The Payout Details

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Future revenue distribution became a topic when The Star learned that the five schools facing uncertain futures — Kansas, Missouri, Kansas State, Iowa State and Baylor — made an offer to use their shares of penalty money to ensure a certain level of revenue distribution to Texas, Oklahoma and Texas A&M.

The penalty money — which would be revenue withheld from distribution to departing members Colorado and Nebraska over the next two years — could total $35 million to $40 million, according to a source.

The money could be used to bring the Longhorns, Sooners and Aggies, who had interest from more than one other conference, to a distribution level comparable to what they would have received by jumping to another conference.

The estimated payout to a member of an expanded Pacific-10 was around $20 million.

The three Big 12 powerbrokers would use this fund to reach that amount, but according to a source close to the Big 12, the revenue projections from future media rights could make the fund unnecessary.

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Texas president Bill Powers said Tuesday that the Longhorns don’t expect to draw from the fund. "There have been reports that there's going to be a special deal for some of us using penalty money or other money to guarantee Texas and possibly other schools a particular value," Powers said. "We have heard about that. We’re not part of it."

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