Found it!

(07-02-2013 09:00 PM)Freshy Wrote:  

(07-02-2013 08:21 PM)ecumbh1999 Wrote:  

(07-02-2013 06:39 PM)randaddyminer Wrote:  

(07-02-2013 04:07 PM)gulfcoastgal Wrote:  Just curious, do y'all know how the money is to be split/utilized?

I've heard the exit fees are split amongst the 5 remaining members. I'd imagine the entrance fees go to the conference. This brings up something I've been thinking about. Since the conference was at 12 members before and now at 14, are the exiting schools responsible for the loss in tv revenue per school of the 5 members left? I'd imagine it is the conference TV contract as a whole, but I was just wondering.

Contract as a whole. If the contract was lowered, we'd have to pay the difference, but the media partners agreed to keep it the same.

There has been no official announcement and there likely won't be, but leaks out of the conference office in Dallas suggest the following:

1. The remaining five members will keep all tournament credit money earned prior to this year and split it amongst themselves. All money earned from this year forward will be split among all members of the conference with the exception of Western Kentucky. They will not get money for this year in addition to past years since they don't join until next year.

2. About half of the entry and exit fees will go toward conference coffers for so-called "moving fees". For example, it is expected that the conference will cover costs associated with painting new logos on fields and courts and sewing them onto uniforms.

3. The other half of the entry and exit fees are expected to be paid out to the five remaining schools. There is $3.5 million in exit fees and $18 million in entrance fees, so the remaining five will divide about $10.25 million between themselves, or $2.05 million per school. Note that the schools will not receive the majority of this money at once because the entrance fees are payable in four annual installments.

4. The incoming schools pay their entry fees as a one-time payment of $500,000, then as three annual deductions of $500,000 each from their conference payouts. The basic premise is to cover the lessened per team payout due to the conference expanding from twelve to fourteen members.

(07-02-2013 09:13 PM)Freshy Wrote:  CUSA bylaws specifically state the money will be held in escrow for a period of five years. The current CUSA media contracts expire in mid-2016, so the money will be held into the new contract period. CUSA will enjoy media revenue protection for a total of six years: four accounts the first year (2013-14), seven accounts for the next four years (2014-15 to 2017-2018), and three accounts in the last year (2018-2019).

http://csnbbs.com/thread-638400.html

(06-09-2014 09:19 AM)KNIGHTTIME Wrote:  

(06-09-2014 07:34 AM)gulfcoastgal Wrote:  IIRC, the bulk of exit money is held is escrow for five years to offset potential losses in tv contract $. Overages (if any exist) are to be returned to the contributing schools at the end of the designated time period. Freshy knows more about it than I do so maybe he'll chime in with the details, but if memory serves most of the $2 mil from UM/SMU/UH/UCF was earmarked for admin. costs. The TUs and ECU have/will contribute another $1.5 mil (500,000 per team) for immediate use. The majority of the accessible realignment fund is made up of entrance fees, and I haven't heard how they are to be distributed.

The breakdown for the exiting programs...

1) 500k exit fee

+

2) any loss in tv revenue. I'm not sure if it is currently considered a loss because it is split between 14 schools from 12. Outside of that question that i've never heard answered, at last 2 of 5 years are still using the existing contract. If the final 3 years include a lower tv deal, then the exiting schools would have to offset the lost in revenue.

- minus tournament credits

3) Memphis will likely pay nothing and Houston/Tulsa should get a reduction of the exit penalties.


c-usa teams should be guaranteed a revenue floor over the next 4 years of minimum distributions. That is the way I know it.

The 500K is the fee for charter schools - that's the fee for Tulane, Memphis and Houston. The others had to pay more than that I believe.
Everyone had to put in escrow some fee to cover a possible loss in TV revenue (and any overage will be returned). If the C-USA deal ends up in 2016, that would mean that UCF, HOuston, SMU and Memphis could be liable for 2 years of diminution and Tulane, Tulsa and ECU liable for 3 years. Not sure how abandoned or earned credits factor in. Tulane, Tulsa and ECU could be hit pretty hard for that last year, depending on how C-USA's TV deal ends up.

(06-09-2014 10:03 AM)DrBox Wrote:  

(06-09-2014 09:19 AM)KNIGHTTIME Wrote:  

(06-09-2014 07:34 AM)gulfcoastgal Wrote:  IIRC, the bulk of exit money is held is escrow for five years to offset potential losses in tv contract $. Overages (if any exist) are to be returned to the contributing schools at the end of the designated time period. Freshy knows more about it than I do so maybe he'll chime in with the details, but if memory serves most of the $2 mil from UM/SMU/UH/UCF was earmarked for admin. costs. The TUs and ECU have/will contribute another $1.5 mil (500,000 per team) for immediate use. The majority of the accessible realignment fund is made up of entrance fees, and I haven't heard how they are to be distributed.

The breakdown for the exiting programs...

1) 500k exit fee

+

2) any loss in tv revenue. I'm not sure if it is currently considered a loss because it is split between 14 schools from 12. Outside of that question that i've never heard answered, at last 2 of 5 years are still using the existing contract. If the final 3 years include a lower tv deal, then the exiting schools would have to offset the lost in revenue.

- minus tournament credits

3) Memphis will likely pay nothing and Houston/Tulsa should get a reduction of the exit penalties.


c-usa teams should be guaranteed a revenue floor over the next 4 years of minimum distributions. That is the way I know it.

The 500K is the fee for charter schools - that's the fee for Tulane, Memphis and Houston. The others had to pay more than that I believe.
Everyone had to put in escrow some fee to cover a possible loss in TV revenue (and any overage will be returned). If the C-USA deal ends up in 2016, that would mean that UCF, HOuston, SMU and Memphis could be liable for 2 years of diminution and Tulane, Tulsa and ECU liable for 3 years. Not sure how abandoned or earned credits factor in. Tulane, Tulsa and ECU could be hit pretty hard for that last year, depending on how C-USA's TV deal ends up.

There is no charter fee discount. It is $500k plus loss of tv revenue which would be held in escrow with the c-usa. I've read the actual exit penalty. Everyone gets hit by that one equally.

Fyi - The $500k had to be paid upfront.

(06-09-2014 10:24 AM)KNIGHTTIME Wrote:  

(06-09-2014 10:03 AM)DrBox Wrote:  

(06-09-2014 09:19 AM)KNIGHTTIME Wrote:  

(06-09-2014 07:34 AM)gulfcoastgal Wrote:  IIRC, the bulk of exit money is held is escrow for five years to offset potential losses in tv contract $. Overages (if any exist) are to be returned to the contributing schools at the end of the designated time period. Freshy knows more about it than I do so maybe he'll chime in with the details, but if memory serves most of the $2 mil from UM/SMU/UH/UCF was earmarked for admin. costs. The TUs and ECU have/will contribute another $1.5 mil (500,000 per team) for immediate use. The majority of the accessible realignment fund is made up of entrance fees, and I haven't heard how they are to be distributed.

The breakdown for the exiting programs...

1) 500k exit fee

+

2) any loss in tv revenue. I'm not sure if it is currently considered a loss because it is split between 14 schools from 12. Outside of that question that i've never heard answered, at last 2 of 5 years are still using the existing contract. If the final 3 years include a lower tv deal, then the exiting schools would have to offset the lost in revenue.

- minus tournament credits

3) Memphis will likely pay nothing and Houston/Tulsa should get a reduction of the exit penalties.


c-usa teams should be guaranteed a revenue floor over the next 4 years of minimum distributions. That is the way I know it.

The 500K is the fee for charter schools - that's the fee for Tulane, Memphis and Houston. The others had to pay more than that I believe.
Everyone had to put in escrow some fee to cover a possible loss in TV revenue (and any overage will be returned). If the C-USA deal ends up in 2016, that would mean that UCF, HOuston, SMU and Memphis could be liable for 2 years of diminution and Tulane, Tulsa and ECU liable for 3 years. Not sure how abandoned or earned credits factor in. Tulane, Tulsa and ECU could be hit pretty hard for that last year, depending on how C-USA's TV deal ends up.

There is no charter fee discount. It is $500k plus loss of tv revenue which would be held in escrow with the c-usa. I've read the actual exit penalty. Everyone gets hit by that one equally.

Fyi - The $500k had to be paid upfront.

^^^^^THIS^^^^

Also, the loss of revenue fee is for the current contract only. It can not be applied to covering tge next deal, and even if did since CUSA went beyond 12 members it would null and void. That why the only one reported on is Memphis as they pretty much get out free of charge. ECU has already paid the 500k and is in talks with CUSA conferebce officals about the rest. We may end up lutting 2-3 million in escro, but as the TV parterns have promised not to lower the current deal, most will likely be returned. The same is true for most of the other schools, just like several that left the BE/AAC paid/ will less than many AAC fans want to say.

There is a reason the loss of revenue amount isn't stated, each team and market is worth something different in the deals and all can be settled at different amounts

(06-09-2014 11:33 AM)ecumbh1999 Wrote:  Also, the loss of revenue fee is for the current contract only. It can not be applied to covering tge next deal, and even if did since CUSA went beyond 12 members it would null and void. That why the only one reported on is Memphis as they pretty much get out free of charge. ECU has already paid the 500k and is in talks with CUSA conferebce officals about the rest. We may end up lutting 2-3 million in escro, but as the TV parterns have promised not to lower the current deal, most will likely be returned. The same is true for most of the other schools, just like several that left the BE/AAC paid/ will less than many AAC fans want to say.

There is a reason the loss of revenue amount isn't stated, each team and market is worth something different in the deals and all can be settled at different amounts

Pretty sure the agreement was no drop in television revenue for 5 years. There were 3 years left on the deal, so if the next contract is lower, the conference will still be guarantee'd $14 million for 2 additional years from the departed members.

(06-09-2014 11:33 AM)ecumbh1999 Wrote:  Also, the loss of revenue fee is for the current contract only. It can not be applied to covering tge next deal, and even if did since CUSA went beyond 12 members it would null and void. That why the only one reported on is Memphis as they pretty much get out free of charge. ECU has already paid the 500k and is in talks with CUSA conferebce officals about the rest. We may end up lutting 2-3 million in escro, but as the TV parterns have promised not to lower the current deal, most will likely be returned. The same is true for most of the other schools, just like several that left the BE/AAC paid/ will less than many AAC fans want to say.

There is a reason the loss of revenue amount isn't stated, each team and market is worth something different in the deals and all can be settled at different amounts

You may be right. I just saw where the Houston CFO Carl Carlucci said the schools exit from CUSA involved a 3.35 million fee (reported in USA-Today a few days ago). That sounds about right as we left a year earlier and would have had to insure an extra year of the CUSA contract against loss. That would have been about 3.48 million. Additionally, we had the 500K standard base fee minus the remaining years of our NCAA credit from our tournament appearance in 2010 (about 1 million). My rough calculation is close to what Carlucci stated.

3.48 million (1.16 a year x 3----each CUSA team earned 1.16 million from media in 2012)

500K base exit fee

3.98 million total fee

minus remaining NCAA basketball credits (4 years at about 250K per year = 1 million)

2.98 million total fee. That's fairly close and I might be off on the number of years left on the credit---it might just be 3 years---which would mean only about 750K is subtracted from the total exit fee (3.23 million).

(06-09-2014 11:59 AM)Niner National Wrote:  

(06-09-2014 11:33 AM)ecumbh1999 Wrote:  Also, the loss of revenue fee is for the current contract only. It can not be applied to covering tge next deal, and even if did since CUSA went beyond 12 members it would null and void. That why the only one reported on is Memphis as they pretty much get out free of charge. ECU has already paid the 500k and is in talks with CUSA conferebce officals about the rest. We may end up lutting 2-3 million in escro, but as the TV parterns have promised not to lower the current deal, most will likely be returned. The same is true for most of the other schools, just like several that left the BE/AAC paid/ will less than many AAC fans want to say.

There is a reason the loss of revenue amount isn't stated, each team and market is worth something different in the deals and all can be settled at different amounts

Pretty sure the agreement was no drop in television revenue for 5 years. There were 3 years left on the deal, so if the next contract is lower, the conference will still be guarantee'd $14 million for 2 additional years from the departed members.

I am under this impression as well. Else, why bother putting $ in escrow at all since it's known that the contract remains whole through '15-16? IIRC (from message board conversations over a year ago), the five year clause isn't dependent upon where CUSA is in its' current contract cycle. The departing school(s) is(are) responsible for any shortfall in tv $ attributed to said school(s) for a five year period after exiting the conference. Help me out here. What am I missing?

(06-09-2014 01:14 PM)gulfcoastgal Wrote:  

(06-09-2014 11:59 AM)Niner National Wrote:  

(06-09-2014 11:33 AM)ecumbh1999 Wrote:  Also, the loss of revenue fee is for the current contract only. It can not be applied to covering tge next deal, and even if did since CUSA went beyond 12 members it would null and void. That why the only one reported on is Memphis as they pretty much get out free of charge. ECU has already paid the 500k and is in talks with CUSA conferebce officals about the rest. We may end up lutting 2-3 million in escro, but as the TV parterns have promised not to lower the current deal, most will likely be returned. The same is true for most of the other schools, just like several that left the BE/AAC paid/ will less than many AAC fans want to say.

There is a reason the loss of revenue amount isn't stated, each team and market is worth something different in the deals and all can be settled at different amounts

Pretty sure the agreement was no drop in television revenue for 5 years. There were 3 years left on the deal, so if the next contract is lower, the conference will still be guarantee'd $14 million for 2 additional years from the departed members.

I am under this impression as well. Else, why bother putting $ in escrow at all since it's known that the contract remains whole through '15-16? IIRC (from message board conversations over a year ago), the five year clause isn't dependent upon where CUSA is in its' current contract cycle. The departing school(s) is(are) responsible for any shortfall in tv $ attributed to said school(s) for a five year period after exiting the conference. Help me out here. What am I missing?

Frankly I thought I remember reading it was 5 years as well.

It stated 5 years in the exit penalty. So depending on the next tv contract is the real exit fee number.

Still don't know if there will be a penalty for the 2 years for getting the same total revenue but divided over 14 teams. That wasn't in the exit penalty clause from the c-usa. Not sure if that was negotiated or not.

Obviously the c-usa isn't getting zero in the next tv deal, so I'm pretty sure it would be in the same ball park.

(06-09-2014 02:20 PM)KNIGHTTIME Wrote:  It stated 5 years in the exit penalty. So depending on the next tv contract is the real exit fee number.

Still don't know if there will be a penalty for the 2 years for getting the same total revenue but divided over 14 teams. That wasn't in the exit penalty clause from the c-usa. Not sure if that was negotiated or not.

Obviously the c-usa isn't getting zero in the next tv deal, so I'm pretty sure it would be in the same ball park.

I would think as long as the total dollar amount the conference receives stays the same there wouldn't be a penalty. The schools that left shouldn't be held responsible for the league growing in size.

(06-09-2014 02:20 PM)KNIGHTTIME Wrote:  It stated 5 years in the exit penalty. So depending on the next tv contract is the real exit fee number.

Still don't know if there will be a penalty for the 2 years for getting the same total revenue but divided over 14 teams. That wasn't in the exit penalty clause from the c-usa. Not sure if that was negotiated or not.

Obviously the c-usa isn't getting zero in the next tv deal, so I'm pretty sure it would be in the same ball park.

Also the wording refers to the loss of media income attributable to the departing school. That's difficult to determine if multiple schools leave at one time--thus Im assuming any total loss would be divided evenly by the departing schools. So, if the contract does drop 1 million per year (for example), the departing schools would split that 1 million by the 6 schools that had departed (requiring a payment of about $166,667 each). Lots of variables here. All I can really tell your for sure is that Houston's CFO says we wrote a check for 3.35 million.

Yeah, I don't think CUSA opting to grow the league beyond 12 can be directly attributed to the departures of particular schools. Same principle applies had the closure of CSS lowered the $ amount, the departees would not have been held accountable.

Hmm, *unless* the terms of keeping the contract whole required expansion to 14. I can understand why the TV execs would like that...more inventory for the same price, not sure about the benefit to the remaining teams though...unless the contract would have been lowered by more than divvying it two more ways...then there's the entrance fees from the newcomers offsetting the difference. I'm just rambling and confusing myself. I'll stop now. lol

Okay, I didn't state my post the best way.

Yes, it is a 5 year period, Bylaws here...... Page 6-7

http://grfx.cstv.com/photos/schools/tuls...ndbook.pdf

But, it is not as straight forward as a set dollar amount or if the revenue drops that it is a 100% coverage of the difference.

(f) If the member affords the Conference at least six calendar years prior notice of withdrawal, the member shall not be obligated to pay the Conference a withdrawal fee.
The withdrawal fee shall be reduced by the value of any NCAA basketball fund units earned by the withdrawing member that will be paid to the Conference and not distributed to the withdrawing member after the effective date of the withdrawal. The withdrawal fee shall be increased by the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of the withdrawal.
To secure its obligation to pay the withdrawal fee, the withdrawing member shall provide at the time of giving notice of withdrawal a bond or other security reasonably satisfactory to the Conference's Board of Directors (provided, however, that the Director representing the withdrawing member may not participate or vote in connection with any such decision) in the amount of the reasonably expected withdrawal fee (as estimated in good faith by the Commissioner), which shall remain in effect until the withdrawal fee is paid.
The amount by which the remaining members of the Conference suffer reduced television rights fees, if any, shall be determined by the Commissioner after discussion with the withdrawing member, the other Conference members, and the holder(s) of the Conference television contract(s). The determination of the Commissioner relative to such reduction on a good faith basis shall be final and binding upon the withdrawing member and upon all other members of the Conference.


So, nowhere does it state that if the next is lower that the existing schools are on the hook for 100% of the difference. It is decided in good faith a fair amount, if any, and that is what is paid. As we already know the current contract will not drop, none is due. But, here is where thing get hard. Yes, it's in the Bylaws, but that is not to say it's iron clad. The BE had a 2 and 1/2 year mediatory waiting period after submitting a written notice of withdrawal, but WVU left in less than one year, Pitt, Cuse, UofL left/are leaving after 1 year, and the BE said that each would held to that 2 and 1/2 year clause. UofL's exit fee was supposed to higher than what they will actually pay.

What is written isn't always enforceable, and CUSA also knows that if the next deal is the same amount they won't get anything beyond the 500k. That is why you haven't seen anything for an amount for UCF, UH, ECU, Tulsa, Tulane, or SMU. Because it may not be enforceable with conference expanding beyond 12 members (amount amount of members when the Bylaws where passed). Also, there is only a 50/50 shot of winning in court to enforce it on a new contract that will be signed more than 12 months after the schools have left, in this case 36 months later. So, that way you saw Memphis being able to leave without paying anything, gave up the NCAA credits and agreed to play some basketball games with CUSA teams instead of paying $$$. If CUSA can get games that would be put on TV with P5 cutting their OOC games down with G5 and some going to 3 OOC games, that is as good as money, especially money you may not get at all.

(06-09-2014 06:47 PM)ecumbh1999 Wrote:  Okay, I didn't state my post the best way.

Yes, it is a 5 year period, Bylaws here...... Page 6-7

http://grfx.cstv.com/photos/schools/tuls...ndbook.pdf

But, it is not as straight forward as a set dollar amount or if the revenue drops that it is a 100% coverage of the difference.

(f) If the member affords the Conference at least six calendar years prior notice of withdrawal, the member shall not be obligated to pay the Conference a withdrawal fee.
The withdrawal fee shall be reduced by the value of any NCAA basketball fund units earned by the withdrawing member that will be paid to the Conference and not distributed to the withdrawing member after the effective date of the withdrawal. The withdrawal fee shall be increased by the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of the withdrawal.
To secure its obligation to pay the withdrawal fee, the withdrawing member shall provide at the time of giving notice of withdrawal a bond or other security reasonably satisfactory to the Conference's Board of Directors (provided, however, that the Director representing the withdrawing member may not participate or vote in connection with any such decision) in the amount of the reasonably expected withdrawal fee (as estimated in good faith by the Commissioner), which shall remain in effect until the withdrawal fee is paid.
The amount by which the remaining members of the Conference suffer reduced television rights fees, if any, shall be determined by the Commissioner after discussion with the withdrawing member, the other Conference members, and the holder(s) of the Conference television contract(s). The determination of the Commissioner relative to such reduction on a good faith basis shall be final and binding upon the withdrawing member and upon all other members of the Conference.


So, nowhere does it state that if the next is lower that the existing schools are on the hook for 100% of the difference. It is decided in good faith a fair amount, if any, and that is what is paid. As we already know the current contract will not drop, none is due. But, here is where thing get hard. Yes, it's in the Bylaws, but that is not to say it's iron clad. The BE had a 2 and 1/2 year mediatory waiting period after submitting a written notice of withdrawal, but WVU left in less than one year, Pitt, Cuse, UofL left/are leaving after 1 year, and the BE said that each would held to that 2 and 1/2 year clause. UofL's exit fee was supposed to higher than what they will actually pay.

What is written isn't always enforceable, and CUSA also knows that if the next deal is the same amount they won't get anything beyond the 500k. That is why you haven't seen anything for an amount for UCF, UH, ECU, Tulsa, Tulane, or SMU. Because it may not be enforceable with conference expanding beyond 12 members (amount amount of members when the Bylaws where passed). Also, there is only a 50/50 shot of winning in court to enforce it on a new contract that will be signed more than 12 months after the schools have left, in this case 36 months later. So, that way you saw Memphis being able to leave without paying anything, gave up the NCAA credits and agreed to play some basketball games with CUSA teams instead of paying $$$. If CUSA can get games that would be put on TV with P5 cutting their OOC games down with G5 and some going to 3 OOC games, that is as good as money, especially money you may not get at all.

I actually have seen an amount for us in print. It was 3.35 million. Now, from my understanding---part of that might come back---but I have NOT seen that part in print anywhere other than a conclusion drawn from the bylaws.

University CFO Carlucci said the school's exit from Conference USA involved a $3.35 million fee that the university covered. Absent the exit fee, the university's contribution to the athletics program would have declined from $16.9 million in 2011-12 to just under $15 million in 2012-13.

http://www.usatoday.com/story/sports/nca...8orHyJWikA

(06-09-2014 07:12 PM)Attackcoog Wrote:  

(06-09-2014 06:47 PM)ecumbh1999 Wrote:  Okay, I didn't state my post the best way.

Yes, it is a 5 year period, Bylaws here...... Page 6-7

http://grfx.cstv.com/photos/schools/tuls...ndbook.pdf

But, it is not as straight forward as a set dollar amount or if the revenue drops that it is a 100% coverage of the difference.

(f) If the member affords the Conference at least six calendar years prior notice of withdrawal, the member shall not be obligated to pay the Conference a withdrawal fee.
The withdrawal fee shall be reduced by the value of any NCAA basketball fund units earned by the withdrawing member that will be paid to the Conference and not distributed to the withdrawing member after the effective date of the withdrawal. The withdrawal fee shall be increased by the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of the withdrawal.
To secure its obligation to pay the withdrawal fee, the withdrawing member shall provide at the time of giving notice of withdrawal a bond or other security reasonably satisfactory to the Conference's Board of Directors (provided, however, that the Director representing the withdrawing member may not participate or vote in connection with any such decision) in the amount of the reasonably expected withdrawal fee (as estimated in good faith by the Commissioner), which shall remain in effect until the withdrawal fee is paid.
The amount by which the remaining members of the Conference suffer reduced television rights fees, if any, shall be determined by the Commissioner after discussion with the withdrawing member, the other Conference members, and the holder(s) of the Conference television contract(s). The determination of the Commissioner relative to such reduction on a good faith basis shall be final and binding upon the withdrawing member and upon all other members of the Conference.


So, nowhere does it state that if the next is lower that the existing schools are on the hook for 100% of the difference. It is decided in good faith a fair amount, if any, and that is what is paid. As we already know the current contract will not drop, none is due. But, here is where thing get hard. Yes, it's in the Bylaws, but that is not to say it's iron clad. The BE had a 2 and 1/2 year mediatory waiting period after submitting a written notice of withdrawal, but WVU left in less than one year, Pitt, Cuse, UofL left/are leaving after 1 year, and the BE said that each would held to that 2 and 1/2 year clause. UofL's exit fee was supposed to higher than what they will actually pay.

What is written isn't always enforceable, and CUSA also knows that if the next deal is the same amount they won't get anything beyond the 500k. That is why you haven't seen anything for an amount for UCF, UH, ECU, Tulsa, Tulane, or SMU. Because it may not be enforceable with conference expanding beyond 12 members (amount amount of members when the Bylaws where passed). Also, there is only a 50/50 shot of winning in court to enforce it on a new contract that will be signed more than 12 months after the schools have left, in this case 36 months later. So, that way you saw Memphis being able to leave without paying anything, gave up the NCAA credits and agreed to play some basketball games with CUSA teams instead of paying $$$. If CUSA can get games that would be put on TV with P5 cutting their OOC games down with G5 and some going to 3 OOC games, that is as good as money, especially money you may not get at all.

I actually have seen an amount for us in print. It was 3.35 million. Now, from my understanding---part of that might come back---but I have NOT seen that part in print anywhere other than a conclusion drawn from the bylaws.

University CFO Carlucci said the school's exit from Conference USA involved a $3.35 million fee that the university covered. Absent the exit fee, the university's contribution to the athletics program would have declined from $16.9 million in 2011-12 to just under $15 million in 2012-13.

http://www.usatoday.com/story/sports/nca...8orHyJWikA

Which doing the math, 500k for the exit fee leaves 2.85 million in escrow, which if CUSA has no loss of revenue will be returned in 5 years, (4 now). Which with the way I read it, the TV partners help in setting the amount, or in other words help decide the value they brought, which would include market size and reach of the team in their market and value in the contract, which would different from team to team and not equally split. Also, judging from Memphis' deal the conference is willing to use a scheduling agreement to lower fees again could vary from team to team. Plus, with games CUSA gets that no matter what, money in escrow is returned if there is no lose of revenue.

PS, thanks for posting the article, hadn't seen it.

What they are going to pay was hashed out before they left and agreed upon by members and my guess likely already being paid - nothing from the future will matter, as the number determined was made and is binding.
"The amount by which the remaining members of the Conference suffer reduced television rights fees, if any, shall be determined by the Commissioner after discussion with the withdrawing member, the other Conference members, and the holder(s) of the Conference television contract(s). The determination of the Commissioner relative to such reduction on a good faith basis shall be final and binding upon the withdrawing member and upon all other members of the Conference."

As for comparing it to the Big East... no member left without paying... the Big East negotiated early exits with INCREASED financial penalties. Syracuse and Pittsburgh announced in September 2011 they'd leave (left in June 2013) and paid 150% of the exit fee for leaving six months early. West Virginia paid $20-million or 4x the then exit fee to leave 20 months early. Louisville and Rutgers are each paying $12.5-million dollars to exit the American - that is a negotiated 8-month early exit for an additional $2.5-million.

(06-10-2014 04:37 PM)IceJus10 Wrote:  What they are going to pay was hashed out before they left and agreed upon by members and my guess likely already being paid - nothing from the future will matter, as the number determined was made and is binding.
"The amount by which the remaining members of the Conference suffer reduced television rights fees, if any, shall be determined by the Commissioner after discussion with the withdrawing member, the other Conference members, and the holder(s) of the Conference television contract(s). The determination of the Commissioner relative to such reduction on a good faith basis shall be final and binding upon the withdrawing member and upon all other members of the Conference."

As for comparing it to the Big East... no member left without paying... the Big East negotiated early exits with INCREASED financial penalties. Syracuse and Pittsburgh announced in September 2011 they'd leave (left in June 2013) and paid 150% of the exit fee for leaving six months early. West Virginia paid $20-million or 4x the then exit fee to leave 20 months early. Louisville and Rutgers are each paying $12.5-million dollars to exit the American - that is a negotiated 8-month early exit for an additional $2.5-million.

ECU and CUSA have not reach a final amount yet and Memphis was just settled within the last 6 months, after they left.

UofL and Rutgers paid less than the 20 million exit fee that was in place before they left.

In any case, the next contract for CUSA is likely to be the same or slightly more, so they'll get the 500k, we'll leave a deposit for 5 years and get it back.

(06-10-2014 07:04 PM)ecumbh1999 Wrote:  UofL and Rutgers paid less than the 20 million exit fee that was in place before they left.

Actually you're wrong, the Big East / American Exit Penalty include a $10-million fee and 27-months notice...

Louisville and Rutgers both agreed to pay $12.5 million and will have waited 20 months from when they announced their departure.