Insider reveals problems Pac-12 is facing in media rights negotiations

It hasn’t been easy for the Pac-12 to negotiate its next media rights deal amid the changing college football landscape. Amid reports of the league’s reported interest in partnering with Apple, John Ourand of the Sports Business Journal suggested the league missed an opportunity a few months ago.

In September, the New York Post’s Andrew Marchand — who co-hosts a sports media podcast with Ourand — reported the Pac-12 was “hundreds of millions of dollars apart” from a potential deal with ESPN. Since then, the Big Ten and Big 12 have announced new deals. The Big Ten signed a landmark agreement with FOX, CBS and NBC while the Big 12 re-upped with ESPN and FOX, meaning the top TV channels are off the board.

That leaves the Pac-12 in its current position and, potentially, looking toward a streaming service. Ourand said it’s a tough spot considering the streaming landscape.

“Here’s the problem that the Pac-12 faces. There was a good deal to be had six months ago, back when you were talking about how far apart the two sides were,” Ourand told Marchand. “In the ensuing six months, all of the traditional television stations — CBS, who had been kicking the tires, is out. FOX, which had been kicking the tires, did the Big 12 deal and [CEO Eric] Shanks told us, they’re pretty set with what they want in terms of college. NBC has its Big Ten and primetime, there’s not a lot there. And ESPN is becoming a lot more cost conscious. There are, as you said, must-have programming, which the NBA falls in, the NFL falls in, certain big college conferences fall in. Right now, it doesn’t look like the Pac-12 is falling into that.

“Then, on the streaming side, all of a sudden, you have Wall Street that is no longer prioritizing gaining subscribers. They want to see profits, whereas you had all of these streaming companies competing against each other to drive up the prices and bidding wars. Now, they have to have a lot more discernment, they have to have a lot more responsibility in terms of what they’re paying so that they’re not overpaying. It’s just a really tough market if you’re a college conference that’s not the Big Ten or the SEC right now.”

Pac-12 reportedly leaning toward Apple as media partner — but questions remain

Now, it appears Apple is emerging as a suitor for the Pac-12 media deal. However, Marchand noted the issues that could come up in negotiations considering the company’s agreement with Major League Soccer, and Ourand brought that up, as well.

“Andrew, as you said, the big question mark is with Apple,” Ourand said. “Will Apple want to do a deal with the Pac-12 and with all of the Pac-12 rights — the Pac-12 Networks, with the actual conference itself — that would mirror what they’re doing with MLS, which is, of course, starting this weekend?”

Marchand pointed out Apple was pursuing a NFL Sunday Ticket, and that deal fell through as the company “can be very persnickety” during contract talks. It doesn’t help the Pac-12 is losing its two highest-profile programs — USC and UCLA — to the Big Ten. Those are all factors in the negotiations.