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Schultz's latest reach out to Cougar Nation

KRUSTYtheCOUG

Head Coach
Dec 29, 2018
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September 19, 2023
Dear Cougar Nation,

As we continue to navigate the evolving landscape of intercollegiate athletics and conference realignment, I would like to provide a brief update regarding our search for an appropriate landing spot for Cougar Athletics. I have had several people ask different questions since my last update — so let me provide some information that may be helpful.
  • What conference will Cougar Athletics play in next year?
This has yet to be determined. We are evaluating several options that will depend on a number of factors, including the resolution of pending litigation around the governance of the Pac‑12 Board of Directors. We are also continuing to engage in fact-finding conversations with the Mountain West Conference and will discuss a variety of different partnership opportunities and options with them.
  • Why did Washington State University and Oregon State University take legal action against the Pac‑12 Conference?
As the two remaining members of the Pac‑12 Conference, Washington State University and Oregon State University have filed a legal action to confirm that they are the sole remaining board members of the conference’s governing body, consistent with the conference constitution and bylaws and how the conference has handled past notices of departure by other Pac‑12 schools.
  • What do WSU and OSU hope to achieve with their legal action?
Acting to preserve options for the Pac‑12 and protect the conference’s resources is not only our responsibility as the sole remaining members of the Pac‑12 Conference but it also strengthens our ability to support the well‑being of our student-athletes, our local communities, and our states. There is no definitive timeline for our litigation, but we can expect that it will be several weeks or months before we have clear answers on contested issues.
  • What role do faculty play in our decision-making process?
We are proud to be working in close partnership with faculty on several projects related to Cougar Athletics. To date, members of the faculty senate play an integral role on both our athletics budget oversight committee and our athletic advisory committee. Their guidance, and the feedback we’ve received from faculty throughout this process, has been instrumental in evaluating institutional priorities and ensuring we are making decisions that are beneficial for everyone. I am continually grateful for their advocacy and commitment to shared governance.
  • What will be the financial impact on academic budgets within Washington State University due to the change in conference affiliation?
Presently, I do not expect there to be any direct impacts on academic budgets due to a change in conference affiliation. However, there will certainly be significant changes in our athletics budget since we will not receive the same level of media-rights funding in the future as we received from the Pac‑12 Conference previously. Any potential reductions as a result of this change in media-rights funding will be reflected in the athletics operating budget in FY2025.
There is still considerable debate nationally on the role that conference affiliation plays in enrollment and prospective student decisions. It will be important to remind new incoming students that they will still have the opportunity to attend Cougar athletic events as part of the overall student experience on the WSU Pullman campus regardless of where we land next year.
  • What is the status of the athletics deficit due to operating fund shortfalls accumulated over the past decade?
This accumulated deficit is covered by university reserves and as such is not money owed to anyone outside of Washington State University. Because of reporting requirements and state regulations that prohibit the use of state funds for intercollegiate athletics, we must maintain sufficient non‑tuition reserve funds to internally cover this deficit balance.
  • Are you in contact with Oregon State University regarding our conference affiliation?
We are in regular and ongoing contact with our counterparts at Oregon State on many different levels. We are working together on our legal strategy, financial planning, and conference affiliation options moving forward.
  • What will the impact be on the local Pullman community with a change in conference affiliation?
We will still have Cougar Football playing home games at GESA Field as we have for decades, still have exciting men’s and women’s basketball at Beasley Coliseum, still have large home crowds for volleyball and soccer, and will enjoy spring weekend crowds for Cougar Baseball.
While our conference opponents will be different from the ones we’ve faced over the last 100 years, we still expect to have faculty, staff, students, alumni, community members, and friends continue to spend weekends in Pullman shopping locally, staying in hotels, eating at local restaurants, and making a positive impact on the economy in Whitman County. Student-athletes, coaches, and fans will continue to travel to Pullman for competitions. And I am confident that our loyal Cougar fans will show up to support our Cougar student-athletes regardless of opponent and location — as they have for years.
  • How can I keep current on what is happening with the Pac‑12 and WSU?
We have placed all of our communications surrounding these issues on the Office of the President’s website. We will continue to keep the Cougar community informed as we have new and additional information.
  • What can I do to help?
I will continue to remind everyone that we need to be patient and ensure that we look at all of our options moving forward. Our conference affiliation is an important decision and one that we want to make carefully.
As we consider our options, I would ask the Cougar community to continue to support and attend Cougar Athletics events. We’ve already seen capacity crowds at football, soccer, and volleyball and we are barely a month into the semester. Thank you to Cougs everywhere who have raised the flag and shown up for Washington State University. Our student-athletes feel your support, both in Pullman and on the road, and it makes a difference in the way they carry themselves, perform, and execute at the highest level.
I am grateful for the support of the Cougar community throughout this process and will continue to provide you with periodic updates on our future conference home. If you have additional questions, please don’t hesitate to send me a note via email. I will attempt to provide an answer if possible. Thank you and, as always, Go Cougs,
Kirk
KIRK H. SCHULZ
System President
Washington State University
 
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September 19, 2023
Dear Cougar Nation,

As we continue to navigate the evolving landscape of intercollegiate athletics and conference realignment, I would like to provide a brief update regarding our search for an appropriate landing spot for Cougar Athletics. I have had several people ask different questions since my last update — so let me provide some information that may be helpful.
  • What conference will Cougar Athletics play in next year?
This has yet to be determined. We are evaluating several options that will depend on a number of factors, including the resolution of pending litigation around the governance of the Pac‑12 Board of Directors. We are also continuing to engage in fact-finding conversations with the Mountain West Conference and will discuss a variety of different partnership opportunities and options with them.
  • Why did Washington State University and Oregon State University take legal action against the Pac‑12 Conference?
As the two remaining members of the Pac‑12 Conference, Washington State University and Oregon State University have filed a legal action to confirm that they are the sole remaining board members of the conference’s governing body, consistent with the conference constitution and bylaws and how the conference has handled past notices of departure by other Pac‑12 schools.
  • What do WSU and OSU hope to achieve with their legal action?
Acting to preserve options for the Pac‑12 and protect the conference’s resources is not only our responsibility as the sole remaining members of the Pac‑12 Conference but it also strengthens our ability to support the well‑being of our student-athletes, our local communities, and our states. There is no definitive timeline for our litigation, but we can expect that it will be several weeks or months before we have clear answers on contested issues.
  • What role do faculty play in our decision-making process?
We are proud to be working in close partnership with faculty on several projects related to Cougar Athletics. To date, members of the faculty senate play an integral role on both our athletics budget oversight committee and our athletic advisory committee. Their guidance, and the feedback we’ve received from faculty throughout this process, has been instrumental in evaluating institutional priorities and ensuring we are making decisions that are beneficial for everyone. I am continually grateful for their advocacy and commitment to shared governance.
  • What will be the financial impact on academic budgets within Washington State University due to the change in conference affiliation?
Presently, I do not expect there to be any direct impacts on academic budgets due to a change in conference affiliation. However, there will certainly be significant changes in our athletics budget since we will not receive the same level of media-rights funding in the future as we received from the Pac‑12 Conference previously. Any potential reductions as a result of this change in media-rights funding will be reflected in the athletics operating budget in FY2025.
There is still considerable debate nationally on the role that conference affiliation plays in enrollment and prospective student decisions. It will be important to remind new incoming students that they will still have the opportunity to attend Cougar athletic events as part of the overall student experience on the WSU Pullman campus regardless of where we land next year.
  • What is the status of the athletics deficit due to operating fund shortfalls accumulated over the past decade?
This accumulated deficit is covered by university reserves and as such is not money owed to anyone outside of Washington State University. Because of reporting requirements and state regulations that prohibit the use of state funds for intercollegiate athletics, we must maintain sufficient non‑tuition reserve funds to internally cover this deficit balance.
  • Are you in contact with Oregon State University regarding our conference affiliation?
We are in regular and ongoing contact with our counterparts at Oregon State on many different levels. We are working together on our legal strategy, financial planning, and conference affiliation options moving forward.
  • What will the impact be on the local Pullman community with a change in conference affiliation?
We will still have Cougar Football playing home games at GESA Field as we have for decades, still have exciting men’s and women’s basketball at Beasley Coliseum, still have large home crowds for volleyball and soccer, and will enjoy spring weekend crowds for Cougar Baseball.
While our conference opponents will be different from the ones we’ve faced over the last 100 years, we still expect to have faculty, staff, students, alumni, community members, and friends continue to spend weekends in Pullman shopping locally, staying in hotels, eating at local restaurants, and making a positive impact on the economy in Whitman County. Student-athletes, coaches, and fans will continue to travel to Pullman for competitions. And I am confident that our loyal Cougar fans will show up to support our Cougar student-athletes regardless of opponent and location — as they have for years.
  • How can I keep current on what is happening with the Pac‑12 and WSU?
We have placed all of our communications surrounding these issues on the Office of the President’s website. We will continue to keep the Cougar community informed as we have new and additional information.
  • What can I do to help?
I will continue to remind everyone that we need to be patient and ensure that we look at all of our options moving forward. Our conference affiliation is an important decision and one that we want to make carefully.
As we consider our options, I would ask the Cougar community to continue to support and attend Cougar Athletics events. We’ve already seen capacity crowds at football, soccer, and volleyball and we are barely a month into the semester. Thank you to Cougs everywhere who have raised the flag and shown up for Washington State University. Our student-athletes feel your support, both in Pullman and on the road, and it makes a difference in the way they carry themselves, perform, and execute at the highest level.
I am grateful for the support of the Cougar community throughout this process and will continue to provide you with periodic updates on our future conference home. If you have additional questions, please don’t hesitate to send me a note via email. I will attempt to provide an answer if possible. Thank you and, as always, Go Cougs,
Kirk
KIRK H. SCHULZ
System President
Washington State University
Nice piece. Raises my opinion of Shulz quite a bit.
 
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This accumulated deficit is covered by university reserves and as such is not money owed to anyone outside of Washington State University. Because of reporting requirements and state regulations that prohibit the use of state funds for intercollegiate athletics, we must maintain sufficient non‑tuition reserve funds to internally cover this deficit balance.
Interesting. They could wipe the slate clean tomorrow with a stroke of the pen moving reserves to pay off debts?

But that didn't really answer the question. The question was about deficits, not debt. Are the expenditures--less the internal debt servicing--greater than the income? Is that in their reports?
 
Interesting. They could wipe the slate clean tomorrow with a stroke of the pen moving reserves to pay off debts?

But that didn't really answer the question. The question was about deficits, not debt. Are the expenditures--less the internal debt servicing--greater than the income? Is that in their reports?
Shit. This is all just accounting gymnastics. Our stadium debt (bank loans, etc?) out shines this "internal" debt. Let's just take about 10 or 15% of an endowment distribution and pay off the f-ing debt. And call the "internal debt" null and void. I've been an accountant all my adult life, except for now when I am just a drunken bum. I get this shit.
 
Shit. This is all just accounting gymnastics. Our stadium debt (bank loans, etc?) out shines this "internal" debt. Let's just take about 10 or 15% of an endowment distribution and pay off the f-ing debt. And call the "internal debt" null and void. I've been an accountant all my adult life, except for now when I am just a drunken bum.

What's the hold-up on a strategic maneuver like that?

Is it a case of unwanted optics to where some vocal professors or the anti-sports crowd might raise a ruckus?
 
Shit. This is all just accounting gymnastics. Our stadium debt (bank loans, etc?) out shines this "internal" debt. Let's just take about 10 or 15% of an endowment distribution and pay off the f-ing debt. And call the "internal debt" null and void. I've been an accountant all my adult life, except for now when I am just a drunken bum. I get this shit.
Our "debt" is actually a good thing, it is actually a leveraged "investment" in local real estate. OSU, with its 160 million brand new, but stadium capacity reducing, addition is even in a better position than us.

Why can't politicians, like Schulz, just be candid. How about, it is going to be tough, damn tough. It is going to be a struggle. He may need to call on us to support WSU like at no other time in our history, and all he can offer is blood, toil, sweat and tears, which he promises he will give us.

Politician vs Leader
 
Interesting. They could wipe the slate clean tomorrow with a stroke of the pen moving reserves to pay off debts?

But that didn't really answer the question. The question was about deficits, not debt. Are the expenditures--less the internal debt servicing--greater than the income? Is that in their reports?
Accounting magic.

Expenditures have exceeded revenues since at least Moos' first days as AD (and I think the deficit spending started during the recession). I can't recall which fund actually services the debt, or what if any internal accounting arises from that. The pandemic really hurt Athletic Department. I believe the deficit for 2020 was $31 million.
 
I think that on balance our Pres has done OK to this point. He was too trusting of others early in the process. He did not act aggressively enough in calling BS when stupid things were said & done (the professor's 'analysis' that claimed all PAC schools should get $50m each from media, as an example). He is not perfect. But overall he has steadily risen to the challenges. Slowly, but he got there. And it is easy to throw rocks from your recliner.

Our actions within the past month appear to me to have been coherent and appropriate. Some of that may be due to influence of our partner (OSU), but that is not a bad thing. Two perspectives is usually better than one in this kind of scenario. One thing that seems clear is that we have either engaged some good PR advice for our communications or we have significantly stepped up our game ourselves. The former seems more likely than the latter, but I suppose it could be either. The letter that started this thread is night and day better than communications 1-2 months ago.
 
Other than realizing he has a much broader audience than die-hard sports fans, I don't see what's all great about this letter. It reads to me as vanilla info we already knew with further softening of the blow of a Mountain West landing. Not that there is all that much else he could have written, and the factual info, in and of itself, is fine. I just personally would have liked to have seen something stating, or at least implying, that the university is doing everything reasonably possible to try to stay in P4/P5 or "the highest levels of the college sports landscape," or whatever, and the absence of anything of that sort, yet the explicit -- albeit appropriate -- call-out of the MWC, tells me how Schulz feels. Or, at least, if that's an improper inference, he should have messaged things a little differently.
 
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Other than realizing he has a much broader audience than die-hard sports fans, I don't see what's all great about this letter. It reads to me as vanilla info we already knew with further softening of the blow of a Mountain West landing. Not that there is all that much else he could have written, and the factual info, in and of itself, is fine. I just personally would have liked to have seen something stating, or at least implying, that the university is doing everything reasonably possible to try to stay in P4/P5 or "the highest levels of the college sports landscape," or whatever, and the absence of anything of that sort, yet the explicit -- albeit appropriate -- call-out of the MWC, tells me how Schulz feels. Or, at least, if that's an improper inference, he should have messaged things a little differently.
"I just personally would have liked to have seen something stating, or at least implying, that the university is doing everything reasonably possible to try to stay in P4/P5 "

I think this is pretty much implied, you had a coach begging for P5 after the Wisconsin win, and recruiting and current rosters will take a huge hit if we aren't. Shulz just mentioned the budget, I am sure he would much rather earn 30 million in a power 5 than 5-10 in G5. He is simply stating where we are now, I am sure there are still negotiations going on behind the scenes. Right now the Big 12 looks like $hit as a football conference, WSU and OSU would give them a boost. But the networks are calling the shots, so rather than getting the fans hope up, he is simply letting you know what is on the table today, which will probably change tomorrow.
 
I’d encourage people to trust that they don’t know everything going on behind the scenes at WSU when they interpret these statements…and that Schultz knows a helluva lot more. Think donors, gifts, etc along with the latest in realignment. I’m not excusing past actions or inactions of Schultz but he’s got a pulse on things that none of us have any idea about.

The fact that projects are continuing is a good sign IMO.
 
I’d encourage people to trust that they don’t know everything going on behind the scenes at WSU when they interpret these statements…and that Schultz knows a helluva lot more. Think donors, gifts, etc along with the latest in realignment. I’m not excusing past actions or inactions of Schultz but he’s got a pulse on things that none of us have any idea about.

The fact that projects are continuing is a good sign IMO.
At least he's attempting to be proactive in updates and communications moving forward. Something that the current commissioner has never done.
 
I have a simple question, and there may not be an answer to it yet. IF OSU and WSU continue as the TuPac, for a year, will they maintain power 5 status for next year or two, as independents ( as I assume the automatic bid is gone) , until the next league is formed?
 
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I have a simple question, and there may not be an answer to it yet. IF OSU and WSU continue as the TuPac, for a year, will they maintain power 5 status for next year or two, as independents ( as I assume the automatic bid is gone) , until the next league is formed?
Yes we will retain our Power 5 status, because the NCAA has a rule that states there is a grace period. I can't remember how many years...either 2 or 4 years until we need to reach the minimum of 8 members.
 
The 2 year exemption is to remain a conference for 2 years with less then 8 members, it has nothing to do with Power 5 status.
 
The 2 year exemption is to remain a conference for 2 years with less then 8 members, it has nothing to do with Power 5 status.
But the conference is currently a power 5 conference. If we went this route it’s still the same conference.
 
The 2 year exemption is to remain a conference for 2 years with less then 8 members, it has nothing to do with Power 5 status.

This is a bigger concern than most people may realize.

The SEC and B1G have already started talking about modifying the playoff format based on conference realignment. I figure that there's only about a 10% chance that a rebuilt Pac-12 is considered a Power 5 league. I expect that next summer we will learn that the Pac-2 will not be in the big boys club.
 
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This is a bigger concern than most people may realize.

The SEC and B1G have already started talking about modifying the playoff format based on conference realignment. I figure that there's only about a 10% chance that a rebuilt Pac-12 is considered a Power 5 league. I expect that next summer we will learn that the Pac-2 will not be in the big boys club.

And this continues to be my biggest fear. The Cougs must have a path toward the college football playoffs, whatever conference they end up in.
 
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Flat, what % chance WSU (and OSU) end up in a further expanded Big 12?

I'm optimistic myself

It's hard to say. I'd put it at around 1 in 4. As I mentioned earlier in the week, 16 teams is about as big as you can go and keep any semblance of a real conference and that's where the Big 12 is currently at without OSU and WSU. You get past 16 and it gets messier. What's interesting for WSU and OSU is that it's clear that the behind the scenes shenanigans of the past couple years are going to cause both schools significant financial harm....something that's probably been hard to argue before. When the Pac-12 raided CU from the Big 12 and Nebraska and Missouri bolted to other conferences....there was probably some financial harm...but the league survived.

When the Big East fell apart as a football league, it didn't end as a basketball power. Conference USA is weaker without the teams that they lost to the Big 12...but their TV contracts sucked already and they arguably didn't lose anything.

The demise of the Pac-12 is the first time in 30 years where external forces (TV money) caused the destruction of a conference. The Southwest Conference died an ignoble death in 1996, but with all of the corruption and problems of the conference, a lot of people viewed it as a mercy killing rather than plundering. Also, the teams that left the SWC made moves that made geographic and traditional sense. The teams that didn't move up moved to conferences that were arguably equivalent to their prior position in life. That is not the case for WSU and OSU.

The reason why I say this is that if the SEC, B1G, ACC and Big 12 screw over teams in a rebuilt Pac-12, there might be the basis of a lawsuit hanging out there. It might be cheaper and easier for ESPN and FOX to get WSU and OSU a home in the Big 12 than it would be to fight the legal battle that the rebuilt Pac-12 might try to fight. At this point, we have nothing to lose and there's no point in pulling punches if they want to dance. All that said, I think the case would be pretty thin and our chances of winning are well below 50%.
 
It's hard to say. I'd put it at around 1 in 4. As I mentioned earlier in the week, 16 teams is about as big as you can go and keep any semblance of a real conference and that's where the Big 12 is currently at without OSU and WSU. You get past 16 and it gets messier. What's interesting for WSU and OSU is that it's clear that the behind the scenes shenanigans of the past couple years are going to cause both schools significant financial harm....something that's probably been hard to argue before. When the Pac-12 raided CU from the Big 12 and Nebraska and Missouri bolted to other conferences....there was probably some financial harm...but the league survived.

When the Big East fell apart as a football league, it didn't end as a basketball power. Conference USA is weaker without the teams that they lost to the Big 12...but their TV contracts sucked already and they arguably didn't lose anything.

The demise of the Pac-12 is the first time in 30 years where external forces (TV money) caused the destruction of a conference. The Southwest Conference died an ignoble death in 1996, but with all of the corruption and problems of the conference, a lot of people viewed it as a mercy killing rather than plundering. Also, the teams that left the SWC made moves that made geographic and traditional sense. The teams that didn't move up moved to conferences that were arguably equivalent to their prior position in life. That is not the case for WSU and OSU.

The reason why I say this is that if the SEC, B1G, ACC and Big 12 screw over teams in a rebuilt Pac-12, there might be the basis of a lawsuit hanging out there. It might be cheaper and easier for ESPN and FOX to get WSU and OSU a home in the Big 12 than it would be to fight the legal battle that the rebuilt Pac-12 might try to fight. At this point, we have nothing to lose and there's no point in pulling punches if they want to dance. All that said, I think the case would be pretty thin and our chances of winning are well below 50%.

Good summary Flat, thanks.

I'm optimistic

Just seems like WSU and OSU have a lot to offer a conference like the Big 12
 
It's hard to say. I'd put it at around 1 in 4. As I mentioned earlier in the week, 16 teams is about as big as you can go and keep any semblance of a real conference and that's where the Big 12 is currently at without OSU and WSU. You get past 16 and it gets messier. What's interesting for WSU and OSU is that it's clear that the behind the scenes shenanigans of the past couple years are going to cause both schools significant financial harm....something that's probably been hard to argue before. When the Pac-12 raided CU from the Big 12 and Nebraska and Missouri bolted to other conferences....there was probably some financial harm...but the league survived.

When the Big East fell apart as a football league, it didn't end as a basketball power. Conference USA is weaker without the teams that they lost to the Big 12...but their TV contracts sucked already and they arguably didn't lose anything.

The demise of the Pac-12 is the first time in 30 years where external forces (TV money) caused the destruction of a conference. The Southwest Conference died an ignoble death in 1996, but with all of the corruption and problems of the conference, a lot of people viewed it as a mercy killing rather than plundering. Also, the teams that left the SWC made moves that made geographic and traditional sense. The teams that didn't move up moved to conferences that were arguably equivalent to their prior position in life. That is not the case for WSU and OSU.

The reason why I say this is that if the SEC, B1G, ACC and Big 12 screw over teams in a rebuilt Pac-12, there might be the basis of a lawsuit hanging out there. It might be cheaper and easier for ESPN and FOX to get WSU and OSU a home in the Big 12 than it would be to fight the legal battle that the rebuilt Pac-12 might try to fight. At this point, we have nothing to lose and there's no point in pulling punches if they want to dance. All that said, I think the case would be pretty thin and our chances of winning are well below 50%.
I also believe there is one component that really hasn't been factored in and that would be the power of public perception. If, at large, most CFB fans and people in general feel like WSU & OSU are being blackballed, I think this would add significant pressure (compounded if it does go to the courts and through the motion of discovery we unearth the dirtiness and collusion between the networks and some of the schools to lock us out) to the other influential components of getting WSU & OSU into the Big12.
 
Everyone....except for that dickhead at Arizona....knows that it's an absolute travesty that WSU and OSU were left out in the cold.

The basketball coach from Gonzaga who went to Arizona?

Was he fighting against WSU joining the Big 12?
 
And this continues to be my biggest fear. The Cougs must have a path toward the college football playoffs, whatever conference they end up in.
F the playoffs. Why is everyone so hung up on this? I could give a shit. Let's have some great football against whoever. If the playoff berth falls in our lap fine. Otherwise, who gives a F? Not me.
 
Wow ... I didn't know he was directly trying put the shaft to WSU and OSU.

What difference did it make to him if the Cougs and Beavs joined the Big 12, too?

Maybe he was afraid of competition?

UA President to the Big 12:

"Please take everyone into the Big 12, except WSU, OSU".

Reason that used direct quotation marks, despite it being a PARAPHRASED quote, ITS PRETTY DAM BLOODY CLOSE TO EXACTLY WHAT THE UA PRESIDENT SAID.
 
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F the playoffs. Why is everyone so hung up on this? I could give a shit. Let's have some great football against whoever. If the playoff berth falls in our lap fine. Otherwise, who gives a F? Not me.

Without a path to the CFP’s or any other sport for that matter, WSU will see a drastic reduction in revenue, recruits, coaches, enrollment. Do you want me to continue?
 
Without a path to the CFP’s or any other sport for that matter, WSU will see a drastic reduction in revenue, recruits, coaches, enrollment. Do you want me to continue?
Well f-it then Let's just shut WSU down. Fresno State, who kicked our ass in the Bowl and just out ASU, seems to be doing fine.
 
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