UCF reaches agreement to join Big 12 in 2023. Here's what it means, including the financials

UCF will officially enjoy Power Five athletic status next year.

Along with Houston and Cincinnati, UCF reached an agreement Friday morning to exit the American Athletic Conference and join the Big 12 in time for the 2023 football season, all parties confirmed Friday morning.

In a statement, American Athletic Conference Commissioner Mike Aresco expressed gratitude in reaching a "sensible" resolution for the impending departures.

The Athletic reports each university will pay an $18 million buyout over 14 years to the AAC.

Had a settlement not been reached, Cincinnati, Houston and UCF would not have been granted their release until July 1, 2024. AAC bylaws require departing schools to provide 27 months notice and pay a $10 million exit fee.

"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," Aresco said. "We wish them the best and look forward to having them compete in our conference in 2022-23."

UCF SPRING GAME: QBs shine, Jaylon Robinson returns: 5 takeaways from UCF spring football game

STATE CHAMP QB: 3 things to know about new UCF QB commit Dylan Rizk, a state champion signal-caller

CENTRAL FLORIDA'S FINEST: 10(ish) UCF recruiting targets from Orlando area high schools

BYU, a Division I Football Bowl Subdivision independent, will also join the Big 12 next year.

That would bring the Big 12 up to 14 members for the next two years, provided that Texas and Oklahoma choose not to bolt early for the SEC. ESPN reported last July that it would cost those two programs about $76 million apiece to exit before the grants of rights expire.

UCF should know its first slate of Big 12 matchups by the end of the calendar year. The league released its conference schedule on Dec. 1 ahead of the 2022 campaign.

The Knights have already filled two non-conference football schedule slots for the 2023 season — a Sept. 2 home game against Kent State, and a Sept. 9 road trip to Boise State.

Beyond the increased on-field competition and potential appeal to recruits across the country, Big 12 membership will result in a financial windfall for UCF. The league announced last week a record $42.6 million payment for its members this year.

By contrast, UCF received a revenue payout of $7.96 million from the American for the 2020-21 season, the Orlando Sentinel reported in May.

The American plans to admit six new members for 2023, all from Conference USA — Charlotte, Florida Atlantic, North Texas, Rice, UAB and UTSA. Those schools have until Wednesday to formally announce their intentions to leave C-USA early, according to Action Network college football insider Brett McMurphy.

This article originally appeared on The Daytona Beach News-Journal: UCF will join Big 12 in 2023. What it means, how much they'll make