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Big XII owns Texas and OU's media rights till 2025. If Texas and OU join SEC in 2022 then

IrmoGamecock

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Jun 8, 2003
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all monies Texas and OU receive from the SEC would go to the Big XII. That's how it works in the Big Ten. I'd say it looks like Texas and OU would have to pony up around $150 million each. Now if the Big XII totally implodes that's different.
 
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all monies Texas and OU receive from the SEC would go to the Big XII. That's how it works in the Big Ten. I'd say it looks like Texas and OU would have to pony up around $150 million each. Now if the Big XII totally implodes that's different.
I don't think this is accurate. From everything I have read, current agreements outline a penalty if they don't fulfill the current media agreement. They cleverly said in their joint statement today they intend to honor the existing agreement. Just as happened when Maryland bolted the ACC, now the legal negotiations start where history says the exit fee will be negotiated down.
 
I don't think this is accurate. From everything I have read, current agreements outline a penalty if they don't fulfill the current media agreement. They cleverly said in their joint statement today they intend to honor the existing agreement. Just as happened when Maryland bolted the ACC, now the legal negotiations start where history says the exit fee will be negotiated down.
When Mizzou and A&M left the Big XII, it was supposed to cost us ~$30M according to the contract, but the net buyout was more like $12.5M. The grant of rights that they did happened after the last realignment. We only had a one year buyout. I'm pretty sure we financed it against future SEC revenue so we wouldn't have to take the hit all at once.

At the time, Mizzou's entire athletic budget was <$60M. UT is probably looking at a $40M buyout against a current budget of $220M. That's not all that different. In fact, as a percentage it's a little less.
 
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One other thing when it comes to media rights: What happens if you don't televise any games or sell them to a streaming service for a small amount of money that you then transfer to the Big XII? Having 50% of something is a lot better than 100% of nothing.
 
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all monies Texas and OU receive from the SEC would go to the Big XII. That's how it works in the Big Ten. I'd say it looks like Texas and OU would have to pony up around $150 million each. Now if the Big XII totally implodes that's different.
I think there's a decent chance of that if they can't figure out what they are going to do with a TV contract with the rest of the members.
 
Technically that's Texas Tech, but definitely a Big XII classic. It's funnier with a soundtrack. There was an even better one where they put him in slow motion for the hair flip, but this is close enough. If you are gonna do something, do it with enthusiasm.
 
I think there's a decent chance of that if they can't figure out what they are going to do with a TV contract with the rest of the members.
I'm not sure. They are in a precarious situation. For the B1G to pick up a team, they have to contribute something like $65M in media value. ku actually might because they have traditionally made a lot of money with their 3rd tier rights (which aren't part of the Big XII grant). On the other hand, we know without a doubt that the typical Big XII team will not since B1G distributes $20M/school more than the Big XII and the two top holdings in their portfolio are UT and OU.

It is very possible that Big XII remains as a conference, but without any star power. With greatly diminished TV revenue, the remaining schools are going to lose in the financial arms race and become lesser versions of themselves. Before long, they will be following the G5 model of whoring themselves out for payday games.

I actually hope the Big XII teams find a home. Aside from ku, I like their fan bases. Most of the old Big 8 programs improved significantly in the Big XII era. They all hated us when we moved to the SEC, but it's because deep down, they knew UT would leave them high and dry if they had a good opportunity.
 
all monies Texas and OU receive from the SEC would go to the Big XII. That's how it works in the Big Ten. I'd say it looks like Texas and OU would have to pony up around $150 million each. Now if the Big XII totally implodes that's different.

What I really think Texas and Oklahoma are doing is trying to signal to the rest of the conference that they aren’t going to be around. By doing so they are encouraging the remaining members to disband, which would possibly get Texas and Oklahoma off the hook for the Big 12 money if the Big 12 no longer exists.

Technically they would not have to pay the money IF Kansas, K-State, Iowa State and Oklahoma State join the Big 10, West Virginia goes to the ACC and Baylor and Texas Tech dip for the PAC 12. Then Oklahoma and Texas can bolt and say “we would have honored our commitment but everyone else left first.” If they have to pony up they will, but they’re trying to make the others do it first.
 
See Maryland

They did this. Had to pay a huge fine and then made up for it in future earnings. This will happen with Texas and OU.
 
See Maryland

They did this. Had to pay a huge fine and then made up for it in future earnings. This will happen with Texas and OU.
It's a game of chicken. UT and OU could say, "You know what? We would like to play out the rest of the current contract in the Big XII and then leave." That would leave them weakest while trying to negotiate a TV contract. It would also mean they lose the revenue associated with those teams and get no compensation, because the contract was fulfilled. They could try to kick them out, but then they get nothing.

They could also come to the SEC as junior members with only a fraction of the revenue share with full membership vesting in 3 years. That would certainly lead to the Big XII suing the SEC and UT/OU, but that doesn't give them the cash in hand that they want and depending on the existing contract, they might not win.

Ultimately, OU/UT would prefer to leave now and the Big XII schools would like to get paid. To get what they want, both sides are going to need to give up something.
 
See Maryland

They did this. Had to pay a huge fine and then made up for it in future earnings. This will happen with Texas and OU.
Except Disney may have agreed to pay some large portion of it to make it happen. They don't want that public because if the Big 12 explodes, it won't be due. Kansas is already in talks to bail to the Big Ten and supposed numerous teams are in discussions with the Pac-10. If enough want to leave there will be a dissolution vote.
 
Big XII has no motivation or reason to renegotiate the financial penalty for their early departures. Neither do UT or OU have grounds to pursue that.
 
That hasn't been determined.
Dollars to donuts, the intent is 2022, but there is no way you would ever disclose that and give leverage to the other Big XII teams. Leave the option open, call their bluff and then negotiate what both sides actually want. The SEC has no reason to be in a hurry on this.

Big XII has no motivation or reason to renegotiate the financial penalty for their early departures. Neither do UT or OU have grounds to pursue that.
Not true. What if UT and OU inform the Big XII that they will leave at the end of the contract? Now they get NOTHINIG and still lose their two top brands. Ultimately it's in their interest to settle for less than the full amount to avoid OU & UT playing the game. A&M and MU were supposed to pay $30M each and ended up paying $12.5M each. Nebraska and Colorado also paid much less than the contractual exit fee.
 
Dollars to donuts, the intent is 2022, but there is no way you would ever disclose that and give leverage to the other Big XII teams. Leave the option open, call their bluff and then negotiate what both sides actually want. The SEC has no reason to be in a hurry on this.


Not true. What if UT and OU inform the Big XII that they will leave at the end of the contract? Now they get NOTHINIG and still lose their two top brands. Ultimately it's in their interest to settle for less than the full amount to avoid OU & UT playing the game. A&M and MU were supposed to pay $30M each and ended up paying $12.5M each. Nebraska and Colorado also paid much less than the contractual exit fee.

Big XII knows UT and OU want nothing to do with staying until 2025. If they don’t realize that, they should. They are in the stronger position here. Maybe they’ll negotiate, but they shouldn’t. Make them stay to fulfill the contract or pay the full price, knowing they want out NOW.
 
Technically that's Texas Tech, but definitely a Big XII classic. It's funnier with a soundtrack. There was an even better one where they put him in slow motion for the hair flip, but this is close enough. If you are gonna do something, do it with enthusiasm.
Ohhh I knew it was Texas Tech. Just wanted to be the first for this gif to come out before football season started. :) It's already making it's rounds on my group texts.
 
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Big XII knows UT and OU want nothing to do with staying until 2025. If they don’t realize that, they should. They are in the stronger position here. Maybe they’ll negotiate, but they shouldn’t. Make them stay to fulfill the contract or pay the full price, knowing they want out NOW.
Just look at the two options that could happen with no negotiation:
  • If Big XII doesn't negotiate, and UT/OU stay, they would get $0 in buyout. And their conference is still screwed. They don't want this. It is more painful for them than OU/UT
  • If OU/UT go immediately without a negotiation, they lose $150M+ in revenue. That's a lot of money. They don't want this The only way OU/UT could be forced into this is if the SEC tells them, move now or we have other options. But what other options are out there that the SEC would not wait?
Between those 2 options, staying is clearly better for OU/UT. But both sides get more if they negotiate
  • Any amount the Big XII gets in buyout is better than $0.
  • UT/OU have an opportunity for higher revenue if they move right away and the SEC can have more revenue per team too with a better TV contract. Clearly everyone will want this to happen. But in a deal where OU and UT lose all of their revenue for 3 years, they are better off to walk away.

What is fair at a high level:
  • If OU and UT leaving cause the per team revenues in the Big XII to go down over the remainder of the contract, those are actual damages to the other teams. They would get this plus something.
  • OU/UT shouldn't have to work for free, so split the rest down the middle.
 
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Wait...are they joining in 2022 or 2025?
The Big XII Commissioner stated he intends to make it as difficult as possible for TX and OU to leave. Plus it'll be interesting to see what role ESPN had in getting TX and OU into the SEC and if the Big XII pursues legal action.
 
Ohhh I knew it was Texas Tech. Just wanted to be the first for this gif to come out before football season started. :) It's already making it's rounds on my group texts.
Ringing the bell? Is that what the kids are calling it these days?
 
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The Big XII Commissioner stated he intends to make it as difficult as possible for TX and OU to leave. Plus it'll be interesting to see what role ESPN had in getting TX and OU into the SEC and if the Big XII pursues legal action.
He is whining. He would fit right in as ACC Commissioner. How is he gonna lure decent teams to join the B12 with that attitude?
 
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