UC reaches agreement with AAC, will join Big 12 early. Here's how much they'll pay.

Cincinnati Enquirer

The University of Cincinnati has reached an agreement with the American Athletic Conference that will allow the school to exit the AAC and join the Big 12 Conference a year early.

Cincinnati and the AAC announced Friday that the school – along with fellow AAC members Central Florida and Houston – and the conference have agreed on a financial settlement that will allow the Bearcats to begin competition in the Big 12 as soon as July 1 2023.

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Cincinnati had been scheduled to join the Big 12 no earlier than July 1, 2024.

“Today is another milestone in our journey towards participation in the Big 12,” Cincinnati Director of Athletics John Cunningham said. “We welcome this accelerated timeline and are thrilled that a majority of our current student-athletes will be able to prove themselves at the ‘Next Level.’ It’s imperative that our whole athletic department and our entire fanbase embrace this challenge together. As I said before, our goal is to compete for championships on the first day we enter the Big 12. Now that we have that date, it’s time to ensure we position ourselves at the head of the table.”

John Cunningham, the University of Cincinnati's athletic director, speaks during a press conference announcing the University of Cincinnati's commitment to join he Big 12 conference on Friday, Sept. 10, 2021, at the University of Cincinnati in Cincinnati. The university announced Friday it has accepted an invitation to join the Big 12 by no later than July 1, 2024.

The AAC has an exit fee of $10 million and requires its members to give a 27-month notice of departure. If a school leaves before 27 months, the exit fee increases to a negotiated amount. Sources tell The Enquirer that Cincinnati will pay a buyout of $18 million over a 14-year span to depart early.

“I would like to thank UCF President Alexander Cartwright, Cincinnati President Neville Pinto and Houston President Renu Khator – as well as Tulane President Michael Fitts, who is chair of our Board of Directors – for their efforts and leadership to arrive at a sensible resolution to the three schools’ departure from the conference," AAC Commissioner Mike Aresco said. "All three institutions enjoyed tremendous success under the American Athletic Conference banner, and all three were instrumental in taking the conference to great heights, both athletically and academically. We wish them the best and look forward to having them compete in our conference in 2022-23.”

FILE - In this Aug. 4, 2015, file photo, American Athletic Conference Commissioner Mike Aresco addresses the media during an NCAA college football media day in Newport, R.I. Aresco vehemently denied that his league has ever "plotted" with ESPN to undermine another conference by poaching its schools. Aresco addressed conference realignment Wednesday, Aug. 4, 2021, during the AAC's virtual football media day, saying the league is not actively looking to add schools. (AP Photo/Stew Milne, File)

Cunningham and Aresco confirmed in March at the AAC Tournament in Fort Worth, Texas, that the two had been engaged in discussions in hopes of reaching a "financial settlement."

"We're trying to do it amicably," Aresco said March 12, a day after the Cincinnati men's basketball team was eliminated by top-seeded Houston in the second round of the conference tournament. Aresco said in March that if the AAC and Cincinnati were going to reach a settlement, "it's probably going to be done fairly soon."

"There's some urgency to our discussions, and that's probably the best description, at this point, that I can give you," he said.

Cincinnati Bearcats head coach Luke Fickell shakes hands with conference commissioner Michael Aresco during a trophy ceremony after the American Athletic Conference Championship football game between the Cincinnati Bearcats and the Houston Cougars at Nippert Stadium in Cincinnati on Saturday, Dec. 4, 2021. The Bearcats remained unbeaten as they won the AAC Championship with a 35-20.

Cincinnati – along with UCF and Houston and independent Brigham Young University – announced in September 2021 that it had accepted an invitation to join the Big 12.

BYU was already set to join the conference in 2023, but Cunningham said during the September announcement that Cincinnati's move to the Big 12 would likely have to wait.

More:University of Cincinnati accepts invitation to Big 12 Conference

More:'It happened very quickly': How Cincinnati became the newest member of the Big 12

"We're contractually obligated to the American (Athletic) Conference," he said. "We would not start (in the Big 12) no earlier than July 1, 2024. Now, I say that – if conversations and arrangements are made that would be different than that, then those are going to take place between the American (Athletic) Conference schools that are leaving and the conference office. We'll follow our contractual obligations with the conference."

The American will eventually replace exiting members Cincinnati, Houston and UCF with new members Charlotte, Florida Atlantic, North Texas, Rice, UAB and UTSA.

Cincinnati has won the last two AAC championships in football, while Houston has won the conference's last two men's basketball championships. Central Florida won last season's AAC women's basketball title.