Should Texas and Oklahoma agree to early exits from the Big 12, negotiated financial penalties associated with those departures would be used to aid the expansion of the conference. Those money will help fund a full eight legacy Big 12 programs whose media rights payouts are being diluted to help with the arrival of the league’s four new members.
Baylor, Iowa State, Kansas, Kansas State, Oklahoma State, TCU, Texas Tech and West Virginia agreed to share a portion of their media rights distribution from the Big 12’s existing deals with Fox and ESPN, in order for BEU’s as well as making the league’s recent expansion possible. Cincinnati, Houston and UCF are joining in the 2023-24 athletic season. The vote (believed to have been held last year) was 8-0 in favor of Texas and Oklahoma’s move, multiple sources tell CBS Sports.
The sources said that each of the eight legacy Big 12 schools agreed to give up a total of $16 million ($8 million annually in 2023–24 and 2024–25), about 19% of their $42.6 million annual distribution. Each of the four new Big 12 members is expected to receive $18 million to $19 million annually, roughly 40% of the original annual distribution.
BYU, Cincinnati, Houston and UCF will each receive a full share of media rights revenue when the Big 12 begins its new deals in the fall of 2025, a source added. That entire portion would be a base figure of $31.6 million annually. Big 12 officials believe the total figure will reach $50 million per school after NCAA tournament and College Football Playoff revenue is added.
If Texas and Oklahoma leave after the 2023–24 season, they will be on the hook for an early termination fee, with each surrendering at least the final year of their media rights distribution. CBS Sports first reported this Early exit fees could total up to $168 million,
However, industry sources said such fines are likely to be reduced to around 60% to 65% of the original total. That last figure will go a long way toward helping the remaining legacy Big 12 programs offset the $16 million in shortfalls they agreed upon.
“that money [for the four new schools] Former Big 12 commissioner Bob Bowlsby told CBS Sports, “It has to come from someplace, so the other members have to suffer as a result.” The conference gets a kick out of the exit fees from OU and Texas and builds on a grant of rights that will likely go to reimburse the schools. It will probably balance itself out pretty well.”
While there is growing talk that a deal for Texas and Oklahoma to head for early departure to the SEC is imminent, there is no evidence of formal talks.
The programs retained SEC media advisor Alan Gould in pursuit of a deal. The Longhorns and Sooners were originally committed to the Big 12 during the term of the current deal when new commissioner Brett Yormark took over in August; However, his stand changed after about a month, sources said.
Speculation has grown that Texas and Oklahoma have no desire to play with the four new Big 12 members, although they have already committed to remain in the league for the upcoming season. The conference is in the process of finalizing the program for all the 14 events.
The legacy Big 12 programs shared money from their current distribution, knowing Fox and ESPN would not pay the same price for the four new members. Those schools did not bring pro-rata (par) value in the current deal. League sources said the conference did not ask its partners to increase the rights fee.
In 2016, the Big 12 considered exercising a clause in an old contract that would have forced rights holders to pay the same price for any expansion. the big 12 finally decided not to expand that time.
For an early exit to happen, Fox would have to make up for the loss of Texas and Oklahoma from its current deal. (ESPN will retain Texas and Oklahoma rights as part of its SEC deal.) CBS Sports reported last month that compensation could come in the form of the Longhorns and Sooners playing nonconference games in Big 12 stadiums after joining the SEC. Is.
Such an agreement was called “using game as currency”.
“they have to play the game in [Big 12] Footprint could therefore be of value to Fox and ESPN,” an industry source told CBS Sports. “If ESPN and Fox are happy, [the Big 12] would be happy.”
In October, the Big 12 announced New deal with Fox and ESPN as early as 2025 which is worth more than the current deal which includes Texas and Oklahoma. The aforementioned overall figure of approximately $50 million would reflect a $7.5 million annual increase in rights fees per school.