Why The Big 12 Needs To Invite BYU

I came across an article the other day that mentioned the Big 10 Network, according to IRS tax filings, paid the Big 10 conf and its members $72 million dollars last year. That works out to about $6.5 million to each of the 11 member institutions currently in the Big 10. That is on top of the Big 10's very lucrative ABC/ESPN deal.  

Those numbers are the reason the PAC 10, ACC, and Big 12 have all started looking into forming their own conference networks. And that is with good reason. Any conference would be crazy not to explore any option to possibly add an additional $3-6 million per school per year.

In this revenue driven world of college athletics, and specifically college football, schools and conferences are searching out any and all possible options to increase their revenue. The ability to launch their own conference networks, or maybe even their own school networks, seems to be the new frontier in revenue generation within college athletics.

So that got me to thinking, how much does it cost to start up a conference network, or a school network? I have thus far been unable to find an exact dollar amount. I do however know it cost the Big 10 Conference approximately $69 million last year alone.

When the Big 10 decided to start their own network, rather than try to do it alone because of the cost prohibitive nature of forming your own network, they partnered with NewsCorp(Fox Sports) to form the Big 10 network. As part of the deal, the Big 10 received 51% ownership while NewsCorp received the other 49%.

I know some of you at this point are wondering what this has to do with the Big 12 and why they should be so interested in BYU. Don't worry I'm getting to that. And trust me it will be worth your patience.

BYU recently completed the most state of the art broadcast house west of the Mississippi River. BYU's broadcast house has the ability to broadcast 4 channels all at one time and all in HD. BYU currently operates only 2 channels.

For those still wondering what that has to do with the Big 12, well here it is. Last year alone the Big 10 Network made a little over $69 million in revenue for NewsCorp, their network partner. But what if the Big 10 didn't have a partner at all?

Should the Big 12 wish to launch their own network, now they have 2 options. Option 1, follow the Big 10 model and partner with NewsCorp or some other media corporation, and give up approximately 50% ownership of their new network. Or they can choose Option #2.

Option 2, invite BYU to join the Big 12. As part of BYU joining the Big 12, the Big 12 signs an agreement with BYU to use a portion of the new BYU Broadcast House to launch a new Big 12 Network. This option would give the Big 12 100% ownership of their new network.

So let's say a new Big 12 Network is not worth as much as the Big 10 Network. Last year alone the Big 10 Network made approximately $141 million. To be on the conservative side, let's say a new Big 12 Network is only worth $80-120 million. So what could the addition of BYU mean to the Big 12?

If the Big 12 chose Option #2, inviting BYU could bring in an additional $40-60 million in revenue to the Big 12 conference just through the formation of a new Big 12 Network. That doesn't inlcude what they might add to a new TV deal with ABC/ESPN. 

BYU, with their national following through their affiliation with the Church of Jesus Christ of Latter Day Saints, should be at the top the Big 12's list should the Big 12 invite 2 new schools to replace Nebraska and Colorado anyway.  But with the new BYU Broadcast House and the potential that could create for the Big 12 through a new Big 12 Network, the Big 12 and Dan Beebe would be crazy not to be rolling out the red carpet for BYU.

If the Big 12 is not already planning to invite BYU, they probably should get on that right away.