Back in my corporate days, we used to invite key members of the sales force to product development meetings and ask for their feedback on what they thought we needed to add to our product line.
Dozens of ideas about product other competitors had would be offered. I was the “no fun” guy at times who would ask specifically why we needed to have a version of that product, wanting to know was it their best-seller? How many floors in your territory was it on? How much volume do you think we’d do with such a group? Whose product would we knock off retail floors to make room for this new addition?
In many cases the answer was they didn’t know. They just liked how the product looked and wanted something like that in our lineup. I would then say it’d be a shame for us to go through all the expense of developing a new group, only to find out that while visually appealing, it didn’t really sell well for the competition, and thus probably wouldn’t be making any money for us either. So get me more data or the answer was no.
Then they’d call me names 😊
My point in saying this is because after reading a bunch of stories and opinions about who the Atlantic Coast should consider adding, now that Texas and Oklahoma have launched the opening salvo in another round of conference wars, is that most fans and pundits sound just like those product development meetings. They suggest and want every shiny bauble that might be out there, with little to no regard to the bottom line.
The magic number I’ve seen that should be the basis of any suggestion is this one: $32.4 million. That’s the revenue split each team got in the most recent sharing of the pot of gold the league passed out from television and revenue sharing agreements. It doesn’t mean each team brought in that much – I’m sure Clemson brought in a lot more, and teams like Boston College brought in a lot less – but that was the average.