If you threaten ESPN/Fox to fulfill the contract, you can demand the pro rata increase of approximately $80 million a year for four teams whose conferences don't even demand that. Over the remaining 8 years of the contact, that is worth $2.52B.
If we add two teams at the pro rata, it's $2.16B. That saves ESPN/Fox $360 million. Then, if we're probably being smart/conservative, we extend the GOR five more years at the same average payout assuming the bubble is going to burst to ensure consistent payouts. ESPN/Fox may take that bet assuming they'll get us for less from 2025-2030, and we may sacrifice a little scratch on the back end for added security and predictable cash flow.
Create an extended stair step payout for the new teams so the rest of us can pocket several million over the next 5-7 years, and then all of a sudden, a few things happen:
1) Cash payouts for our 10 teams in the next 5-7 years will be on par with the Big Ten/SEC considering the extra money we pocket from the CCG, added bowl games, NCAA tournament revenues, and distributing the difference between the shares we ultimately steal from BYU/Houston/Cincy as they stair step.
2) GOR extends to the end of the LHN in 2030 which would give us a better opportunity to go to market at the end of the GOR with a consolidated rights strategy (assuming Texas may want that...)
3) Pac-12 TV deal is up in 2024. It gives us options if any of those schools feel jumpy and our partners are willing to bring them in.
It could be a situation where we make an aggressive statement (14 teams, full pro rata) and negotiate down to 12 teams pro rata with an extension of the GOR for the reasons stated.