ScottyBuff

Summary

Major college athletic departments are facing a "perfect storm" of increased expenses and decreased revenue sources due to the effects of the financial crisis. The most conservative estimate for the impact on the Pac-10 schools is that expenses for scholarships would increase by $15-20 million in total. Additional budget deficits can be expected to match that from reduction in ticket revenues and donations to increased operating expenses.

By playing a conference championship game, the Pac-10 can reasonably increase revenues by at least $8 million per year. In order to do this, it would need to expand by two more universities. Adding the Universities of Colorado and Utah would create the prime conference alignment for continued growth and development of both academics and athletics.

This would benefit both the conference and those target universities in multiple ways. The addition of those schools would boost conference coffers with additional licensing opportunities, increased exposure, and through a better paying TV contract of at least $25-30 million more per year, easily offsetting the increased travel costs and negate a dilution effect of 12 teams sharing revenues instead of 10.

Financial solvency will dictate the next round of conference realignment in major college sports, and the Pac-10 needs to be the first domino to fall or risk being left to compete with a surging Mountain West Conference for dominance in the western United States and in the national spotlight.