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Big 12 Exit Fees Set For A&M, Mizzou (And They’re Not That Bad)

Over the weekend, it was announced that the Big 12 office, Missouri and Texas A&M had agreed on upon those schools’ exit fees from the league.  All that was left was for the individual Big 12 members to OK the deal.  Now that’s been taken care of and the league announced last evening that the conference and the departing schools had agreed upon a fee of $12,410,000 per school.

Only there’s still not a real agreement on what the payment will be.  At least not from Texas A&M’s perspective.  More on that in a second.

The Big 12′s release regarding Missouri reads as follows:


“The Conference will withhold an estimated $12,410,000 from the revenues otherwise distributable to the University.  In addition, Missouri agreed that it would waive any claim to any of the benefits received by the Big 12 Conference from its television contract with Fox Sports, schedule to commence July 1, 2012.  Also, Missouri agreed to pay the Big 12 Conference for its share of the actual coast of officiating expenses for 2011-12 athletic year as it has done in previous years, in the approximate amount of $500,000.”


The Big 12′s release regarding Texas A&M is worded this way:


“The Conference will withhold an estimated $12,410,000 from Texas A&M’s projected distribution for fiscal year 2012.  However, the parties agreed that A&M will receive a portion of the benefit received by the Big 12 Conference from the signing of its television contract with Fox Sports, scheduled to commence July 1, 2012, and certain other concessions.”


The difference: A&M will get a portion of the 2012 TV revenue bump from Fox (and other concessions) while Mizzou will not.

Does this mean A&M officials were better at the negotiating table than Missouri officials?  We suspect not.  Surely A&M, Missouri and SEC lawyers were all studying the same documents.  It’s more likely that timing was the key issue on this front.  A&M got the ball rolling on its move to the SEC sooner (announcing on August 31st), while MU didn’t make its departure official until November 6th.  Mizzou also turned down a last ditch effort to stay in the league for one more season.

Either way, the fees — a combined $25 million — are a lot smaller than the $25-30 million per school numbers that were trotted out early in the negotiations.  At $12.41 million a piece, the fees are a bit steeper than those paid out by Colorado ($6.86 million) and Nebraska ($9.255 million) who exited the Big 12 last year. 

But that’s where there’s still some disagreement from A&M.  The Aggies said yesterday that their buyout from the Big 12 will actually be $9.31 million — not $12.41 million — which is much closer to Nebraska’s number.  The $3 million difference?  “Direct payments from the NCAA, bowl payouts, conference office expenses and officiating reimbursements.”  In other words, the “certain other concessions” mentioned in the Big 12′s release.

Both schools are delighted to have the Big 12 negotiations behind them.

“Texas A&M’s move to the SEC increases the university’s geographic footprint and will bring national recognition to this great institution, which it certainly deserves,” A&M system chancellor John Sharp said via press release.  “We look forward to the increased exposure that the SEC will provide Texas A&M, not only in athletics but also in teaching and research.”

“We are pleased to have these issues resolved, and we wish the Big 12 and its continuing members the best in the future,” Missouri chancellor Brady Deaton said via release.

The only question remaining: How will the schools handle the loss of $9 million in one case and $12 million in the other while they shift from the Big 12 to the SEC this year?  For starters, we’ve already seen ticket price hikes at both schools.  How else might the schools work to recoup those losses?

Regardless of the details of the buyouts, Mike Slive can now officially welcome A&M’s R. Bowen Loftin and MU’s Brady Deaton to the SEC with a laurel and hearty handshake.

 


13 comments
Dynamite fan
Dynamite fan

John Love the Blazing Saddles reference. Good article.

TigerinMO
TigerinMO

Free at last! Free at last! Thank God Almighty, we are free at last!

btlh2oguy
btlh2oguy

Football Season can't get here quick enough. I've long thought A&M should have been in the SEC. Missouri is a bonus on top of everything.

I am in support of a nine game conference schedule.  Kansas and Texas need to rethink not scheduling their biggest rivals. Its childish and only deprives their fans

.

JPS
JPS

John, seems you were pretty easily drawn offsides and into a bit of a pretentious rant by someone who, logically, does not represent the majority view of A&M fans.  By and large we know we haven't been very good for a while and have our hands full in the SEC to say the least.  Looking forward to playing in the premiere athletic conference and think we'll do a little better early on than most expect but not ready to challenge the upper tier just yet.

mozura
mozura



 

Not as bad as I thought it could be.  As mentioned I'm glad it's over and I'm ready to move on.  Exciting times are ahead for A&M and Mizzou.  I like most Mizzou fans know we are in for big change.  We know we will need to step up our game to compete in the SEC.  Respect is earned and I am thankful Chancellor Deaton and the SEC has given us this opportunity.  John thank you for the coverage you have given both schools.  This is my favorite SEC website and I take time to visit daily.  You are straight forward and to the point, I like that.

Whatever
Whatever

Well written article.   I know Texas A&M couldn't be more excited to be making the move and rekindling our rivalry with LSU.  Hopefully recruiting improves to the point that we can be competitive in the SEC West.

twk
twk

Timing may have been a factor in the difference between the A&M and Missouri numbers, but, as a lawyer, my guess is that the biggest factor was that Texas sovereign immunity law is probably the strongest in the US, meaning that A&M would have had the whip hand in any litigation over the exit fees. Both schools benefited from the poorly drafted Big XII bylaws on withdrawing members, but A&M had the extra weapon of being able to tell the Big XII that A&M could seek a construction of the bylaws that would have found that A&M owed nothing without waiving sovereign immunity and risking a counterlclaim by the Big XII that would have required A&M to actually write a check.

NoOneInParticular
NoOneInParticular

There is no "loss" and there is some doubt as to if it is even "money not received" and in either case it does not even amount to a pimple on our butt even if we had to hand them cash today.  Currently there are at least 5 projects on campus that cost over $30m each and that is nothing as a majority are just to fix roads and easements so people can get in.  Go to Google maps and search Texas A&M - we have two airports on our campus (switch to satellite view and check the size of the second campus in town).  We are coming and you better be prepared.

mitchs3
mitchs3

Painful, but worth it.  On to bigger, better, and certainly more fair and equal things!  I think you hit the nail on the head in terms of the difference between MU/TAMU - MU came later and the Big XII was none too pleased that MU wouldn't stick around for one last lame duck season and they want to recoup some of what they had to kick in to get WVU out of the Big East, so they weren't going to make the same concessions to MU as TAMU. 

 

Anyway, not nearly the really giant numbers that were being thrown around.  As the billboards say - Proud to be SEC.

MoKelly
MoKelly

I couldn't agree more. The exit fee for Missouri is fair and reasonable. It is over and time to move on. This will be a great Fall.

 

 

John at MrSEC
John at MrSEC moderator

JPS...

 

A pretentious rant?  To say that I find trash-talkers to be dimwits... especially when they're entering a new league?  As I stated, I'm pro-A&M and think they're a sleeping giant.  But that doesn't mean someone who views the Ags as God's gift to the SEC doesn't need reminding that they're not quite to that level yet.

 

I stand by every word.

 

Thanks for reading the site,

John

John at MrSEC
John at MrSEC moderator

NoOneInParticular...

 

If a school is counting on making $20 million in a year and then it learns it will receive only $8 to $11 million, that is a "loss" in my book.

 

As for the trash talk, best of luck.  This site has welcomed both new schools to the league with open arms.  We said in 2010 that A&M to the SEC would DEFINITELY happen at some point... long before this move gained any steam and before other sites even acknowledged the obvious fit between the school and the league.  We also were the first site to mention in May of 2010 that Missouri would be a good fit for the SEC in terms of geographic expansion and television gains.

 

Additionally, we've also rolled our eyes each time some current SEC fan has used our comment boxes to insult A&M and/or Mizzou.  Personally, we feel most people who act that way are either teenagers or adults who've not developed mentally past the stage of teenager.

 

However, we find it even more obnoxious for a fan of one of the new schools to give a warning to the rest of the SEC of their coming.  As someone who believes A&M will eventually succeed in the SEC, let me just point out that your Aggies didn't exactly tear up the Big 12 the past few years.  So you might want to nix the trash talk before the combination of Alabama, Arkansas and LSU tear you the proverbial new one.  A&M and Mizzou will be happy with their moves eventually.  But anyone in the SEC who talks trash, usually winds up eating the garbage he spews.

 

See: Florida fans when they returned the majority of their national title winning team from 2008 and Alabama fans when they returned the majority of their national title winning team from 2009.  There hasn't been a repeat champ in the SEC since 1998.  Look at that fact and come to grips with what it means.  

 

I can assure you, the 12 existing members of the SEC have bigger things to worry about than just the entry of A&M.

 

John

buddha22
buddha22

I would hazard to guess that MU represents a bigger hit to the B12 because Texas, much to A&M's dismay in the past, is given credit for 24.5 million of the odd 25 million in Texas viewership. However, although they always overlooked it, the reality of MU leaving leaves a gaping whole in their B12 viewership, households and therefore perceived and real value of their deal. Also, Texas and OU always had A&M, OSU and TT to block any wishes that MU put forth so they always felt they had hammer and that MU would always be painted as the "unhappy complainer" and Chuck Neinas (The Dodd mouthpiece) and Texas could control them...they never expected MU would finally say enough. It took a lot, but thank goodness they had the foresight to make the move.

 

Lastly, you hit the nail on the head because now A&M brings that 25 million odd Texas viewership in TV contracts because Texas is no longer there to trump them!

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