According to Orangebloods.com, the University of Texas has reached an agreement with ESPN to distribute the Longhorn Network on cable systems beginning in the fall of 2011, earning the school an extra $12 million a year in television revenue.
As part of the deal, ESPN will pay Texas $10 million up front, making UT as the top TV revenue-producing school in the country.
The deal is for 10 years and would guarantee Texas $12 million annually in addition to the revenue the school would receive as part of the Big 12′s current television deal with ABC/ESPN and Fox. As part of the current Big 12 television deal, Texas will earn roughly $17 million in 2011-12 and $20 million beginning in 2012-13.
It’s all starting to make sense why Texas didn’t want to join the Pac-10, as the conference has insisted that no schools start their own television network.
Before there’s a formal announcement, a vote is required of the Texas Board of Regents, which will reportedly happen either later this month or in December.