After months of what university president Luke Wood describes as "disruptive marketing," Sacramento State has completed its years-long goal of membership into the NCAA's top football division, FBS.
But the Hornets' five-year football-only agreement into the Mid-American Conference comes at a steep price — the steepest price, at least in cash, that we've seen from any conference expansion move in history.
Sac State will pay an $18 million entry fee into the league ($6 million the first year) and $5 million in an NCAA FBS entry fee, as well as accepting zero conference distribution over that stretch and covering the air travel costs for all visiting MAC football teams (an additional $2-4 million over the five years).
The total price for the move (the entry fees and the travel costs) stands to exceed $25 million. All of this to compete in a division where Sac State's budget will be dwarfed by power conference giants?
It's left so many inside and outside of college athletics asking a question: Why?
"It is putting the university on the map," Wood said in an interview Monday with Yahoo Sports.
In short, Sacramento State views this promotion as a branding and marketing play for the university, where the FBS moniker, nationally televised MAC games and path to bowls and the College Football Playoff brings eyeballs that, Wood says, you just don't get at the FCS level.
In fact, Wood, himself a Sacramento State alum, commissioned a consulting firm to generate the economic impact of five years in FBS. It produced a $975 million figure to the Sacramento area (roughly $250 million annually).
But perhaps the most significant impact of the move is related to the school's enrollment. In fact, Wood says studies have shown that the value of a university degree increases with a move from FCS to FBS.
"Part of what we need to be able to do is market ourselves not just in-state but also out of state," Wood said. "The lack of exposure in FCS does have an impact on recruiting students, especially out of state. You need out-of-state students to ensure your university is viable."
Though the university subsidizes a large percentage of Sac State's athletic budget, Wood says most of the MAC and FBS entry fees will originate from the football program's revenues, specifically the cash accrued from non-conference "buy games" against FBS and power league programs. Football will pay the fees for football's move, he says.
There are other expenses beyond entry fees and compensating MAC teams for their travel. For instance, the school plans millions this offseason in modifications to its stadium to prepare it for FBS play, including the creation of a new visiting locker room, visiting suites for the opponent's administration, additional end-zone seating and video boards. That doesn't include millions in its own travel costs to ship its football team across the country at least four times a year for five years (likely at a cost of at least $150,000 a trip).
Is it all worth it?
"The whole point is to make sure Sacramento State is a flagship university," Wood said. "We are a case study in disruptive marketing. People would say North Dakota State did it the right way. Well, we can't wait around to win 10 national championships.
"There were many who fought tooth and nail to make sure this didn't happen. We had many people rooting against us. Despite all the odds, we did something that hasn't been done in 57 years. It is historic."
Wood is referring to Sacramento State becoming the first West Coast FCS program to move its football team to FBS since Fresno State and San Diego State made the move in 1969.
Nearly six decades later, the Hornets arrive, delivering the Mid-American Conference quite a windfall. The MAC distributes around $1.5-2 million annually to its members in all-in conference distribution (this includes NCAA and bowl distributions). Sac State's entry fee is expected to increase the annual distribution by about 15-20%.
As one school administrator quipped, "That's a big deal."
The MAC gets money. Sac State gets the FBS brand.
And that includes the Hornets' inclusion in EA's "College Football" video game, too.
"I was talking to our players this morning," Wood said. "You know what they are most excited about? Being in the video game."
