Read this, and let me know if all you guys are still convinced there will be no expansion:
EXCERPT:
Big 12 could earn an additional $1 billion by expanding
Expansion is on the table at the Big 12 Spring Meetings, and even though a decision is unlikely, there could be a huge financial windfall
by Dennis Dodd
@dennisdoddcbs
1h ago
DALLAS -- Big 12 administrators will be presented with information this week at the league's spring meetings that expansion could earn the conference at least an additional $1 billion over the length of its remaining TV rights contract, CBS Sports has learned.
If the league expands by four teams, provisions in its contracts with ESPN and Fox provide money for that benchmark. If the expansion is by two teams, the increase would be $500 million.
Those rightsholders are contractually bound to provide "pro rata" for any new Big 12 members. That is, any new members would be paid an equal share of the current Big 12 members -- approximately $23 million per year.
While on its face that doesn't necessarily help the 10 current members of the Big 12, opening the existing contract would allow for a negotiation beyond that $1 billion figure.
Most importantly, it would satisfy one of the conference's key concerns: Falling behind the other Power Five conferences in revenue.
The Big 12 is approximately $9 million per school behind the SEC in annual revenue. Added expansion would close that gap "by half," according to a source.
The Big 12 has eight years remaining on its rights deal that pays it through the 2024-25 academic year. The current media rights deal is worth $1.3 billion from ESPN and $1.2 billion from Fox, according to SportsBusiness Daily.
While an additional $1 billion wouldn't guarantee expansion, it does shed light on how the league could add new teams. Previously, the discussion had centered around the quality of teams joining, rather than the Big 12's leverage in expansion.
When the league signed the 2012 deal, there was conversation regarding language for reopening the contract in the event of expansion. The parties agreed the Big 12 would get equal shares for any new teams that were added.
That means a team from the American Athletic Conference -- most often mentioned as possibilities in Big 12 expansion -- would automatically go from the $3-10 million range to $23 million.
Read much more here:
http://www.cbssports.com/college-footbal...-expanding
