The third tier media rights is where everything seems to be an issue.
The B12 really cannot create an effective B12 network because Texas refuses to give up having full control of their own Tier 3 rights. Texas gets $15 million per year from the Longhorn Network for their Tier 3 rights...far more than any other school in the B12. I really would like to know how seriously the B12 has "run the numbers" on what a B12 network would produce if UCF and Cincinnati were added.
The current B12 states (Texas, Oklahoma, Kansas, Iowa and West Virginia) have 13,721,870 TV Households. Adding UCF and Cincinnati (Florida and Ohio) adds 12,086,670 TV Households. So the total B12 TV Households with UCF and Cincinnati is 25,808,540. That leaves approximately 90 million TV households in "out-of market" states.
The B1G network receives between $1.00 and $1.15 per month for every cable/satellite subscriber in "in-market" states. The SEC network gets between $1.25 and $1.45.
For "out-of market" states I believe both the B1G and SEC network get 10 cents per subscriber.
If the B12 were to get $1 per subscriber for in-market states and the same 10 cents per subscriber for out of market states,
that totals about $34.8 million in revenue per month, or $417.6 million per year. The big thing I don't know is what the operating expenses are for a conference network. Those operating expenses have to be deducted before the conference and the network (either ESPN or FOX) split what is left. I think the B1G gets 49% of the network profit while FOX gets 51%. The SEC has not publicly released the split between the SEC and ESPN.
Let's assume that the operating expenses for a conference network are $75 million per year. The remaining $342.6 million would leave the B12 with $171.3 million assuming a 50/50 split with ESPN or FOX. Divide that $171.3 million by 12 schools and you get $14.275 million per school. That's pretty darn close to what Texas gets now and far more than any of the other B12 schools currently receive for their Tier 3 rights.