Wilner!
That sentiment is completely understandable and, all things being equal, the Mustangs would not have been the Hotlineās first choice for Pac-12 expansion. (Houston was atop our list.)
(I only quote that because I will always have a soft spot for Wilner the way Wilner has had for us.)
The Pac-12 isnāt assessing the viability of Amazon as a means of content distribution based on Prime Videoās market position today. Itās evaluating Amazon for what that partnership would provide midway through the next cycle. Will streaming be more widely acceptable in the sports media realm in 2027-28 than it is now? Would technology evolve to the point that viewers did not need to close the app in order to channel surf?
Our advice is to assess SMU football the same way: Will the Mustangs have a stronger football brand late in the decade than they do now? Would an affiliation with the Pac-12 lead to improved recruiting, higher community interest, greater resources and more competitive success, to the point that the Mustangs gain traction in the massive Dallas market?
I think itās going to take both of them more than four years to deveop. The SMU one is a longer play since the TV contract will last only 5-7 years while SMU will be a member after. So if SMU takes 10 years to develop, thatās not ideal but itās not a wasted investment necessarily. The TV deal needs to pay off more quickly since it will reset.
I have no reason to believe ESPN is materially more interested in the Big 12, but because the conferences deployed different negotiating strategies, conclusions are difficult to draw.
ESPN was willing to renew its existing agreement with the Big 12 at a below-market valuation that worked for ESPN.
The network very well might have done the same with the Pac-12. But instead of renewing its deal, the Pac-12 opted to take its inventory to the open market and explore new partners.
Thatās definitely a way of looking at it, I suppose. Possibly true, though the rumors of the Pac-12ās initial offer (from reasonably credible sources) were simply lower than that of the Big 12. Maybe theyād have gotten it higher, though.
Although Pac-12 presidents have a history of misguided decisions, weāre confident that the Aztecs and Mustangs would have the votes if the schools stick together and determine expansion is the proper course. [ā¦]
As a 10-team conference, the Pac-12 would have approximately 65 home football games available to its media partners each season. As a 12-team league, it would have approximately 78.
Where is the market for that much content?! Amazon doesnāt want the quantity (as Marchand says) then itās just ESPN. If ESPN is basically telling them āYou need to add teams so that we can put them on ESPN+ā then itās true they want volume but they want volume for the part they arenāt going to pay a lot of money for.
So either (a) ESPN will no longer even talk to the Pac-12 without 12 members (their value as a 10-team conference is that low) or (b) ESPN is willing to overpay for ESPN+ content. Thatā¦ seems unlikely. Especially when you consider that they presently have SMUās content on ESPN+ for $7m a year, locked in until 2033 or so.
The reality is that each conference will occupy second-tier status with ESPN, which will be all-in with the SEC starting in 2024 ā to the point that we will see SEC doubleheaders on ABC and ESPN in the prime viewing hours, with 30 minutes carved out for home videos of the Smart family reunion.
As Iāve noted before, ESPN lost roughly the same amount of inventory from the Big Ten that they gained from the SEC+UT+OU. I think ABC is about to become SEC country, but ESPN still needs the content that ESPN needs. The ultimate motte of their motte and bailey is āUltimately both conferences are screwed, ultimately theyāre both in the same situationāā¦ itās not clear that thatās true. Thatās what weāre very much in the process of finding out right now. Itās possible for both to be below the SuperTwo but still be in very different places (the same way the AAC and Conference USA were both outside the P5, but not in the same way).
Our best guess is that college football will have three conferences by the mid-2030s: The Big Ten and SEC, each with 20 or 24 members, and a fully revamped Big 12 that spans the country and incorporates most, if not all of the remaining Power Five schools.
This is kind of a weird thing to say, because if you believe this you have to believe that every Pac-12 team should be angling for a spot in the conference thatās actually going to survive. Itās a no brainer regardless of the sizes of the respective TV contracts. More than anything else, you want to be in the conference that is going to survive if you only believe one is.