Why Texas and Oklahoma wish to transfer to the SEC? Follow the cash

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Why Texas and Oklahoma want to move to the SEC? Follow the money

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Oklahoma Sooners pass receiver Theo Wease (10) captures a pass over Florida Gators protective back Jaydon Hill (23) throughout the Goodyear Cotton Bowl video game in between the Oklahoma Sooners and the Florida Gators on December 30, 2020 at AT&T Stadium in Arlington, Texas.

Matthew Pearce | Icon Sportswire | Getty Images

It’s the talk of the college sports world — 2 leading football programs moving alliances to an exceptional football conference. And the most noteworthy sports network is waiting for to profit from a considerable financial investment.

The University of Texas and the University of Oklahoma combined forces and formally asked for entry into the NCAA’s Southeastern Conference on Tuesday.

The news followed they alerted the Big 12 the schools would not be restoring media contacts after they end in 2025. If Texas and OU signed up with the SEC, the conference might bring in greater media costs, provided the marketing muscle of the schools in college football and basketball.

The SEC’s $55 million plan with CBS ends after 2023. Last December, ESPN supposedly accepted pay the SEC $300 million per season beginning in 2024. The plan consists of higher-tier SEC video games in an offer that runs 10 years. Disney’s ESPN likewise owns the SEC Network, a cable television network committed to SEC sports.

The finger pointing has actually currently begun, and other Big 12 schools aren’t pleased. But invite conferences are arranged, and this relocation has to do with placing for what’s ahead.

When going over the relocation, numerous officers utilized an old quote from famous sports TELEVISION executive Don Ohlmeyer: “The answer to all your questions is money.”

ESPN expecting the future 

The Texas and OU relocation is the initial step to developing very conferences throughout college sports. The SEC, Atlantic Coast Conference and Big Ten have elite football programs that consist of Alabama, LSU, Ohio State, Michigan, Florida, and Clemson. These conferences would practically replicate a mini-NFL advancement league by including more powerhouse programs, with extremely promoted potential customers emerging from the schools each year.

ESPN would take advantage of the reshuffling.

The network has a stake in the Longhorn Network, committed to University of Texas sports, and holds Big 12 streaming rights. But the LHN has actually stopped working to entice customers since of cord-cutting and since Texas hasn’t been dominant for the last years.

Adding Texas and OU to the SEC would likewise supply access to high-value matches for ESPN’s Saturday afternoon and prime-time slots throughout the college football season. Additional advertisement dollars would likewise stream for the yearly UT versus Texas A&M video game, ought to the A&M Aggies remain in the SEC.

“That would renew an old rivalry and it’s a high-intensity game,” stated previous CBS Sports president Neal Pilson. He included that “national matchups … would have more value — Texas vs. Georgia, Texas vs. Florida, Alabama-Oklahoma.”

Expanding the conference would assist ESPN validate its $3 billion financial investment in the SEC. 

There’s still a lot for legal representatives to talk about, however the relocation might take place even quicker than 2025.

In their joint declaration decreasing Big 12 rights renewals, Texas and OU stated they “intend to honor” existing offers. “However,” they included, “both universities will continue to monitor the rapidly evolving collegiate athletics landscape as they consider how best to position their athletics programs for the future.”

When going over the brand-new SEC offer last December, ESPN executive vice president of programs Burke Magnus was inquired about purchasing out CBS’ remaining years.

“We’re open to that possibility,” Magnus reacted, “but obviously, it would have to be a circumstance that works for all involved. It’s not for me to comment because it’s an existing relationship, but we’re perfectly comfortable to let it run its course.”

On Wednesday, Big 12 Commissioner Bob Bowlsby sent out a cease-and-desist letter to the network, implicating it of meddling in efforts to get the groups to the SEC much faster. ESPN rejected misdeed, informing The Associated Press: “The claims in the letter have no merit.”

Tight end Jelani Woods #89 of the Oklahoma State Cowboys dives into completion zone for a nullified overtime goal versus protective back Caden Sterns #7 and linebacker DeMarvion Overshown #0 of the Texas Longhorns at Boone Pickens Stadium on October 31, 2020 in Stillwater, Oklahoma.

Brian Bahr | Getty Images

Always follow the cash

Texas and OU each gotten about $34 million from the Big 12 over the in 2015, according to AP. That figure might leap to over $60 million each year if they transfer to the SEC.

In addition, early speculation currently indicates the SEC ultimately obtaining an even greater rights charge must things line up. The SEC currently gets about $497 million in TELEVISION and radio costs, according to U.S.A. Today. The paper approximated that figure might be more than $500 million in 2024-25, considering 3% boosts.

“A company like Disney doesn’t throw money around,” Pilson stated. “When you talk about big numbers, they’ve done the math, analyzed the marketplace and figured out revenue projections (subscriber growth, ads, and new distribution avenues). Adding Oklahoma and Texas creates additional value, and they’ll put a number on that as well.”

Name, image and similarity licensing offers extra income chances.

Athletes are now permitted to take advantage of their copyright following a Supreme Court judgment last month. Hence, leading football schools require to develop competitive markets to get the very best employees who can then capitalize from their direct exposure. When Alabama coach Nick Saban hinted that quarterback Bryce Young reached the $1 million mark by means of NIL chances, that remark served practically like a recruitment pitch.

The message behind the message: Play football at Alabama and make leading dollar with NIL.

“I agree with that notion,” stated sports lawyer Edward Schauder of law practice Phillips Nizer. “The better the school, the more valuable the name and likeness rights.”

Also, programs might utilize the additional money by lining up with leading conferences to money reimbursable products that student-athletes can now get. Things like premium Apple Macbooks and other education-related products are up for grabs, and the National Collegiate Athletic Association can just sit and see thanks to the Supreme Court.

Schauder, who has actually worked out recommendation offers including leading professional athletes consisting of Tiger Woods, anticipates the NCAA will ultimately get a piece of the action. 

“I can see the NCAA offering to handle the NIL rights of certain players or other collegiate sports (outside of football and basketball),” stated Schauder. He anticipated multilicensing contracts in college sports, with business including group logo designs to their NIL lineups.

“The conferences and NCAA will catch up and benefit from this the same way pro leagues benefit from deals made by the player associations,” Schauder stated.

The future of college sports is starting to take shape. To find out the next relocations, simply follow the cash, media offers and NIL chances. The SEC, Texas and Oklahoma began the brand-new path.

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