Just curious...why does every game have to be a major production? Why not have a few key games typically produced, and then use a CloneZone approach for the rest. A couple of camera angles for the video, and for the audio use one of the team radio broadcasts. With digital transport streams, I think you can have multiple audio channels, so put each team's readio broadcast on one audio channel.
That may work in some instances such as non-revenue sports. The issue with football and mens basketball is that you have fanbases that are used to seeing their teams in fully produced games. I don't think it would go over well. Look at the Iowa fanbase, they weren't happy with the BTN because their games that used to be over broadcast channels were suddenly on cable. Add to that the quality of the broadcast would be reduced and the network would get some serious negative backlash.
I think the best solution would be to keep the individual schools networks (CTN), for basketball at least, and just give them a medium to show it regionally or over the web. That way, ABC5 still would have the opportunity to show the games locally and it would be on the B12 network for those out of the area. If you fully utilize the web streaming ability, it should cut down on the need for multiple channels, which would be a big help in negotiating with cable and satelitte companies.