Texas and Oklahoma's Big 12 exit fee vastly lower than originally reported
Texas and Oklahoma’s exit from the Big 12 might have seemed long and drawn out but poker games are often that way. As far as poker goes, the stakes in these negotiations were quite high and multi-layered with so many players at the table. Along with the two rival schools, participants included the remaining schools in the Big 12, the SEC, ESPN and Fox, as well as the accompanying lawyers for each entity.
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As we relayed to Inside Texas readers throughout, Texas was content to remain patient and play the long game. Throughout the negotiations the UT administration’s stance conveyed they were perfectly comfortable serving out the contract not set to expire until 2025. You can decide for yourself whether they had the cards or were bluffing, but I know which direction I’d go.
When the exit agreement became official in early February it was said Texas and Oklahoma would owe the Big 12 in the neighborhood of $100 million dollars. However, that was never the case.
But, until today details regarding how the negotiations played out remained murky. Fortunately, the USA Today and Austin-American Statesman ran an edifying piece. While it remains a mystery the exact amount of money Texas and OU owe the Big 12, it’s now certain the number is nowhere in the neighborhood of $100 million.
If you don’t have time to read the full report, long-time Inside Texas subscriber seghorn summarized it succinctly.
Early reports were Texas would pay $100 million to leave the Big 12.
The Big 12 tossed this number out but its completely off base.
1. Texas is receiving full shares for 2022-2023 conference distributions.
2. Texas is receiving full shares for 2023-2024 conference distributions (but these will be slightly lower for all schools to pay a small bonus to Colorado and other new entrants)
3. Texas is receiving no 2024-2025 Big 12 distributions, when they won’t be in the conference.
4. Texas receives no TV money from SEC in 2024-2025
5. 3 and 4 is why the Big 12 said it’s a 100 million dollar cost to Texas (which is nonsensical)
6. Texas will receive an undisclosed “transition payment” from the SEC via ESPN for not receiving TV money in 2024-2025. This is likely the full share of their TV revenue
7. Texas will receive an undisclosed amount for the shuttering of the LHN and the cancellation of that contract.While it’s impossible to state what Texas will pay in total, they aren’t paying the Big 12 anything to leave. They are likely getting full shares at a minimum from the SEC after 6 and 7 above. They will almost certainly be immediately positive from this move in the first year they are in the SEC.
Really impressive work by the Texas admin yet again.
That’s a whole lot of hate for Texas to embrace. It’s no wonder Brett Yormark was so upset this offseason.
