Report: Big 12 Reaches New Media Deal, Increases Annual Payout

Brett Yormark called his shot and delivered in his first weeks as the Big 12 commissioner

New Big 12 commissioner Brett Yormark called his shot and delivered. The Big 12 has reached a new media rights agreement with ESPN and Fox worth $380 million per year, an increase of 73% from its current deal. The news was reported by Michael Smith and John Ourand of Sports Business Journal. Yormark, who officially became the Big 12 commissioner on August 1, went on a media blitz since his hiring, telling anyone and everyone that the Big 12 would strike a new deal worth more than its current deal. Yormark was right.

What We Know About the New Big 12 TV Deal

Here are the key takeaways from the new Big 12 media deal.

1. The deal is for six years and will expire in 2031. Meaning the Big 12 will have a chance to renew its deal before the SEC and ACC - this could lead to a major increase in the next media deal. It could also create a material revenue advantage for the Big 12 over the ACC. The ACC's current deal does not expire until 2036.
2. ESPN will get the majority of the Big 12 content: "For the “A” package, ESPN gets the top four football picks each season, six of the top eight picks, eight of the top 12 picks and 12 of the top 20 picks. As part of the deal, ESPN also gets the rights to the Big 12 football championship game and the basketball tournament championship game. The Big 12’s parity helped convince Fox, whose package includes 26 football games per season that will run on Fox broadcast network and FS1, to do the deal."
3. The Big 12 beat the PAC-12 to the finish line. If conference expansion is still top of mind for Yorkmark, he just locked down a key negotiating tool. "The specter of the Big 12 leaping ahead of the Pac-12 also creates greater uncertainty for the Pac-12 now." 
4. According to Max Olson of The Athletic, the new deal will have a pro rata clause in the event of future expansion.
5. The Big 12 overcame the odds. In July of 2021, the conference appeared on the verge of collapse and many expected TV revenue to be cut in half. Just 15 months later, the Big 12 has not only stabilized, but increased revenue for its member institutions.
6. According to Iowa State AD Jamie Pollard, the total annual payout to each team will be approximately 50 million per school. That amount has now been confirmed by various outlets. The reported new deal does not include CFP payout or NCAA tournament payments. Last year, Big 12 schools earned 41 million each.

Huge day for the future of @CycloneATH and @Big12Conference - with CFP and NCAA this will bring our annual Big 12 revenue to close to $50M per school, up from $41M this year. Congrats to @brettyormark for delivering in the clutch. https://t.co/L2XZoDjwB9

— Jamie Pollard (@IASTATEAD) October 30, 2022

Yormark has not been shy about his desire to expand West. Time will tell whether this new media deal will help him achieve his objective.