Report: Financial Cushions to Help Oklahoma, Texas in Big 12 Exit

With Oklahoma and Texas set to depart the Big 12 for the SEC, it now appears as if the price they are paying to jump ship is not nearly as much as many thought it would be.

Back in February, the Big 12 announced it had reached an agreement with Texas and Oklahoma that the two major brands will forgo $100 million as a way to leave the conference a year early. But now based on a report by Steve Berkowitz of USA TODAY Network, the Sooners and Longhorns won’t be completely out of the loop.

As Texas and Oklahoma get ready to leave Big 12 for SEC, they face a much lesser financial impact from the move than the $160 million originally expected — and ESPN is helping to further cushion the blow. Inside the many machinations with @kbohls: https://t.co/1jRpXQixSp

— Steve Berkowitz (@ByBerkowitz) September 22, 2023

According to USA Today, the Bug 12 told them more than $80 million of that $100 million t is based on money the schools will not get the year after their move in 2024-25. The rest, however, is from the cuts in full revenue shares for 2023-24 calendar year. That’s important because Oklahoma and Texas are included in the group of Big 12 members who will be taking extra payments promised to help finance the addition of the new four schools that joined the conference for this season.

Another boost to the two college football historic titans is that a major network will be helping them as well. While Oklahoma and Texas will not be sharing in the SEC’s primary revenue pool for the 2024-25 year, ESPN will get what’s described as “transition” payments funded by ESPN.

It now seems as if Oklahoma and Texas receiving money as part of the Big 12’s expansion was a compromise to avoid a long legal battle. Big 12 commissioner Brett Yormark explained his thought process to USA Today.

“This was a business decision,” said Yormark. “Historically the withdrawal from a conference has resulted in a negotiated settlement, and we believe we landed in a good place. Our future is as bright as it’s ever been.”

Separately, Colorado earned a $2.5 million payment that serves as a signing bonus to return to the conference the Buffaloes once left over a decade ago next year. Arizona, Arizona State and Utah also agreed to leave the Pac-12 and join the Big 12, thus sending the Pac-12 on a path of dissolution.

In a related story, Yormark said the Big 12 is finished trying to expand for now.