For context on the potential disparity in revenue that will exist before the Pac-12’s next deal kicks in, consider a likely scenario in the SEC.
The conference’s Game of the Week package on CBS, currently valued at $55 million annually, is moving to ESPN for a payday reportedly in excess of $300 million per year — and perhaps as much as $350 million annually.
In other words, the SEC will earn more each year from those 15-16 broadcasts, which include the SEC championship game, than Pac-12 schools receive each year from the entire Tier 1 contract with Fox and ESPN for 44 football games (and the Pac-12 championship).
According to the term sheet for the Tier 1 deal, which has been obtained by the Hotline, the Pac-12 will collect $262.9 million from ESPN/Fox in the 2020 fiscal year.
That figure increases by 5.1 percent annually, meaning that not until the final year of the deal (FY24) will the conference generate as much Tier 1 revenue ($321 million) as the SEC could receive on an annual basis just from its Game of the Week package.
But have no fear, Pac-12 fans. Super genius Larry Scott is on the mother.
Scott believes the negotiating leverage created by pooling the Pac-12 inventory at the negotiating table— all the football and men’s basketball games currently on Fox, ESPN and the Pac-12 Networks — will produce a windfall that justifies the wait-it-out strategy.
The man is just stealing money.