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Cost of leaving C-USA
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MinerInWisconsin Offline
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Post: #1
Cost of leaving C-USA
For those of you planning an escape from C-USA, this article by Marshall fans favorite sports writer says it's not cheap. So whether it is the AAC or MWC you are aiming for, better start raising money to help your school on its way.

C-USA exit fee
08-02-2016 08:20 AM
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monarx Online
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Post: #2
RE: Cost of leaving C-USA
Thing is, with our crappy CUSA TV contract, a school would break even in MWC or AAC in 3 or 4 years. I can't see $5 million holding anyone back.
(This post was last modified: 08-02-2016 08:37 AM by monarx.)
08-02-2016 08:37 AM
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FlyHawk98 Offline
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RE: Cost of leaving C-USA
We have multiple alumni that are billionaires.

This will not be a problem for Marshall.
08-02-2016 08:45 AM
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MinerInWisconsin Offline
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RE: Cost of leaving C-USA
I agree that $5 million won't stop anyone except when leaving to join the SBC. Now that will be a problem don't you think?

I do have a question on the 14 month notice required and the 2 year forfeit of revenue. If school A gives notice before next May 1st and officially be out of the conference by July 1st of the following year, they would be docked 2 years revenue. To me that means the school would not collect revenue for the year they are just completing plus the next year which is basically a lame duck year. Why wouldn't the school just leave the same year they give notice, not collect for the year just completed and join their new conference before the next athletic season starts? They wouldn't get any conference revenue from C-USA anyway so why stay that year?
08-02-2016 08:56 AM
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THUNDERStruck73 Offline
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Post: #5
RE: Cost of leaving C-USA
I'd be willing to bet that the exit fee could be negotiated to a lower price due to the "value" of CUSA as assessed by our tv deal.
(This post was last modified: 08-02-2016 09:04 AM by THUNDERStruck73.)
08-02-2016 09:03 AM
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WesternBlazer Online
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RE: Cost of leaving C-USA
There is also an entry fee for the new conference. Also, the revenue from the new conference is likely to be a lot less than the payout for current teams meaning a longer period to regain exit and entry fees(see Big 12 current members' money grab). Its not far-fetched to think that by the time a new member becomes a full-portion member of the new conference there would be a new TV deal. With what CUSA was paid this time and the probability that the new AAC deal would be less than the current AAC deal...
(This post was last modified: 08-02-2016 09:19 AM by WesternBlazer.)
08-02-2016 09:18 AM
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WKUYG Away
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RE: Cost of leaving C-USA
Again I will point out there is value in a conference other than TV dollars. TV dollars are the elephant in the room and easy to point to. Western had a increase of 1.2 million other than TV dollars in the last two years. Some of that money might have been there if we stayed in the SBC...

but it wasn't when Western left

When a school moves to a new conference donations usually go up with the move. Win and they keep increasing at a higher level than if you were in the old conference.

But the pink elephant that no one looks at is NCAA basketball units. Football might be driving the moves but basketball dollars in a 3-4 bid conference can and usually out pace the TV dollars. Depending on who leaves the AAC those dollars will most likely fall back to a one bid conference.

If 3 of the teams being mention leaves the AAC the current lineup of CUSA will be a better basketball conference with the POTENTIAL of 2-3 bids at some point. Not today but at some point. I do not see that in the AAC with the teams they lose and replacements being talked about.
08-02-2016 09:52 AM
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RowdyRoost Offline
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Post: #8
RE: Cost of leaving C-USA
I don't know if its changed... but in 2011:

C-USA bylaws specify that a member institution must give the conference one calendar year advance notice before withdrawing. According to the bylaws, if one year notice is given, the withdrawal fee is $500,000 plus the total of any lost television rights fees for the affected institutions during a five-year period following the withdrawing school's departure.
08-02-2016 10:03 AM
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isidnirb Offline
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RE: Cost of leaving C-USA
(08-02-2016 08:45 AM)FlyHawk98 Wrote:  We have multiple alumni that are billionaires.

This will not be a problem for Marshall.

On a side note...the guy who owns the Greenbrier is an awesome person. World could use more people like him.
08-02-2016 10:06 AM
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FlyHawk98 Offline
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RE: Cost of leaving C-USA
(08-02-2016 10:06 AM)isidnirb Wrote:  
(08-02-2016 08:45 AM)FlyHawk98 Wrote:  We have multiple alumni that are billionaires.

This will not be a problem for Marshall.

On a side note...the guy who owns the Greenbrier is an awesome person. World could use more people like him.

Yes. He is one of the guys I was talking about.

His name is Jim Justice and he is actually running for Governor here in the great state of West Virginia.
08-02-2016 10:18 AM
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isidnirb Offline
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RE: Cost of leaving C-USA
(08-02-2016 10:18 AM)FlyHawk98 Wrote:  
(08-02-2016 10:06 AM)isidnirb Wrote:  
(08-02-2016 08:45 AM)FlyHawk98 Wrote:  We have multiple alumni that are billionaires.

This will not be a problem for Marshall.

On a side note...the guy who owns the Greenbrier is an awesome person. World could use more people like him.

Yes. He is one of the guys I was talking about.

His name is Jim Justice and he is actually running for Governor here in the great state of West Virginia.

My sister moved from Atlantic City to run the Casino at the Greenbrier. She loves it. She said how the state came together after the flood was amazing. Plus the owner opening the hotel to those who lost their homes. Good people.
08-02-2016 10:31 AM
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MinerInWisconsin Offline
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RE: Cost of leaving C-USA
(08-02-2016 10:03 AM)RowdyRoost Wrote:  I don't know if its changed... but in 2011:

C-USA bylaws specify that a member institution must give the conference one calendar year advance notice before withdrawing. According to the bylaws, if one year notice is given, the withdrawal fee is $500,000 plus the total of any lost television rights fees for the affected institutions during a five-year period following the withdrawing school's departure.

It has been changed since then. You can google and find the updated pdf document. The title is C-USA 2015/16 Membership Handbook. It contains the bylaws. No mention of $500k anymore but 2 years of conference revenue distribution is surrendered.
08-02-2016 11:46 AM
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FlyHawk98 Offline
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Post: #13
RE: Cost of leaving C-USA
Also, most conferences will allow a new member to pay for entrance fees by taking less distribution over time.

So this isn't going to be as hard as it sounds to come up with the money to leave a sinking ship.
08-02-2016 12:39 PM
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