Quote:The Big 12’s current Grant of Rights expires July 1, 2025. Oklahoma and Texas have indicated they are committed to remaining in the Big 12 until then before moving to the SEC for the 2025 season. However, that timetable has since been accelerated and could even get completed by next month, sources said. ...

the “climate is right” for the Sooners and Longhorns to exit the Big 12 after the 2023 season and begin play in the SEC in 2024.

https://www.actionnetwork.com/ncaaf/okla...early-2024

BUT CRACKS

Not a crack at all... negotiating a buyout.

Quote:“There have been ongoing discussions to find a way for Texas and OU to leave early without costing (the Big 12) any money,” an industry source said. “However, everyone has to be made whole.”

How everyone is “made whole” is the biggest sticking point for all parties.

Big 12 bylaws require Oklahoma and Texas to pay an exit fee the sum of the league’s distribution for two years — which is about $84 million per school, sources said. Historically, when a school leaves a conference, that exit fee is negotiated down to about 60%, meaning OU and Texas could possibly get out for about $50 million each.

OU, Texas and the Big 12 have been involved in discussions for months but still have not reached a final agreement on the schools’ buyout amount, sources said.

(12-12-2022 12:13 PM)Hokie Mark Wrote:  Not a crack at all... negotiating a buyout.

Quote:“There have been ongoing discussions to find a way for Texas and OU to leave early without costing (the Big 12) any money,” an industry source said. “However, everyone has to be made whole.”

How everyone is “made whole” is the biggest sticking point for all parties.

Big 12 bylaws require Oklahoma and Texas to pay an exit fee the sum of the league’s distribution for two years — which is about $84 million per school, sources said. Historically, when a school leaves a conference, that exit fee is negotiated down to about 60%, meaning OU and Texas could possibly get out for about $50 million each.

OU, Texas and the Big 12 have been involved in discussions for months but still have not reached a final agreement on the schools’ buyout amount, sources said.

Exactly.

A buy out for 1 year only.

If the playoff can expand early, then a buyout for one year can certainly happen.

If Texas and OU wait it out until 2025, the remaining members get no payout relating to the GOR. I assume that they would get the customary exit fee. I also assume Fox and ESPN would be entitled to reduce their television rights payments by some amount that could cost existing conference members some amount. However, it seems likely that given the size of the buyout, there is solution space for Texas and OU to make some payment that is less than the full $84 million that would be a net gain to the remaining members of the B12. If so, a deal will get done.

ESPN would be obligated to pay Texas and Oklahoma "SEC" rate instead of the "big 12 rate" if they moved early. It doesn't seem that the mouse can make up that much income in one year just by having Texas and Oklahoma in the SEC.
Everybody wants what they want, but nobody seems willing to pay (or give up income) to make it happen.

(12-12-2022 01:27 PM)orangefan Wrote:  If Texas and OU wait it out until 2025, the remaining members get no payout relating to the GOR. I assume that they would get the customary exit fee. I also assume Fox and ESPN would be entitled to reduce their television rights payments by some amount that could cost existing conference members some amount. However, it seems likely that given the size of the buyout, there is solution space for Texas and OU to make some payment that is less than the full $84 million that would be a net gain to the remaining members of the B12. If so, a deal will get done.

^^^ THIS ^^^
It's all math from here.