Title: Pac-12 Stumbles as Oregon and Washington Opt to Join the Big Ten
Subtitle: Apple’s Media Rights Deal Fails to Secure the Future of Pac-12
Date: August 2, 2021
In a surprising turn of events, the Pac-12 conference was thrown into disarray as two of its prominent members, Oregon and Washington, announced their decision to join the Big Ten in 2024. The move jeopardizes Pac-12’s stability and raises concerns about the conference’s future.
For over a year, Pac-12 commissioner George Kliavkoff had expressed confidence in securing a lucrative media rights deal that would ensure the unity of the conference beyond 2024. However, on August 1, Kliavkoff presented the league’s presidents and athletic directors with an underwhelming offer from Apple, which fell short of expectations.
According to insiders familiar with the negotiation terms, Apple’s proposal included a five-year deal with an annual base rate of $23 million per school, which was later raised to $25 million. The offer also incorporated incentives based on projected subscribers to a Pac-12 streaming product similar to Apple’s MLS League Pass. At 5 million subscribers, the schools would have potentially earned over $50 million per year, comparable to the SEC and Big Ten.
Despite the optimistic projections, there were concerns about whether Apple would simulcast certain games on a linear network, potentially limiting the reach of conference games compared to other major conferences. ESPN’s impressive 75 million subscribers dwarfed even the most optimistic estimates for a Pac-12 streaming product on Apple+.
Throughout the negotiations, Kliavkoff had kept the league’s presidents informed, and the involvement of Apple and the focus on streaming were not surprises. However, it was expected that a second, more traditional option would be presented, which did not materialize after a deal with multiple partners fell apart just before the July 31 deadline.
The uncertainty surrounding Arizona and Arizona State’s intentions further complicated matters. While Arizona and Utah had already applied for Big 12 membership, a board of regents meeting on Thursday ended with Arizona State president Michael Crow hesitant to leave. This uncertainty led to fears within the Big 12 that their plan might collapse and that the Pac-12 would remain intact, potentially pushing the Big 12 to consider other schools, such as UConn, for expansion.
In the meantime, the Big Ten, with support from media partner Fox, made a hastily put-together offer for Oregon and Washington, which would have allowed them to join as half-share members. However, discussions lost momentum overnight, and when the Pac-12 presidents reconvened on Friday morning, Oregon and Washington’s intentions to join the Big Ten were made clear, ultimately leading to the disintegration of the conference.
Oregon and Washington’s official announcement of their move to the Big Ten was followed by the Big 12’s announcement of Arizona, Arizona State, and Utah joining their ranks. This left only Cal, Stanford, Oregon State, and Washington State as the remaining Pac-12 members.
The departure of Oregon and Washington has left many within the Pac-12 disappointed and frustrated with the missed opportunities to secure a deal that would have benefited all members. The future of the conference now lies in uncertainty as the remaining schools contemplate their next move.