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TV Cash Floods into (Some) College Programs, Threatens Competitive Balance

The blurry line between college and professional sports is set to grow even hazier this Friday as ESPN launches the Longhorn Network: a first-of-its-kind 24/7 cable network dedicated to the “amateur” sports world of the University of Texas.

The mega deal with Walt Disney ’s ( DIS ) ESPN will generate $300 million over 20 years for UT and comes on the heels of a slew of lucrative TV rights deals between cable networks and college sports divisions.

While the contracts represent new sources of revenue at a time when many state budgets are cutting funding, they also raise questions about the widening gap between rich and poor schools and appear to bolster the case that athletes should be compensated for their role at the center of what is really a multibillion-dollar business.

“These are multimillion dollar revenue streams that other schools can’t even fathom,” said Scott Minto, a sports business professor at San Diego State University. “The revenue disparity is so severe that it will trickle down to every aspect of the college sports experience.” 

UT Lands Its Own Network

With an incredibly successful athletics department, a location in the middle of four of the top 50 U.S. media markets and a devoted base of alumni, UT is the ideal spot for the first 24/7 sports network focused on a single university

Unveiled in January, the Longhorn Network, which will be owned and operated by ESPN, will showcase UT’s athletic prowess by broadcasting more than 200 exclusive games, countless interviews and daily analysis.

“We’re excited about it. We’ve thought, talked and dreamed about this for five years,” said DeLoss Dodds, who has been UT’s athletic director for 30 years.

While the focus of the network will surely be on lucrative sports like football and basketball, the school said it is dedicated to giving air time to non-revenue generating sports like volleyball and track and field. Even academics will receive 12% of the programming, Dodds said.

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