Originally Posted by
The Historian
There are a lot of things I believe the WAC gives Tech over the Sun Belt, especially in the areas of exposure and perception. Those subjects have been well documented – both on this board and in the media. But let’s look at the numbers – directly from the audits (thank you RealityCheck).
Tech’s is much better off financially in the WAC at the present time. Even years from now, the WAC will likely be as good if not better for Tech financially than the Sun Belt.
From what I have read, fans and even administrators of other schools, without any real numbers, make 2 assumptions about Tech and its affiliation with the WAC – both of which are incorrect.
1) Tech’s travel costs are an albatross that will bankrupt its athletic department
2) The WAC’s larger revenues are based upon NCAA tournament dollars from long ago that will soon dry up.
Travel Costs
As RealityCheck posted on this board previously, in the 2004-2005 academic year, the comparison between UL-Lafayette and its travel costs, along with the Sun Belt’s revenue distribution to ULL, can be made to Tech’s travel costs, along with the WAC’s revenue distribution to Tech. The numbers, according to the Agreed Upon Procedures Report issued through the Legislative Auditor in Louisiana, are as follows:
Conference Revenue
Tech (WAC Revenue) $1,326,783
ULL (Sun Belt Revenue) $ 512,747
Travel Expenses
Tech (WAC/including football to Hawaii) $1,174,237
ULL (Sun Belt) $1,133,401
In 2004 -2005, Tech’s WAC revenues outpaced ULL’s Sun Belt revenue by 814,036, while Tech’s total travel expenses, including a football flight trips to Honolulu, Miami, and Knoxville, were only $40,836 more than ULL’s.
ULL’s Sun Belt expenses, including flight trips in multiple sports, to destinations like Miami (FIU), Ft. Lauderdale (FAU), Nashville (MTSU and Western Kentucky), and Denver, show that it is more than just a bus league with rock-bottom expenses.
Revenue Sharing – Forfeited Money/New Member Fees
Make no mistake, Tech’s revenue sharing will almost certainly drop in the next few years. However, the number is smaller than many people believe. I’ve seen outrageous numbers thrown around by fans of other schools – like $1 million, which is absurd.
As most on this board are aware, Tech benefited in 04-05 from revenue forfeited by SMU, Rice, UTEP, and Tulsa when they left for CUSA. In 05-06 and 06-07, Tech has benefited/will benefit from revenue forfeited (partial) by NMSU, Idaho, and Utah State to cover their entrance fees into the WAC. By next year, that number will drop by several hundred thousand dollars. It’s still smaller than many believe.
Revenue Sharing – NCAA Tournament
Again, as RealityCheck has previously posted, our basketball money will also drop but by a relatively small amount. The 2006 NCAA basketball revenue distribution in April was based on 2000-2005 tournament results. The WAC had 20 units. With each unit valued at $164,000, the WAC's share was $3.28 million.
For the April 2007 distribution, the WAC's 5 units from the 2000 tournament drop off and were replaced with just the two units Nevada and UtahState earned by making the NCAA tournament field where neither earned a unit by winning a game. That dropped the WAC’s total to 17 units.
Even with a per unit value increase to $175,000, the WAC's total share in 2007 will drop by around $305,000 to the $2,975,000 range. At the same time, the Sun Belt is stuck at 6 units, $984,000 in distributed money in 2006 and $1,050,000 in 2007, the direct result of 12 consecutive years as a 1-bid league.
Tech’s share this year will only drop by about $34,000. The funny thing is, had Nevada and Utah State combined for two (2) wins in the tournament, our revenue would have increased from the tournament. In future years, the drop could be $100,000 plus when Idaho, NMSU, and UtahState share a larger piece of the pie. At the same time, the per unit value is expected to increase in the future, which will decrease the loss, if not eliminate it altogether.
All in all, even if the decreased revenue number involved for all shared revenue was a larger number, say $300,000 to $400,000 per year for Tech, and even if the increase in travel is $300,000 to $350,000 per year for Tech, which is on the very high end, it still doesn’t overcome the bottom-line difference reflected in the 04-05 numbers.