Well one more year in the Big 12.

[NickZepp]

OU/Tx will exit the Big 12 in 2024. So next year is the last year in this conference.

 

[TINY]

Great news!

 

[WTSooner]

I will do everything in my power to make it to an OU/Houston game next year.

 

[ByronHoustonsSweatyPalms]

Moser wants to leave for the SEC tomorrow.


Sent from my iPhone using Tapatalk Pro

 

[hoopsaustin]

By my math we are paying the big 12 approximately 59.5% of what we were possibly on the hook for (84 million-ish). Good deal for us. Big 12 if they had any balls would have gotten more

 

[SoonerDutch]

By my math we are paying the big 12 approximately 59.5% of what we were possibly on the hook for (84 million-ish). Good deal for us. Big 12 if they had any balls would have gotten more

I could be misunderstanding but from reading the press release, it sounds like we are forfeiting the 2024 revenue distribution from the Big 12 ($50mm), while being free to collect whatever is available with an updated SEC revenue distribution in 2024 (~$85mm).

So as opposed to paying the league our SEC distribution + forfeiting the Big 12 portion, we are just forfeiting the Big 12 portion ($50mm/~$135mm)

 

[TINY]

I could be misunderstanding but from reading the press release, it sounds like we are forfeiting the 2024 revenue distribution from the Big 12 ($50mm), while being free to collect whatever is available with an updated SEC revenue distribution in 2024 (~$85mm).

So as opposed to paying the league our SEC distribution + forfeiting the Big 12 portion, we are just forfeiting the Big 12 portion ($50mm/~$135mm)

I’m not certain of the amounts but I think the big12 makes $40 mil per team. So this year we would forfeit the $40mil and then next they will get another $10mil of our $85mil sec deal. We made out pretty darn well considering the original prognosticators expected us to have to forfeit $80mil plus whatever we make in the sec until the grant of rights expired.

 

[BoulderSooner]

By my math we are paying the big 12 approximately 59.5% of what we were possibly on the hook for (84 million-ish). Good deal for us. Big 12 if they had any balls would have gotten more

it would have gone to court and they would not have seen any money for a long time ..

that is why almost every conf move has ended up with a reduced buy out ..

 

[WTSooner]

Posted this in another thread, but here is the true "cost" of leaving a year early (hint, it's not $50M):

Let's assume we'd have gotten about $42M in 2024 from the Big 12.
Let's also assume we'll get about $85M from the SEC in 2024.

For 2024:
So if we stayed in the Big 12 we'd collect $42M and pay $0 (+$42M).
But we're now leaving early for the SEC so we're going to collect $85M and pay $50M (+$35M).

So by leaving early, we're only costing ourselves $7M if those numbers are close to correct. I've been trying to explain this concept for months, that the true cost of leaving early was never going to be the entire buyout.

 

[Dr Sleep]

Posted this in another thread, but here is the true "cost" of leaving a year early (hint, it's not $50M):

Let's assume we'd have gotten about $42M in 2024 from the Big 12.
Let's also assume we'll get about $85M from the SEC in 2024.

For 2024:
So if we stayed in the Big 12 we'd collect $42M and pay $0 (+$42M).
But we're now leaving early for the SEC so we're going to collect $85M and pay $50M (+$35M).

So by leaving early, we're only costing ourselves $7M if those numbers are close to correct. I've been trying to explain this concept for months, that the true cost of leaving early was never going to be the entire buyout.

Losing out on $7M doesn't sound like a good deal. I wonder if ESPN is going to help at all? That Longhorn network cash should help make up this relative deficit

 

[WTSooner]

Losing out on $7M doesn't sound like a good deal. I wonder if ESPN is going to help at all? That Longhorn network cash should help make up this relative deficit

$7M is nothing over the long run. And I'm sure they can make that up in other ways with renewed excitement for being in the SEC. Heck, they might make a portion of that up just from what I expect to be higher ticket prices with an SEC schedule in 2024. But contributions/donations. Maybe advertising income. Lots of ways that $7M can be offset, but it's really not a significant amount all things considered.

 

[sooner333]

I had read that OU will receive a smaller distribution from the SEC in year 1. I'm not sure if that's based on making ESPN whole for they're having to effectively pay for OU and Texas twice for 2024. It could also just be the math you guys have described and a way for the Big 12 to save face a little bit in the press. I guess we'll find out.

 

[BoulderSooner]

Posted this in another thread, but here is the true "cost" of leaving a year early (hint, it's not $50M):

Let's assume we'd have gotten about $42M in 2024 from the Big 12.
Let's also assume we'll get about $85M from the SEC in 2024.

For 2024:
So if we stayed in the Big 12 we'd collect $42M and pay $0 (+$42M).
But we're now leaving early for the SEC so we're going to collect $85M and pay $50M (+$35M).

So by leaving early, we're only costing ourselves $7M if those numbers are close to correct. I've been trying to explain this concept for months, that the true cost of leaving early was never going to be the entire buyout.

sec new deal is not 85 mil in 24 (unless espn ups it a bunch because of getting a 9th conf game)

 

[WTSooner]

sec new deal is not 85 mil in 24 (unless espn ups it a bunch because of getting a 9th conf game)

Cool. What is it?

 

[TINY]

Losing out on $7M doesn't sound like a good deal. I wonder if ESPN is going to help at all? That Longhorn network cash should help make up this relative deficit

It is an incredible outcome given the terms of the contract. Again people expected us to pay over $100mil to exit the big12.

Think of the ~$7-$10 million as an initial investment. Instead of making ~$40mil per year we will be making double that in the sec. In just 2 years we will have paid off our initial investment with a profit margin around $120 mil.

another way to look at it, if we stay in big 12 for ‘23, ‘24, ‘25 we would make around $125 mil. 2024 and 2025 in the sec alone would be $170mil. Factor in the extra -$8-$10 mil exit fees and we are still coming out way ahead (around $35mil more profit in sec over same time frame had we stayed in the big12).

 

[BoulderSooner]

Cool. What is it?

65 or so and OU/tx are reportedly not getting a full share in year 1 ..

 

[BoulderSooner]

It is an incredible outcome given the terms of the contract. Again people expected us to pay over $100mil to exit the big12.

Think of the ~$7-$10 million as an initial investment. Instead of making ~$40mil per year we will be making double that in the sec. In just 2 years we will have paid off our initial investment with a profit margin around $120 mil.

another way to look at it, if we stay in big 12 for ‘23, ‘24, ‘25 we would make around $125 mil. 2024 and 2025 in the sec alone would be $170mil. Factor in the extra -$8-$10 mil exit fees and we are still coming out way ahead (around $35mil more profit in sec over same time frame had we stayed in the big12).

OU makes 10 mil more then the rest of the big 12 (not including texas)

texas makes 15 mil more then the rest of the big 12 ..

texas has made more money then the sec in almost each and every year and did last year as well ...

that all changes with the new espn deal starting in 24 and that was one of the big reasons for OU and texas to depart .. .

 

[TINY]

65 or so and OU/tx are reportedly not getting a full share in year 1 ..

I was under the impression that the contract bumps up by $10 million per team when ou and texas join? Going from $65mil to $85mil.

 

[TINY]

OU makes 10 mil more then the rest of the big 12 (not including texas)

texas makes 15 mil more then the rest of the big 12 ..

texas has made more money then the sec in almost each and every year and did last year as well ...

that all changes with the new espn deal starting in 24 and that was one of the big reasons for OU and texas to depart .. .

I forgot about our other tier of rights. So my math is wrong above.

 

[WTSooner]

The fact is, nobody knows. The negotiated contract the SEC has for 2024 doesn't include OU/ut, and doesn't include what is likely to be a 9th game. Whatever amounts are out there now for projected SEC payouts in 2024, they are going to change now. OU and ut not receiving a full share is based on the contract with ESPN not changing. If it changes, I imagine OU and ut might get their full share.

Regardless, no matter what the numbers end up being, the cost of OU leaving early is not $50M. It's less when you factor in all of the other moving pieces.