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Report: Terps to get B1G travel subsidy in conference move

Raining Money

When Maryland announced last year that it would be moving from the ACC to the Big Ten in 2014, there was little left to the imagination as to the rea$on behind the conference switch: money.  Lots and lots and lots of money.

For the 2014-2015 academic year, the Terps first in the Big Ten, conference members are expected to receive a payout of $32 million each, although like Nebraska a couple of years ago it’s not expected that the Terps will receive a full revenue share.  Still, Maryland will double what it would have received had it stayed in the ACC.

Additionally, the Baltimore Sun reports, Maryland negotiated with the Big Ten a travel subsidy that will pay the school $20-$30 million to help offset additional costs.  The Sun wrote that “[i]t was not clear when the subsidy is to be received and whether it will be a lump sum or series of payments.”

The Big Ten declined to comment on the subsidy report.

Maryland’s travel costs for its first year in the Big Ten are expected to double, from $3 million in 2012-2013 up to $6 million.  In the ACC, eight of the 11 schools are less than 600 miles away (one way) from College Park, with the longest trips being to Miami (1,100 miles) and Florida State (850 miles).  In the Big Ten, 10 of the 13 members are more than 600 miles away, with Ohio State, Penn State and Rutgers being the lone exceptions.  Two B1G members — Minnesota (1,200) and Nebraska (1,230) — are further away than Tallahassee.

The fact that Maryland will in theory bring with it the Baltimore/Washington D.C. television markets, and thus boost the value of Big Ten Network payouts, likely played a significant role in the Big Ten’s decision to grant a travel subsidy to a school that just a couple of years ago was forced to cut seven sports.

Interestingly, it doesn’t appear that Rutgers, which will move from the Big East to the Big Ten the same year, asked for the same travel subsidy as Maryland.  In fact, it doesn’t appear that RU will receive any type of subsidy at all from their new conference home.

“I don’t think it’s so much about subsidies,” Rutgers athletic director Tim Pernetti told the paper. “We were comfortable from the beginning that the revenues are going to equitably address the travel situation. With certain sports like football, we charter-traveled to every game, so football will really look the same. Basketball, there will be some more [travel], but nonconference scheduling will balance that out.”

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20 Responses to “Report: Terps to get B1G travel subsidy in conference move”
  1. normtide says: Mar 16, 2013 1:33 PM

    Rutgers is a great addition, but the more I study Maryland, the worse that addition looks. I’m not sure how much of the DC market they bring. Iffy recruiting grounds, at best. Their athletic department is eligible for welfare. A football product that is terrible lately.

    The B1G already has basketball and academics, they need football product. Quality play, recruiting grounds, and fan base. Rutgers is B+, A-, B in that regard.

    The B1G has a Texas-like problem. At some point, all that money has to translate into wins. Fans do not root for bottom lines. The want dominant play on the field. The SEC and B1G are the richest two, but only one puts that money back into the teams. Only one invests in facilities and coaches across the board. The B1G is rich, we all know this. Just imagine what they could do if they applied that money, intelligence, and desire fully into winning.

  2. barnesaintnoble says: Mar 16, 2013 2:24 PM

    Maryland brings enough of the DC market. It might be small, around 30%, but it’s enough. Recruiting? The Baltimore-DC area has several fantastic high schools, 3 of them consistently in the top 25 of national rankings (football). Our Lady of Good Counsel churns out D1 prospects like clockwork. Their athletic department struggles are a function of the overall struggles of the ACC, very stupid athletic department administrators and the recent fallout of their football program – which rests squarely on the shoulders of Randy Edsall. He’s just been terrible for that program and if they could afford to fire him, they would. They foolishly signed him to a 6-year contract at $2 Million a year.

    Unfortunately, you’re also wrong about money having to translate into wins. The word “fan” comes from “fanatic”. The wins are great, but most big schools will have a giant following regardless of on field performance. Of course, decades of poor performance will have an effect, but a few years here and there? Not a chance. The SEC and Big Ten are the same financially, facility wise and in terms of coaching (of course the SEC has Nick Saban). Do your research, it’s true. The biggest difference is the weather, the speed and the players. Most of the good players are in SEC country where they play football all year. That’s really what it comes down to.

  3. normtide says: Mar 16, 2013 2:41 PM

    I think rutgers brings a much better recruiting footprint then Maryland. Of course you have to keep those players. As for facilities, OSU and Michigan are top level, with Nebraska and a couple others are pretty good, but the rest really seem to be behind. That is from what I have read, not seen then with my own eyes. Not saying they are dumps, they are very nice. But, compared to the top tier, they are behind. Look at pictures and stories about OSU, Bama, UF, etc, the facilities are out of this world.

    You are correct about fanatics, they are their through it all. You have those eyeballs. The challenge is getting the eyeballs of non fans. That requires a good product. My point was supposed to be that fans prefer to brag about wins, not accounting. Not sure I spelled it out that way.

    Maryland is a flagship program, with potential. But, they are a basketball school, and the B1G didn’t have a need for that.

  4. drummerhoff says: Mar 16, 2013 3:24 PM

    Maybe this has something to do withan exit fee.

  5. amosalanzostagg says: Mar 16, 2013 4:19 PM

    Drummer,

    Astute point. Maryland will end up in the B1G, They have already spent the money from conference admission to fund the U of M sports programs cut by the niversity. The exit fee is being negotiated and Maryland will be a nice win for B1G teams.

    Watch heads explode when the SEC network is announced. The SEC is looking for 2 more teams to become a super conference and even more money to be earned by the conference (estimated to be over $ 2 billion dollars ADDITIONAL revenue) once they reach 16 teams.

    The losers will be the mid majors and smaller conferences (read Big12, which is viewed at best a stronger REGIONAL conference). The ACC (with ND), the B1G and the PAC-12 will be among the winners, along with the SEC.

    Enjoy college football now because these are the good old days

  6. dhlions says: Mar 16, 2013 5:31 PM

    @Normtide

    Great points in your first post, but isn’t MD/Rutgers that solution? By investing in geographic coverage now, won’t the return build a better conference for the long run? Fancy facilities and big name coach hires will help one school, and most likely just for the short term. Investing in the conference will elevate the team of teams, little by little… and then we demolish the SEC.

  7. amosalanzostagg says: Mar 16, 2013 5:50 PM

    dhlions wrote: Mar 16, 2013 5:31 PM

    @Normtide

    Great points in your first post, but isn’t MD/Rutgers that solution? By investing in geographic coverage now, won’t the return build a better conference for the long run? Fancy facilities and big name coach hires will help one school, and most likely just for the short term. Investing in the conference will elevate the team of teams, little by little… and then we demolish the SEC.

    ______________

    Bold words considering the strength of the SEC overall. just a reminder.

    South Carolina is part of a strong base of quality programs all through the SEC. Florida, Georgia, Kentucky, Vanderbilt, Mississippi, Miss St and A&M are all rising programs. Couple them with LSU and Alabama
    and you see why the SEC is still ascending as a conference as a whole.

    Tennessee will be back. Missouri will adapt. Heads are going to explode when the SEC Network debuts and the money is announced. Good times for the SEC

    Roll Tide

  8. drummerhoff says: Mar 16, 2013 5:51 PM

    Amos,

    I agree about the SEC, but the ACC is the next loser as the 2 power conferences expand… The B1G and SEC are not staying at 14 and the only states to expand into are in the ACC’s footprint.

  9. amosalanzostagg says: Mar 16, 2013 6:15 PM

    dhlions,

    To show the strength of the SEC, Texas A&M
    was considered the FIFTH best football program in the SEC. To show just how strong the SEC is, take a video trip of actually how strong the SEC was this past season.

    Conference co champion OU versus perennial power house, Texas

    Of course, this game haunts me and will haunt me forever. Has caused me more Pepto than I care to remember.

    So the FIFTH best football program in the SEC takes on Conference Co Champion
    OU in the Cotton Bowl. The result?

    Take South Carolina and their strength in baseball, Kentucky in Basketball, and a myriad of other SEC teams strong athletic programs, the future is bright for the SEC.

    Roll Tide

  10. amosalanzostagg says: Mar 16, 2013 6:26 PM

    Drummer,

    The ACC is already at 15 teams with ND. The ACC could be the first super conference. As long as ND is affiliated with the ACC, the ACC is a VERY strong conference. Why?
    Basketball. Sure NCAA Football is King, but NCAA Basketball is the Crown Prince.
    Watch March Madness and you’ll see why the ACC is viewed as one of the premier
    conferences.

    Right now there are four true power conferences. SEC, B1G, PAC-12 and the ACC.
    Sorry Big 12, you are a regional conference. Truth hurts, Deloss has made the Big 12
    his own boutique conference and has the conference members doing his bidding.
    Don’t think so? Look at the financial penalties for a team that leaves the current Big 12. Their TV rights remain with the Big 12. Some conference.

    Big 12 fans, please answer this question. What happens should Texas decide to go
    independent?

  11. normtide says: Mar 16, 2013 7:01 PM

    Dhlions- My point is, the B1G has what it needs now to improve everything enough to compete with the SEC. How does adding two schools change mentality? The money is already in place. As for destroying the SEC, I guess it’s good to have goals. But, it seems your league’s goals only concerns money. Contrary to it’s fans goals. Much like I laid out in my first post.

  12. handsofsweed says: Mar 16, 2013 8:30 PM

    @barnesaintnoble:

    Good point. Maybe they negotiated this “travel” budget deal so they can afford to fire Edsall?

  13. barnesaintnoble says: Mar 16, 2013 9:43 PM

    You might be right. $20-$30 million just for the travel of the very few varsity sports Maryland has left? Remembering that half of these games/meets will be at home on the College Park campus. Also included in the travel budget is Randy Edsall’s relocation expenses.

  14. drummerhoff says: Mar 16, 2013 10:10 PM

    @Amos
    I don’t want to argue so here is Pete Thamel’s view:

    All five major conference commissioners privately acknowledge that realignment isn’t done. And the next logical evolution will inevitably be a poaching of the ACC.

    When will this happen? That’s the biggest question among athletic directors and TV executives right now. No one knows the answer. But this much is certain — there’s nothing that’s happened in the last three years that suggests that realignment will just stop. Will Jim Delany expand the Big Ten this spring with North Carolina and Virginia? Will Mike Slive pull the trigger first and nab N.C. State or Virginia Tech? Will the Big 12 make a power play for Florida State or Clemson? Who makes the first move? Rest assured that even the most deep-rooted ACC schools have contingency plans in case the league gets poached.

    http://sportsillustrated.cnn.com/college-basketbal l/news/20130314/acc-madison-square-garden/?sct=uk_ wr_a1

  15. thefiesty1 says: Mar 16, 2013 10:10 PM

    At least they are being paid to get their butt kicked. That’s the real reason the B1G took them (and especially Rutgers).

  16. amosalanzostagg says: Mar 17, 2013 12:29 PM

    Drummer,

    First of all,Florida State has already told the Big 12 not only no, but “Hell No!” University Facility and Administrators have deemed the Big 12 unworthy because of academics.

    Second point, no school in their right mind assigns their TV rights to a conference to where if the school leaves, the schools TV rights stay with the conference.

    Third, The Big 12, outside of Texas and OU, has nothing that the remaining conferences need?

    Texas Tech? Baylor? TCU? Iowa State? West Virginia?… they do not bring anything to the table that they conferences already have, which is TV market share.

    As long as ND remains part of the ACC, the ACC is viable as a superconference.
    Without ND, the poaching will be fast and furious.

  17. drummerhoff says: Mar 17, 2013 12:55 PM

    Amos,
    I’m firm in my belief that ACC is the next “ox to get gored” and I am in good company as SI’s Thamel, ESPN’s McMurphy, CBS’s Dodds’ BTN’s DeNardo are all on record saying the ACC will lose more schools to the B1G and SEC.
    As for the Big12, their bowl partnership with the SEC keeps them alive to 2025. Who knows what happens after that.

  18. polegojim says: Mar 17, 2013 4:40 PM

    Norm – the B1G fans have a very long history of understanding the ebb and flow of college football, and make incredible money through both. When you’ve been active for 100+ years, it’s expected.

    That said… Michigan needs to return to it’s national form. Nothing less will do.

    Sadly… a few years set back our progress and equalizing.

    Michigan with RR – complete DEBACLE and loss of 3 years… can never get them back. The guy never understood Michigan or ‘the rivalry’. UM is gaining momentum.

    OSU losing the Vest… which I thought should NOT have happened. OSU paid the price with restrictions and the Tressel should have stayed. With that… they get another OSU icon… good for them. Last year was not a fluke, but get some tougher competition in there to prove it.

    Nebraska… I’m not drinking the Pelini cool aide any more… nor should Corn Fans. Something strange is kept them from breaking through…. I think it’s him.

    Wisconsin… they’ll rebound from the quick and weird coaching change.

    Michigan State – some very good success over the past few years… but in watching the going on… will probably resume a more ‘standard’ posture in the next few years.

    Rutgers… love them. Gritty, tough, smash mouth stuff.

  19. drummerhoff says: Mar 17, 2013 7:25 PM

    @polegojim

    Ebb and flow of college football? The B1G has been exposed by the BCS system. Before the BCS, the B1G could win a popularity contest in the polls and then beat an often middling Pac school to claim a national championship. Now ya gotta earn it and the B1G record is 1 (controversial NC) in 17 seasons. That’s not ebb and flow … That’s ‘you are who we thought you are’.

  20. fahmundamahbalsaq says: Mar 18, 2013 6:09 AM

    Really?

    These comments contain 3 of the most boring names in college football: Maryland, Rutgers and Big 10.

    Just found my cure for insomnia.

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