Well...the conference holds at least 150 million cards...so you're wrong about who holds the cards in the short term at least. You don't negotiate a GOR...the TV rights simply stay with the conference and the OU/UT have not TV rights. The money they would pay out would be to regain those TV rights...and that's a LOT of money.
The “buy-out” would net $10M per year for 2 years for remaining 8 teams.
Certainly not an insignificant sum but would it be enough to cover the losses incurred during those two years if the Big 12’s television contracting partners demanded concessions?
UT could cut a check for $79M and not feel it a bit.
Would likely be more painful for OU as they have nowhere near the financial resources.
That written, if OU and UT buy out the Big 12 and can get a full share of SEC conference revenue, how much would that be? Given that the SEC needs to re-up with CBS, I’m thinking that there may be some urgency to start negotiating that deal with UT and OU “in the fold.”
If joining the SEC results in a $20M yearly increase (simply my guesstimate - I’ve seen larger and smaller numbers) in conference driven revenue for UT and OU, they’d recoup the $79M payout in 4 years.
Keep in mind that every single SEC member would also experience a bump in revenues and, thus, would have motivation to get UT and OU in the fold ASAP for TV contract negotiations purposes.
When all is said and done, the math works well for the big revenue producers (UT and OU). Any buy-out is relatively small short term pain, losses recovered in less than 5 years and larger revenue stream going forward.
In contrast, the remaining 8 members of the Big 12 would maybe break even with a buy out and would be in a particularly difficult TV contract situation in 2 years.
If the Big 12 folds, UT and OU get to keep the buy out.
If you were the president of any of the 8 remaining Big 12 member institutions, would you simply decide to “sit tight” and use UT and OU’s money to put a 2 year tourniquet on a hemorrhaging financial situation or would you try to act quickly to land in as strong a position as possible? For example, if the PAC 12 is willing to take Oklahoma State and Kansas, would the presidents of both schools say that they want to wait or will they pull the trigger?
In all candor, if I had to pick which side of the bargaining table to be on, I’m picking OU and UT. I don’t even see it being a remotely close call.