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Canzano: Big 12 Beats Pac-12 to Finish Line -- but not Bottom Line

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The Big 12 Conference stepped in front of the Pac-12 Conference and got its media rights deal done early.

It’s a six-year contract with ESPN and FOX, as first reported on Sunday by Sports Business Journal.

 

The total value of the deal is $2.28 billion.

Average annual payout, split between members: $380 million.

 

Pac-12 source: "We are very confident to beat that number."

 

WWW.JOHNCANZANO.COM

Pac-12 source: "We are very confident to beat that number."
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Big 12 agrees to 6-year extension with ESPN, Fox

 

Two people confirmed details of the new media rights deal to The Associated Press on Sunday, speaking on condition of anonymity

because contracts have yet to be finalized and no official announcement was expected soon.

 

WWW.OREGONLIVE.COM

The Big 12 has reached an agreement on an extension worth more than $2 billion that will keep the conference’s media rights with the networks through the 2030-31 season.

 

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With the incoming schools to the Big 12 is only 31.6 million per school.  I certainly hope Pac-12 can do better.   There needs to be some big time incentives for school members as well.  34 million for Pac-12 members is still too low.

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For that kind of money the Ducks should maybe head to the BIG......Now.......

 

A few months back, ESPN valued the PAC 10 media rights at $300 million annually. Thats $30 mil, per season each school. Now remember, ESPN bases that figure on number of TV's. 

 

So a potential  deal with Amazon, who needs sports content for 165 million USA Prime subscribers is only worth about $3-$4 million a year, per school. Something doesnt add up! Especially if Amazon wants and needs the PAC Network. A network with broadcast equipment, staffing for broadcasts, announcers, studio abnouncers and 12 years of broadcast history. WTH.....

 

Now only a fraction of the 165 million subscribers will watch the PAC games. But still the price seems very low.

 

Also the PAC has 3 National Brands. Oregon, and to a lesser degree, washington and Utah. Please, anyone on the Forum, tell me what existing or incoming schools in the BIG 12 has a bigger national brand that those 3 PAC teams.

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Looks to me like our best case is still less than half what the B1G is getting per team.

 

If I'm Mullens I'm looking for a short-term contract with an escape clause.  IMHO the B12 has set the bar pretty low, thanks for that.

 

Still don't like it, but if the B1G calls we have to go.  That kind of income disparity is not sustainable.

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SEC could use some west coast teams. Oregon and UW. 

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Jon Wilner's Hotline mailbag: Timing of Pac-12 and Big 12 media deals, the view of Kliavkoff and more

 

The Big 12 has attempted to expedite its timeline and cut a deal before the Pac-12 —

an aggressive and potentially shrewd move by commissioner Brett Yormark.

 

However, the Big 12 remains limited in this regard: It can extend current agreements with Fox and ESPN

if the networks agree, but the Big 12 cannot take its rights to the open market for another 16-to-18 months.

 

WWW.KSL.COM

The Big 12 is trying to jump in front of the Pac-12, but does it matter?

 

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IDK how this ends.  I do think the fate of the conference sits in the hands of the four corner schools.  
 

Yes, of course the payout per school is a critical baseline.  I think the question comes down to (1) how much revenue in any P12 deal comes from streaming only platforms and (2) whether the B12 deal has an escalating payout if that league expands.  

 

If (2) is “no” then I see no way any P12 school defects to the B12

 

If (2) is “yes” and the new P12 deal has a decent slate of valuable inventory consigned to its streaming partner(s) it might force the corner schools to decide how much risk they want to take.  At the end of the day, even if you make more than your B12 peers but nobody really watches your games, you aren’t really coming out ahead.  
 

As they say, out of sight, out of mind..

 

I don’t really know enough about the growth projections for streaming audiences vs linear TV and am pretty certain the P12 team has a ton of people on staff who do.

 

But your future (giving it exclusivity for your rights for some extended period of time) to a conference so desperate that is seriously having to take the risk (when you can always wait and see from the vantage of your new conference who will happily jump on the new trend after your old conference took all the risk to validate it) a really tall 

 

Absent linear media revenue and inventory guarantees that that are equal to the B12, the move I would make - assuming the answer to (2) is “yes” - is to defect and collapse the P12.  Streaming inventory isn’t a concept that is going anywhere so why risk oblivion if it doesn’t turn out to be a difference maker? 

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On 10/30/2022 at 3:11 PM, HappyToBeADuck said:

For that kind of money the Ducks should maybe head to the BIG......Now.......

 

A few months back, ESPN valued the PAC 10 media rights at $300 million annually. Thats $30 mil, per season each school. Now remember, ESPN bases that figure on number of TV's. 

 

So a potential  deal with Amazon, who needs sports content for 165 million USA Prime subscribers is only worth about $3-$4 million a year, per school. Something doesnt add up! Especially if Amazon wants and needs the PAC Network. A network with broadcast equipment, staffing for broadcasts, announcers, studio abnouncers and 12 years of broadcast history. WTH.....

 

Now only a fraction of the 165 million subscribers will watch the PAC games. But still the price seems very low.

 

Also the PAC has 3 National Brands. Oregon, and to a lesser degree, washington and Utah. Please, anyone on the Forum, tell me what existing or incoming schools in the BIG 12 has a bigger national brand that those 3 PAC teams.

BYU has a bigger brand then Utah (and a much bigger and national fanbase), Utah's fanbase is mostly around SLC, so its fairly regional.  One could argue we have as big or bigger (or shall I say, more national of) a brand then UW given the national reach and spread of the sponsoring institution.  And when it comes to Oregon, one can argue that lately Oregon has the bigger brand, but historically might be a different matter, so it may be a tossup.  Oregon draws viewers, but all three of those schools fanbases are mostly regional.  

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I think much of it will come down to whether the P12 does equal or unequal shares of the revenue.  If UO and UW each take a much bigger slice of the pie in a tiered system, then the four corner schools will be making much less and will have every incentive to either 1. not sign a GOR with the P12 or 2. bolt for the B12.  Never discount the value of exposure.  Sure, revenue is great to hang your hat on, but thinking long term, exposure is how you build your brand and value and is every bit as important (if not more important than) revenue.  

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Fox Hunts College Football Bargains as Big 12 Buys Time

 

As far as the networks are concerned, both ESPN and Fox would seem to have settled matters to their satisfaction,

although Bristol paid a 70% premium for the Big 12’s “A” package.

 

Insiders say Disney has agreed to fork over $240 million per season in exchange for more than 60% of the inventory

and the right to select the top four football matchups each season, and 12 of the top 20.

 

ABC also will continue to air the Big 12 Championship Game; last year’s Baylor-Oklahoma State tilt averaged 8.02 million

viewers in the noon ET slot, making it the season’s eighth highest-rated game.

 

SPORTS.YAHOO.COM

By now you’ve undoubtedly read the news about how Big 12 commissioner Brett Yormark had made good on his promise to...

 

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