Does Aggie Move to SEC Make Good Business Sense?

[3rd Generation]

When you make business decisions, one of the first questions you need to answer is: "How quickly do I get payback on my initial cost?"

I have heard that the penalty that the aggies will pay to the Big 12 is between 18 to 30 million dollars. Therefore their payback would be computed by taking the additional revenue that they receive from the SEC and dividing that into the penalty cost. I can see this taking them 10 to 20 years to just payback the inital cost. In the business world, such an investment would never work.

Am I missing something here?

 

[Pogo]

Nope. Blind hatred and irrational, hypocritical fear-mongering are leading this charge, not sound business principles.
This is aggy we're talking about, after all.

 

[TheGallopinGoose]

A&M will get better TV money in the SEC than in the shrinking Big 12. But, A&M will have to pay some exit fees and face some lawsuits to get out of the Big 12. The state legislature could take away some funding if A&M leaves the other Texas Big 12 schools, but that's a very political issue and with an Aggie governor, A&M's state funding should be fine.

From there, it largely depends on the Aggies' success: if they win a substantial number of football games, they'll make a nice sum of money, but if they struggle for .500 and lose games badly and can't get into the conference championship game or big bowls, they won't make much.

 

[14tokihorn]

Yes, it does. Because nobody in their right mind wants UT/ESPN/BigXII (or any combination thereof) as a defendant in a lawsuit.... can you imagine the costs involved [?] when the issue is the LHN & fiduciary/good faith breach.

 

[J D the Obscure]

Currently they receive 10% of Big 12 money. In SEC 14 team league, it will be 7.14%.

Also, travel costs will be up for all sports. They can't take the bus like they do when they travel to Austin or Waco. Does Starkville MS even have an airport?

 

[Pogo]

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[HornSwoggler]

what is the logic behind our fine Legislature threatening to reduce funding if TAMU goes outside the B12? The only thing I have thought of is that Texas taxes support TAMU and some might think they should play more in Texas. Not a good argument IMO. How do you square that thinking with North Texas, Tx State, Sam Houston St, SFA, UTSA, UH, and all the even smaller state funded colleges that come nowhere close to making ANY money from athletics like TAMU does and they play a majority of their games out of state. In fact, UT and TAMU play many of their major sport games out of state as it is. It would be interesting to see how much the state provides to each collge for athletics.

Maybe I am badly missing the point - it has been known to happen - but other than the athletics money, I don't see the Legislature having any say in the issue. I don't see it being academics related or prestige related.

 

[ViperHorn]

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[JJxvi]

Ive seen some ridiculous numbers for the SEC's possible renegotiated TV numbers, up to like $400 million to $500 million per year. I have my doubts, but if the SEC is able to renegotiate something like that after expansion, A&M would quickly recoup any buyout money in 3 seasons or less, even assuming a full $28 mil buyout or whatever.

 

[NickDanger]

Governor of Texas brings "NOTHING" to the power table. It's a total ******** office. Joe Strauss and the Lt. Governor and the Comptroller are the only ones who matter at all and even they don't matter much. Perry can't do **** except pound **** while his wife is trying to be a kingmaker of a milkman.

The grassroots ETX farmers wield far more power than Anita Baker, I mean Perry, does.