So How to Finance an Early Exit?

Okie70

Well-Known Member
Oct 9, 2001
4,203
98
48
Horns fans will probably vomit over this. But OU fans on Rivals have a slick way to pay off the little 8 so OU and UT can scram by 2022 and play with the big boys. So speculation is ESPN will owe UT $160 mill for the LHN over the next several years. But deal is supposedly conditioned on UT staying put in our favorite league. If migrates to some other league the deal is off. Have no idea if this is true. Maybe Clob or MM know. So what if ESPN, which would save $160 mil., offers it to the Little 8 (or to OU and UT to pay the Little 8)? No harm, no foul. Then ESPN, Sooners and Horns can go make even more. Sounds like a plan to me. Will you expect OU to throw in some oil money to grease the skids?
 

oldhorn2

Well-Known Member
Jan 2, 2013
5,360
4,147
113
I have seen that very idea floated....I think it is valid.

The holdup on that is the very real possibility that the league will fold before any exit money is owed.I heard that if only one other team finds a deal elsewhere that is all it would take...
 
  • Like
Reactions: 22LR

BringBackRoyal

Well-Known Member
Jan 3, 2004
18,839
3,941
113
The holdup on that is the very real possibility that the league will fold before any exit money is owed.I heard that if only one other team finds a deal elsewhere that is all it would take...

Hmm, I have my doubts about that, but I haven't studied any of this too closely.

From my five-minute skim of the bylaws, it appears that a supermajority (75%) vote is required to dissolve the conference. Moreover, only votes of "disinterested" schools count. There appear to be a couple of different ways that the conference could deem Texas, OU, and any other school that has shown an intent to withdraw to be "interested" schools and thus ineligible to vote on matters concerning the future of the conference. I don't really know how this could play out if a majority of other schools find homes in other conferences, and there appears to be plenty of room for legal wrangling over the determinations of "interested" versus "disinterested," but I don't see how only three schools will be enough to make the GOR unenforceable.

Anyway, I could be wrong, but I don't feel like reading a bunch of boring contractual language in any greater detail than I already have.
 
  • Like
Reactions: oldhorn2

KChorn11

Well-Known Member
Oct 26, 2019
2,606
1,893
113
Yeah I think the LHN idea is how this is going to get done. It’s the most simple thing and no one is really out any money they had
 

clob94

Well-Known Member
Aug 25, 2014
12,697
10,592
113
SEC did their ESPN negotiation in December. Texas has been talking to the SEC since December. Want to guess who walked Texas right into the SEC offices during a multi-billion dollar television contract discussion?

I'll give you a hint--


Steam boat Willie.
 

WRLHookem

Well-Known Member
Feb 3, 2015
298
220
43
SEC did their ESPN negotiation in December. Texas has been talking to the SEC since December. Want to guess who walked Texas right into the SEC offices during a multi-billion dollar television contract discussion?

I'll give you a hint--


Steam boat Willie.
Okay I may have smoked too much crack today. All I’m thinking about now is Mickey Mouse. And I assume your reference applies to something political but there have been numerous politicians referenced accordingly (Clinton, Biden, et al). I’m also an investor in Willie’s pot brand so that also adds a level of confusion for me. Please explain further.
 

easttx903

Well-Known Member
Sep 16, 2017
754
429
63
espn worked it into the sec contract that if they added t1 teams (texas and oklahoma) they would get an increase. then ESPN told texas to join the SEC.
 

clob94

Well-Known Member
Aug 25, 2014
12,697
10,592
113
Okay I may have smoked too much crack today. All I’m thinking about now is Mickey Mouse. And I assume your reference applies to something political but there have been numerous politicians referenced accordingly (Clinton, Biden, et al). I’m also an investor in Willie’s pot brand so that also adds a level of confusion for me. Please explain further.
Micky mouse, is owned by Disney-- Disney owns ABC.

ABC owns espn.

Some bean counter at Disney "aka Mickey mouse, aka steam boat willie" crunched the numbers and figured out bringing texas to the SEC would finally offset the losses ESPN was incurring by the LHN.

The LHN has sucked ratings wise. There has been only a couple of years where it's pulled a profit. So with Disney telling ESPN to introduce Texas into the talks, Disney thus helps ESPN solve the money loss of LHN and salvage profits by opening the door to Texas having access to the SEC bosses.

More money folks. All this is about.
 

Longyac

Well-Known Member
Oct 18, 2005
8,659
1,166
113
Horns fans will probably vomit over this. But OU fans on Rivals have a slick way to pay off the little 8 so OU and UT can scram by 2022 and play with the big boys. So speculation is ESPN will owe UT $160 mill for the LHN over the next several years. But deal is supposedly conditioned on UT staying put in our favorite league. If migrates to some other league the deal is off. Have no idea if this is true. Maybe Clob or MM know. So what if ESPN, which would save $160 mil., offers it to the Little 8 (or to OU and UT to pay the Little 8)? No harm, no foul. Then ESPN, Sooners and Horns can go make even more. Sounds like a plan to me. Will you expect OU to throw in some oil money to grease the skids?
That’s been on other Texas boards for a few days and maybe part of Bowlsby’s tortious interference claim.
 

Lampasas

Well-Known Member
Nov 24, 2019
271
268
63
Horns fans will probably vomit over this. But OU fans on Rivals have a slick way to pay off the little 8 so OU and UT can scram by 2022 and play with the big boys. So speculation is ESPN will owe UT $160 mill for the LHN over the next several years. But deal is supposedly conditioned on UT staying put in our favorite league. If migrates to some other league the deal is off. Have no idea if this is true. Maybe Clob or MM know. So what if ESPN, which would save $160 mil., offers it to the Little 8 (or to OU and UT to pay the Little 8)? No harm, no foul. Then ESPN, Sooners and Horns can go make even more. Sounds like a plan to me. Will you expect OU to throw in some oil money to grease the skids?

Assuming there is money freed up if the LHN contract is voided, I would believe there would be some amount owed Texas (so that b12 exit obligation could be covered), but why would boomer be allowed to benefit?
 

diadevic

Well-Known Member
May 4, 2006
4,664
1,420
113
Charge market value for Texas OU tickets instead of letting secondary market snag the profits. $200 per ticket x 92,000 = over $18 million/year. Pay it off in no time.
 

Latest posts