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Big 12 reaches new media deal with ESPN, FOX | Report

October 30, 2022
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The Big 12 has agreed to a new media deal with both ESPN and FOX according to a report by the Sports Business Journal on Sunday morning. 

The agreement is expected to be be worth a total of $2.28B over six years, paying out an average of $380 million per year to the members of the league. 

According to the SBJ, “The once-beleaguered Big 12 has stabilized its future by coming to terms with ESPN and Fox Sports on a six-year media rights agreement worth a total of $2.28B, an annual average of $380M, according to sources. The Big 12 has two years remaining on its current deal, which runs through the 2024-25 season at an annual average of $220M in its final years. The new six-year extension runs through 2030-31.”

You can read the full report from the SBJ here.

Discussion from...

Big 12 reaches new media deal with ESPN, FOX | Report

7,455 Views | 24 Replies | Last: 3 mo ago by blackie
MSMBear
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This is great news.

If my math is correct it means each school gets around $32 million a year. I know it's less then we are getting g now but all things considered it's a good deal. After reading Bret's article my math is not correct.
gobears20
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Staff
OsosDelRioBrazos
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Big ballz Yormark is the hero we deserve
Ursus Americanus
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Suck it UT
bear2be2
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MSMBear said:

This is great news.

If my math is correct it means each school gets around $32 million a year. I know it's less then we are getting g now but all things considered it's a good deal.
I've got better news. It's actually a substantial bump from what we were getting.

Our old TV deal only paid out about $20-22 million annually per school, and other revenue sources (NCAA tournament, CFP, etc.) resulted in an annual payout of about $42 million per school.

With a $31-plus million TV payout, each school should be taking home upwards of $50 million per year going forward.
DanaDane
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I'm not greedy. I'll take whatever we got. As far as I'm concerned, we made out like a bandit. The irate 8, including us, could have easily been left for dead. I was gonna be excited for the new Big 12 regardless of what the media contract was. I think it's gonna be a really balanced and fun conference in all sports with no prima donnas like the two who are leaving. Bonus points for the CFP expanding and providing a venue where I'm reasonably confident new Big 12 teams will be found.
Ursus Americanus
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Cementing ourselves as the third most viable and lucrative p5 behind the two super conferences is a tremendous victory, we are a conference with zero blue bloods and zero filler.
Legend0z
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Think we should avoid counting chickens before they've hatched. ESPN is reporting the deal eliminates Tier 3 rights . . . which implies the $30M/yr amount includes what was previously considered Tier 3.

https://www.espn.com/college-football/story/_/id/34910144/big-12-nears-six-year-228b-tv-extension-deal-espn-fox

That's an enormous drop in valuation compared to what's being reported.
Ursus Americanus
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Legend0z said:

Think we should avoid counting chickens before they've hatched. ESPN is reporting the deal eliminates Tier 3 rights . . . which implies the $30M/yr amount includes what was previously considered Tier 3.

https://www.espn.com/college-football/story/_/id/34910144/big-12-nears-six-year-228b-tv-extension-deal-espn-fox

That's an enormous drop in valuation compared to what's being reported.
The article you link to doesn't align with anything you just said.

"It's safe to project the overall per-school revenue increasing to nearly $50 million starting in 2025-26. That number could well be much bigger depending on money the 12-team College Football Playoff delivers."

Legend0z
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Please reread the very last sentence. I'll even copy-paste it for you below.

This extension will mark the end of what's known as third-tier rights for the Big 12, in which schools controlled certain game inventory. Instead, those third-tier rights will be distributed to ESPN, which means the schools no longer have to sell them.
Ursus Americanus
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Legend0z said:

Please reread the very last sentence. I'll even copy-paste it for you below.

This extension will mark the end of what's known as third-tier rights for the Big 12, in which schools controlled certain game inventory. Instead, those third-tier rights will be distributed to ESPN, which means the schools no longer have to sell them.
Please understand you apparently don't understand the deal, as they are reporting 50 million at least per school will be divided out and even more if teams go New Year Six bowling and to the CFP.

I have more faith in this widely reported number than an assertion by a guy with 14 posts.
Legend0z
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That's under the assumption that T3 rights hold separate value. Thamel's article on ESPN says T3 no longer exists. We're at a ~$40M number now, with about $22M coming from ESPN/Fox, and the remainder from T3, bowls, etc. If T3 is included in the reported $30M, how are you getting to a $50M??
Ursus Americanus
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Legend0z said:

That's under the assumption that T3 rights hold separate value. Thamel's article on ESPN says T3 no longer exists. We're at a ~$40M number now, with about $22M coming from ESPN/Fox, and the remainder from T3, bowls, etc. If T3 is included in the reported $30M, how are you getting to a $50M??
That's your assumption, don't mistake it for fact.

T3 belongs to ESPN and Fox as part of the sum of money negotiated to the Big 12, which works out to 50 million plus per school once bowls and championship games etc are factored in.
Legend0z
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$50M is an assumption, too. A wrong one if T3 is included in the $30M number.
Ursus Americanus
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Legend0z said:

$50M is an assumption, too. A wrong one if T3 is included in the $30M number.
You need to peruse this thread, you're one of a handful of people that are adamant about being wrong on this subject.

https://sicem365.com/forums/1/topics/115362
Bear8084
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Brian Ethridge
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Staff
Ursus Americanus said:

Legend0z said:

Please reread the very last sentence. I'll even copy-paste it for you below.

This extension will mark the end of what's known as third-tier rights for the Big 12, in which schools controlled certain game inventory. Instead, those third-tier rights will be distributed to ESPN, which means the schools no longer have to sell them.
Please understand you apparently don't understand the deal, as they are reporting 50 million at least per school will be divided out and even more if teams go New Year Six bowling and to the CFP.

I have more faith in this widely reported number than an assertion by a guy with 14 posts.
Correct.

Throw in CFP and it will be 50+

Tier 3 for Big 12 prior to this extension in 2025:
ESPN+ - 3m per school
OU had 7m from FSW, but that sold to Bally's and they dropped them this year, so OU came to ESPN+, terms not mentioned
UT has LHN, which will go away 5 years earlier than the contract warranted due to the move to the SEC. Texas is in the 10-12m range on LHN.
BylrFan
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iowa state ad tweeted 50m. good enough for me
bear2be2
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Legend0z said:

That's under the assumption that T3 rights hold separate value. Thamel's article on ESPN says T3 no longer exists. We're at a ~$40M number now, with about $22M coming from ESPN/Fox, and the remainder from T3, bowls, etc. If T3 is included in the reported $30M, how are you getting to a $50M??
The Big 12's Tier 3 rights haven't held separate value for anyone but Texas and OU since 2019. The rest of the league bundled and sold those to ESPN+ for $40 million total three years ago.

https://wvmetronews.com/2019/04/10/big-12-heading-online-for-new-tier-3-media-deal-with-espn/

We're not talking about a lot of money to be made with Tier 3 rights. It's around a couple million dollars per school max. And even if you subtract that from the $31.5 million number, we're all still well ahead of where we were in the last deal, with a lot more money to come through other revenue streams.
BUmoneymaker
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For what we all thought was impending doom after the 2021 summer announcements we have come a long way. Think blowsby could have negotiated this?
bear2be2
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BUmoneymaker said:

For what we all thought was impending doom after the 2021 summer announcements we have come a long way. Think blowsby could have negotiated this?
Not the TV deal. But he did keep the league together long enough for Yormark to take the baton and run with it.

Without some quick, shrewd and decisive action following the OUT announcement, the Big 12 would be where the PAC-12 is now.
PartyBear
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The PAC is probably kicking itself for not jumping on the reaching out of the Baylor, Tech, OSU and TCU package a day or two after Texas and OU's surprise announcement. In hindsight I am very thankful they didn't. The 4 of us were acting out of panic.
bear2be2
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PartyBear said:

The PAC is probably kicking itself for not jumping on the reaching out of the Baylor, Tech, OSU and TCU package a day or two after Texas and OU's surprise announcement. In hindsight I am very thankful they didn't. The 4 of us were acting out of panic.
Agree completely. I'm thrilled with how things played out. This was my preference from Day 1, but I never would have imagined when the OUT news broke that things would go as well as they have for the Big 12.
blackie
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bear2be2 said:

PartyBear said:

The PAC is probably kicking itself for not jumping on the reaching out of the Baylor, Tech, OSU and TCU package a day or two after Texas and OU's surprise announcement. In hindsight I am very thankful they didn't. The 4 of us were acting out of panic.
Agree completely. I'm thrilled with how things played out. This was my preference from Day 1, but I never would have imagined when the OUT news broke that things would go as well as they have for the Big 12.
Neither did OU or UT. They were counting on the opposite.
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