ESPN is still the largest chunk of Disney profits, despite all the news articles about cord cutting. Star Wars brought in a billion dollars this year. ESPN brings in 10 times that amount.
CBS paid a huge amount for the tournament this year, yet had a return on investment of over 50%. In response, they signed an 8 year extension through 2032. Live sports is the golden child of content.
Cord cutting will change revenue streams, but ESPN knows that top-tier content is what makes them the Worldwide Leader. Sure, they cut Colin Cowherd, Bill Simmons, and a bunch of expensive talking heads. But they've never shied on the price for content. I would be shocked if they don't end up with a piece of the second half of B1G content. Sure, they made a low-ball offer in the first round, of course they did. They didn't want to set the market, after being bitten by the NFL, but they will pay the price for the B1G second half.
WatchESPN/ESPN3 is the future. Which is still driven by content.