Big 10 signs 7-year $7.5 billion deal with CBS, NBC, and Fox

Yahoo Finance's Josh Schafer joins the Live show to discuss reports that Big 10 has signed a seven-year $7.5 billion deal with CBS, NBC, and Fox.

Video transcript

BRIAN CHEUNG: To the world of college sports with the Big Ten striking an approximately $7.5 billion deal for a seven-year contract with FOX, CBS, and NBC. Let's get to Yahoo Finance's Josh Schafer on this massive deal here.

JOSH SCHAFER: Yeah, Brian. That's a record deal for college sports. It's the biggest deal we've ever seen in terms of media rights. And if we take a look at how this is going to get broken down here when we look at FOX, CBS, and NBC. So FOX is the-- it's gonna have the noon game. CBS is gonna have a 3:30 game. And NBC will have the night games.

One thing that stands out when it comes to NBC, guys, is eight of those games are gonna be exclusively on Peacock. So a little bit of a win for the streamer there that I think doesn't get too many wins when we talk about Peacock. But they like to spend on sports. So they're spending again on sports.

And of course, Disney, not included. This is the first time ESPN will not have Big Ten media rights for the first time in 40 years. So that's also a big thing that stands out here. We were just showing that graph, that Big Ten revenue graph. So the Big Ten had over a billion dollars in revenue in 2021. That was only when $500 million was coming from media rights. So then double that. And that's how big that number is gonna get. We're talking closer to what the SEC is at, at about $1.7 billion.

BRIAN CHEUNG: Especially with those LA schools coming on board.

JOSH SCHAFER: With those LA schools coming.

AKIKO FUJITA: [INAUDIBLE] today, guys.

JOSH SCHAFER: That's when the deal is gonna kick in more, though. We should note that, in 2024, when USC and UCLA come in, the schools will start to see more money as well.

AKIKO FUJITA: This is what I want to know about because there's another big story coming out today in college sports. We've heard there's some changes coming to college football playoffs. Are we gonna actually have a playoff system?

JOSH SCHAFER: Potentially, right? There might be changes. So ESPN's Pete Thamel was reporting yesterday that it seems like there has been discussion already. He noted in the meeting-- so in this meeting among the chancellors and college presidents, there's only about five minutes of discussion. Long meeting. It was only five minutes that they talked about this, right? So it's very early stages.

But the theory would be that major college football could be governed outside of the NCAA. And an entity that could maybe do that would be the College Football Playoff, right? So after 2025, as of now, there is no playoff system. In theory, in 2026, there would be no playoff again and there would be nothing. So I think we're getting closer to maybe having that 12-team deal.

And then when we talk about streaming. That's the king pen piece, right? If ESPN comes back in and they have the SEC and they have the College Football Playoff again, and it's a 12-team playoff, that's a lot of games, a lot of content, and potentially good for streaming.

BRIAN CHEUNG: Lastly, sources say it's your birthday?

JOSH SCHAFER: It is.

BRIAN CHEUNG: Can you confirm?

JOSH SCHAFER: It is indeed--

BRIAN CHEUNG: Wow

JOSH SCHAFER: --my birthday.

AKIKO FUJITA: It is your birthday. Happy birthday, Josh.

BRIAN CHEUNG: Happy birthday to you.

JOSH SCHAFER: Thank you.

BRIAN CHEUNG: Well, have more of a five min-- have more than a five minute celebration then today, though, you know?

JOSH SCHAFER: Right, right, right.

BRIAN CHEUNG: Not trying to have a College Football Playoff conversation.

JOSH SCHAFER: We won't cut it short. We'll really go in there after the show.

BRIAN CHEUNG: Yeah, like a GameStop earnings call or something, right?

[LAUGHTER]

Thanks so much, Josh. Appreciate it.