Pete Thamel reveals why Big Ten, SEC not under same financial pressure as Big 12, ACC

As news has emerged that the Big 12 is both considering a private equity investment for a stake in the league and it is shopping its naming rights around to potential suitors, the question of why the big push for additional revenue has occurred has jumped to the forefront.

It’s pretty simple, truth be told.

The league is trying to make up a significant (and growing) revenue gap with the likes of the Big Ten and the SEC. Neither of those leagues have yet hinted at any sort of hobnobbing with private equity or shopping for naming rights, according to ESPN’s Pete Thamel.

“I have not yet today (spoken with Big Ten or SEC sources) because this just broke probably in the last 90 minutes,” Thamel said on the Pat McAfee Show on Thursday. “It’s a good question. I don’t feel like there’s a pressure in those leagues that’s as significant to do that.”

Why not? Well, the two power conference leagues have negotiated for an increased portion of the pie in the upcoming playoff deal, which will kick in during the 2026 season.

Thamel explained, laying out the Big 12’s predicament.

“Look, ultimately when the next College Football Playoff contract kicks in, so that would be after we have the ’24 season come up, then ’25, then we’re expected to go to a 14-team playoff,” the ESPN insider said. “Although that’s not solidified it’s widely expected to happen. There’s essentially a $20 million shift of money that’s going to go to the power teams, and all the teams in the Big Ten and the SEC. So they can just sort of line that CFP money up — and I’m oversimplifying something very complicated — they have a way to just get that $20 million, share it with the athletes and sort of keep business as usual as they’ve done it.”

Without that extra money, conferences like the Big 12 and the ACC might be forced to take more drastic measures to make ends meet. The alternative might just be cutting expenses by cutting staff or even certain non-revenue-producing sports.

That’s not something anyone in charge wants to see.

“The ACC and Big 12 don’t get nearly the same cut of that CFP revenue. Because of that there’s going to be creative ways (to raise money),” Thamel said. “And this ties back to the reasons why we’ve seen the Clemson lawsuit and the Florida State lawsuit to attempt to break the Grant of Rights and leave the ACC. They feel like they’ll be $20 million behind annually at least every year. So you stretch that out over 10 years it’s $200 million and they don’t feel like they have enough revenue to compete, so they’re trying a creative legal way to get out.”