(01-14-2016 05:45 PM)IceJus10 Wrote:  If I remember back to 2011 and 2012 when the teams announced their departures from CUSA, they were only on the hook for decreases in the current contract through mid-2016. This new contract does not take effect until after that, so those former schools will not be on the hook.

Or, you could read the actual CUSA bylaws (3.06) and see that it is for the "five year period immediately subsequent to the effective date of the member's withdraw." For UCF, Houston, Memphis, and SMU the effective date of withdraw was 7/1/13. For ECU, Tulane, and Tulsa it was 7/1/14.

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

(01-14-2016 06:33 PM)CoachMaclid Wrote:  

(01-14-2016 05:45 PM)IceJus10 Wrote:  If I remember back to 2011 and 2012 when the teams announced their departures from CUSA, they were only on the hook for decreases in the current contract through mid-2016. This new contract does not take effect until after that, so those former schools will not be on the hook.

Or, you could read the actual CUSA bylaws (3.06) and see that it is for the "five year period immediately subsequent to the effective date of the member's withdraw." For UCF, Houston, Memphis, and SMU the effective date of withdraw was 7/1/13. For ECU, Tulane, and Tulsa it was 7/1/14.

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

First, thank you for providing a link to the actual bylaws. I understand why you would think the departed schools would owe money based on sections 3.06 (a) through (f). Unfortunately, further down the bylaws clearly state

"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)."

In other words, it only applies to the current contract. That contract has expired without any changes being made to it by the contract holder and so the departed schools owe nothing.

(01-15-2016 01:00 PM)IULurker Wrote:  

(01-14-2016 06:33 PM)CoachMaclid Wrote:  

(01-14-2016 05:45 PM)IceJus10 Wrote:  If I remember back to 2011 and 2012 when the teams announced their departures from CUSA, they were only on the hook for decreases in the current contract through mid-2016. This new contract does not take effect until after that, so those former schools will not be on the hook.

Or, you could read the actual CUSA bylaws (3.06) and see that it is for the "five year period immediately subsequent to the effective date of the member's withdraw." For UCF, Houston, Memphis, and SMU the effective date of withdraw was 7/1/13. For ECU, Tulane, and Tulsa it was 7/1/14.

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

First, thank you for providing a link to the actual bylaws. I understand why you would think the departed schools would owe money based on sections 3.06 (a) through (f). Unfortunately, further down the bylaws clearly state

"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)."

In other words, it only applies to the current contract. That contract has expired without any changes being made to it by the contract holder and so the departed schools owe nothing.

Exactly...we got off easy...esp since CUSA accepted our NCAA basketball credits (that we had to leave anyway) in lieu of an exit fee.

(01-12-2016 02:40 PM)perimeterpost Wrote:  Interesting.

Some of their info isn't 100% accurate though. It says CUSA is the first mid major to renegotiate since realignment. Not true, MAC renegotiated in 2014 after realignment was settled. It also says the MAC earns $670K per school ($8M/yr) which is true, but only until 2017 when it jumps to $833K per school ($10M/yr) for 10 years.

It also says CUSA currently gets 14 million a year (which is correct), or 1.17 million per school (which is wrong). It looks like they divided the 14 million by 12, not 14. The CUSA schools get currently get 1 million each. Assuming they lose $500K in earnings per schools, then CUSA schools will begin receiving just $500K each a year once the new agreement goes into effect for 2016.

(01-13-2016 10:25 AM)HuskieJohn Wrote:  

(01-12-2016 04:45 PM)BeliefBlazer Wrote:  

(01-12-2016 04:42 PM)Kittonhead Wrote:  I'll check into it but if I am correct the schools that departed for the AAC are under the hook to pay the difference with the new deal in escrow.

They way it was explained to me: Only to the schools in C-USA at the time they left and only for the first couple years of the new contract.

Wow..so 6 AAC schools have to split the CUSA decrease of $6.5mil per year ($500k X 13 teams) for the next few years?

ECU
Tulane
Tulsa
UCF
Houston
SMU
Memphis

If you read the actual bylaws, its not as onerous as it sounds.

We are actually only responsible for making up the lost revenue for the teams who were actually members of the conference (at the time the exit was effective) for a 5 year period. Based on the way it written, then theoretically, a team would only be responsible for the amount that the media deal went down that is directly attributable to that team's exit. So, if one team leaves and the deal drops by a 1.2 million---then the team would theoretically owe 1.1 million per year for 5 years to the left behind 11 teams (or 100K per team left behind). However, if 5 teams leave and the deal drops by 1.2 million, each exiting team would only owe a tiny fraction of that amount because the burden is shared by more teams (split 5 ways) and the total burden is cut due to leaving fewer teams behind that need to made whole (just 7 left behind instead of 11). As you can see---its not all that cut and dried. Basically, what happens in CUSA is the fee is negotiated on exit and has already been placed in escrow. I want to say I remember reading an interview where out CFO said were required to put around 3 million or so in escrow as our total exit fee at the time of our exit (its negotiated since there's no way to know what the drop in media deal might be in the future).


So, for Houston, UCF, Memphis, ECU, Tulane, Tulsa, and SMU---we only are covering the 500K for old members S Miss, UAB, Marshall, Rice, and UTEP (or 2.5 million a year). SMU, Houston, Memphis, and UCF have already been gone 3 years since leaving. Tulane, ECU,, and Tulsa have been gone 2 years. So for Houston, Memphis, SMU, and UCF---we would only be paying out $357K a year each for 2 years (which we have already left behind when we exited the conference as part of the exit fee). We are also individually only responsible for the amount of drop in revenue directly attributable to the exit of each individual school---so in 2018, Tulane, ECU, and Tulsa should still be paying just $357K each in their final year. In 2018, there is no more exit fee money in the pipeline and the long time CUSA schools will have to get by on $500K in media money per year.

One item which has not been mentioned is that the departing schools are only responsible for the loss due to them leaving. They could simply say the economics of sports broadcasting have changed and that is why conference did not earn as much in the new contract. In other words, the drop is not due to them leaving. In fact, they have a pretty good argument. If their leaving had caused the value to the contract holders to be reduced, those holders would have renegotiated the current deal years ago, which they did not.

Again, I cannot see a scenario where the departing schools pay anything other than what has already been payed because the previous contract was not renegotiated.

I am still interested how this will impact the return of UAB football.