Barring a major new revenue stream, each Pac-12 school will be $12+ million behind its SEC and Big Ten peers for the final seven years of the conference’s Tier 1 deal, which runs through 2023-24.
The Hotline has addressed this scenario previously. But as each year passes with no Pac-12 revenue game-changers … as Pac-12 Networks distribution continues to lag … as the Big Ten’s new Tier 1 deal draws closer and as the SEC Network continues to mint money … as all those competing dynamics unfold, we get closer to the billion dollar reality.
Seven years of a $12+ million per year deficit for Pac-12 schools equates to an $84 million per school disparity, through the current Tier 1 deal, relative to schools in the SEC and Big Ten.
And $84 million per school for a 12-team conference is a $1 billion deficit.
The PAC12 has to make a move BUT they are tied to Fox and espn. Are these two going to offer more or would a google, Amazon, netflix…Sony step up? That is obviously the biggest question. We should not be surprised if we see an opa or merger of the previously mentioned companies. What about AT&T would they want to take control? There are so many questions and that is why I think we have the best chance to join the PAC12.
Here are the projected debt service payments for FY17 (provided by the schools, with the exception of ASU):
Oregon: $19.1 million Cal: $18.7 million Washington: $16.2 million Colorado: $14.8 million Washington State: $9.2 million Oregon State: $8.7 million Arizona: $8 million Utah: $4.6 million Arizona State: $4.2 million UCLA: $3 million