Rutgers will pay $11.5 million to the American Athletic Conference as part of an agreement that will allow the school to enter the Big Ten this summer.
The school and the conference announced the deal Wednesday.
Rutgers has also agreed to drop a lawsuit challenging the conference's $10 million exit fee. The conference was asking for that plus more from the school because Rutgers was breaking league bylaws by exiting before a required 27-month notification period.
Rutgers officially withdrew from what was then called the Big East on Nov. 21, 2012, when it accepted an invitation to join the Big Ten.
Louisville is also leaving the American Athletic Conference after this school year. Louisville negotiated an $11 million early exit fee with the American to join the Atlantic Coast Conference.