Colorado Buffaloes, Nebraska Cornhuskers Reach Settlements with Big 12

Colorado and Nebraska have settled with the Big 12.  The combined bill: $16.1 million.

Nebraska had already planned on leaving the Big 12 after this year for the Big Ten, but now Colorado, who had planned on staying for two years to reduce their penalty, will leave after this year as well for the newly formed Pac-12.

“Everybody had a very strong desire to work this out, collegially and without any kind of legal process involved,” Big 12 commissioner Dan Beebe said.

Much of the legal battles focused on Nebraska who believed they did not owe a penalty for leaving the conference based on the conference’s shaky stability and uncertain future, situations they felt they did not create. 

Fingers were also pointed when Big 12 Commissioner Dan Beebe said he felt the conference “would be better off at 10 members” and the fact that, when the deals were negotiated to move to the other conferences, the Big 12 was in a state of limbo because so many teams were in discussions with the Pac-10.

However, conference bylaws stated that a team would have to forfeit 80 percent of their revenue for giving one year’s notice on leaving the conference, as Nebraska planned.  Beebe also argued that despite the two schools believing that no damage was done to the conference, that significant damage was done.  Thus, a need for a compromise existed to avoid a legal battle.

Nebraska chancellor Harvey Perlman called it “a fair settlement of our disagreement,” while Athletic Director Tom Osborne called it an “investment in the future.”

Colorado acknowledged they were excited about their future in the Pac-10, but also expressed some gratitude for their past relationships with the Big 12. “We value the great friendships and memorable rivalries we have been a part of, and we appreciate the good faith Commissioner Dan Beebe has shown in working with us on our exit from the conference," Colorado chancellor Phil DiStefano said.

Nebraska will owe or be withheld of $9.255 million, while Colorado will forfeit $6.86 million.  However, Nebraska could be reimbursed $500,000 of their penalty if they qualify for a BCS bowl game this season.   

The decisions revolved around money and stability.  While the Big Ten currently distributes $22 million of equal shares to its conference members, the Big 12 has a weighted formula that favors its more popular schools with top schools pulling down a little over $12 million last year and bottom schools pulling in around $8 million. 

The Pac-10, as of now, distributes between $7 and $11.5 million.  But that gulf is expected to grow in the midst of adding Utah, in addition to Colorado, with television contract negotiations coming up next year.

It is unclear how the penalty will be distributed to the remaining Big 12 schools.  The schools without conference relocation arrangements (Kansas, Kansas State, Iowa State, Missouri, and Baylor) had drew up an offer agreeing to forfeit their share of the penalty money in exchange for the other schools staying in the conference if upcoming television contracts fell short of a certain estimated amount.

However, Beebe said, “The commitment made by those five schools is not linked to this," reiterating, “it’s not something we won’t fully engage in until future meetings.”

Colorado and Nebraska are both leaving a certain degree of history.  Nebraska had originally joined the conference that would eventually become the Big Eight in 1907, while Colorado became the conference's seventh member in 1947. 

However, since the Big 12 was formed in 1996, many former Big Eight members became disgruntled with what they perceived as Texas-Centrism.  Former Kansas Basketball Coach Roy Williams went as far as to call the conference “Big Texas.”  With no conference television network in the foreseeable future and promises of bigger paydays in other conferences, both institutions decided it was best to move on.

It also appears the Big 12 will stay pat at 10 members for, at least, the short-term future.  When asked about adding two schools to achieve a dozen members again Beebe said “There’s a great deal of confidence among the 10 members.  All around the country at our (BCS) level we’re in a pretty stable position right now.”

However, he did leave the door open.  “I have a constant ear to the ground, investigating all possibilities.”

Colin Lobdell is an alum of Kansas State University and a B/R Writing Intern. He resides in the Kansas City area.