In the last contract, yes Colorado was making everyone money. The media deals circa 2011 were all based on market size and the greater Denver area is the #17 market in the nation.
Since then, ESPN and FOX have figured out that market size isn’t a good indicator. If two schools get 100,000 eyeballs in their respective local market, the media companies would rather have the one the represents 50% of the available population than the one the draws 2%. The Bay Area may have a lot of viewers but neither Cal nor Stanford get a significant percentage of those viewers to watch. So why should they get a higher ROI?
The reason the Pac doesn’t have a deal right now is that 8 of the 10 schools are either in too small of a market to matter (WSU, OSU, Oregon, Arizona) or do not draw enough viewership out of their local market (ASU, CAL, Stanford, Colorado). Adding SDSU or SMU would just be more of the same. Big local areas whose viewers either watch other schools or don’t watch at all.