Big 12 conference discussing two seven-team divisions beginning in 2023

[MajorRules00]

Not sure where you’re getting the $0 buyout in 2025. The GOR expires in 2025, which is necessary for a team to exit the conference with their Tier 1&2 media rights available for their new conference, but it doesn’t nullify the conference buyout.

If Texas and OU stay in the B12 until 2025, there is no buyout. Because there's nothing left to buy out of. The contract is fulfilled.

 

[Gladius&Pilum]

If Texas and OU stay in the B12 until 2025, there is no buyout. Because there's nothing left to buy out of. The contract is fulfilled.

The GOR is only part of the equation.

According to the bylaws, UT has agreed to remain in the Big12 until June 30, 2111. To exit this agreement a school must forfeit the final 2 years of distributions.

1.2.3 Agreement to Membership. Each Member agrees with the Conference and with each
of the other Members to remain a member of the Conference for ninety-nine (99) years
beginning July 1, 2012.

 

[MajorRules00]

The GOR is only part of the equation.

According to the bylaws, UT has agreed to remain in the Big12 until June 30, 2111. To exit this agreement a school must forfeit the final 2 years of distributions.

1.2.3 Agreement to Membership. Each Member agrees with the Conference and with each
of the other Members to remain a member of the Conference for ninety-nine (99) years
beginning July 1, 2012.

Which makes me think an early term of the GOR is more likely. The settlement for the contract above would be similar to what Nebraska, Colorado, Missouri, and A&M negotiated when they left the B12.

 

[Gladius&Pilum]

Which makes me think an early term of the GOR is more likely. The settlement for the contract above would be similar to what Nebraska, Colorado, Missouri, and A&M negotiated when they left the B12.

Possible, but the previous 4 exits occurred prior to the 2012 change in bylaws. The reason the Big12 was willing to negotiate lower buyouts was two-fold.

1. The financial impact on the conference was considerably lower as evidenced by the media partners' willingness to renegotiate a more lucrative contract for the conference.

2. The language in the bylaws was somewhat unclear vis a vis membership and withdrawal. For example, the bylaws called for a reaffirmation of membership every 5 years. This reaffirmation never occurred, giving lawyers the opportunity to call into question the Big12's standing should the dispute end up in litigation.

Neither of those factors are in play now. The Big12 has much more incentive to play hardball and the prior ambiguities in the bylaws no longer exist.

If UT/OU are able to negotiate a reduction in the exit fee, I expect the fee to still be much greater than the approximately $9 million fees paid by CU, NU, and A&M (Mizzou's fee was a bit higher). Given that Big12 distributions are about 3X greater than in 2011, expect the lowest potential settlement to match that factor.

 

[MajorRules00]

Possible, but the previous 4 exits occurred prior to the 2012 change in bylaws. The reason the Big12 was willing to negotiate lower buyouts was two-fold.

1. The financial impact on the conference was considerably lower as evidenced by the media partners' willingness to renegotiate a more lucrative contract for the conference.

2. The language in the bylaws was somewhat unclear vis a vis membership and withdrawal. For example, the bylaws called for a reaffirmation of membership every 5 years. This reaffirmation never occurred, giving lawyers the opportunity to call into question the Big12's standing should the dispute end up in litigation.

Neither of those factors are in play now. The Big12 has much more incentive to play hardball and the prior ambiguities in the bylaws no longer exist.

If UT/OU are able to negotiate a reduction in the exit fee, I expect the fee to still be much greater than the approximately $9 million fees paid by CU, NU, and A&M (Mizzou's fee was a bit higher). Given that Big12 distributions are about 3X greater than in 2011, expect the lowest potential settlement to match that factor.

I appreciate you posting the league bylaws to the site. It provided a more fully dimensional aspect to the conversation.

The "final two years" clause has been rattling around my head. All of the Big 12 TV contracts expire in summer of 2025. Which means the final two regular seasons of the current deals will be '23 and '24.

The 2023 regular season would be an ideal time to make the jump.

 

[Sangre Naranjada]

C'mon scorched earth!

 

[Gladius&Pilum]

C'mon scorched earth!

That would certainly be entertaining!

 

[Gladius&Pilum]

I appreciate you posting the league bylaws to the site. It provided a more fully dimensional aspect to the conversation.

The "final two years" clause has been rattling around my head. All of the Big 12 TV contracts expire in summer of 2025. Which means the final two regular seasons of the current deals will be '23 and '24.

The 2023 regular season would be an ideal time to make the jump.

Based on the language in the bylaws, it seems the "final two years" references the two-year period following declaration/determination of intent to withdraw.

Making "the jump" in 2023 would require declaration of intent to withdraw in 2021. It can be argued that the refusal to renew the GOR and petition for entrance into the SEC are sufficient notification of intent. However, that doesn't resolve the GOR issue.

If UT/OU leave w/out getting back the rights to their Tier 1&2 media revenues there would be no incentive for another conference to let them in as it would represent two years of the SEC media revenue being divided by 17 without a concurrent increase in money from the media partners.

 

[MajorRules00]

Based on the language in the bylaws, it seems the "final two years" references the two-year period following declaration/determination of intent to withdraw.

Making "the jump" in 2023 would require declaration of intent to withdraw in 2021. It can be argued that the refusal to renew the GOR and petition for entrance into the SEC are sufficient notification of intent. However, that doesn't resolve the GOR issue.

If UT/OU leave w/out getting back the rights to their Tier 1&2 media revenues there would be no incentive for another conference to let them in as it would represent two years of the SEC media revenue being divided by 17 without a concurrent increase in money from the media partners.

Sure. But the likelihood of UT and OU leaving sans a settlement is near zero.