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DMN on expansion

JK

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http://sportsday.dallasnews.com/col...-big-12-bid-espn-fox-thrilled-expansion-talks

It has been barely two weeks since the Big 12 closed its football media days by signaling it was open for expansion.

Since then, a host of schools, including SMU, have expressed an interest, fan bases have mobilized into social media PR armies and speculation has become a cottage industry. And ESPN and Fox, which may have to pay out about $25 million per new school per year because of a pro rata clause, are reportedly less than enthusiastic regarding their business partner.

Five school and industry sources offered a snapshot of where things stand. And while the Big 12 has a soft target of making a decision and announcement before the season begins the first weekend in September, things may not be decided until shortly before the Big 12's board of governors meeting in October, they cautioned.

Here's a quick overview:

How many?
That was the question July 19 and remains the question now.

Barring some remarkable and unexpected offer by its TV partners, the Big 12 will add either two or four members. Two is the most beneficial for increasing the College Football Playoff odds. Four would bring the most money, enriching current members by as much as $7 million each the first year.

Who?
At the moment, no one school has the eight votes necessary for membership, industry sources indicated. In-depth discussions and inevitable horse trading haven't really begun yet.

The support of Texas state and university officials, including Gov. Greg Abbott and UT President Greg Fenves, has put Houston into the top tier.

Of course, with Texas backing Houston strongly -- a point several sources affirmed Wednesday as very real -- then Oklahoma and President David Boren may be in a position to push for a school. The next two choices would be Cincinnati and BYU. Cincinnati has positioned itself well politically, has enjoyed significant football success and would expand the Big 12 into a new market. But while it would give West Virginia a travel partner, would the Mountaineers want to elevate their former Big East rival to Big 12 status?

BYU has great tradition -- even an AP national championship -- and a following that the networks would like. But recent reports about BYU's honor code in regard to sexual assault victims and its stance on LGBT issues may raise questions with Big 12 presidents, two sources said.

Beyond BYU, a host of schools are clustered, led by UConn, Memphis, Central Florida and Colorado State, in an evolving order.

What about football-only members?
While it's still a remote possibility, one industry source familiar with the discussions said: "Nobody wants it."

Are ESPN and Fox really angry?
A sourced story in Sports Business Daily sure suggested it. In the age of cord-cutting and cable layoffs, neither can be thrilled by the prospect of paying more money for what may or may not be a watered-down product.

News about the Big 12 using the pro rata clause as a bargaining chip surfaced in early June, and even the conference was engaged in discussions with Fox and ESPN through its consultants. In other words, none of this is a surprise and the networks' public displeasure probably represents a lot of posturing. Multiple sources indicated that Fox actually may be more open to expansion since it would increase game inventory.

Could the Big 12 alienate TV partners now and pay a price when its contracts expire in 2024-25?
Eight years is a long time in TV and technology. As Commissioner Bob Bowlsby has noted and Sports Illustrated reported this week, tech giants such as Netflix, Amazon, Google and Apple could transform the dynamic if they get into the sports rights business. There's always the next big thing that could explode between now and then.

What do Texas and Oklahoma want?
Speculation persists the two are just biding their time until 2025.

Would either be interesting extending the conference's TV contracts and grant of rights until 2030 to coincide with Texas' contract with ESPN for the Longhorn Network?

Very doubtful.

While one source floated it as possible and anything is conceivable at the negotiating table, another source with direct knowledge of the talks said bluntly Texas and Oklahoma have no current interest in extending the rights deal past 2025.

The source did caution that each would like to see what the landscape looks like at some point and that a divorce from the Big 12 isn't necessary inevitable.
 
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