Why are UCLA/USC Athletics moving to the Big 10?

imageI really had to double click on this because I was as astounded at the move as everyone else was.

But upon investigating the rationale behind UCLA/USC’s move to the Pac-12, the opportunity is an absolute no-brainer for both the Big 10 and the two Los Angeles universities.

CONFERENCE CONSOLIDATION
First of all, conference changes are happening everywhere. See: https://www.cbssports.com/college-basketball/news/conference-realignment-tracker-ranking-top-moves-for-the-upcoming-2022-2023-college-basketball-season/

What you see is universities taking advantage of the opportunities in front of them & consolidating to put themselves into the best positions possible strategically & financially for their programs.

So why are conferences consolidating?

It’s simple: You can make more money together in volume, than you can negotiating separately.  If you have a lot of marquee names, you can negotiate for things like TV rights much more effectively than small market names.  And university athletic programs are being forced to find more ways to make money to be viable/effective in the future.

But why did UCLA & USC, who have such big brands go to the Big 10?

SEVERAL REASONS FOR UCLA TO MOVE TO THE BIG 10:
I’m sure there’s more than this but this is just what I’ve been able to research so far:

  • NIL & ADVERTISING DEBT
    The Supreme Court NIL ruling put the power to make money into the hands of the athletes.  Conversely, the NIL ruling has taken a massive revenue generation stream away from the colleges. $100Ms of dollars, in some cases & that has to be replaced or the programs will go bankrupt.
    https://trace.tennessee.edu/jasm/vol13/iss2/8/
  • MARQUEE NAME REVENUE
    ESPN, Fox & service providers pay more for marquee match ups of big markets (Los Angeles, Michigan, Ohio) not small markets (Corvallis, Pullman, Arizona) Separating from lesser known Pac-12 conference members for marquee names in the Big 10 negotiates much bigger revenue for TV game rights. Bottom line: Playing conference games against Michigan, Ohio St, Michigan St, Wisconsin, Penn St, Nebraska, Iowa, Purdue, Illinois, etc. brings in far more revenue from national networks like ABC, NBC, CBS, ESPN, FOX.
    https://archive.ph/VPS1O
  • RECRUITING – NIL REVENUE

    NIL marketplaces/exchanges are far more profitable for athletes – even for Los Angeles – when the athlete’s visibility is broad. The more eyeballs, the more money. And recruits come to the universities where they can make the most money.
    https://www.sportsbusinessjournal.com/Journal/Issues/2021/09/20/Upfront/Name-Image-Likeness.aspx
  • THE BIG PINK ELEPHANT IN THE ROOM: “UNDER ARMOUR”
    Signed in 2017, UCLA had a 15 year, $280M athletics sponsorship deal with Under Armour… who renegged on the contract in 2020 and was subsequently sued by UCLA.  While the matter was in litigation, no money is coming in from that sponsorship & UCLA is out $19M in revenue annually.  And even with UCLA signing a new $46M/6yr contract with Nike ($7.7M/year), that’s not enough to fill the revenue hole left by Under Armour.
    Reportedly, the move to the Big 10, with the new Big 10 TV contracts being negotiated, can net UCLA $100M in revenue EVERY YEAR.
    https://www.msn.com/en-us/money/companies/ucla-under-armour-drop-opposing-lawsuits-over-defunct-apparel-deal/ar-AA1052vW

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