How do the ESPN layoffs impact the Pac-12 media deal? Exploring the additional fallout

By all indications, the Pac-12 conference won't strike a new media deal with its television partners soon. The conference has gone through a series of negotiations for months to renew its television broadcast rights which end in 2024. However, all was to no avail.

ESPN was the first of its two television partners to pull out of any deal. However, the network's perspective suggests that the decision to pull out is not directly related to the conference in particular. Rather, this is primarily due to the intent on controlling costs.

In what came as a shock to the sporting world, ESPN laid off around 20 high-profile on-air talent last week. The network's parent company, Disney, announced the dismissal of 7,000 staff across multiple divisions in May, and this brought a whole new chapter.

The repercussions of job cuts in the media and technology industries have been significant. And without a doubt, it played a crucial role in the collapse of the Pac-12 media deal. ESPN holds the conference Tier 1 rights until 2024 and won't be renewing.

Pac-12 officials previously noted the impact

Top officials of the conference had noted the impact the layoffs are having on their effort to secure a new media deal.

Washington State president Kirk Schulz noted at the university’s board of regent meeting in May that TV networks have shown reluctance due to layoffs:

“I think it’s just the environment. It’s the uncertainty in the economy, the layoffs in the tech sector and other places.

"I know at least one of the partners we were talking to said, ‘We’re ready to sign today, but the optics of us announcing that we’re laying off X number of people and we signed a multimillion-dollar deal with the Pac-12 are just not the best, so we’re going to have to wait six weeks."

The significance of media revenue for college conferences and athletic departments cannot be overstated. As a result, there is a genuine possibility that the lack of media interest in the Pac-12 could prompt its member institutions to explore joining different conferences.

ESPN to streamline college football coverage

In its cost-controlling initiative, ESPN has decided to streamline its coverage of college football to just three conferences. The network will now only do business with the Southeastern Conference, American Athleitc Conference and the Big 12, eliminating other conferences from its coverage roster.

The Pac-12 happens to be the biggest loser in this move. It’s coming at a time when the conference is facing a series of uncertainty. Given ESPN's absence in the bidding process for the Tier 1 rights, the conference seems to be facing a challenging situation.

Since other networks involved in college sports broadcasting have shown little to no interest in the Pac-12 games, the conference finds itself without an apparent destination or option. This could have a profound impact on the conference's future.