(08-01-2016 09:18 AM)stever20 Wrote: yeah, I don't know what leg ESPN/Fox would have to stand on quite frankly here.
Diminished value. It could be argued that by making the suggested additions that the net effect would be the diminishing of value in the Big 12. Since that is contrary to the generous amounts listed in the original contract that virtually everyone knew were designed to hold the conference together it could be argued that the pro rata amounts were intended for schools that would either add to, or at least not diminish, the value of the conference for their rights holders.
While there are many tangents that this matter might eventually take, any additions would reasonably require an extension of the GOR for the sake of the networks involved and for the interests of the joining schools. If the GOR extension is refused then it essentially opens up the Big 12 schools to do due diligence in finding future placement and pulls the teeth of the current GOR's rules against such behavior. It would also serve notice to ESPN and FOX that if they wanted access to the top brands of the conference that they too needed to be working on how much they were willing to pay for those brands and which conferences they each might like to see them associated with.
ESPN has more options in that regard than does FOX, but then FOX represents one of the two heavy hitters in payout.
Anything that forces a vote on a GOR extension dictates the future options. If it is agreed to, then the Big 12 is secured with the new members. If an extension is rejected it will be every school for itself within the decade, sooner if the networks work to place at least 8 of them elsewhere, or 8 of them within their own contracted conferences.
Remember that right now the networks may not exactly be flush to pursue expensive product, but they are also working hard to try to lock up as many rights for as long as possible as insurance against shifting pay models.
The Big 10 is better positioned here as currently they are the only ones not locked up for a decade or longer. The PAC is up in 2025 with their leases of product. The SEC goes much earlier for their T1 with CBS, but is locked up through 2034 with the SECN. The ACC is now on the hook until 2036.
If ESPN wants the top brands out of the Big 12 they will have to really pay for to place those in either the ACC or SEC or perhaps in a PAC that is willing to sell them a % of its network.
FOX is in a good position being essentially the agent of the Big 10. They have a good war chest and their contract is up sooner.
It's going to get real interesting before any movement occurs, if it occurs.