His words did not say TX were going to back out of the game, he said that the game is "tentatively" on the schedule - clearly implying that they COULD drop it, not that they WILL drop it.

The context was the SEC meeting where many of the SEC coaches (like the B10, B12,ACC, and ND want a 24 game schedule so that they can play harder games without as much penalty for playing a tough nonconference game. At the same time, Greg Sankey, the SEC commissioner and ESPN want a 16 team playoff.
The TX AD was sending a warning shot to Sankey as much as anyone to let him know that if he persists in his opposition to 24 teams, the marquis match ups that make him (& ESPN) lots of money will likely disappear if he doesn't come around to his own conference Coach and AD desires.

It MIGHT get cancelled. It has not happened yet.