$15 million Apple deal emerges as a new figure for PAAC schools as conference realignment nears end: Reports

A novel theory concerning the impending merger of the PAAC conference has brought a $15 million deal with Apple to the forefront as a pivotal element. Notably, college football insiders and stakeholders have emphasized the integral role of TV revenue in the ongoing landscape of conference realignment. The Pac-12's failure to secure an acceptable media deal contributed, more than any other factor, to its disintegration.

Nevertheless, as the conference seeks a new route to redemption, it must factor in the role of TV money. In other words, a media rights deal, must be included in its offer for its target schools for expansion, or target conference for merger.

One of its potential merger partners, the AAC, currently has an active media rights deal with ESPN. The deal, which came into effect in 2020-21 season, is expected to run for 12 years through 2032.

However, according to college football insiders, the AAC's deal with ESPN may be canceled to accommodate a new Apple deal. This is in the case of a merger with the Pac-12. The college football source indicates that the Apple deal will be worth at least $15 million per year for each of the teams.

It looks like the Pac-12 will be negotiating the merger with the same Apple deal its former schools rejected. Although, with more schools to share now, the annual revenue per school shrinks from $20 million to $15 million.

Even at that, it's still a great deal for the AAC. Under its current ESPN deal, it only gives about $7 million to each of its schools annually. A boost from $7 million to $15 million is more than a 100% increase.

Is the Apple deal all there is to the PAAC?

There's the prospect of generating further revenue. Another hypothesis revolves around the Apple deal securing streaming rights for games, while ESPN obtains rights for prominent matchups in late-night slots, adding an estimated $2-3 million.

One of the hiccups the PAAC merger may encounter is the unwillingness of Standford to be part of such a union. Stanford is a major stakeholder in the Pac-4 and its position matters in whatever decision is being taken about the future of the conference.

A way to resolve its reluctance to be a part of the PAAC would be an arrangement similar to the Notre Dame - ACC arrangement. That is, the PAAC will have five guaranteed football schedules against Stanford. The school determines the rest of its schedules as a football independent school while its olympic programs go to the PAAC. Win-win.