New TV deal could be worth $50 million a year to UH

The University of Houston could be in line for an annual revenue payment of nearly $50 million under the Big 12’s new media rights deal when it becomes a full conference member in 2025.

Sports Business Journal reported Sunday that the Big 12 has reached another six-year extension with ESPN and Fox Sports worth $2.28 billion that begins in 2025-26.

The annual payout is $380 million a year — or about $31.7 million for each of the Big 12’s 12 — and doesn’t include revenue from the NCAA men’s basketball tournament and the planned expansion of the college football playoffs. The last two years of the current deal bring in $220 million a year.

Iowa State Athletic Director Jamie Pollard says Big 12 schools will receive “nearly $50 million” annually, up from the record $42.6 million per school for 2021 -2022.

In June, when Houston announced terms for an exit from the American Athletic Conference, Chris Pezman, UH vice president for athletics, said joining the Big 12 in 2023 was important because it “starts the clock financially for us”. An increase in revenue will also help the UH Athletic Department achieve the goal of “being able to stand on their own two feet” because it decreases the amount of financial support received from the university.

While no details have been released, UH will receive staggered shares for the first two years of Big 12 membership before becoming a fully vested member in year three. According to tax documents, UH received $8.52 million from AAC for the 2020-21 fiscal year.

UH, along with Cincinnati, UCF and BYU, will join the Big 12 on July 1, 2023, to form a 14-team league for two years.

The new deal with ESPN and Fox represents a major victory for Big 12 commissioner Brett Yormark, who took office on August 1. the league, namely pending departures from flagship schools in Texas and Oklahoma to the Southeastern Conference in 2025.

At the time, with the Big 12 in danger of collapsing, former commissioner Bob Bowlsby warned Texas lawmakers in 2021 that the league could see the value of its TV deal reduced by 50% with the loss of UT and or.

Yormark has taken an aggressive approach to media rights negotiations, securing a new deal before the exclusive negotiation window opens in February 2024. With the new deal running until 2031, the Big 12 are also able to come back to the table and negotiate his next medium. -rights agreement before the SEC and the Atlantic Coast Conference, whose exclusive contracts with ESPN expire in 2034 and 2036, respectively.

Under the new deal, ESPN will get the Big 12’s top four “A” package football picks, six of the top eight picks, eight of the top 12 picks and 12 of the top 20 picks each season, according to Sports. Business newspaper. ESPN is also securing the rights to the Big 12 Football Championship Game and the Basketball Championship Game, a particularly lucrative play with the Big 12 solidifying itself as the top conference in men’s basketball with the past two champions. the NCAA (Baylor and Kansas) and the addition of perennial contender Houston. Meanwhile, Fox is offering a 26-game football-per-season package and will be adding college basketball games to Fox and FS1 for the first time.

A pro rata clause should be included in the agreement, according to several media, which would help the Big 12 if they decide to continue their expansion.

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