UT-Austin and Oklahoma aren't going anywhere. There is a zero percent chance
that they would cede Big Dog status to the Alabamas and Floridas, and the USCs and Oregons wouldn't cede Big Dog status to them.
Texas and Oklahoma are stuck with their 8 dwarves whether they like it or not.
This. Is. A. Shakedown.
The 8 dwarves ought to know this, and the absolute best thing they can do for themselves is to stand their ground. Don't give the two snow whites another penny. Politely insist on a BIGGER slice of the pie, NOT a smaller one. As much as they need Texas and Oklahoma's money, Texas and Oklahoma need the 8 dwarves' losses more. If the 8 dwarves are there to supply losses against them anyway, make them pay you more just to lay down and die.