ESPN breaks out the checkbook for Texas
ESPN makes Texas whole for leaving the Big 12 early
I received a copy today of Texas’ most recent agreement to join the SEC. This version is from May 15, 2023. Most of this has likely been reported.
The only redacted item in the agreement is the dollar amount of the deposit/application fee given to the SEC. The University and the Texas Attorney General deemed this too sensitive to fall into the hands of potential “competitors.” UCLA disclosed it paid the Big 10 a $15 million deposit and likewise, Oregon disclosed a $7.5 million deposit with the Big 10. No departing members of the Pac 12 paid deposits to the Big 12, with the University of Colorado receiving a $2.5 million signing bonus.
Notable provisions in the agreement:
ESPN will make a transition payment to Texas (that shall pass through the SEC) which is above and beyond what ESPN was scheduled to pay the SEC. That payment should be made sometime between July 2024 and July 2025.
Texas will not receive any distributions from the SEC in the 2024-25 Fiscal Year.
Beyond travel expenses for participating in tournaments, the SEC will pay Texas a 1/16 share of any incremental CFB Playoff revenue received in 2024-25 over that received in 2023-24.
Provisions not in the Texas/SEC agreement, but found in Big 12 and Big 10 new member agreements:
Termination upon a material change in conference membership (Big 10)
Warrant that the conference did not initiate communication with the university regarding membership (Big 12)
Warrant that the university is not under investigation by the NCAA (Big 12)
Term of agreement (Big 12)
Cap on travel expenses to conference tournaments (ACC)
Borrow against future media revenue distributions (Big 10)
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So, Texas got Utah'd and Colorado'd, essentially. [When UU and CU joined the Pac...]