ecumbh1999
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RE: Ka-Ching!! C-USA Made Nearly 40-Million In Realignment--CBS Sports
(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.
(This post was last modified: 06-09-2014 07:52 PM by ecumbh1999.)
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