Texas and Oklahoma will join the SEC next summer, and they'll do so for no cash out of pocket, according to a report Friday from USA Today.
The conference has a grant of rights in place that purportedly cost $80 million apiece in order to break in time for the 2024-25 athletic year, a year before the GoR's expiration. The conference itself announced in February the schools would forfeit $100 million in "foregone distribution revenues."
In reality, per USA Today, the Red River Rivals will not have money deducted from their 2023-24 shares as full members of the conference, and the Big 12 will deduct a full share in 2024-25, when Texas and Oklahoma will no longer be part of the conference.
The conference contends it's still getting that $100 million, due to A) money OU and Texas are forfeiting that would have been due to them in 2024-25, and B) haircuts all 10 Big 12 schools took in order to bring BYU, Cincinnati, Houston and UCF aboard.
Texas and Oklahoma will say they're leaving for free because, again, they didn't plan to be in the Big 12 in 2024-25 anyway.
Reading between the lines, it seems as if both parties agreed to shake hands and go in their separate directions, especially once the Big 12 secured its new TV contract upon adding its four new members and doubly so once Arizona, Arizona State, Colorado and Utah agreed to come aboard.
“This was a business decision,” Big 12 commissioner Brett Yormark said. “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.”
Oklahoma and Texas will not receive media shares from the SEC in 2024-25, but instead ESPN will cut both schools an undisclosed check directly.
The SEC moves its Game of the Week package from SEC to ABC beginning with the 2024 football seaosn.
“After Texas and Oklahoma made the decision to change conferences, those schools, along with the Big 12 and SEC, chose to accelerate the process and transition a year earlier," ESPN said in statement. "At that time, the media partners were brought in to reach a resolution that would satisfy all parties for the 2024-25 season.”
OU and Texas will also receive checks after selling third-tier rights (low-priority football and basketball games, plus Olympic sports) to ESPN. Texas's rights in this case were substantial; the school was set to collect nearly $125 million by the 2030-31 expiration of the Longhorn Network contract. LHN will be shut down upon UT's joining of the SEC. Texas also previously agreed to move a 2027 road trip to Michigan to 2024 to compensate Fox for losing all Longhorns rights for the 2024 season.
Oklahoma had one year and $2 million remaining on a 3-year contract with ESPN for its third-tier rights, per USA Today.
In the meantime, Texas and Oklahoma are the Big 12's only ranked teams as conference play begins this weekend.
📊 @AP_Top25 pic.twitter.com/p09dcgmp1M
— Big 12 Conference (@Big12Conference) September 17, 2023