“The Pac-12 is the real story here.”

USA Today hired a college sports rights-valuation firm to evaluate what the conference broadcast rights numbers are shaping up to look like, and as the header indicates, the firm argues that the Pac-12 comes out on top in the money game.  Well, sort of.

The estimate, premised on the SEC continuing without a conference-owned network and again having 15-year deals, would give the SEC more guaranteed TV revenue than any college athletics conference: nearly $25 million a school per year over the full contract term ($5.2 billion total).

However, the Pac-12′s full ownership of national and regional networks that have lined up substantial distribution before their scheduled launch in August, indicates that the conference is on track to generate at least $30 million a school per year over the 12-year term of agreements with ESPN and Fox that begin later this year ($4.3 billion total). Only the money from ESPN and Fox — about $21 million a school per year — is guaranteed, though. And because of the networks’ start-up costs the actual per-school revenue the first few years is likely to be well below the projected annual average.

So, the SEC deals generate about 20% more guaranteed revenue per school than the Pac-12 is expected to get – and that’s spread over two more schools, remember – and the Pac-12′s projection is on the high side because it doesn’t factor in that conference’s ownership costs.  But the Pac-12 is somehow seen as the big winner.  Interesting.

The SEC is getting a $2.2 billion bump with no infrastructure expense much beyond unfurling a couple of new flags in the home office.  That sounds like a pretty good deal to me.

Note also that’s there’s still a sizeable spread between the Big 12′s and SEC’s numbers.  It’ll be worth watching to see if a couple of ACC additions to the Big 12 are enough to cut that down.  And whether that’s any motivation for the SEC to do more fishing itself.

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8 Comments

Filed under It's Just Bidness, Pac-12 Football, SEC Football

8 responses to ““The Pac-12 is the real story here.”

  1. Kelly

    Liberal mathematics – where Gross Tax revenues and hope outweigh Net Cash and reality.

  2. Lrgk9

    Pish Posh – the Pac 12 ?

    • Cojones

      They (the Pac12) still applaud loudly rather than stand up and cheer. Like two lifeboats shackled together on a sea of change, the Pac12 and the Big10 are beginning to see the folly of the RB ploy which is beginning to look like a desert island in the distance.

      Let’em eat cake!

  3. Always Someone Else's Fault

    “Liberal mathematics – where Gross Tax revenues and hope outweigh Net Cash and reality.”

    Go back and review the budget numbers for Reagan, Bush and Bush. Cheney was the one who observed that, “Reagan proved that deficits don’t matter.” I’m really happy that people are finally concerned about the budget deficit and national debt. It bugs me to no end to see people still treating this like a one-party issue.

    Obama’s budgets start with the interest on 11 trillion run up by Reagan, Bush and Bush, as well as the massive HHS obligations passed by same said Presidents to buy the votes of Florida’s seniors. If you can’t admit that contribution to this issue, then you’re not paying attention.

    • Cojones

      “There is a cult of ignorance in the United States and there always has been. The strain of anti-intellectualism has been a constant thread winding it’s way through our political and cultural life, nurtured by the false notion that democracy means that “My ignorance is just as good as your knowledge.’” -Isaac Asimov

      • Always Someone Else's Fault

        Asimov? I knew I liked something about the way you think.

        • Cojones

          Got a dirty limerick by him that won a London cocktail party challenge. It’s cultural high class, specific to this region and dirty.