Big 12 TV Contract: ESPN, FOX $2.6 Billion Package and Impact on Expansion

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Well, that didn’t take Bob Bowlsby long.

Introduced as the Big 12 Conference’s new commissioner on Friday, CBS Sports’ dynamic journalism duo of Dennis Dodd and Brett McMurphy report Bowlsby is on the verge of ushering in 13-year television deal worth $2.6 billion. FOX and the Big 12 inked a $1.2 billion package last month, and ESPN would foot the rest.

The combining of FOX and ESPN is reminiscent of the negotiation Larry Scott scored for the Pac-12 last spring, a $2.7 billion, 12-year contract. The Pac-12 deal averages out to about $5 million more per year, but split among two more programs — that is, assuming the Big 12 is holding steady at 10 for the duration of the contract.

Dodd and McMurphy address the potential of more members, writing:

This new deal is based on a 10-team league and sources said it could be worth even more per school if the Big 12 expands to 11 or 12 teams.

There are two ways of assessing the new deal as it pertains to possible Big 12 expanse. The first is that the Florida State-Clemson partnership some outlets reported as being very close, if not done, will not come to pass. Why announce a blockbuster television contract when even bigger news about membership is on the horizon?

The other way of looking at this news is that Bowlsby is going all-in on a push to attract new members. In this proverbial poker game, Bowlsby is showing his hand. It’s a good one, but is it a full house?

The Big 12 stands to dole out somewhere in the neighborhood of $20 million per members — roughly $6 million more than the anticipated split from ACC re-negotiations. The attractiveness of the Big 12′s stipends are predicated on that figure increasing with new members, however. Assuming the report of stipulations pertaining to additions is accurate, the Big 12 has an ace-in-the-hole.

Even if no such stipulation exists, the Big 12 is declaring itself in league with the SEC, Big Ten and Pac-12 for the long haul. The conference has always had a claim to being right near the apex of on-field product. It finally has a television package to back that up. And if the pot doesn’t increase with new membership, there’s no reason to expand. The deal is apparently inked with no conference championship game or added markets. Further, Bowlsby expressed support for the round robin schedule that pits all 10 conference members against one another over the regular season’s duration.

John Marinatto’s resignation as Big East commissioner comes at a coincidental time (how coincidental, really?). The Big East is the conference left to sweat the most from this Big 12 power play.

Topics: Media, TV

Sooner_Stampede

A lot of people keep saying that there is nothing to the ACC rumors and that they were just started by some WVU blogger but that is completey wrong. Back when A&M was rumored to become a new member of the SEC the Big 12 asked many schools including Arkansas, numerous ACC schools, and even Pitt if they would want to join the conference. These schools all admitted to being approached by the Big 12 and they all said they declined because they didn’t want to join a completely unstable conference. Then, after the Big 12 added TCU and WVU, signed the grant of rights, and made revenue sharing equal the conference stabilized and the ACC rumors began to resurface on ACC blogs about the Big 12 once again approaching ACC schools. A WVU blogger just claimed to have insider information regarding these “talks”. Swofford himself stated that despite the Big 12 being far better than than the ACC in regards to football that no ACC school would join the Big 12 unless they became a lot more stable and could offer a great deal more money. Right around the time he said this the ESPN deal was coincidentally leaked.

Now the ESPN deal is pretty much a done deal it looks like the Big 12 can offer a whole lot more money and with the GOR being extended to match the new deal, until 2025, the conference is going to be locked together for the next 13 years. Then there is the whole playoff revenue distribution deal where the conferences that participate in the playoffs make substantially more than those that are not in the playoffs, the Big 12 would have sent 9 teams in the last 10 years and the ACC would have sent 1. The Big 12 can offer a whole lot more money than the ACC and with this announcement they are just saying “Yeah, what we have been telling you is completely true”. The ACC schools may try and leverage a Big 12 invite to get an invite from the SEC, but I think the SEC will hold out and see if the ACC will fall apart and then they can pick up the schools they have been wanting (VA Tech and NC State). My opinion is that while Clemson and FSU have been kind of on board I think this announcement is aimed at someone else. The Big 12 was also trying to convince other schools like GT of joining but they were less receptive than CU and FSU and with this deal they will be more inclined to listen, but I think this could be aimed at an even bigger fish that everyone has been after, ND. I believe ND is a complete longshot but Dodds has been after them for years and he wants them more than anything and he will try anything to get them. Will dangling a big fat pay check in front of their faces convince them, probably not, but they will try anything.
kensing45

I’d imagine NBC would have to completely lose interest in Notre Dame for a conference to carry a big enough offer sheet to persuade them away from independence. Can’t see that happening.

This new deal is HUGE for the Big 12; like I mentioned, not quite on par with the Pac-12′s, but in that upper echelon of conferences. Has to give them a ton of mobility if the conference wants to expand, but again, doesn’t force them to.
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Mike S

I think this is what the Big 12 has to do to show just how stable and viable the conference really is. An educated guess is that the Big 12 has numbers to show ANY possible new members exactly how the contract will be affected. Clemson’s advisory committee is scheduled to meet again June 18 and 19 and I am guessing each member has a copy of the financials to review prior as does FSU, Louisville, and whoever else may be involved (Pitt/Maryland/ND).

Important to remember that MU is not involved so leaks are not likely to happen.
Mike S

Also for the nay Sayers out there that think there is only a couple of million dollars difference it is important to remember that the estimated gap of $6m between Big 12 and ACC Is actually greater because 3rd tier rights are not included in the Big 12 deal. ACC 3rd Tier rights are already included in their deal. $17m is the max per team.