While Cal, SMU and Stanford are taking shaves to join the ACC, Oklahoma and Texas are getting checks… from Mickey.
… According to the SEC’s responses to questions provided in writing by the USA TODAY Network, a set of such modifications to the SEC’s football schedule “includes the Universities of Oklahoma and Texas becoming part of the SEC’s schedule.”
This money will be coming from ESPN, which is taking over the SEC’s featured Saturday afternoon/evening football TV rights package from CBS, beginning in 2024.
And there is more from ESPN.
Each school’s agreement with the SEC states: “The Institution has represented to the SEC that ESPN, Inc., or an affiliate of ESPN, Inc., has agreed to make a transition payment to the SEC, over and above all rights fees and other payments otherwise payable to the SEC by ESPN, Inc., and its affiliates, earmarked and designated for distribution to the Institution.” The agreements do not say how much this payment will be, and the schools and the SEC declined to comment about the amount.
Meanwhile, Texas and OU are getting other payments from ESPN under contract modifications that will shut down agreements for so-called third-tier rights to events including football and men’s basketball but primarily involving sports such as volleyball, women’s basketball, softball and baseball, and with OU, wrestling and gymnastics. Those rights will convey to the SEC, and, in turn, to the ESPN-owned SEC Network.
Texas’ Longhorn Network was created in 2011 under an agreement with ESPN and the entity now known as IMG College that had been scheduled to run through 2031 and guaranteed Texas a total of nearly $300 million. Because the guaranteed annual rights fee was set to increase each year, from 2024-25 through 2030-31, Texas had been set to collect a combined total of nearly $125 million.
The amendment covering the terms of the network’s wind-down includes a payment from ESPN to Texas that is set to be made on or before June 21, 2024 “in exchange for certain institutional rights throughout the 2024/2025 academic year.” The amount of the payment was redacted from a document obtained from the university, which declined to comment on the nature of the institutional rights it is providing to ESPN.
OU’s agreement with ESPN began with the 2022-23 school year and had been set to guarantee the school $2 million a year for three years. Similar to the Texas arrangement, the contract between Oklahoma and ESPN has been changed to include ESPN agreeing to make a payment to the university on July 1, 2024 “in exchange for certain institutional rights throughout the 2024/2025 academic year.” Also as with Texas’ deal, the amount of the payment was redacted from a document obtained from the university, which declined to comment on the nature of the institutional rights it is providing to ESPN.
Two things from that: (1) anyone who says there isn’t enough money in college football to fund everything is a liar and (2) it raises the level to which schools — SEC schools in particular — are beholden to ESPN. (As part of their deal, Oklahoma had to agree not to modify or cancel its upcoming series with Michigan and Nebraska, for example.)
If there’s one rule of thumb for 21st century college athletics, it’s that money talks.