But these networks charge a certain amount to each cable provider, wasn't there a dispute between AT&T and Fox that prevented the Big East conference tourney from being shown locally?

May be a different setup, but each network does do their own deals with providers, so Fox may be able to command more if Chicagoans are interested in the Big East product. Doesn't mean more for the Big East, but it could mean more to Fox in fees charged and advertisements.