The Big 12 Might Have Just Been Hosed In Conference Realignment

I know this will shock you, but it appears the Big 12 just got sort of hosed on its entire expansion plan. I have maintained all along that all the Big 12 was trying to do was eke more cash out of ESPN and FOX, its two TV partners.

The Big 12 stood to receive $250 million per expansion team added (up to four teams) over the course of the rest of its TV contracts because of a pro rata clause in those contracts. This did not please ESPN and FOX of course because there was the potential that they would add Colorado State, South Florida, BYU and Cincinnati and those networks would have to pay $1 billion for it.

And with that $1 billion on the table, you would think the negotiation would land the Big 12 a bunch of cash for *wink wink* not adding those teams (or any teams). Instead? The Big 12 netted its conference $10 million from ESPN over the next eight years. $10 million! Total! Not per year! Not per team! That’s the entire sum!

FOX chose not to pay anything (more on that in a second).

ESPN will pay Big 12 $10m total over remainder of agreement to remove pro rata clause. Fox will not increase pay – will keep its pro rata.

— Kristi Dosh (@SportsBizMiss) October 25, 2016

I think Fox is just betting the Big 12 won't expand. They're choosing not to throw money at the problem. https://t.co/eh4SEDfsxs

— Kristi Dosh (@SportsBizMiss) October 25, 2016

That is $125,000 per year or roughly two new football helmets per team per year.

Now, there is still the Big 12 Conference Championship game money to be sorted out, and maybe the Big 12 will clean up there. Dennis Dodd of CBS Sports noted that the Big 12 could receive over market value, up to $50 million for that game which would be a nice parting gift.

But if it only gets market value (closer to $25-$30 million) then the Big 12 was just ripped off by FOX and ESPN based on the fact that it stood to potentially make $1 billion by adding teams and took home 1 percent of that.

Big 12 Commissioner Bob Bowlsby declines to comment on reports of pro rata buyout by ESPN, says negotiations with TV partners ongoing.

— Chuck Carlton (@ChuckCarltonDMN) October 25, 2016

And hey, this might be better for the Big 12 in the end. You aren’t selling your soul for $1 billion in the short-term and pissing off future TV partners in the long-term. But now expansion is pretty much over because the pro rata clause is off the table for ESPN. It still applies to FOX, but FOX is calling the Big 12’s bluff by not paying them any additional money to not expand.

FOX is betting the Big 12 will not expand. Guess what? FOX is right.