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LINCOLN, Neb. — Nebraska's departure from the Big 12 will cost the university more than $9 million and Colorado is leaving more than $6 million from the conference behind to join the Pac-10 next year.
The Big 12 and the universities announced settlements on Tuesday in which the conference will withhold millions in distributions.
The Big 12, under its bylaws, had sought to withhold an estimated $19.4 million from Nebraska and between $15-$20 million from Colorado.
"We are pleased that, with this issue behind us, the Big 12 is poised to begin the transition to its exciting future as a 10-member Conference beginning in July," Big 12 commissioner Dan Beebe said in a statement.
Under the settlement mediated by Eric Green of Boston, Nebraska can reduce its penalty to $8.755 million if the Cornhuskers are one of two Big 12 teams to play in a BCS bowl game this season.
Nebraska Chancellor Harvey Perlman said the BCS condition was negotiated because Nebraska would be creating a $4 million to $5 million windfall for the Big 12 if it and another conference team make it to one of the high-profile bowl games.
"We feel the long-term benefits of entering into the Big Ten, both academically and athletically, will make this a very good investment," athletic director Tom Osborne said.
The settlement with Colorado calls for a reduction of $6,863,000 in revenue to the school for this fiscal year.
"Even as we leave for an exciting future in the Pac-10 Conference, 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.
The $19.4 million the Big 12 originally wanted to keep from Nebraska represents 80 percent of the projected distributions that would have been paid to Nebraska for 2009-10 and 2010-11.
Nebraska becomes an official member of the Big Ten on July 1, 2011.
The Big Ten distributed $22 million to each of its schools last year. Over the past four years Nebraska received approximately $10 million annually in revenues from the Big 12.
Conference distributions are divided among member schools mostly from revenues derived from football and men's basketball television contracts, bowl games and the NCAA men's basketball tournament.
When Nebraska's move to the Big Ten was announced in June, Perlman, a former law professor, said he didn't think Nebraska should be required to pay a penalty because the Big 12 was in a state of flux, with some schools negotiating with the Pac-10. Only Colorado and Nebraska left.
"I still think we had a very significant legal argument that would have prevented them from imposing any penalty," Perlman said Tuesday. "I'm also cognizant of the risks associated with litigation. What I think is the law may not turn out to be the law.
"I'm disappointed, as an academic, that my curiosity about the legal claims won't be resolved. But when you look at everything, I think it made sense in this setting to get this behind us and avoid the risks of litigation."
Attorneys for the Big 12 and Pac-10 have been negotiating an exit strategy for Colorado for weeks. Both school leaders and Pac-10 commissioner Larry Scott had said they were skeptical about the Buffaloes joining the Pac-10 in 2011. It seemed 2012 was the likely time for CU to join its new league.
"Our plans all along were for them to join the Conference in 2012 so this puts the Pac-12 ahead of schedule, which is great news," Scott said in a statement released by CU. "With Colorado and Utah coming on board next year we are tremendously excited about the future of the Conference."
The university's board of regents authorized the deal Tuesday night and a few hours after the Big 12 announced a deal with Nebraska, it announced it had also struck a deal with Colorado.
