UCLA Might Have To Pay A PAC 12 Rival Upwards Of $10M Annually For Leaving The Conference

An overview of the PAC 12 logo at the championship game.

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The Cal Bears could come out a winner in UCLA’s move to the Big Ten. They might wind up receiving an annual subsidy following their sister school’s departure from the PAC 12 due to lost revenue.

The PAC 12 is still in the process of negotiating a media rights deal due to UCLA’s unknown status as a conference member. While the university announced its potential move to the Midwest over the summer, the UC Board of Regents still held the power to reject the agreement, leaving the Bruins in limbo.

Since UCLA is a part of the UC school system, the Board has the power to deny any actions that would negatively impact other affiliates. And this move will have a huge financial impact on the University of California.

One reason for the PAC 12’s waiting to sign a TV deal was to see whether or not UCLA would be forced to stay put. Having the Los Angeles market would be a large consideration in a television partner’s willingness to pay out a higher price. In fact, it’s part of the reason why the Big Ten recently signed a deal with NBC, FOX, and CBS worth $1B annually.

On Wednesday, the UC Board of Regents finally approved UCLA’s move, but with a major twist. UCLA could potentially have to pay a hefty subsidy each year to their PAC 12 rivals. And after negotiation, that number could be as high as $10M annually.

An 11-5 vote helped paint a clearer picture for both the PAC 12 and UCLA. And while the Bruins are set to make a large chunk of change from the newly approved conference affiliation, there will be consequences.

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Jon Wilner reports that without the Los Angeles market, the new PAC 12 media deal will be “in the low-to-mid $30 million range” for each campus. It’s a significant drop in what could’ve been, as he pegs the estimated payout being around $40M yearly had the Bruins stayed put.

That near $10M difference is the reasoning behind potential subsidy, which would be used to “enhance student-athlete support” on the Berkeley campus.

UCLA has moved up in terms of conference affiliation. That move will come at a major price.