Five years after its launch, the Pac-12 Networks remains a "work in progress -- successful on some levels, but still dogged by nagging questions regarding profitability and reach," according to a front-page piece by Tom FitzGerald of the S.F. CHRONICLE. The network said it is a "profitable concern, televising more than 850 events annually and employing 176 full-time workers" at its S.F. HQ. But some universities that "joined to finance and build the network are questioning whether the operation is making enough money." Pac-12 Nets President Lydia Murphy-Stephans "acknowledges growing pains but defends her company’s current path." Meanwhile, some ADs, many of whom "were banking on much bigger payoffs to help balance their budgets, are becoming increasingly critical." Utah AD Chris Hill said he "hasn’t been satisfied with the network either in its payouts or distribution." Hill: "From the ADs' standpoint, we expected more." FitzGerald noted critics point to other conference nets -- specifically SEC Net and Big Ten Net -- as having "struck much more lucrative deals with broadcast partners such as ESPN." There is also "concern that the Pac-12 Networks have failed to reach a distribution agreement with DirecTV" and its 22 million subscribers. The perception "grows that the Pac-12 is falling behind in both viewership and profitability." Reports "peg the payouts to each member school" at $1.5M annually for the Pac-12 Nets, which compares to $7.5M for SEC schools from that conference's net. Sources said that BTN "pays out even more." Murphy-Stephans "insists comparisons with other conference networks are misleading." She said, "We’re seven networks. We’re managing athletic (web) sites for the schools. We’re producing content for each of the universities. We’re owned by the universities. We’re an extension of the conference and the universities" (S.F. CHRONICLE, 2/6).
