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Big 12 warns of losing 50% of TV value following UT/OU exit
The Big 12 Conference could see the value of its television deal cut in half once Texas and Oklahoma bolt for the Southeastern Conference, Big 12 Commissioner Bob Bowlsby said Monday at a hearing of Texas lawmakers.
A committee of Texas senators heard testimony from university leaders at Baylor, TCU and Texas Tech on the monetary and academic losses that conference realignment would mean for the Big 12 and its members once Texas and Oklahoma leave for the SEC in 2025.
University of Texas at Austin President Jay Hartzell testified that the path to making the switch became clear “into the summer,” and that UT told Bowlsby that in a call following news of the move. Hartzell said the school would "continue to honor all agreements.”
“Up until the moment you hit send on the decision, you are always thinking, ‘Is this the right thing for the University of Texas at Austin?’” Hartzell said.
Bowlsby has been highly critical of both Texas and Oklahoma, accusing them of plotting for months to leave the 10-member league for the powerful SEC. He also accused ESPN of working behind the scenes to gut the Big 12, even sending a cease-and-desist letter that the cable giant refuted, but backed off that stance Monday: “We have agreed to not escalate this publicly. It’s in neither party’s best interest to do so.”
Of far more interest to the Texas lawmakers was the future of the Big 12 without the Sooners and Longhorns.
"Fewer power-five football programs in Texas is a very negative reality with this situation," Texas Tech athletics director Kirby Hocutt said.
Bowlsby said the TV contract value would take a 50% hit.
The Big 12 distributed $345 million to its 10 members this year ($34.5 million apiece), down from the previous year because of the pandemic. Most of that revenue comes from the Big 12′s TV deals, including ESPN. The SEC is positioned to distribute as much as $70 million annually to its members in coming years.
Texas Tech President Lawrence Schovanec and Hocutt estimated the two schools' departure could mean a hit of $30 million to Tech's athletic budget, which is projected at $93.4 million this coming year.
Hocutt said all sorts of revenue streams would be affected.
When asked specifically about Tech's contract with apparel supplier Under Armour and sponsorship money, Hocutt said, "That is the other incremental revenue that we would be in jeopardy by not staying at the power-five level. Our Under Armour agreement, apparel agreement, sponsorships, licensing revenue, ticket sales are all auxiliary revenues that would be affected."
Entire article: https://www.lubbockonline.com/story...-50-tv-value-following-ut-ou-exit/5464641001/
The Big 12 Conference could see the value of its television deal cut in half once Texas and Oklahoma bolt for the Southeastern Conference, Big 12 Commissioner Bob Bowlsby said Monday at a hearing of Texas lawmakers.
A committee of Texas senators heard testimony from university leaders at Baylor, TCU and Texas Tech on the monetary and academic losses that conference realignment would mean for the Big 12 and its members once Texas and Oklahoma leave for the SEC in 2025.
University of Texas at Austin President Jay Hartzell testified that the path to making the switch became clear “into the summer,” and that UT told Bowlsby that in a call following news of the move. Hartzell said the school would "continue to honor all agreements.”
“Up until the moment you hit send on the decision, you are always thinking, ‘Is this the right thing for the University of Texas at Austin?’” Hartzell said.
Bowlsby has been highly critical of both Texas and Oklahoma, accusing them of plotting for months to leave the 10-member league for the powerful SEC. He also accused ESPN of working behind the scenes to gut the Big 12, even sending a cease-and-desist letter that the cable giant refuted, but backed off that stance Monday: “We have agreed to not escalate this publicly. It’s in neither party’s best interest to do so.”
Of far more interest to the Texas lawmakers was the future of the Big 12 without the Sooners and Longhorns.
"Fewer power-five football programs in Texas is a very negative reality with this situation," Texas Tech athletics director Kirby Hocutt said.
Bowlsby said the TV contract value would take a 50% hit.
The Big 12 distributed $345 million to its 10 members this year ($34.5 million apiece), down from the previous year because of the pandemic. Most of that revenue comes from the Big 12′s TV deals, including ESPN. The SEC is positioned to distribute as much as $70 million annually to its members in coming years.
Texas Tech President Lawrence Schovanec and Hocutt estimated the two schools' departure could mean a hit of $30 million to Tech's athletic budget, which is projected at $93.4 million this coming year.
Hocutt said all sorts of revenue streams would be affected.
When asked specifically about Tech's contract with apparel supplier Under Armour and sponsorship money, Hocutt said, "That is the other incremental revenue that we would be in jeopardy by not staying at the power-five level. Our Under Armour agreement, apparel agreement, sponsorships, licensing revenue, ticket sales are all auxiliary revenues that would be affected."
Entire article: https://www.lubbockonline.com/story...-50-tv-value-following-ut-ou-exit/5464641001/
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