IMO. The selection of CU was about expanding household reach to the largest market in the west that was untapped by the Pac 10. The selection of Utah, instead of BYU, had more to do with being the better fit amongst two comparable programs.
"In terms of economics, BYU if far superior to either of the other two."
If that were true, BYU would have received the invite. BYU has better economics. The geographical spread of the fan base makes it difficult to quantify the economic value for networks selling to advertisers. It's not nearly as relevant as fans make it to be.
Overall, given the size and scope of the Pac-10 vision, their hopes for a 9-digit, 20+ year tv contract, BYU's added economic benefit is pretty small. IMO.