It’s a big day here in Austin. Not only is the Longhorns
basketball team cruising to win over rival Texas A&M, but the University came to a huge TV deal that just about matches the money exchanged between NBC and Notre Dame:
By keeping the Big 12 intact last summer, Texas was allowed to continue plans to create its own TV network. The result is today’s announcement: Texas will launch a 24-hour network with ESPN in September worth $300 million over 20 years.This doesn’t replace the $14 to $15 million broadcast revenue Texas will receive through the Big 12’s regular TV distribution. It adds to that amount, increasing Texas’ financial advantages and clout throughout the country. The Austin American-Statesman reported ESPN has guaranteed the $300 million, with $247.5 million earmarked for Texas and $52.5 million going to IMG, which handles marketing and licensing for the university. Texas’ share averages out to $12.4 million per year. The newspaper reported Texas is assured about $10 million a year for the first five years, and additional income is possible depending on the network’s profits.
The Longhorn Network too? Like 24/7 Texas highlights (I see the 2005 BCS Championship game being re-ran often on that channel)? Where is this going? Who knows, but it’s a great move for promoting the school as a national powerhouse in athletics…