Financial Impact of Pac-12's Four-Team Expansion
The Pac-12’s decision to expand by adding Boise State, San Diego State, SMU, and Fresno State comes with major financial implications. The conference, which has faced declining revenues in recent years, hopes that the new teams will inject fresh excitement and drive higher television ratings. However, the financial outlook is still uncertain. Boise State and San Diego State, while bringing strong football programs, do not have the massive alumni bases or media market presence of USC or UCLA, both of which bolstered the Pac-12's previous television deals.
Financial experts believe that the Pac-12’s next media rights negotiations will be critical to determining whether the expansion was a success. The conference will need to secure a deal that not only matches but exceeds the value of the current contract. A failure to do so could spell further financial difficulties and lead to additional instability within the conference. The Pac-12’s ability to leverage its new geographic diversity, particularly with SMU's access to the Texas market, will be a key factor in future negotiations.