Bowlsby Reveals Potential Financial Fallout of OU, Texas Leaving Big 12

We can talk about how detrimental OU and Texas leaving the Big 12 is for the league and its long-term health until the cows come home, but in the end there is one factor here that determines the answer — and that’s the amount of cold, hard cash available to the remaining members.

And the answer there suggests it is undeniably a no good, very bad thing.

Speaking on Monday at a Texas Senate hearing, Bowlsby revealed the potential financial fallout of OU and Texas leaving the league for the SEC is so substantial, he estimates schools will lose roughly $14 million per year in TV revenue — half of what the league is currently distributing. Further, he estimated that Texas and OU comprise roughly 50% of the league’s total value to television partners, thus the arrival at the $14 million figure.

According to USA Today figures from Fiscal Year 2020, here’s what that would mean in raw numbers. First, here’s a look at the actual numbers to get an idea for pre-OU/Texas departure and the Big 12’s standing in the hierarchy of sports.

• Big Ten total revenue: $768.9 million (~$55M per school)
• SEC total revenue: $729 million ($45.M per school)
• Big 12 total revenue: $409 million (~$37-$40M per school)
• ACC total revenue: $497 million (~$30.9M-$37 million per school)
• Pac-12 total revenue: $533.8 million (~$33.6M per school)

Next, here’s where the Big 12 would stand with that missing $14 million per year TV money. TV money doesn’t make up all money, but it’s a significant chunk of it and the haircut would put the Big 12 last (by a lot) among power conferences.

• Big Ten total revenue: $768.9 million (~$55M per school)
• SEC total revenue: $729 million ($45.M per school)
• ACC total revenue: $497 million (~$30.9M-$37 million per school)
• Pac-12 total revenue: $533.8 million (~$33.6M per school)
• Big 12 total revenue: ~$23-$26M per school

The silver lining here: It’s not so bad that it should be considered an untenable financial arrangement. The bad, however: It’s hard to imagine that money stays the same. ESPN has reportedly rebuffed the Big 12’s attempt to renegotiate a rights deal, and without the two schools that make up an estimated 50% of the league’s total TV value, it’s hard to imagine any scenario in which league members don’t see that number take an even bigger hit without serious changes.