Long story here ... revenues are low (Directv not picking them up continues to be a frustration) costs are high (they produce 850 live events a year). They could produce less events, but they promised the media partners that have already picked them up 850 live events worth of content, so if you cut production, you likely trigger contract clauses that cut revenue as well.


http://www.sportsbusinessdaily.com/Journal/Issues/2015/11/30/In-Depth/Pac12.aspx

Within the last few weeks, conference athletic directors created three committees that will examine cost-cutting measures, game start times and how the Pac-12’s media revenue stacks up against other college conferences.

Also, the Pac-12 hired investment banking firm Lazard this year to determine a valuation for the networks and study alternative business models, sources said, including the potential for taking on equity investors.

...


“In this world with the rapidly changing media landscape, and over-the-top options, technology companies getting involved, owning your own content will give us great advantages going forward,” Scott said last month on a visit to Colorado’s campus. “I think we’ll be sitting here five years from now with us having many more options than the traditional cable, satellite or telco companies. … It will open up more options for our fans to be able to access the Pac-12 Networks on whatever device they want.



Scott may like owning the content, but it seems one option for revenue is selling an equity stake in the network (perhaps to AT&T to get it on Directv). Also, perhaps they will reevaluate the 7 network model and opt for a single channel, but that would require a lot of new contracts, I think.