THIS STORY HAS BEEN UPDATED.
Precisely how much? Well, it turns out not at all. That’s been the source of some confusion today, which we got caught up in. Here’s what went down:
Initially, Baylor A.D. Mack Rhoades stated in an interview with 365Sports on Tuesday that all members of the Big 12 will receive a full revenue share starting in 2024 when the next payout drops.
“They’ll be a full share member,” Rhoades said of the incoming former Pac-12 schools’ revenue for 2024. “All 16 of us will be created equal in terms of conference revenue distribution.”
The revenue question is timestamped 9:33 above.
Rhoades was extremely careful in phrasing how negotiations with Fox were carried out, given that Fox did not have a pro-rata agreement with the Big 12 (ESPN did for P5 schools only). However, everyone got excited about everyone getting a full revenue drop in 2024-2025.
Side note: Pro-rata means that any additions would result in the TV partner adding to the annual payout by the equivalent of one share per school added. In other words, the total revenue pie would grow by one equal slice for each new school, rather than the same-size pie being split by one or more additional slices per new school.
It was agreed upon that UCF, Cincinnati, BYU, and Houston are to receive a fixed lower share of approximately $18 million in 2023-2024 and $19 million in 2024-2025 from the media deal, and then get a full share starting in 2025-2026, after the Big 12’s new TV contract kicks in. The payouts for these four schools are to come from the payouts the remaining eight were receiving from ESPN and Fox. To make up for it, the eight would then recoup those funds from the exit fees of Texas and Oklahoma, per CBS’ Dennis Dodd.
David Smoak of 365Sports then tweeted that a representative of the Big 12 reached out to clarify Rhoades’ statement:
I received call from Bob Burda w/@Big12Conference on quote from Baylor's Mack Rhoades on @365sportsYT "all 16 teams will receive equal revenue sharing in '24-'25." Burda told me that is not the case, the incoming P12 teams will receive a full share as A5 schools in '24-'25 (1/2)— David Smoak (@DavidSmoak) August 9, 2023
Burda mentioned, "the two-year revenue distribution phase-ins for BYU, Cincinnati, Houston and UCF remain unchanged by the Big 12 expansion to 16 teams. Those four schools also voted the eventual P12 schools would receive a full-share in '24-'25.— David Smoak (@DavidSmoak) August 9, 2023
What does this mean?
For UCF, nothing. It’s business as usual.
Brett McMurphy of Action Sports reports that under the current media deal, the final annual revenue payout for the original eight and the former Pac-12 schools is estimated to be somewhere around $42 million in 2024-25, which would include payouts from the CFP, bowl games, and NCAA Tournament units. But for UCF, Cincinnati, Houston, and BYU, it’s still $19 million.
In comparison, UCF’s share in The American averaged about $7 million per year. Matt Murschel of the Orlando Sentinel ($) reported that UCF and its fellow first new entrants would get about $18 million per school in 2023-2024. They are still receiving an approximate increase of over $10 million from what they were receiving in the AAC to start.
Once we get to the 2025-26 season, UCF — and the other 15 schools — get full drops. The final annual revenue total under the new media deal with ESPN and Fox would push into the range of $50 million per school. The new deal will run from 2025-31 and include a Grant of Rights provision.
UCF’s first football season in the Big 12 starts in just three weeks.