Report: ESPN pays Big 12 $10M in restructured TV contract after conference doesn't expand
ESPN has reportedly given the Big 12 some additional cash in exchange for the removal of a potentially costly clause in the network’s contract with the league.
According to Sports Business Daily (article behind a paywall), ESPN paid the league an extra $10 million over the remaining eight years of its contract. In exchange for the payment, the Big 12 reportedly removed language in its contract with ESPN that would mandate the network pay the conference more if it expands to 12 or more teams.
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
SBD first reported this summer that Fox and ESPN were reluctant to the league’s ideas of potential expansion because of the wording of the contracts it had with the league. The Big 12 was set to make more money from television if it added teams.
At Big 12 basketball media day, Big 12 commissioner Bob Bowlsby declined to comment on the report.
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
Last week, the Big 12 said it wouldn’t be expanding.
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Fox has the same clause in its contract with the Big 12 and has decided to not renegotiate with the conference, per the report. By doing so, Fox would be on the hook for more money if the Big 12 decides to expand before the end of its television contracts in 2024-25. But if it expands the additional television money would be coming from only Fox barring a renegotiation with ESPN.
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
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Nick Bromberg is the assistant editor of Dr. Saturday on Yahoo Sports. Have a tip? Email him at nickbromberg@yahoo.com or follow him on Twitter!
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