There has been talk about original members only having to pay $500,000 but that does not appear to be the case. Looks like each school will owe that $500,000 exit fee plus 5 years worth of media revenue at 1.3 million per year for a total of about $7 million.

I had wondered about the claim by original members and this article is as close to an answer as I could find.

If this is correct then the league will collect $28 million this coming July and another $14 million in July of 2014. That's $42 million and how that will be divided I'm not sure. It would seem likely that the 6 remaining schools and the league office would each collect a share of the $28 million for this coming July but maybe any new school that comes in officially in 2013 might also get a share of the $14 million to be collected in July of 2014.

Thoughts?

http://articles.orlandosentinel.com/2012...-exit-fees

I think that there's a misunderstanding here .

The exit fee is $500,000. The other $6.5 million is media money. It's not really a penalty. It just means that if a school leaves, they don't get to keep any future TV revenue... obviously. This money gets replaced by media money from the new conference a ccepting the school.

I haven't read the contracts so I could be wrong.

I think that every school we turn over, e.g. trading UCF for FIU, ends up meaning about $2.5 million for the teams that didn't move to divvy up.

(11-30-2012 10:15 AM)AndreWhere Wrote:  I think that there's a misunderstanding here .

The exit fee is $500,000. The other $6.5 million is media money. It's not really a penalty. It just means that if a school leaves, they don't get to keep any future TV revenue... obviously. This money gets replaced by media money from the new conference a ccepting the school.

I haven't read the contracts so I could be wrong.

I think that every school we turn over, e.g. trading UCF for FIU, ends up meaning about $2.5 million for the teams that didn't move to divvy up.

Still pocket change in today's world. What's to keep CUSA from damatically upping its exit fee? Not saying go the ACC route, but increase it to something more reasonable?

One thing to remember, hoops money is credited. So, for instance, Memphis has about 3-4 million built up that will be credited against it's exit fees.

(11-30-2012 10:08 AM)MinerInWisconsin Wrote:  There has been talk about original members only having to pay $500,000 but that does not appear to be the case. Looks like each school will owe that $500,000 exit fee plus 5 years worth of media revenue at 1.3 million per year for a total of about $7 million.

I had wondered about the claim by original members and this article is as close to an answer as I could find.

If this is correct then the league will collect $28 million this coming July and another $14 million in July of 2014. That's $42 million and how that will be divided I'm not sure. It would seem likely that the 6 remaining schools and the league office would each collect a share of the $28 million for this coming July but maybe any new school that comes in officially in 2013 might also get a share of the $14 million to be collected in July of 2014.

Thoughts?

http://articles.orlandosentinel.com/2012...-exit-fees

We've been through this before. Here's the C-USA By-Laws. See Section 3.06(a)

"On the effective date of any member's withdrawal from the Conference, such member shall pay the Conference a withdrawal fee, which shall be determined as follows:

(a) If the member affords the Conference at least one calendar year prior notice of withdrawal but less than two calendar years prior notice of withdrawal, the member shall pay the Conference a withdrawal fee of (i) $500,000 plus (ii) the aggregate amount, if any, by which the television rights fees received by the remaining members of the Conference pursuant to any and all Conference-level television broadcast and licensing agreements are reduced, as a result of the member's withdrawal, during the five year period immediately subsequent to the effective date of the member's withdrawal."

The question is whether the remaining members' television rights fees are reduced or not. It's a mitigation clause.

Nowhere does it say that departing schools must pay their share of TV revenue.

In raising exit fees you would think USM, Marshall, UAB, Rice, Tulsa & UTEP would be against this. The new teams may go for it though.

(11-30-2012 10:21 AM)eagleriffic Wrote:  In raising exit fees you would think USM, Marshall, UAB, Rice, Tulsa & UTEP would be against this. The new teams may go for it though.

Yes, but as Maryland is finding out it doesn't matter if you are against it if more are for it.

I don't think you can raise the exit fees on current members unless they consent... and why would we consent?

The exit fee for brand new members should be higher. If, say, Middle Tennessee doesn't like it, then we call Outer Tennessee.

I think this may actually have happened... can't remember.

Everything I read here seems to indicate that the $7 million figure is a myth.

(11-30-2012 10:21 AM)eagleriffic Wrote:  In raising exit fees you would think USM, Marshall, UAB, Rice, Tulsa & UTEP would be against this. The new teams may go for it though.

Nah, it's a free market. We're just thrilled MTSU got in.

(11-30-2012 10:34 AM)AndreWhere Wrote:  I don't think you can raise the exit fees on current members unless they consent... and why would we consent?

The exit fee for brand new members should be higher. If, say, Middle Tennessee doesn't like it, then we call Outer Tennessee.

I think this may actually have happened... can't remember.

Everything I read here seems to indicate that the $7 million figure is a myth.

Isn't it going to be 6 new and 6 old? Not saying I want to raise the fees, but the numbers may lean towards the new, especially if someone else bolts.

(11-30-2012 10:21 AM)CougarRed Wrote:  

(11-30-2012 10:08 AM)MinerInWisconsin Wrote:  There has been talk about original members only having to pay $500,000 but that does not appear to be the case. Looks like each school will owe that $500,000 exit fee plus 5 years worth of media revenue at 1.3 million per year for a total of about $7 million.

I had wondered about the claim by original members and this article is as close to an answer as I could find.

If this is correct then the league will collect $28 million this coming July and another $14 million in July of 2014. That's $42 million and how that will be divided I'm not sure. It would seem likely that the 6 remaining schools and the league office would each collect a share of the $28 million for this coming July but maybe any new school that comes in officially in 2013 might also get a share of the $14 million to be collected in July of 2014.

Thoughts?

http://articles.orlandosentinel.com/2012...-exit-fees

We've been through this before. Here's the C-USA By-Laws. See Section 3.06(a)

"On the effective date of any member's withdrawal from the Conference, such member shall pay the Conference a withdrawal fee, which shall be determined as follows:

(a) If the member affords the Conference at least one calendar year prior notice of withdrawal but less than two calendar years prior notice of withdrawal, the member shall pay the Conference a withdrawal fee of (i) $500,000 plus (ii) the aggregate amount, if any, by which the television rights fees received by the remaining members of the Conference pursuant to any and all Conference-level television broadcast and licensing agreements are reduced, as a result of the member's withdrawal, during the five year period immediately subsequent to the effective date of the member's withdrawal."

The question is whether the remaining members' television rights fees are reduced or not. It's a mitigation clause.

Nowhere does it say that departing schools must pay their share of TV revenue.

Well that makes more sense but then why does Banowsky say in the next article linked below that the departing schools have each set aside $6.5 million to pay for their departures? Confusing but I certainly see your point. Just wondering if there were adjustments to the by-laws.

http://articles.orlandosentinel.com/2012...ff-godfrey

I think our wallet will be fine

(11-30-2012 10:21 AM)CougarRed Wrote:  

(11-30-2012 10:08 AM)MinerInWisconsin Wrote:  There has been talk about original members only having to pay $500,000 but that does not appear to be the case. Looks like each school will owe that $500,000 exit fee plus 5 years worth of media revenue at 1.3 million per year for a total of about $7 million.

I had wondered about the claim by original members and this article is as close to an answer as I could find.

If this is correct then the league will collect $28 million this coming July and another $14 million in July of 2014. That's $42 million and how that will be divided I'm not sure. It would seem likely that the 6 remaining schools and the league office would each collect a share of the $28 million for this coming July but maybe any new school that comes in officially in 2013 might also get a share of the $14 million to be collected in July of 2014.

Thoughts?

http://articles.orlandosentinel.com/2012...-exit-fees

We've been through this before. Here's the C-USA By-Laws. See Section 3.06(a)

"On the effective date of any member's withdrawal from the Conference, such member shall pay the Conference a withdrawal fee, which shall be determined as follows:

(a) If the member affords the Conference at least one calendar year prior notice of withdrawal but less than two calendar years prior notice of withdrawal, the member shall pay the Conference a withdrawal fee of (i) $500,000 plus (ii) the aggregate amount, if any, by which the television rights fees received by the remaining members of the Conference pursuant to any and all Conference-level television broadcast and licensing agreements are reduced, as a result of the member's withdrawal, during the five year period immediately subsequent to the effective date of the member's withdrawal."

The question is whether the remaining members' television rights fees are reduced or not. It's a mitigation clause.

Nowhere does it say that departing schools must pay their share of TV revenue.

So if that by-law info is current and correct and the real financial cost of leaving the conference is about $500k, there is nothing to really hold any team from leaving for another home.

(11-30-2012 10:51 AM)MinerInWisconsin Wrote:  

(11-30-2012 10:21 AM)CougarRed Wrote:  

(11-30-2012 10:08 AM)MinerInWisconsin Wrote:  There has been talk about original members only having to pay $500,000 but that does not appear to be the case. Looks like each school will owe that $500,000 exit fee plus 5 years worth of media revenue at 1.3 million per year for a total of about $7 million.

I had wondered about the claim by original members and this article is as close to an answer as I could find.

If this is correct then the league will collect $28 million this coming July and another $14 million in July of 2014. That's $42 million and how that will be divided I'm not sure. It would seem likely that the 6 remaining schools and the league office would each collect a share of the $28 million for this coming July but maybe any new school that comes in officially in 2013 might also get a share of the $14 million to be collected in July of 2014.

Thoughts?

http://articles.orlandosentinel.com/2012...-exit-fees

We've been through this before. Here's the C-USA By-Laws. See Section 3.06(a)

"On the effective date of any member's withdrawal from the Conference, such member shall pay the Conference a withdrawal fee, which shall be determined as follows:

(a) If the member affords the Conference at least one calendar year prior notice of withdrawal but less than two calendar years prior notice of withdrawal, the member shall pay the Conference a withdrawal fee of (i) $500,000 plus (ii) the aggregate amount, if any, by which the television rights fees received by the remaining members of the Conference pursuant to any and all Conference-level television broadcast and licensing agreements are reduced, as a result of the member's withdrawal, during the five year period immediately subsequent to the effective date of the member's withdrawal."

The question is whether the remaining members' television rights fees are reduced or not. It's a mitigation clause.

Nowhere does it say that departing schools must pay their share of TV revenue.

So if that by-law info is current and correct and the real financial cost of leaving the conference is about $500k, there is nothing to really hold any team from leaving for another home.

Someone posted a link the other day that said this... All exit and entry fees go to the conference's bank account. Schools can withdraw from that account based on time in the league and various other factors such as financial need. So it doesn't appear it is split exactly evenly among the schools that are left.

I think we have our answer.

The entrance fee is OK, but the exit fee (for the founders at least) is minor.

(11-30-2012 11:09 AM)AndreWhere Wrote:  I think we have our answer.

The entrance fee is OK, but the exit fee (for the founders at least) is minor.

Not just for founding members. That bylaw says nothing about a difference between founding and any other member. It's approximately $500k for any member to get out if they give 1 year notice. Only if the tv value is decreased does it cost anything additional. So far there is no indication that that has happened.

Our tv value has decreased because we had to go from 12 teams to 14 to keep our contract. That means less money for each team.

Not a significant amount though.

The buyout is equal to $500k + the estimate damage to the conference media contracts I et a 5-year period. Therein lies the difference...and, IIRC, Memphis does have millions credited against that number because I'd basketball.

(11-30-2012 11:09 AM)BeliefBlazer Wrote:  Someone posted a link the other day that said this... All exit and entry fees go to the conference's bank account. Schools can withdraw from that account based on time in the league and various other factors such as financial need. So it doesn't appear it is split exactly evenly among the schools that are left.

So, the departing schools are going to pull Southern Miss out of debt?