an argument for tightening the screws on NCAA bowl certification. The NCAA is in charge of bowl certification and it’s ultimately up to the university presidents to direct the NCAA to clamp down on bad bowl committee behavior whether that’s sanctioning a specific bowl for violating the law (a la the Fiesta Bowl and John Junker) or simply using the bowl system as a siphon to feed one’s greed (see the cited example of the Sugar Bowl, in Twist’s post above).

The BCS does not exist except by the grace of the university presidents. If they say that this isn’t true, then they’re either lying or they’ve lost control of their own conferences. I’d guess that they’re lying.

by FiatSlug on May 18, 2011 11:43 AM PDT up reply actions  

I wasnt trying to say we need a playoff, but to state arguments against the BCS in general.

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by TwistNHook on May 18, 2011 1:22 PM PDT up reply actions  

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