The Pac-12 commissioner, George Kliavkoff, presented potential media rights deals to leaders from member institutions at a Tuesday meeting. However, no agreement was reached within the league, according to sources. Both sides are hopeful that a deal can be reached soon and another meeting is planned.
The primary package proposed was centered around streaming through Apple, with incentives for Pac-12 teams if certain subscription numbers are met. Several options were provided to league members, with the Apple deal being the most favorable. ESPN first reported the Apple deal.
The Pac-12’s current media rights deal with ESPN and Fox will expire at the end of the upcoming athletic season. A new agreement would begin in 2024-25.
Some believe that Apple’s offer to the Pac-12 stands at $20 million annually per school as a baseline. If accepted, Pac-12 programs would earn more than $10 million less per year than their Big 12 counterparts. However, incentives could potentially increase the annual payouts to be competitive with the deals of Big 12 and ACC teams.
The formal presentation took place five days after Colorado decided to leave for the Big 12. With the Big 12 adding Colorado and Kliavkoff’s top deal not appearing to be financially lucrative enough for other teams in the league, Arizona, Arizona State, and Utah are now considering similar moves to the Big 12.
The Pac-12 authorized Kliavkoff to begin negotiations for a new television contract in June 2022 after USC and UCLA announced plans to join the Big Ten in July 2024. However, until Tuesday, the league had not presented a firm media rights deal to its member schools.
If the Pac-12 were to accept the estimated $20 million per school figure, some industry sources suggest that it might be better for the Pac-12 to take that number from a linear partner in a shorter-term deal, which would give the conference greater reach and flexibility. It is unknown whether such an offer is possible.
An Apple deal would potentially put the Pac-12 in a pay-for-play model, as Apple would use the Pac-12 to promote subscriptions to Apple TV+. At least a million new subscribers would be needed for the deal to make sense.
Compared to other sports streaming properties, Apple TV+ is responsible for 1% of all video minutes consumed, while Amazon Prime Video is at 3% and Netflix is at 8%. The direct-to-consumer market currently accounts for only 52% of video minutes consumed, indicating that streaming has not yet tipped the balance in its favor.
Presently, the Pac-12 is the only Power Five conference without a deal through at least 2031.
