Quote:
Originally Posted by kcchief19
I highlighted year 1 because that's the significant issue year -- Texas wouldn't get $25-27 million in year one. First, the Pac 10's current deal with Fox runs through 2012, so you're not talking about getting money under a new deal until the 2012-2013 school year. Secondly, the Pac 10 network doesn't exist. It would take at least a year before the network could debut, and more likely wouldn't debut until 2012 when the Fox deal ends. Thirdly, any network requires startup costs and it's unlikely a Pac 10 network would be profitable for at least 3 years, maybe more.
So you're really talking about getting those revenues in year four or five, if those numbers hold up. The Pac 10 is basing its assumptions it can get $200-$250 million per year from a network AND start it's own network. That combination is unlikely.
From a financial standpoint, moving to the Pac 10 wouldn't pay dividends for 3-4 years. So why not stand pat, let the other Pac 10 schools deal with getting the network launched and see where you're at then?
Plus, don't forget to subtract the $16 million or so Texas would owe to the Big 12 in penalties for bailing on the league.
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I thought these moves wouldn't happen until the 2011 or 2012 season?
That would give the Pac 10 enough time to launch and run the network and you would have just one or two years left on the FOX deal.