Not a rumor, but we were mentioned in the Big 12 blog on ESPN.
"Jaxon Heath in Dallas writes: Ok David, I know you've been through all the expansion talk again and again, but with the Big East break up, why doesn't the Big 12 snatch up South Florida? It's located in a major market, in a major state and games in Florida would help in recruiting. USF is a large university as well.
DU: Interesting suggestion, Jaxon. It works on some levels, but I don't really buy it. If you're going to dig into Florida, I think you only do it for a home run, i.e. Florida State. I wouldn't take a risk on a team that is so far out of your footprint and doesn't have a lot of proven success on the field, though the formula to do that is there with its location and size. TCU was a little different because a) The Big 12 absolutely needed a new member, and its proximity and history and likely future growth outweighed its small size and poor facilities (outside of a new football stadium and baseball stadium). I could see a world in which USF works as a Big 12 member, but it's risky, and not worth rolling the dice. The risk far outweighs the reward, and it's hard to see USF truly becoming one of the best two programs in Florida consistently, Big 12 membership or otherwise. The league should jump at any opportunity to land Florida State, but USF would give me reason for pause. "
http://espn.go.com/blog/big12/post/_/id/64972/mailbag-expansion-2013-title-schedule-rank