Yes, but not in how it matters.
Adding schools does create incremental media revenue. But for Pac12 schools to add a school, the new school would need to add at least $32M (in 2019/20 dollars) of incremental TV $.
The $32M was each Pac12 school's share of overall Pac12 media rights monies.
You are only looking at half, or probably much less than half of the picture.
While I agree in a vacuum adding ISU and say Okie St. would be hard-pressed to increase the media revenue of the PAC by more than $32M each. However, when you look at the massive infrastructure and carriage fees at stake for ESPN, and to a much lesser extent Fox, it becomes pretty clear that it may be far more about loss avoidance than boosting revenue.
In other words, if ISU and Okie St. get relegated to a lesser league, these are high viewership teams that even a marginal decrease in ESPN subscriptions would be a huge loss to ESPN. It very well could be that the losses ESPN avoid are far greater than the gap in per team revenue added.
In other words, the value of keeping some (maybe even all) of these teams in major conferences is quite possibly far greater than the simple added per team revenue. Assuming ESPN, ESPN2, FS1, FS2, ESPN+ etc. subscriptions stay static if teams that draw good TV numbers like ISU, Okie St. are demoted to G5 status is a really bad assumption, and I highly doubt these networks think that. So that has to be considered in the math.
For example, if these moves relegate enough teams to lose interest, and even just 500,000 viewers nationwide no longer subscribe to packages that include the ESPN family of networks, that's a loss of roughly $55 million per year in carriage fees alone. This says nothing of the reduced viewership and subsequent reduction in ad value. That is hard to quantify for a clown on the internet, but I will say that it is significant for teams like ISU and Okie St., considering their game outdrew Notre Dame-Pitt on ABC head to head by 300k viewers.
So what seems most likely to happen is it's going to look like ESPN is "overpaying" conferences for the addition of some of the Big 12 leftovers, but only because people are looking at this simply, and equating value ONLY as additional revenue to the conference. When ESPNs value of maintaining interest in some of these teams includes not only the increased revenue from that inventory, but the avoided loss in carriage fees and ad value be reducing interest in these teams. Plus throw in the incentive to facilitate the OU and UT to SEC move, and there become three components of value to these teams.
