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The
Big 12 is exploring a
naming-
rights agreement with Allstate, among other potential suitors, a source confirmed today, in a deal that could be worth anywhere from $30-$50M annually.
Brett McMurphy of Action Network first reported the connection to Allstate. "This is all being done to close the gap between the
Big Ten and SEC," the source said.
Yahoo Sports reported today that
naming-
rights talks have centered on retaining the "
12" in "
Big 12" and removing "
Big" in favor of a corporate sponsor's name. Similar efforts have been made in the bowl world -- Outback Bowl, Capital One Orange Bowl, etc. -- but no major conference has explored such a move.
As noted, the exploratory discussions come as
Big 12 Commissioner
Brett Yormark has delved into alternative ways to close the massive cash-flow gap between his league and the rest of the Power Four. The league previously had meetings with
private equity firm CVC in Dallas that included a deck introducing the company to the league and what potential value they could bring, a connection CBS Sports first reported this morning.
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The league has made waves in recent months in exploring new revenue streams given the future constraints schools may be faced with in the wake of
a potential settlement in the House, Hubbard and Carter cases. Schools are likely to be able to share up to $22M in revenue with athletes, a number industry sources suggest will be a functional requirement to stay competitive in the upper echelons of college football.
Yormark already jumped the line and beat the Pac-
12 to a media
rights deal worth $2.28B and an annual average of $380M -- a 72.7% increase in the average annual value of its current deal, which started in 20
12. He also spearheaded a new PSL program for the
Big 12's men's basketball championships that is expected to bring around $30M to the league by 2031.
That said, the gap between the
Big 12 and its Power Four compatriots in the
Big Ten, SEC and ACC remains vast. The most recent iteration of the College Football Playoff contract is set to see the
Big Ten and SEC receive 29% each of the deal worth $1.3B annually. The
Big 12, meanwhile, will receive just 14.75% of that cash.
Sources briefed on the deal at the time noted there were few options in negotiating a more evenly split piece of the CFP pie. Those leagues outside the SEC and
Big Ten basically faced appealing to college sports’ two most powerful leagues or risk them walking away entirely.
Private equity and private capital campaigns, too, have become increasingly openly discussed around college athletics. Florida State is well down the line in its discussions with Sixth Street, while administrators nationwide have had meetings with varying firms to discuss how the two parties could work together.
Yormark has been generally open to the idea of private equity. So has new AAC Commissioner
Tim Pernetti, who floated the idea of private capital's involvement in college sports during his introductory press conference in Dallas earlier this month.
“As much as it can bring an infusion of capital, which is not free, it's an investment against the assets that we already have and the revenue already generated,” Pernetti told SBJ this week. “But I think there's 100 ways to cut these things.”
The college sports landscape has become increasingly unsettled in recent years. The Pac-
12’s overnight implosion set off the latest round of realignment. Stark financial realities of the current leagues have also seen schools like Clemson and Florida State exploring legal ways to leave the ACC.
The
Big 12 lost Texas and Oklahoma in the most recent conference reshuffling but has bolstered its membership with the additions of Houston, UCF, Cincinnati and BYU. It is also set to welcome Arizona, Arizona State, Colorado and Utah into the fold this fall.
“We're like a mature startup,” Yormark said. “[The
Big 12 is] 28 years in the making. When you compare us to some of the other conferences that have been around for 90-plus [years], we're just getting started.”
