Honestly it would be really bad for the Iowa taxpayer - we’d likely never be able to meet the debt obligations. Can’t exactly repo the student performance center.
The exit fees they would have to pay to the conference would be $70-80M....and more since it appears that neither school provided the required 12 hours notice before starting negotiations with the SEC. (per Big12 charter) It would at least put a dent in the total or service the debt for a while...
From Surlyhorns.com:
<<so basically Texas and OU have 12 hours to inform the conference that they are talking to anyone about leaving and failure to do so gets them removed from voting on any conference business.....they also have to reject those offers in a manner acceptable to the conference or they cannot vote on conference business
and the exit fee is 2 years prior revenues and there are additional penalties for trying to get out of paying that or doing things that cause further damage
if Texas and OU are in fact talking to others and they have not given the required notice there are a lot of actions the Big 12 an take and I do not think that would look good in any forthcoming lawsuit
Texas and OU are probably going to have to pay a lot of money to leave especially if they have not done things properly I don't think this will be a case of getting the exit fee cut in half or getting it down to 75% like Maryland did.....all the more so if there was no 12 hour notice
this could be anywhere from $60 million to $90+ million for Texas and OU to leave depending on the amounts paid by the conference the prior two years and how much anyone and everyone wants to fight in court.......which I think the other 8 members of the Big 12 will be up for a pretty big fight
the Big 12 can also refuse to televise games of the members leaving if they are in violation of the contract>>