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Longhorn Network, Small Oklahoma Markets, Revenue Reductions Per School Delay Pac-12 Expansion

From Forbes, an analysis of the value of the Oklahomas without Texas to the Pac-12, relative TV markets, and why the Pac 12 is hesitating.  

 

Longhorn Network, Small Television Markets, Revenue Reductions....

 

"This whole relocation game is about maximizing eye-balls on TV screens.  The largest TV markets in the state of Oklahoma are Oklahoma City (45th) and Tulsa (61st), compared to Dallas-Ft Worth (5th), Houston (10th), San Antonio (37th), and Austin (49th) for Texas.  This consideration may have ultimately had some impact on the Pac-12 not expanding....

The Pac-12′s deal with ESPN and Fox is a 12-year, $3 billion deal which yields $250 million annually or roughly $20.8 million per school.  If split among 16 teams, however, this would fall to $15.6 million per school.

So an additional 4 teams would cause the existing 12 members to lose roughly $5.2 million annually per school, which collectively sums to $62.4 million.

Therefore, Pac-12 leaders may have been hesitant to pull the trigger on a deal without the assurance that any potential new revenue streams subsequent to expansion would exceed $62.4 million."

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