Wondering about if/how the Big XII could disband

[NittPicker]

In reading other message boards, some are saying "WVU can just go to the ACC", "Kansas can just go to the B1G", etc. If OU and UT bail, the Big XII would still exist. If other schools leave, wouldn't they be required to cough up the same amount of money as OU and UT? Maybe they'd hang around to get their share of the buyout money and then leave. If the conference was smart, they'd disburse the money to current remaining members over the course of five years. That way they'd need to stick it out to get their full share. I doesn't seem as easy as a given school simply saying they're leaving too. A huge financial penalty would be levied on them as well.

OTOH, if enough current Big XII members feel like the ship is sinking, they could vote to amicably disband. I doubt that would happen since too many of them would be left out in the cold. I'm sure OU and UT would love to see it since any financial penalty on them would disappear.

 

[WestSideLion]

In reading other message boards, some are saying "WVU can just go to the ACC", "Kansas can just go to the B1G", etc. If OU and UT bail, the Big XII would still exist. If other schools leave, wouldn't they be required to cough up the same amount of money as OU and UT? Maybe they'd hang around to get their share of the buyout money and then leave. If the conference was smart, they'd disburse the money to current remaining members over the course of five years. That way they'd need to stick it out to get their full share. I doesn't seem as easy as a given school simply saying they're leaving too. A huge financial penalty would be levied on them as well.

OTOH, if enough current Big XII members feel like the ship is sinking, they could vote to amicably disband. I doubt that would happen since too many of them would be left out in the cold. I'm sure OU and UT would love to see it since any financial penalty on them would disappear.

You skip one point: without UT and OU, would the remaining payouts be anywhere near what they are now?

Let’s say both owe the full $76 million exit fee. That’s $150 million split 10 ways or $15 million each over two seasons. Not bad.

I doubt the schools cough up that money but fail to regain their tiered media rights through 2025 (save the seasons forfeited).

That would significantly impair the annual payouts beyond years 1 and 2. Let’s use $7.5 million a year as a floor. I think it would be higher without THE marquee football draws. They add a lot in basketball too.

Would the annual payouts fall to $25 million a year for remaining schools? Lower? Other schools would surely scramble to more lucrative conferences further impairing payout value.

It’s the present value of future cash flows that would cause things to fall apart quickly, I think.

 

[91Joe95]

In reading other message boards, some are saying "WVU can just go to the ACC", "Kansas can just go to the B1G", etc. If OU and UT bail, the Big XII would still exist. If other schools leave, wouldn't they be required to cough up the same amount of money as OU and UT? Maybe they'd hang around to get their share of the buyout money and then leave. If the conference was smart, they'd disburse the money to current remaining members over the course of five years. That way they'd need to stick it out to get their full share. I doesn't seem as easy as a given school simply saying they're leaving too. A huge financial penalty would be levied on them as well.

OTOH, if enough current Big XII members feel like the ship is sinking, they could vote to amicably disband. I doubt that would happen since too many of them would be left out in the cold. I'm sure OU and UT would love to see it since any financial penalty on them would disappear.

I think it's much more likely the Big 12 becomes like the Big East, demoted to a lower tier status.

 

[tullfan68]

In reading other message boards, some are saying "WVU can just go to the ACC", "Kansas can just go to the B1G", etc. If OU and UT bail, the Big XII would still exist. If other schools leave, wouldn't they be required to cough up the same amount of money as OU and UT? Maybe they'd hang around to get their share of the buyout money and then leave. If the conference was smart, they'd disburse the money to current remaining members over the course of five years. That way they'd need to stick it out to get their full share. I doesn't seem as easy as a given school simply saying they're leaving too. A huge financial penalty would be levied on them as well.

OTOH, if enough current Big XII members feel like the ship is sinking, they could vote to amicably disband. I doubt that would happen since too many of them would be left out in the cold. I'm sure OU and UT would love to see it since any financial penalty on them would disappear.

no worries all these big schools have money!!plenty of it!!

 

[fastlax16]

I think it's much more likely the Big 12 becomes like the Big East, demoted to a lower tier status.

was the big east ever actually demoted though? It retained its automatic bcs bid until it no longer existed as a football conference.