The Big 10, with their own network, already makes more money per school than the SEC and its gigantic ESPN/CBS deal (I think its $22M to $17M per school?).
As the article says, there is only so much money that the SEC can command through a network partner, as no one is going to broadcast their games at a loss.
So, Texas sees that they will (allegedly) make about $1M more per season in the Big 16 (Pac10 + 6 from Big 12) than they will make under the SEC's current deal. Almost certainly, adding even a single school would give rise to the SEC seeking to renegotiate its deal. Problem is seemingly solved, and Texas would make more money in the SEC again. However, the SEC's contract, while higher, would remain "capped" as it wouldn't be through their own network. Simply, Texas' long-term earning potential seems to be higher in the rumored in the "uncapped" confines of the Big 16's network deal.
If I am Texas, and I hear the A&M AD implicitly confirm the rampant rumors that they have spoken to the SEC, and OK seems enamored with the SEC, and Mizzou won't even confirm their attendance beyond 2011......my hope of holding the Big 12 together appears to be evaporating, and rapidly so. If I can't have that wish, guess what is next on my list? To convince the other 5 members of the Big 12 to go with me wherever I go (it makes the deal much more lucrative, and keeps many of the same Big 12 rivalries intact), namely, the Big 16....and not the SEC. We can make more money via the the Big 16 Network than we can in the SEC, the competition isn't as tough, the recruiting will be far more widely dispersed, the academics are more on par with our standards, and even if A&M bolts to the SEC, the TX Legislature doesn't appear prepared to force us to go together. Guess which of the two conferences can most easily and readily absorb 6 additional teams - the Pac-10 or the SEC? Here's a hint: It ain't the SEC.
Likely, I am not the first person to consider all of this.
When the last SEC tv deal was inked, the Big 10 Network was suffering as the laughing stock of the country, and worse, was losing money. That's no longer the case. Likely, Slive has noticed this trend.
Perhaps there is a false assumption that Slive wants to (quickly) add another SEC school as a means to renegotiate the current CBS/ESPN deal, when in fact, he wants to do so as a means to make some exorbitant demand (i.e. we always make more money than any other school with its own network) which he knows they cannot and will not agree to.....in order to rescind the contract itself, and do what he should have done to begin with, and that's to form an SEC Network.
You can talk all you want about proximity, similiar cultures, etc. - but if Slive can't offer an SEC Network to Texas, that's going to be a quick conversation with an abrupt ending, and we stand a greater chance of being on the outside looking in, watching the Pac-10 scoop us, than not.
Either way, Texas has to be somewhat nervous in all of this, and the Pac-10 seems intent on forcing both their hands, and Slive's.