Even though the University of Colorado announced its decision to leave the Big 12 in favor of the Pac-10 back in June, it hadn’t been clear whether the school would switch divisions in 2011 or 2012 due to the steep exit penalties expected to be levied by the Big 12. But the two sides worked out a deal yesterday, which will result in CU leaving the Big 12 at the end of this season.

The school has agreed to forfeit around $6.8 million in revenue it would have received from the Big 12, reports The Denver Post, a fairly modest amount compared to the roughly $9 million the Big 12 could have required from CU.

The University of Nebraska—which also decided to leave the Big 12 at the end of the 2011 season—will end up losing $9 million of the $19 million in revenue it was to receive over the next two years, making CU’s deal look good by comparison. Plus, the Pac-10 will loan CU the money it is losing in the deal, meaning the school’s athletic budget will not take an immediate hit, according to Boulder’s Daily Camera. When negotiations started, the Big 12 thought it was entitled to $30 million between CU and Nebraska.

Up next for the Pac-10 and CU? Working out new divisions in the new league, determining revenue sharing, and figuring out where the conference’s championship game will be played. –