Economists predict $ 940 million loss from Texas, OUSEC move

“There will be winners and losers in this kind of thing, there will always be,” said Dr. Ray Perryman. Of his analysis of OU / Texas departures from the Big 12.

Dallas — The conclusions of economic analysis are right.

“When UT and OU leave the Big 12 Conference, the impact on Baylor, TCU and Texas Tech will result in the loss of hundreds of millions of dollars in gross domestic product and thousands of jobs.”

This is the conclusion of Dr. Ray Perryman, a mathematician and economist at Waco’s Perryman Group, who conducted an analysis this week on the potential economic consequences of leaving the Big 12 at the SEC by the University of Texas and the University of Oklahoma. ..

He uses a widely accepted model for the synergies of key economic decisions, and if OU and Texas leave the Big 12 and the rest of the meeting remains intact, the Big 12 will be 9 We anticipate a loss of $ 38.9 million. Over 12,600 jobs.

In the second economic scenario, assuming the Big 12 disbands and its members’ college sports programs depart for other conferences, the Big 12 schools could lose up to $ 1.3 billion and more than 18,000 jobs. He predicts that he has sex.

“If you lose these two teams, you basically lose two of the top 10 athletics programs in the country and no one else in the Big 12 is in the top 25,” said Perryman. ..

Related: SEC unanimously votes to invite OU to the conference, Texas

Texas and OU could negotiate an early withdrawal, perhaps as early as next season, despite a pledge that some insiders will stay in the Big 12 until 2025. It means that there is.

“If they want to leave early, I think they can offer to buy themselves from the deal,” said Jean Besen of Dallas lawyer Bradley Allant Vault Cummings LLP. “It could be a normal, unusual, but at least everyday deal, from a contract law perspective.”

Besen is not involved in either the Big 12 or SEC schools.

The question is how big that number will be, and what Baylor, TCU, and Texas Tech will demand as compensation for the departure of Big 12’s biggest source of funding.

“But it’s a very long journey. You can think of it as the first serve of a five-set tennis match,” Perryman said.

“There will be winners and losers in this kind of thing,” Perryman said, potential by athletes who are currently being bolded by changes in approval rules, primarily to head for major SEC programs. Suggested additional impact.

Economists predict $ 940 million loss from Texas, OUSEC move

Source link Economists predict $ 940 million loss from Texas, OUSEC move

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