Report: Big 12 discussing naming rights deal worth $30-50 million with Allstate
Details have emerged on the Big 12’s reported consideration to adopt a title sponsor, courtesy of a report from the Action Network’s Brett McMurphy.
The Big 12 is reportedly in discussions with Allstate on a naming rights deal that would change the league’s name at a reported cost of $30-50 million annually to the insurance giant. That’s money that would go to the league coffers if such a deal were brokered.
McMurphy reports that current naming possibilities under consideration include “Big Allstate Conference” or “Allstate 12 Conference.” Yahoo! Sports’ Ross Dellenger reports that “Allstate 12” is another name that has emerged.
The league has reportedly expressed a desire to retain the number 12 in a naming rights deal, though the conference no longer has 12 members after the most recent round of expansion. The number, theoretically, still has some brand recognition and name appeal.
In any case, it sure seems like the Big 12 is steaming ahead as it looks to find new ways to generate revenue to keep up with its peers in the Big Ten and the SEC.
That was part of the driving force behind the latest round of conference realignment, as well.
One of the ways the Big 12 is also reportedly considering adding to its warchest is with an agreement with private equity. A report emerged from CBS Sports on Thursday morning about that possibility.
Big 12 eyes private equity investment
CBS Sports reports that the Big 12 is considering a private equity investment with a cash infusion of $800 million to $1 billion from Luxembourg-based CVC Capital Partners in exchange for a 15-20% stake in the league.
That cash infusion would go in part directly to conference members to help with ballooning costs, while the partnership would also give the league access to CVC investment services and clients.
How close any sort of deal is to fruition remains to be seen.
CBS Sports notes that while the talks are “pretty serious,” many of the Big 12’s presidents “need further convincing.”
One of the reasons the Big 12 might entertain the idea of a private equity stake in the conference is the growing gap between the Big 12 and the Big Ten and SEC when it comes to TV revenue distribution.
While the Big Ten is set to haul in roughly $75 million per school as part of its new media rights deal with FOX, CBS and NBC, Big 12 teams are currently receiving about $32 million per year for their agreement with FOX and ESPN.
The league’s current media deal is set to end in 2031.