Texas A&M to SEC-Economic Impact

[Mike]

Economic Impact of Texas A&M Moving to SEC


Aug 19


Posted by Kristi Dosh
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Last time I checked, the SEC doesn't require schools to physically move when they join the conference. There are no plans for Texas A&M to relocate to Mississippi, Alabama or Georgia in order to join the SEC. You won't be driving down the highway and see half a building on a semi trailer. Nope, Texas A&M will be staying in College Station.

Why then the cries of poverty in Texas should Texas A&M leave the Big 12? According to a report by the Perryman Group, even if the Big 12 stays intact, the economic impact of Texas A&M joining the SEC is a reduction of $217.2 million in gross product and 3,050 jobs on the Texas economy. Huh?

Unfortunately, Mr. Perryman dosen't give us any indication as to how he arrived at his numbers. That makes it difficult for me to comment other than to say that I don't see it.

Texas A&M will still be located in College Station, Texas. It will still play seven to eight home games in College Station. If anything, I think you will see an increase in economic impact in College Station as SEC fans, who are known to travel, descend upon the town. There are no SEC schools within reasonable same-day driving distance (which can't be said for Baylor, Texas and maybe even Texas Tech), so that means more fans staying in local hotels, eating in local restaurants, and purchasing from local stores.

Most would agree a move to the SEC will benefit Texas A&M. In addition to what I've already mentioned, it will see a rise in conference distributions. In 2010, the Big 12 distributed $139 million between member institutions. As most of you are aware, the Big 12 does not distribute television money equally. According to Texas A&M financial documents, their portion of the conference distribution was $9.3 million, not including bowl game reimbursements. Meanwhile, over in the SEC $209 million was distributed equally between member institutions in 2010 for a total of $17.42 million each, not including bowl reimbursements.

That means Texas A&M would have nearly doubled its conference receipts if it had been in the SEC last year. That is, of course, not taking into account the SEC revenue pie being split into smaller slices with the addition of Texas A&M and presumably at least one other school. However, the SEC wouldn't be adding members if it weren't confident it was getting enough from a new television contract to keep conference distributions at or above current levels.

Travel expenses will obviously increase for the four conference games that the Aggies would play away from College Station. However, the number will be more than covered by the increase in conference distribution. I don't have a number for Texas A&M, but in looking at Ohio State's budget having an extra away game in 2011 only increased the football travel budget by $140,000. Obviously, travel would increase across all sports, but I'm positive the nearly double conference distribution will take care of that.

What is the impact on the Big 12? The biggest concern would be the conference folding. However, I believe as long as Texas and Oklahoma stay put, the conference will remain. At least for now.

 

[TexasBred]

Big 12 will survive for now but regardless of who they add it will be just a couple of little sisters. As for Aggie travel. College Station is probably closer to Alabama, Auburn, Miss and few others than it is to Texas Tech, K-State, and Iowa State.

The income side of the deal....I don't doubt it one bit. Now all we have to do is start learning how to win some football games. The other programs will hold their own.

 

[jigs]

aTm and Mizzou will be cannon fodder in the SEC... aTm is suffering from "little brother" syndrom, so they left. Mizzou just never fit in anywhere....

the game last night with KSU and aTm made me a bit sad to see them leave, but water under the bridge....don't let the door hit you in the @$$ on the way out...

 

[TexasBred]

aTm and Mizzou will be cannon fodder in the SEC... aTm is suffering from "little brother" syndrom, so they left. Mizzou just never fit in anywhere....

the game last night with KSU and aTm made me a bit sad to see them leave, but water under the bridge....don't let the door hit you in the @$$ on the way out...

I can understand you feelings Jigs. And yessir we will definitely have our hands full on most weekends but we will survive and be an asset to the conference and probably be appreciated. At least WE did have options. :wink: Little brother syndrome?? Please refer back to original post. Purely economics and good judgement.

 

[loomixguy]

Purely economics and good judgement.

Sorry, TB, but Jiggsy doesn't understand that. Then he will throw out the "Couldn't beat Texas, grabbed your ball and went home" drivel. About the only team who left the Texas 12 conference he hasn't jumped all over is Colorado.

He feels like Leftout LaMont, cause nobody has come knockin' on K-States' door.

 

[okfarmer]

Big 12 will survive for now but regardless of who they add it will be just a couple of little sisters. As for Aggie travel. College Station is probably closer to Alabama, Auburn, Miss and few others than it is to Texas Tech, K-State, and Iowa State.

The income side of the deal....I don't doubt it one bit. Now all we have to do is start learning how to win some football games. The other programs will hold their own.

Yeah cause currently with the aggies in 7th place out of 10 and Misery in 6th, how can the conference find anyone to replace them?

Lets see.... I guess a program that is at least ranked would be a positive move for the conference, and just finding someone that can play two halves of football would be an improvement in place of A&M, and may be someone who can beat Baylor would be a step up from Misery.

Yes, Aggies it is sad that the little sisters TCU and West Virginia will keep you from being missed.

 

[jigs]

mizzery and Cu never fit in. aTm has always been the little brother, however, I would like to see aTm stay and Texas leave.... no way mizzery or aTm rise above 500 in the SEC. NU thought they would walk in and be crowned king, but look at that 2 loss record already.... had they stayed, OU,OSU, TT, KSU, and Baylor would all have beat them.....
ISU would have probably got them too!!

 

[TexasBred]

Big 12 will survive for now but regardless of who they add it will be just a couple of little sisters. As for Aggie travel. College Station is probably closer to Alabama, Auburn, Miss and few others than it is to Texas Tech, K-State, and Iowa State.

The income side of the deal....I don't doubt it one bit. Now all we have to do is start learning how to win some football games. The other programs will hold their own.

Yeah cause currently with the aggies in 7th place out of 10 and Misery in 6th, how can the conference find anyone to replace them?

Lets see.... I guess a program that is at least ranked would be a positive move for the conference, and just finding someone that can play two halves of football would be an improvement in place of A&M, and may be someone who can beat Baylor would be a step up from Misery.

Yes, Aggies it is sad that the little sisters TCU and West Virginia will keep you from being missed.

Jigs no doubt TCU will compete to a certain level. Won't ever beat the top tier of Big 12 or any other conference regularly. Basically both will be parasites. A stadium that seats 40,000 and seldom fills up as well as a small student body and alumni won't help either. (And Baylor already beat them). WVU. I know nothing about them. Might be a better fit for the Big 12 than the Aggies and Mizzo. We deserve better and got better by going to the SEC. Every game at Aggieland will be a sell out even if they play Screw U. Enjoy your success Jigsy....it hasn't been around long and may not last much longer. :wink: