If other bidders don't have CFP access, they have much less incentive to bid up B12 rights and the gap will between the B12 and SEC/B10 will significantly widen.I am not a big believer in this fixed duopoly of ESPN(Disney) & FOX. They both currently operate from a position of power/leverage. ESPN because it's the "worldwide leader in sports". It's entire business model is televising sports so it is critical for them to buy sport properties to fulfill their "worldwide leader" status. FOX has leverage because of it's ownership of Big10 media rights. Also, people overlook that both Comcast (NBC) & Paramount Skydance (CBS) each invested $350M annually in Big10 media rights. Each investing the same as FOX.
But their roles are not a given. Especially, the ESPN & SEC relationship. The linear SECN will not be a hook in 2034. It will be an albatross. FOX has the hook, but any partnership can be dissolved. Or another Corporation could make FOX a financial offer they can't refuse.
Amazon, Apple, Netflix, Warner Bros/Discovery, Comcast (NBC Universal), Paramount/Skydance have deep pockets and can financially compete with Disney or FOX for college sport media rignts. Just a matter of how much they view live sports as a hook to bring subscribers to their platforms.
If I were Yormark, I would count on ESPN/FOX NOT being significant bidders for the Big12's media rights in 2031. The fact neither stepped up in 2023 to increase the Big12's media deal is pretty telling. The good thing:
Sure there is some risk to the Big 12, but there is also an opportunity to close the gap with the Big12/SEC.
- There are other deep pocketed companies in the media space
- Each of the companies is trying to grow subscribers to their platforms
- Platforms as tools to sell product is in its infancy
Fox is essentially a silent partner in the ongoing B10 Equity Deal given the GOR extension terms. Pettiti is working for Fox on this deal in order to extend their relationship.
And as long as ESPN likely controls the CFP bid process as they do now, their relationship with the SEC will continue and they will eventually shed ACC and other conference rights to save money and they can fold in SECN into one of their other linear networks and/or ESPN+.
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