Texas will have to give up the Longhorn Network to join the Big10 or SEC. Giving up the LHN is easy, being asked to give up the cash is the hard part. In the end they won't have to, a buy would be negotiated.
According to reports, ESPN has lost close to $50M since launching the Network about 5 years ago. Earlier this spring ESPN discontinued the daily studio shows on the Network. ESPN claims to still be supportive of the Longhorn Network, but they are obviously looking to cut costs. My bet is ESPN gives the LHN 3-4 more years to become profitable. At that point, ESPN will be 10 years into their 20 year contract and still owe UT something like $175M. The smart business decision for ESPN, approach UT and offer a $100-$125M CASH BUYOUT.
GOLD MINE for Texas, they get a big wagon of cash and they are free to jump to the Big10 or SEC if their TV rights deals are significantly better than the Big12.
I disagre. The Longhorn Network has other strings attached, such as that ESPN retains those rights should the Big 12 fold:
http://thebiglead.com/2011/08/08/lo...s-and-espn-revealed-big-12-future-not-bright/
If Texas leaves the Big 12, the school must keep the terms of the present agreement, provide ESPN an exclusive 60-day window to negotiate for the other rights and allow ESPN a 48-hour window to match any offer. A prohibition on licensing content to third parties, prevents Texas from participation in a potential Big XII network, scuttling that carrot if it was ever going to arise.
There is no way ESPN is going to allow Texas to buy their way out of the contract to join the Big 10 Network, which is a partnership with FOX broadcasting. Maybe ESPN would let them out of the deal if Texas joined the SEC or even the ACC, which have ESPN affiliation for those third-tier rights, so ESPN doesn't really lose much in the long-run.