PAC-12 Relying On Streaming Opportunities In Hopes Of Retaining Member Schools With New Media Rights Deal? It Will Be Tricky

Ongoing conversations around the Pac-12 media deal continued on Tuesday, with commissioner George Kliavkoff finally presenting financial numbers, which involved a streaming platform.

Conference presidents and chancellors have been patiently waiting for the Pac-12 commissioner to give them something to discuss. That discussion can now commence, with Kliavkoff presenting a deal that includes the Apple streaming service, according to a source close to the matter. First reported by Pete Thamel, the presentation was centered around how the conference could add revenue based off subscriptions, along with ad revenue.

After months of stalling and the recent departure of Colorado, George Kliavkoff was forced to the table to finally present what he had been negotiating. One of the keys to this deal would center around the Pac-12 being able to sell subscriptions, which would then increase revenue for each member institution.

Pac-12 Commissioner George Kliavkoff attends a semifinal game of the Pac-12 basketball tournament between the Arizona State Sun Devils and the Arizona Wildcats at T-Mobile Arena on March 10, 2023 in Las Vegas, Nevada. The Wildcats defeated the Sun Devils 78-59. (Photo by Ethan Miller/Getty Images)

The option for streaming has been on the table for a while now, as other conferences snatch inventory from ESPN, FOX and CBS. This left the Pac-12 with only a handful of options for broadcast partners, which led to a streaming service becoming a viable candidate.

Now, Pac-12 schools have a few tough decisions to make, as Kliavkoff is hoping to meet with the group again in the very near future. There is hope within the Pac-12 offices that ESPN or FOX could come in and sublicense some games that they see fit.

Will this be enough for members to stick around? Some reports state that the deal could be lucrative if they hit escalators, which is based off subscriptions sold. I have no idea if a school like Oregon or Washington would want to risk its financial future on the hopes that fans will subscribe or pay monthly for content.

All the while, the Big 12 has a television deal that will pay each member around $31.7 million per year, starting in 2024. But, the Pac-12 has at least given each member school an option, which will be discussed, with this particular deal taking them into a new future of media rights.

This decision is not going to be easy for Pac-12 members, as they try to figure out how to make money off their fanbase, that would add to a base contract for each year. In addition, putting together a yearly budget around unknown numbers will be a difficult process for the Pac-12 schools.

Yes, the base contract money will be something to balance, but fluctuating numbers will find this to be an interesting process.

Tha Pac-12 will meet further to discuss this matter, with schools having to make some tough decisions on the future of their media revenue.