Exit fees for leaving big 12

Nebraska Chancellor Harvey Perlman has said he doesn't believe departing schools owe the Big 12 any money.

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3.3 Effect of Withdrawal From Conference Other Than by Giving Proper Notice. If,
other than by giving a proper Notice pursuant to Section 3.1, a Member Institution (a
“Breaching Member”) withdraws, resigns, or otherwise ceases to participate as a full
Member Institution in full compliance with these Rules, or gives notice or otherwise
states its intent to so withdraw, resign, or cease to participate in the future (a “Breach”),
then the Member Institutions agree that such Breach would cause financial hardship
to the remaining Member Institutions of the Conference, and that the financial
consequences cannot be measured or estimated with certainty at this time. Therefore,
in recognition of the obligations and responsibilities of each Member Institution to
all other Member Institutions of the Conference, each Member Institution agrees that
after such Breach, the amount of Conference revenue that would otherwise have been
distributed or distributable to the Breaching Member during the two (2) years prior to
the end of the Current Term or the then-current Additional Term, as the case may be,
shall be reduced by an amount that equals the sum of the aggregate of such revenues
times the following percentages (such sum being the “Aggregate Reduction”); if Notice
is received less than two years but on or before eighteen months prior to the Effective
Date, 70%; if Notice is received less than eighteen months but on or before twelve
months prior to the Effective Date, 80%; if Notice is received less than twelve months
but on or before six months prior to the Effective Date, 90%; or if Notice is received
less than six months prior to the Effective Date, 100%.

After such Breach, none of the revenues that otherwise would be distributable to a
Breaching Member shall be paid to the Breaching Member until the aggregate amount
so withheld (the “Withheld Amounts”) equals the Aggregate Reduction; thereafter, all
revenues that would otherwise have been distributable to the Breaching Member shall
be so distributed. If the Withheld Amounts are less than the Aggregate Reduction, then
the Member Institutions acknowledge and agree that the Conference shall assess such
Breaching Member an amount that equals the difference of the Aggregate Reduction
less the Withheld Amounts, and the Breaching Member agrees that on or prior to the
Effective Date it shall repay to the Conference such amount from revenue that previously
had been distributed to such Breaching Member. The Withheld Amounts and any such
repayment of the difference of the Aggregate Reduction less the Withheld Amounts
shall be distributed to the other Member Institutions who are not Withdrawing Members
or Breaching Members as additional Conference revenues in accordance with Section
2 herein. The Member Institutions agree that such reduction in the distribution of
revenues to a Breaching Member is reasonable and shall be in the form of liquidated
damages and not be construed as a penalty.

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