Pac-12 likely to recoup lost revenue in new media rights deals

No one studies the numbers or knows the calculations of Pac-12 television and media rights better than Jon Wilner of the Wilner Hotline.

His recent analysis of Pac-12 football television revenue reveals a really important point that should make George Kliavkoff and the conference optimistic about the next round of media rights they will be negotiating.

Let’s mention one thing to start with: Pac-12 Networks probably won’t show much football in the future. There’s a good chance that football and basketball will be pulled from the network so that ESPN and other TV and streaming partners with wider distribution (and better prices) carry sports revenue from the Pac- 12. Pac-12 Networks will likely become a central home for Olympic sports and will always provide a useful outlet for Pac-12 fans.

Now for Wilner’s analysis:

The Pac-12’s current 12-year deal with Fox and ESPN carries an average annual value of $250 million. The vast majority – around 85% – is related to football inventory. This represents $212.5 million per year.

According to the term sheet, the two networks have the rights to 45 football games per year, including the conference championship. We don’t know how much the title game is worth, so for the sake of simplicity, let’s just spread the $212.5 million evenly across 45 games.

That equates to an average of $4.72 million per football game on ESPN and Fox over the 12-year contract term.

However, another 36 football games – or 44.4% of the total held by the conference – are broadcast by Pac-12 networks each season.

For these, the net income from schools is… derisory.

Again, the average annual payment to each Pac-12 network campus is around $2.5 million. With 12 schools, that equates to a nice round of $30 million a year in the total amount distributed.

Thus, the media company created by Larry Scott, wholly owned, generates approximately $ 30 million in profits per year and broadcasts 36 football games.

That’s $833,333 in real school dollars per game.

So we’re left with campuses receiving $4.72 million for every football game on ESPN and Fox and $833,333 for every game on the Pac-12 networks.

You can connect the dots here. Simply by moving inventory from Pac-12 networks and getting a much more competitive price on the market through ESPN or a streaming service like Apple, the Pac-12 is poised to earn millions more dollars per soccer game for the life of new media. agreement on the rights that he will eventually negotiate.

Let’s be clear: the Pac-12 does not add value. USC being out of the Pac-12 obviously hurts the ability of the Pac-12 to increase in value. However, this is a reduction in lost value and lost revenue. The Pac-12 can recoup millions of dollars it was losing to the Pac-12 network. This means more money in the coffers, but against the backdrop of reduced losses, not outright wins.

About Deborah Wilson

Check Also

How the media, ex-Seahawks and fans are reacting to Seattle’s win over Russell Wilson, Broncos

The Seahawks held off Russell Wilson and the Broncos for an early-season win over their …