FYI - Also, to give people an understanding on the flexibility of our content and the value of the BTN for the conference members, in 2011, the Big Ten paid out $24.6 million to its members.
The actual distribution from the Big Ten network to it's members was $7.2 million dollars, which was down from the previous year's payment ($7.9 million).
The ESPN contract with the Big Ten is worth $10 million per year, and there are no Tier 3 rights in the Big Ten because the conference owns everything. So the total television payout in the Big Ten is T1 with ESPN/ABC, T2/3 with the Big Ten Network, the Conference title game, and arrangements to show Big Ten basketball games on CBS.
So, to put this into perspective, Kansas State, based on numbers I've seen in this thread (I think from dax) say that if we were to get $20 million a year right now, we'd be somewhere in the neighborhood of $23.8 million (or something like that), and that's before bowl payouts and all that other stuff.
The odds of most schools in the Big 12 making more money than the Big Ten, at least over the next several years, is probably pretty high. The Big Ten does take select basketball rights, Tier 1 football, and their conference championship game to market around 2017. Odds that all of those items lining up together is pretty high, so they'll most likely try to get a bundle deal. They are locked into the BTN until 2032.
The moral of the story is that the Big Ten has a few years to get back to being a true power conference in football and men's basketball, and if they don't, there is a chance they'll lag behind the rest of the big four conferences in revenue. Not by much, but it's something to think about long term.
The conference network, right now, makes sense for a lot of schools, but eventually, either the Pac-12 model or the Big 12 model will most likely win out. There's too much sharing in the single conference network strategy to win out long term.
http://www.stltoday.com/sports/college/illini/big-ten-payouts-estimated-at-million/article_41763ece-a120-11e1-b930-0019bb30f31a.html