Money Likely Roadblock to Tulane Green Wave, Others Joining Pac-12: Report

The Tulane Green Wave made the decision to remain in the American Athletic Conference on Monday.

The Tulane Green Wave is painted on the field of the Gaylord Family Oklahoma Memorial Stadium in Norman, Okla. on Friday, Sept. 3, 2021. The logo was painted in preparations for the NCAA football game between the University of Oklahoma Sooners and the Tulane University Green Wave that was moved from New Orleans to Norman due to hurricane Ida. / CHRIS LANDSBERGER/THE OKLAHOMAN via Imagn Content Services, LLC

Now that the Tulane Green Wave and other members of the American Athletic Conference have put to rest potential membership in the Pac-12 Conference, reporters are dissecting the reasons why.

Ross Dellenger of Yahoo Sports reported on Monday that the most likely culprit was money, which was part of the reason Tulane was considering the move in the first place.

Tulane, Memphis, USF and UTSA put out a joint statement under the American banner reiterating their commitment to the conference.

All were considering the opportunity to join the Pac-12 starting in the fall of 2026. In order to accomplish that each team would have likely had to pay $27.5 million to get out of the conference.

That precedent was set by SMU's early departure from the league to get into the ACC this August. The Mustangs paid a $25 million exit fee and also surrendered an additional $2.5 million in revenue last year.

ESPN’s Pete Thamel reported last weekend that the American considered that to be the price for each of the four schools that were considering an exit.

Talks with the Pac-12 broke down in part because the Pac-12 was only willing to put up $2.5 million to help each school pay their exit costs.

That would have left each on the hook for the $25 million buyout.

Contrast that to how the Pac-12 is helping out each of the four Mountain West schools that have committed to join the league in 2026.

In a scheduling agreement the Pac-12 signed with the Mountain West for the 2024 football season, the Pac-12 agreed to pay buyout fees and poaching fees for any Mountain West school it lured away. The Pac-12 must pay $110 million in buyout fees and $43 million in poaching fees.

That brings to an end a courtship that lasted a couple of weeks, one that saw the Pac-12 get aggressive in trying to expand to the eight football teams it needs to remain a conference by the fall of 2026. Now, the Pac-12 will have to double back and see if they can lure more schools in their geographic area, with Utah State and UNLV among the rumored likely targets.

As for the future in the American, Dellenger reported that commissioner Tim Pernetti is exploring private equity, new distribution models and expansion.

The American Athletic Conference is currently in the middle of a 12-year, $1 billion deal with ESPN for its media rights. The deal began in the 2020 season and runs through the 2031-32 academic year. That deal yields $7 million per year in TV rights money for each team.

The Pac-12 doesn’t have a media deal at the moment, but the league’s hope is that it can create one that pays member schools $10-15 million per year.