INTRODUCING

CREATE YOUR OWN FUTURE

©Jeffrey B. Pownell Mockingbird Sports, Inc. [email protected]

Jeff Pownell, mockingbird sports Big Southwest Conference 1 TABLE OF CONTENTS

Introduction and Moonshot Goals 2

I. Conference Formation: Hurdles & Constraints 4 Regulatory Constraints Contractual/Economic Constraints Political Constraints II. Present at the Creation: Big Southwest Conference 6 BSW Schools BSW-Sponsored Sports Non-Sponsored Sports and NCAA requirements III. Value Propositions 8 The Southwest footprint LHN, ESPN, and the Win-Win-Win Conference HQ/Bowl Game in Austin Bundling Sponsorship/Advertising Southwest Academic Research Alliance IV. Action Plan: Making It Happen 10 Rice Should Lead Plan A: The Race to Eight and Ten for the Win Plans B,C,D,E: All Aboard the Big Southwest Express

V. Remaining C-USA and Sun Belt Schools 12

Conclusion: ¡Viva La Big Southwest! 13

Jeff Pownell, mockingbird sports Big Southwest Conference 1 THE BIG SOUTHWEST CONFERENCE create YOUR OWN FUTURE

“THE BEST WAY TO PREDICT YOUR FUTURE IS TO CREATE IT.” Abraham Lincoln (apocryphal)1

INTRODUCTION AND MOONSHOT GOALS

WHEN IT COMES TO COLLEGE SPORTS, CONFERENCE AFFILIATION MATTERS. It’s more than just additional or lesser revenues, which can be substantial.2 From the sandbox to the gridiron, court, field, or pitch, who we choose to play with sends powerful messages about how others perceive us and how we perceive ourselves. For better or worse, richer or poorer, a university’s conference affiliation forms an important part of its identity.

GEOGRAPHY ALSO MATTERS, OR AT LEAST IT SHOULD. Most of us view college sports through the prism of our local community, state, and region. We root, root, root for the home team, and root even more when the opponent is a neighbor down the road. Conference schools in proximity to each other enhance regional rivalries, increase revenues, reduce costs and student-athlete travel time, strengthen regional and community ties, and create an identity for the conference and its member schools.

THE ACADEMIC MISSION ALSO MATTERS, PERHAPS MOST OF ALL. As part of the social contract, schools pledge (expressly or impliedly) to provide student- athletes the opportunity to obtain a college education that has meaningful long-term value in 1 Though widely attributed to him, President Lincoln likely did not utter these words, but Honest Abe did say “If we never try, we shall never succeed,” which is in the rhetorical neighborhood. 2 It’s been estimated that since the split of the Southwest Conference in 1996, former SWC schools included in the have received $400 million more in media revenues than the SWC schools left out.

Jeff Pownell, mockingbird sports Big Southwest Conference 2 economic and non-economic ways. At the same time, student-athletes agree (expressly or impliedly) to adhere to academic and behavioral standards in such a way that their participation in college sports adds reputational value to the school.

Though it may seem counter-intuitive, ofen the most effective way for universities to enhance their academic standing is to improve their athletic programs and traditions. This is because “pull” incentives that attract students to a university are ofen more effective than “push” incentives such as price or access. When a school’s athletic program is properly aligned with its academic mission, the university experience is more meaningful for students, faculty, and alumni, and its athletic program benefits the entire community and region.

THIS PROPOSAL HAS TWO MOONSHOT GOALS

First is to create a Division I–FBS conference – the “Big Southwest Athletic Conference” (Big Southwest Conference or BSW) – composed of like-minded universities in the Southwest region, with a sustainable cost/revenue model that allows its member schools to be nationally competitive in all sponsored sports.

Second is for its schools to form a collaborative research consortium – the “Southwest Academic Research Alliance” (SARA) modeled afer the Big Ten Academic Alliance – to work together to enhance their academic enterprises, so that by decade’s end each school has reached (1) “R1" Doctoral University status in the Carnegie Classification of Institutions of Higher Education (a widely-used objective metric), and (2) “Top 100 National Public Universities” in the U.S. News & World Report’s Best Colleges rankings (a widely-used subjective metric). The R1/Top 100 goal is aspirational, not exclusionary; not every school may get there, but every Big Southwest Conference school will have a plan to get there.

LET’S GET STARTED. LONG LIVE THE BIG SOUTHWEST CONFERENCE!

Jeff Pownell, mockingbird sports Big Southwest Conference 3 I.

CONFERENCE FORMATION: HURDLES & CONSTRAINTS

IF THIS IS SUCH A GREAT IDEA, WHY HASN'T IT ALREADY HAPPENED?

It’s not that easy. To form a new DI–FBS conference, there are three primary constraints: (1) regulatory (NCAA requirements); (2) contractual and economic (conference notice requirements and forfeiture of associated conference revenues); and (3) political.

1. REGULATORY NCAA bylaw 20.02.6 provides:

20.02.6 Football Bowl Subdivision Conference. A conference classified as a Football Bowl Subdivision conference shall be comprised of at least eight full Football Bowl Subdivision members that satisfy all bowl subdivision requirements. An institution shall be included as one of the eight full Football Bowl Subdivision members only if the institution participates in the conference schedule in at least six men’s and eight women’s conference-sponsored sports, including men’s basketball and football and three women’s team sports including women’s basketball. A conference-sponsored sport shall be a sport in which regular- season and/or championship opportunities are provided, consistent with the minimum standards identified by the applicable NCAA sports committee for automatic qualification.

NCAA bylaw 20.9.9.1 also requires that a DI-FBS school sponsor at least sixteen sports. Thus, absent waiver from the NCAA, a new DI-FBS conference requires (1) eight existing DI-FBS schools, that (2) compete and hold conference championships in six men’s and eight women’s conference sports, that (3) must include football and men’s and women’s basketball and at least two other women’s team sports (and each school must sponsor at least sixteen sports). This means that absent a waiver, DI-FCS schools (like Sam State) and potential DI- FBS “football-only” schools (like Army) cannot be used to form a new DI-FBS conference.

2. CONTRACTUAL AND ECONOMIC Existing DI-FBS conferences typically contain withdrawal provisions that require a member school to provide 12-24 months written notice, at which point future conference revenues are forfeited. Conference revenues derive primarily from (1) media rights, (2) NCAA tournament

Jeff Pownell, mockingbird sports Big Southwest Conference 4 unit distributions (accumulated over six years), and (3) bowl/playoff distributions. Form 990 tax returns for C-USA, the Sun Belt Conference, and the WAC indicate that conference revenue distributions for C-USA and Sun Belt schools are $3-4 million/year per school, and for WAC schools $1-2 million/year per school.3 Thus, to form a new DI-FBS conference, each school will forego $6-12 million (depending on the school and conference), resulting from (a) loss of conference revenues during the withdrawal period, and (b) less NCAA tournament distributions from the new conference (that will gradually increase over six years as it accumulates NCAA tournament units).4

3. POLITICAL

IN DIVISION I COLLEGE SPORTS, POLITICS ISN'T EVERYTHING; IT'S THE ONLY THING. Three interrelated political constraints bear note. First is the politics of exclusion. For various reasons, UTSA may wish to exclude State from a new conference; UTEP may wish to exclude NMSU; Louisiana Tech may wish to exclude Louisiana-Lafayette; and so on. These views are short-sighted. So long as the market is large enough to support both schools, regional rivalries enhance the athletic traditions of each school. A rising tide lifts all BSW boats.

Second is the inherent tension between Texas schools and non-Texas schools. Some friction is inevitable, but this can be managed with conference legislation (e.g., bylaws that require the vote of at least one non-Texas school for matters requiring a majority and two non-Texas schools for matters requiring a super-majority).

Finally, many of the proposition values for the new conference, discussed below, depend in large measure on support from the University of Texas at Austin. It is only politically feasible to obtain its support with a proposal that includes the UT system schools that could benefit. UT-Arlington and UTRGV are thus included in the Big Southwest Conference as non-football schools now, rather than considered as potential expansion schools later.

Why would the Longhorns want to help the Big Southwest Conference succeed? It’s in UT-Austin’s economic and political self-interest to do so. By and large, UT-Austin doesn’t compete with Big Southwest Conference schools for student-athletes in most sports, at least not in the same way it competes with Big 12 Conference schools or other P5 conference schools. Under the right circumstances, supporting the Big Southwest Conference makes UT-Austin the good guy politically, and it can also help itself economically. It’s a potential win-win for the Longhorns and Big Southwest Conference schools.

3 The American Athletic Conference (AAC) and (MWC) recently inked new media rights deals that will generate $7 million (AAC) and $4 million (MWC) per year for each member school in media revenues, so AAC and MWC schools are not considered as candidates for the Big Southwest Conference.

4 In economic terms, the COVID-19 pandemic lowers the economic cost of a school’s withdrawal from its existing conference (because its revenues are less), but also reduces the amount of revenues the new conference generates.

Jeff Pownell, mockingbird sports Big Southwest Conference 5 II.

PRESENT AT THE CREATION: THE BIG SOUTHWEST CONFERENCE

NEW MEXICO STATE UNIVERSITY UNIVERSITY LAS CRUCES OF NORTH TEXAS UNIVERSITY OF TEXAS LOUISIANA UNIVERSITY ARLINGTON TECH OF TEXAS AT UNIVERSITY EL PASO

TEXAS STATE UNIVERSITY UNIVERSITY OF LOUSIANA AT LAFAYETTE

UNIVERSITY OF TEXAS SAN ANTONIO

UNIVERSITY OF TEXAS RIO GRANDE VALLEY

BSW SCHOOLS SCHOOL/LOCATION (CONFERENCE) CARNEGIE (AAU) Consistent with Rice University/Houston (C-USA) R1 (AAU) their contractual obligations, the Big University of Louisiana at Lafayette (Sun Belt) R2

Southwest University of Texas at San Antonio (C-USA) R2 Conference consists of the Texas State University/San Marcos (Sun Belt) R2 following schools: University of Texas at El Paso (C-USA) R1

New Mexico State University/Las Cruces (WAC) R2

University of North Texas/Denton (C-USA) R1

Louisiana Tech University/Ruston (C-USA) R2

University of Texas at Arlington (Sun Belt) R1

University of Texas Rio Grande Valley/Edinburg (WAC) R2

Jeff Pownell, mockingbird sports Big Southwest Conference 6 BSW-SPONSORED SPORTS The Big Southwest Conference will compete and host championships in eight (8) men’s and nine (9) women’s sports:

Men’s Sports WoMen’s Sports

Basketball All 10 Schools Basketball All 10 Schools

Baseball 8 Schools (no UTEP, Cross-Country All 10 Schools UNT) Golf 7 Schools (no Rice, Louisiana-Lafayette, Cross-Country All 10 Schools La Tech) Football 8 Schools (no UT- Soccer 9 Schools (no UT- Arlington, UTRGV) Arlington) Softball Golf All 10 Schools 8 Schools (no Rice, UTRGV) 6 Schools (no Tennis Tennis All 10 Schools Texas State, UNT, UTEP, La Tech) Indoor Track & All 10 Schools Indoor Track & Field 9 Schools (no NMSU) Field Outdoor Track & All 10 Schools Outdoor Track & 9 Schools (no NMSU) Field Field Volleyball All 10 Schools

NON-SPONSORED SPORTS AND NCAA REQUIREMENTS UTRGV is the only Big Southwest Conference school that plays men’s soccer, so perhaps it can compete as an affiliate member in the AAC or Missouri Valley Conference, or as an independent. Three BSW schools compete in women’s swimming and diving (UTSA, Louisiana-Lafayette, and Rice (swimming only)) and perhaps can compete as affiliate members in the AAC or Big 12, where five schools compete (in both conferences). If so, Rice would qualify for the requisite eight women’s sports by virtue of NCAA bylaw 20.02.6.1, that permits one women’s sport to count when played as an affiliate member in another D-I conference.5 Otherwise, Rice needs to add one women’s BSW-sponsored sport (golf or sofball). Louisiana Tech sponsors women’s bowling and UTEP sponsors rifle as out-of- conference sports, to meet the requirements of NCAA bylaw 20.9.9.1. All other BSW football-playing schools participate in at least six men’s and eight women’s BSW-sponsored sports and sponsor at least sixteen sports, as required by NCAA bylaws 20.02.6 and 20.9.9.1 to form a DI-FBS conference.

5 NCAA bylaw 20.02.6.1 provides “A [FBS] member institution shall be permitted to count as one of its required six men’s sports and one of its required eight women’s sports a sport in which its conference does not sponsor or conduct a championship, provided the sport is one in which it participates in another Division I multi- or single- sports conference. Different sports may be counted for men and women.”

Jeff Pownell, mockingbird sports Big Southwest Conference 7 III. VALUE PROPOSITIONS

IS IT WORTH IT TO FORM THE BIG SOUTHWEST CONFERENCE? Aside from student fees or other institutional support, a school’s athletics budget derives primarily from four revenue sources: (1) event ticketing and merchandising (and game guarantees); (2) conference-associated revenues (media, NCAA tournament, football bowl/ playoff distributions); (3) licensing, royalties, advertising and sponsorships; and (4) donor contributions. The Knight Commission College Athletics Financial Information (CAFI) Database indicates the BSW schools generate on average $10-15 million annually from these sources (non-football schools generate $3-5 million annually).

THE BIG SOUTHWEST CONFERENCE SAVES MONEY, REDUCES TRAVEL, AND ADDS SIGNIFICANT VALUE TO ALL FOUR REVENUE SOURCES FOR ITS MEMBER SCHOOLS. Below are some BSW value propositions (feel free to add your own):

1. THE SOUTHWEST FOOTPRINT The Big Southwest Conference’s regional footprint reduces travel expenses and student- athlete travel time and enhances regional rivalries, which will increase ticketing, merchandising, licensing, advertising, and sponsorship revenues. A seven-game conference football schedule allows schools to schedule another home game or “revenue” game with a P5 conference school. The Big Southwest Conference will create new enthusiasm and increase donor contributions for its member schools.

2. BSW HEADQUARTERS AND BOWL GAME IN AUSTIN The Big Southwest Conference headquarters should be in Austin. The BSW football champion should play in a new bowl game at Darrell K Royal-Texas Memorial Stadium. BSW championships in sports played at neutral sites (basketball, volleyball) can also take place in Austin. This raises the profile of the Big Southwest Conference, includes the Austin area as part of the BSW base, and creates new revenue opportunities for the Big Southwest Conference and its member schools.

Jeff Pownell, mockingbird sports Big Southwest Conference 8 3. MEDIA RIGHTS: BSW, LHN, ESPN, AND THE WIN-WIN-WIN In the increasing divide between the have (P5) and have-not (G5) DI-FBS conferences, the Sun Belt Conference and C-USA in effect have “exposure” media rights deals that do not provide substantial revenue for their member schools. C-USA’s deal (with CBS Sports, Stadium, and Facebook Watch) through 2022-23, and the Sun Belt’s deal (with ESPN) through 2027-28, both provide about $500,000/year per school.

WITH UT-AUSTIN'S SUPPORT, THE BIG SOUTHWEST CONFERENCE CAN PERHAPS DO BETTER. UT-Austin’s agreement with ESPN to broadcast the Longhorn Network (LHN) lasts until 2031. The LHN lacks sufficient live sports content. The Big Southwest Conference has Southwest- based live sports content. ESPN would like to recoup its $295 million investment in the LHN.

This presents a “win-win-win” scenario, in which the BSW provides its Tier I content on a dual-badged LHN (“Home of Big Southwest Conference Sports”), with its remaining content on ESPN+ (ESPN’s digital platform). If BSW member schools’ support for the LHN moves the needle so that rights fees for LHN’s 7-10 million subscribers rise from its present rate (30 cents/ month) to the SEC Network rate ($1.40/month), this generates $100 – $150 million in annual media and advertising revenues, to divvy up between the BSW schools, UT-Austin, and ESPN.

DO THE BSW SCHOOLS, WITH UT-AUSTIN, CREATE ENOUGH VALUE TO INCREASE THE LHN SUBSCRIBER FEE? In this cord-cutting age, perhaps not – but at least there’s the potential for the BSW to show its quality and create value through the LHN. And even if it doesn’t move the economic needle, the Big Southwest Conference still has linear (LHN) and digital (ESPN+) distribution, with the best production values for its sports content in the industry.

4. BUNDLING SPONSORSHIP/ADVERTISING RIGHTS The Big Southwest Conference’s regional footprint allows for sponsorship opportunities with Southwest-based companies like Whataburger, H-E-B, Dr. Pepper, and others whose markets line up with the Southwest footprint. To create added value, the BSW can create a “top tier” shelf of sponsors at the conference level (similar to Olympic TOP partners).

5. SOUTHWEST ACADEMIC RESEARCH ALLIANCE The above value propositions add $5-10 million per year for each Big Southwest Conference member school. However, its most significant value comes from forming SARA. It won’t happen overnight, but a collaborative research consortium that includes shared academic resources, course development, information technology, and other academic endeavors, has the potential to generate tens of millions of dollars in grants and other funded research for Big Southwest Conference member schools. (UT-Austin should also be a member of SARA).

Jeff Pownell, mockingbird sports Big Southwest Conference 9 IV.

ACTION PLAN: MAKING IT HAPPEN

Anyone who’s ever taken a shower has had a great idea.

It takes a plan to turn an idea into reality. Here’s a plan.

RICE SHOULD LEAD The Big Southwest Conference member schools value the academic mission and NCAA compliance as core principles. It follows that Rice should take the initiative. With a $6 billion endowment, R1/Top 20 status, and one of only 27 private schools in the Association of American Universities (AAU), by all measures Rice is an elite academic institution. Rice also plays by the rules. It’s one of only a handful of DI-FBS schools that has never had a major NCAA violation in any sport.

BUT IT'S NOT ENOUGH TO JUST BE HONEST AND SMART. RICE ALSO NEEDS TO LEAD. The Big Southwest Conference presents a great opportunity for Rice to show its quality. Rice can take the lead in forming the Big Southwest Conference, and in so doing, raise its athletic profile in a way that aligns with its values. Rice has the academic gravitas to ensure that from its inception, BSW schools value the academic mission and NCAA compliance as core principles of membership.

Rice also has the institutional knowledge of having been in an elite conference (and leadership doesn’t have to only be top-down; Rice’s exceptional current and former student- athletes can also lead). If, with Rice’s leadership, the Big Southwest Conference is formally created on December 8 at the Rice Hotel in downtown Houston, as the SWC was in 1914, so much the better.

PLAN A: THE RACE TO EIGHT AND TEN FOR THE WIN The Big Southwest Conference creates substantial value for each of the eight proposed football-playing schools needed to form a DI-FBS conference. UT-Arlington and UTRGV add competition in sponsored sports that lack full participation (men’s baseball, men’s tennis,

Jeff Pownell, mockingbird sports Big Southwest Conference 10 women’s golf), and both may well add football down the road.6 The ten proposed charter members will all benefit from forming the Big Southwest Conference. They should wholeheartedly agree to join.

PLANS B, C, D, E: ALL ABOARD THE BIG SOUTHWEST EXPRESS WHAT IF A SCHOOL RESPECTFULLY DECLINES TO JOIN? The Big Southwest Conference isn’t about what the proposed member schools presently are. It’s about what each BSW member school potentially can become. As a corollary to the “front or back of the uniform” value debate, the Big Southwest Conference creates more value for its member schools than any individual school may create for the conference. If a proposed BSW school declines the invitation to join, wish it good luck, and move on to the next school who recognizes the value of the Big Southwest Conference and is ready to jump on board. Below are potential alternative paths to form the Big Southwest Conference (in no particular order):

NCAA waiver. Given the value propositions in forming the Big Southwest Conference discussed above (in particular those that result in increased revenues and reduced travel expenses and student-athlete travel time), it’s likely the NCAA would look favorably upon a waiver application, particularly if the BSW is only one football-playing school short of the eight DI-FBS schools required by NCAA bylaw 20.02.6 to form a DI-FBS conference.

Other DI-FBS schools. The University of Louisiana at Monroe (Doctoral/Professional) (D/PU) and State University (R2) in Jonesboro are other Division I-FBS schools within the Southwest geographic footprint. If a proposed BSW school declines to join, these schools are likely next in line for BSW membership in order to get to eight DI-FBS schools required to form a DI-FBS conference.

DI-FCS schools. Another pathway to form the Big Southwest Conference is to include a DI- FCS school in its membership and seek a temporary waiver from the NCAA while the DI-FCS school transitions to DI-FBS. Given the NCAA already permits one DI-FCS game to apply towards a DI-FBS school’s bowl eligibility, it’s almost certain the NCAA would grant such a waiver; otherwise it invites an antitrust suit (on grounds that such inconsistent treatment is contrary to the rule of reason and an unreasonable restraint of trade). Potential DI-FCS schools under this scenario include Sam Houston State University (D/PU) in Huntsville, which has a large and passionate fan base, and Texas Southern University (R2) in Houston, which could be the first HBCU to compete in DI-FBS.

6 UT-Arlington and UTRGV both recently conducted football feasability studies. UT-Arlington possibly can play football at Globe Life Park (the Texas Rangers’ former baseball park that is now a multi-purpose facility). UTRGV’s study concluded a significant impediment to adding football was the lack of a DI-FBS conference from which to receive an invitation to play, an impediment now removed.

Jeff Pownell, mockingbird sports Big Southwest Conference 11 DI no football schools. As for Division I schools with no football, the University of Texas at has already reached R1/Top 100 status and has outgrown Division II, and Texas A&M University – Corpus Christi (R2) is the TAMU system’s best chance for another Research 1 school. The at Little Rock (R2) is also a possibility.

The BSW academic mission. To be part of the Big Southwest Conference, potential member schools need a viable plan to reach R1/Top 100 status by the end of the decade (except UT-Dallas), and for schools with, or who hope to add football, a transition plan to meet DI-FBS requirements.

V. REMAINING C-USA AND SUN BELT CONFERENCE SCHOOLS

It bears passing note that the remaining C-USA and Sun Belt Conference schools align into their own geographic regions (but this is someone else’s project):

Remaining C-USA and Sun Belt Schools in Arkansas, Remaining C-USA and Sun Belt Schools in Florida, Louisiana, Mississippi, Alabama, Tennessee, and Georgia, South Carolina, North Carolina, Virginia, and kentucky West Virginia:

Florida International University/Miami C-USA Arkansas State University/Jonesboro Sun Belt Florida Atlantic University/Boca Raton C-USA University of Arkansas at Little Rock Sun Belt (no football) Georgia State University/Atlanta Sun Belt

University of Louisiana at Monroe Sun Belt Georgia Southern University/ Sun Belt Statesboro University of Southern Mississippi/ C-USA Hattiesburg Coastal Carolina University/ Sun Belt Conway, South Carolina University of Alabama at Birmingham C-USA University of North Carolina at C-USA Troy University/Troy, Alabama Sun Belt Charlotte

University of South Alabama/Mobile Sun Belt Appalachian State University/ Sun Belt Boone, North Carolina Middle Tennessee State University/ C-USA / C-USA Murfreesboro Norfolk, Virginia

Western Kentucky University/ C-USA Marshall University/ C-USA Bowling Green Huntington, West Virginia

Jeff Pownell, mockingbird sports Big Southwest Conference 12 CONCLUSION: ¡VIVA LA BIG SOUTHWEST!

This isn’t rocket science. It’s not difficult to see how the Big Southwest Conference can benefit all of its member schools in a number of meaningful and significant ways.

BUT IT TAKES COURAGE TO ACT. University leaders are understandably cautious, but there’s a difference between caution and paralysis, or worse, indifference.

The Big Southwest Conference will be a great athletic and academic conference for its member schools. It will make those of us who live in the Southwest incredibly proud. Let’s hope the athletic directors and university presidents of the Big Southwest Conference schools, along with their boards of trustees or other governing bodies, have the courage to act and decide to create their own future.

TAKE YOUR OWN ACTION. Tell your athletics director and university president you want your school to be part of the Big Southwest Conference.

IN G B K I © JEFFREY B. POWNELL C R O D M MOCKINGBIRD SPORTS, INC. [email protected] S S P O R T

Jeff Pownell, mockingbird sports Big Southwest Conference 13