Early exits for Texas, Oklahoma could help Big 12 repay members that agreed to diluted revenue upon expansion

Should an early exit by Texas and Oklahoma from the Big 12 be agreed upon, the negotiated monetary penalties related to these departures could be utilized to help the convention’s expansion. Those monies would help make entire the eight legacy Big 12 packages whose media rights payouts are being diluted to help fund the arrival of the league’s 4 latest members.

Baylor, Iowa State, Kansas, Kansas State, Oklahoma State, TCU and Texas Tech agreed to share a portion of their media rights distributions from the Big 12’s present offers with Fox and ESPN to make doable the league’s current expansion with BYU, Cincinnati, Houston and UCF becoming a member of the fold within the 2023-24 athletic season. The vote (believed to be held final 12 months) was 8-0 in favor of the transfer with Texas and Oklahoma abstaining, a number of sources inform CBS Sports.

Each of the eight legacy Big 12 colleges agreed to forego $16 million whole ($8 million yearly in 2023-24 and 2024-25), roughly 19% of their $42.6 million annual distributions, sources stated. Each of the 4 new Big 12 members are set to obtain $18 million to $19 million yearly, roughly 40% of the unique annual distribution.

BYU, Cincinnati, Houston and UCF will every obtain a full share of media rights revenue when the Big 12 begins its new offers within the fall of 2025, a supply added. That full share can be a base determine of $31.6 million yearly. Big 12 officers consider the all-in determine will method $50 million per faculty as soon as NCAA Tournament and College Football Playoff revenue is added.

If Texas and Oklahoma depart after the 2023-24 season, they might be on the hook for early termination charges with every surrendering a minimum of their ultimate 12 months of media rights distribution. CBS Sports beforehand reported these (*12*)early exit charges could whole as a lot as $168 million.

However, such a penalty would probably be negotiated down to about 60% to 65% of the unique whole, business sources stated. That ultimate determine would go a good distance to serving to the remaining legacy Big 12 packages recoup the $16 million dilutions they agreed upon.

“That cash [for the four new schools] has to come from some place so the opposite members have to take a dilution on account of it,” former Big 12 commissioner Bob Bowlsby instructed CBS Sports. “That’s the one place to go get the cash, however ultimately, regardless of the convention will get out of OU and Texas in exit charges and makes on the grant of rights will probably go to reimburse the colleges. It will probably steadiness itself out fairly properly.”

While there was rising buzz that a deal for Texas and Oklahoma to depart for the SEC early is close to, there isn’t a proof of formal negotiations.

The packages retained SEC media advisor Alan Gold of their pursuit of a deal. The Longhorns and Sooners initially dedicated to the Big 12 via the time period of the present deal when new commissioner Brett Yormark took over in August; nonetheless, their stances modified a couple of month later, sources stated.

Speculation has raged that Texas and Oklahoma haven’t any need to play the 4 new Big 12 members, though they’ve already dedicated to stay within the league for the upcoming season. The convention is within the strategy of finalizing a schedule for all 14 packages.

The legacy Big 12 packages shared cash from their present distributions figuring out Fox and ESPN probably would not pay equal worth for the 4 new members. Those colleges didn’t convey professional rata (equal) worth to the prevailing deal. League sources stated the convention didn’t ask its companions for elevated rights charges.

In 2016, the Big 12 thought of exercising a clause in an previous contract that would have compelled rights holders to pay equal worth for any expansion. The Big 12 in the end (*12*)determined not to increase at that time.

For there to be any new settlement on an early exit, Fox would have to be compensated for the lack of Texas and Oklahoma from its present deal. (ESPN would retain Texas and Oklahoma rights as a part of its SEC deal.) CBS Sports reported final month that compensation could come within the type of the Longhorns and Sooners taking part in nonconference video games in Big 12 stadiums after they be a part of the SEC.

Such an settlement was known as utilizing “video games as forex.”

“They would have to play video games within the [Big 12] footprint so Fox and ESPN can have worth,” an business supply instructed CBS Sports. “If ESPN and Fox are completely happy, [the Big 12] could be completely happy.”

In October, the Big 12 introduced a (*12*)new cope with Fox and ESPN starting in 2025 that is value greater than the present deal that contains Texas and Oklahoma. The aforementioned all-in determine of roughly $50 million would mirror a $7.5 million annual enhance in rights charges per faculty..

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