CU calls Big XII's bluff and the the Big XII folds

CU will start play in the Pac-12 next year, and ends up paying a lot less than previously thought to do so. CU will only have to forfeit $6.863 million of this years estimated $9.135 Big XII payout to head west a year early. This is an incredible win for the athletic department. Not only do we get to move west on the timetable we desire (the Big XII and Pac-12 too, btw), but we end up only giving up a relative pittance to do so.

(WOOOOO! 12-PAC! -link)

Think back to the day the conference switch was announced. Soon after the announcement, UT and its 4 little brothers decided to stick with the Big XII and immediately started up the PR machine to say that we'd have to pay $40bajillionzillion to leave the conference. "The financial hammer is falling and CU can't even afford to fire it's coach" the "orangebloods" scoffed. When UT returned to earth, and realized that CU leaving in 2011 is the best option for everybody, they "authorized" the Big XII to begin negotiations with a forfeiture of $15mil. For almost 2 months CU called their bluff.

There was Mike Bohn bemoaning to the Daily Camera that we will probably have to stay (awwww shucks). There was Pac-10(12) commissioner Larry Scott flippantly observing that the chances of CU heading west in 2011 as less than 50/50 (Oh noes! Woe is us). They created a lose-lose situation for the Big XII. Either we stayed an extra year, which they certainly didn't want, or they let us off the financial hook. All-the-while Chancellor DiStefano worked the back rooms to whittle that $15 million down. Even though CU would've settled for $9mil, DiStefano kept hammering away and got the final forefeiture under $7mil. The Big XII caved, for all intents and purposes, and CU won. As opposed to Nebraska, who had an "academic curiosity" to see if they could get their forfeiture down to zero, CU knew they'd have to give up something; but to end up giving up over $2mil less than your lowest acceptable figure is an incredible win.

Added in is the fact that CU will receive a loan from the Pac-12 to cover the forfeited revenues, so the loss in revenues won't cause CU to make it up using state funds or any other nonsense. Over the next few year we will have to pay that money off, obviously, but it'll be paid out of significantly higher revenues. While we were expecting $9.135 from the Big XII this year, in the Pac-12 we could see double that after you factor in a new television contract, equal revenue sharing, and the new Pac-12 championship game. The $6.863mil loan will be a drop in the bucket spread over the next few years: hell, CU is already reporting a 400% increase in donations from the state of California. I can't believe how good this turned out, and neither can the Regents:

"Very pleased," Steve Bosley said. "You have to be realistic. You always go into a deal saying, 'What's the worst? What's the most?' . . . I don't think we anticipated it to be quite this low. I was prepared for a little bit more." (-link)

The AD staff has done a great job. Unlike other schools (*cough* BAYLOR *cough*) we've handled the changing landscape of college football with style, professionalism, and class. We can be proud of the way our institution worked the situation to our favor, and kept us relevant for years to come. Kudos all around!

On a side note: what about the estimated $2mil (after television money is factored in) from the Ohio St game next year? Wasn't that supposed to go towards the Big XII exit? That's what I thought too, but since the Pac-12 is covering that for us, we can use that money elsewhere if we'd wish. Hrmmmm.... what else costs about $2mil.... DAN HAWKINS CONTRACT BUYOUT!!!!! So from now on, I shall refer to next years trip to OSU as the Mike Bohn Memorial Fire Dan Hawkins Road Trip (sponsored by Cinch Jeans).