ESPN and Fox are strongly discouraging the Big 12 to expand, as the networks believe the move would dilute the quality of the conference and make it less valuable, according to SportsBusiness Journal’s John Ourand and Michael Smith.
The Big 12’s contracts with ESPN and Fox stipulate the conference would receive rights-fee increases if it expands. Under the original deals, the networks pay the conference $2.6 billion over 13 years. By the letter of the contacts, the media companies would have to pay an extra $40 million in rights fees if the Big 12 expands by two teams, and an additional $80 million if it expands by four.
MORE: Ranking the Big 12's expansion candidates
Having earlier this year decided against launching its own TV network, expansion is really the only way the Big 12 can significantly increase its revenue.
The networks, though, won’t part with that money easily.
While BYU, Cincinnati, UConn, Houston and Memphis are among the schools the Big 12 is believed to be considering bringing aboard, those programs won’t cut it as far as ESPN and Fox are concerned.
The networks see expansion to schools outside of the power 5 conferences as a cash grab for the Big 12, and maintain that they are partners with the Big 12 because of the prestige and influence of its member schools. Programs such as the expansion candidates mentioned above would detract from that, ESPN and Fox believe.
Network executives are considering several options, SBJ reports, none of which are particularly positive for the Big 12:
— Negotiate smaller rights-fee increases than the ones outlined in the deals.
— Refuse to pay the increases and force the Big 12 to take them to court, where the networks would argue expansion for the purpose of increasing rights fee is not in keeping with the spirit of the deal, signed in 2012.
— Abide by the letter of the contracts and pay the increases, but end the partnership with the conference when the deals expire in 2025.
In light of this report, expansion is not exactly a no-brainer for the Big 12.