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Report: SEC added new exit fee prior to Oklahoma, Texas additions

SEC's $30-45M exit fee was imposed ahead of Texas and Oklahoma being announced as new additions to the conference in July ‘21GETTY IMAGES

The SEC last January adopted new bylaws and language showing that "withdrawing from the conference" comes with a "new exit fee," according to Kristi Dosh of BUSINESSOFCOLLEGESPORTS.com. Adopted Jan. 14, 2021, there is a requirement to “give at least two years’ notice." But the "biggest change of all" is the “whopping $30-45 million exit fee” the conference will now impose. These changes came ahead of Texas and Oklahoma "being announced as new additions” to the SEC in July ‘21. However, sources at two SEC schools suggested the changes were made as a “result of supplemental distributions” the conference made to help “cover costs during the pandemic.” The SEC office "confirmed the change" was made due to the “supplemental distributions.” Dosh: "Most interesting to me as I’ve contacted folks I know across the SEC is how few of them seemed to be aware of the change. Indeed, several had to look it up in the bylaws for themselves" (BUSINESSOFCOLLEGESPORTS.com, 1/4).

BIG PAYDAY: Dosh in a separate piece noted Alabama and Georgia are each set to take home $4.2M of the $6M they have each earned for the conference for their “appearance in the semifinal and national championship games,” in addition to travel allowances. The CFP pays $6M to each semifinal team, plus travel allowances, but the funds "go directly to the conference.” The SEC gives $2.05M for each team participating in the semifinals and another $2.15M for the championship game (BUSINESSOFCOLLEGESPORTS.com, 1/4).

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