Pac 12 Gets Record-Setting TV Deal
Timing is everything -- and for the Pac 12 timing means over $3 Billion in future TV revenue. The league has reached a 12-year agreement with ESPN and Fox that will be worth $250 million a year beginning in 2012-13.
That number surpasses the yearly total for every other BCS conference. The Big 10 gets $220 million per year from its media rights, the SEC $205 million. The Big 12 and the ACC recently negotiated new contracts that will produce yearly revenue at $150 million and $155 million respectively.
The Pac 10 was generating only $60 million annually in its previous contract, but a confluence of happy events conspired to bring about the dramatic boost in revenue. First and foremost, the Pac 12 was the only BCS conference available on the open market, and there were three serious bidders -- ESPN, Fox and Comcast.
The available TV markets are attractive, especially should UCLA again become successful in football. The rise in depth of competitors also helps with both Stanford and Oregon making BCS Bowls this past season. Perhaps most important of all, the Pac 12 retains all media rights to all of its members, thus it has more content to offer, and more content to keep for its own Pac 12 Network, which will kick off next year. Unlike the Big 10, the Pac 12 will also retain full ownership of its network and will negotiate distribution rights with a media partner.
Every member of the Pac 12 will see its media rights bottom line dramatically increased.

As a member of the Mountain West, Utah received $1.2 million in media rights revenue last year. When it becomes a full-fledged member of the Pac 12 in 2014, the Utes media rights will bring in over $21 million a year.
On July 1 the conference will officially become the Pac-12, with the addition of Colorado and Utah, which expands the conference from four states (California, Oregon, Arizona and Washington) to six. Under the new deal at least 5 football games will be shown in prime time on ABC and Fox. Other games will be on the ESPN family of networks and FX, as will the league's basketball package. the Pac 12 Championship football game will rotate between ESPN and Fox, and the basketball tournament will also rotate between the two entities.
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If their commish was truthful when he said our Longhorn Network wasn’t a roadblock to us moving out west, we should have gone. That’s a decision I expect to be revisited in a few years.
by coolhorn on May 3, 2011 3:32 PM CDT reply actions
Sports are DVR proof and college FB is proving to be more and more valuable due to the dedication of its fans. For us, it means more games on TV with real production value hopefully. Huzzah
by biznesstime on May 3, 2011 3:46 PM CDT reply actions
The Pac 12 certainly represents a great theoretical market. They’re pinning a lot on USC’s resurgence, UCLA recovering, Oregon not getting a near-death penalty.
All the more reason I’m irritated we didn’t go there. Combining Texas with California would have garnered huge TV numbers and it would have created a goad for upgrade for a number of Pac 10 programs.
Take a look at our 2011 schedule. This conference is an unappealing piece of shit. And we managed to lose our two best road trips in CU and NU.
by Scipio Tex on May 3, 2011 4:14 PM CDT reply actions
I’m going to regret not going west for a long time. Pac 16 would have been big money. Aggy reallyfucked up. They left money on the table and handed us the Longhorn Network.
Roadtrips to Ames… sigh.
by ClarenceBoddicker on May 3, 2011 4:24 PM CDT reply actions
Seriously. Imagine those numbers with conference network revenue added in. And then think about the numbers if you added the Texas MSAs. Sick.
by ClarenceBoddicker on May 3, 2011 4:27 PM CDT reply actions
Fuck the Pac-16. Best move that ever happened not going there. It’s not worth the money. The administrations out there think you are all idiots. Every one of them. Ever met a USC grad? We would have been giving up numbers and getting our chain yanked around on voting issues.
by dedfischer on May 3, 2011 5:59 PM CDT reply actions
ded,
Yeah I’ve met USC graduates before, they seemed like decent quality individuals. Same with UCLA, Stanford, Oregon, Washington etc.
The only alumni I’d be concerned about are the Cal grads. Those people are nuts.
Even my former UT English professor—a Cal grad—didn’t want his own kids to go there.
We have the money, unfortunately, we are also in a conference that is equivalent to the 90’s SWC in terms of national interest.
by roach on May 3, 2011 6:17 PM CDT reply actions
unfortunately, we are also in a conference that is equivalent to the 90′s SWC in terms of national interest
This.
by NM99 on May 3, 2011 6:43 PM CDT reply actions
There’s always a certain amount of angst whenever you see another conference getting more money, but I doubt DeLoss is losing any sleep over it. As a Virginia Horn, I’d certainly be more stoked to see a Texas-USC or Texas-Oregon game on TV than, say, a Texas-Iowa State or Texas-Baylor game. But geography is what it is.
Just as nobody who works for a living wants to have to commute 2 hours each way to work, Longhorn athletes should not have to fly halfway across the country to Oregon and Washington 5/10/20 times a year and have to miss classes just to earn their scholarships.
by PoofyBevo on May 3, 2011 7:22 PM CDT reply actions
I’m not privy to any inside knowledge, but I seriously doubt the issue of UT and some others moving west is dead just yet.
Dodds’ public pronouncements notwithstanding, the Big Less Than Twelve is still a dead man walking, with agricultural, Mizzou, and perhaps KU still looking for a possible way out. The disparity between us, with our ESPN network, and other conference members isn’t going to get smaller, but larger, and every other team in what’s left of the conference knows it.
My guess is four years, five at the most, and the Big 12 Minus 2 folds. Before that happens, UT will start looking around, and my guess is, looking west. The Pac 12 will be interested.
by coolhorn on May 3, 2011 8:57 PM CDT reply actions
In hindsight, I don’t think Deloss looks so good retaining no equity in the LHN.
by Flash on May 3, 2011 9:25 PM CDT reply actions
Lessee,
Stillwater, Lubbock and Ames OR Los Angeles, Seattle, and Boulder?
$20 mill vs. $12 mill…per annum?
Gee ! I dunno. Whatchyall thimk?
by Earl T on May 3, 2011 10:00 PM CDT reply actions
SEC can’t be pleased. Wonder if/how they will react?
by Abbottabad as it gets on May 4, 2011 3:03 AM CDT reply actions
ded:
That is a sadly provincialist viewpoint.
However you feel, I know that WSU and Oregon State very much wanted Tech to join, in order to expand their little fraternity of schools in towns that smell of manure.
by RedmondLonghorn on May 4, 2011 8:33 AM CDT reply actions
I just don’t see how schools in the Pac-12 interest are aligned with ours in the long term. It’s much easier for Texas to police A&M, OU, and Tech in their backyard, but you’ll be pretty much defenseless against the shenanigans of USC and Oregon. Plus, there are many more TV sets projected to filter into Texas over the next decade than California, so a union could be diluting the future market value of our contracts. While most on here are basing their stance of a move on the relative scenery in Palo Alto versus Ames, it seems the guys pulling the strings are concerned with political narratives involved that don’t jive. I tend to agree with them.
by dedfischer on May 4, 2011 8:53 AM CDT reply actions
The WHOLE state of Texas smells of manure!
It’s just masked in Austin by the stench of sweaty BO, vomit and stale beer!
Enjoy your newly minted old SWC, now upgraded and complete with Dirt Thieves! (annually whipping your Whorn asses!)
Sayonara———- Suckahs!
by Earl T on May 4, 2011 8:54 AM CDT reply actions
1. There were pros & cons to leaving for the Pac-Whatever. What’s done is done. Quit whining about the decision to stay in the Big 12-2 like a bunch of bitches.
2. Quit complaining about the destinations of the Big 12-2 vis-a-vis the Pac-12. Locations don’t mean squat if you don’t win. Plus, I’d bet that many of you can’t guarantee that you’d actually travel w/ the team to Seattle, the Bay Area, etc.
by Joetx on May 4, 2011 10:31 AM CDT reply actions
What kind of revenue would a conference with the states of Texas and California generate? I think you can add $10 million per school in the now debunked PAC16.
by LonghornXXX on May 4, 2011 11:29 AM CDT reply actions
Ubben has a good blog up discussing the deal:
http://espn.go.com/blog/big12/post/_/id/28432/did-the-pac-12-upstage-the-big-12s-tv-deal
by dedfischer on May 4, 2011 11:55 AM CDT reply actions
Live events are the last bastion of the networks — and live sports are at the head of the line — that’s what helping to drive the negotations for all conferences.
by srr50 on May 4, 2011 12:15 PM CDT reply actions
Assuming that valuations of TV rights will be the same or higher in four years is the underpinning of Ubben’s analysis. I’m not saying they won’t be. But assumptions like that don’t always work out so well either. See: US Housing market, sub-prime loan portfolios, etc.
by RedmondLonghorn on May 4, 2011 12:22 PM CDT reply actions
Assuming that valuations of TV rights will be the same or higher in four years is the underpinning of Ubben’s analysis. I’m not saying they won’t be. But assumptions like that don’t always work out so well either. See: US Housing market, sub-prime loan portfolios, etc.
While it’s not a sure bet, it is a stronger bet than sub-prime. The networks audiences are older and skew female. IF you can attract the 18-49 demo (and especially the 18-34 group) you can also attract top dollar from advertisers. This younger demo also loves DVR. Right now it is estimated that over 40% of all US households have DVR’s. Live events — especially live sporting events demand live viewing, commercials and all.
College sports have a double appeal for advertisers. They over-index the male 18-49 demo, and they also attract the more affluent baby boomers who are loyal to their university. That’s what the conferences and the networks are betting on.
by srr50 on May 4, 2011 1:52 PM CDT reply actions
srr50:
What you are saying makes perfect sense conceptually. Four years is just a long time in a media business that has to continue to grapple with challenges to its relevance from disruptive technologies and distribution channels. Not to mention the fact that all of the bidders are units of publicly traded companies, where the emphasis can shift dramatically due to outside market forces.
by RedmondLonghorn on May 4, 2011 3:29 PM CDT reply actions

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