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Brett McMurphy: there is no financial penalty in by-laws (CUSA)
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TTT Offline
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Brett McMurphy: there is no financial penalty in by-laws (CUSA)
You just can't make this up. Of course those in the know have known this since December.

"Conference USA statement on early departures of Marshall, ODU & USM. By-laws require 14 months notice to leave, but there is no financial penalty in by-laws for not providing required notice"

https://twitter.com/brett_mcmurphy/statu...76230?s=21
02-11-2022 06:37 PM
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Post: #2
RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 06:37 PM)TTT Wrote:  You just can't make this up. Of course those in the know have known this since December.

"Conference USA statement on early departures of Marshall, ODU & USM. By-laws require 14 months notice to leave, but there is no financial penalty in by-laws for not providing required notice"

https://twitter.com/brett_mcmurphy/statu...76230?s=21

Just saw that myself. Hahaha
02-11-2022 06:44 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
So here's my question, is the conference going to go ahead and release the schedule on Monday and not draw up a new one?
I feel like remaining member institutions should step up and say something.
I know one AD was "shocked", but at the same time, if a team says they won't be there, you need to look out for your school and face facts
02-11-2022 06:52 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
I hope they release it anyways with the three teams. I wanna see what they were gonna screw us with
02-11-2022 06:54 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
The fact that USM/ODU/Marshall told CUSA back in early December that they are leaving for the SBC in June 2022, and CUSA still decided to plan on going forward with the assumption those 3 will be in CUSA in Fall 2022 tells you all you need to know about CUSA leadership.

From USM's press release,

"The University first advised Conference USA in early December 2021 of the University's plans to terminate its membership in June 2022. Since then, the University has clearly and consistently repeated its intentions to the conference. The University has from the outset expressed its desire to work with Conference USA to achieve an amicable separation, including offering to cooperate to ensure that all remaining conference members had complete competitive schedules for those sports in which the University competes. Conference USA has so far refused to discuss any such arrangement with the University.

The Conference's unwillingness to discuss the concept of separation this year creates confusion and doubt for all concerned. The remaining members of Conference USA deserve certainty about their schedules as they plan for competition next year. For their sake, the University makes public its intent."
https://southernmiss.com/news/2022/2/11/...nment.aspx
02-11-2022 06:57 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
In lawyers hands now-- I thought it was already. Both sides posturing. I thought it was two years of conference distributions regardless.
02-11-2022 06:58 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 06:58 PM)TOPSTRAIGHT Wrote:  In lawyers hands now-- I thought it was already. Both sides posturing. I thought it was two years of conference distributions regardless.

Question for lawyers. Would you want your name on cusa’s legal strategy here?
02-11-2022 07:10 PM
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Post: #8
RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 06:58 PM)TOPSTRAIGHT Wrote:  In lawyers hands now-- I thought it was already. Both sides posturing. I thought it was two years of conference distributions regardless.

Yes, it's 2 years of distributions, no disagreement there. That's for leaving the conference, period, and to my knowledge isn't disputed. The dispute is if there is a penalty BEYOND the 2 years of distributions if the 14 month notice isn't kept. And there isn't. So no reason to stick around really.
02-11-2022 07:11 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
Basically what I saw from Pete Magee was CUSA issued schedules today and that’s when USM and Marshall said bye.
02-11-2022 07:13 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 07:10 PM)Soaring Eagle Wrote:  
(02-11-2022 06:58 PM)TOPSTRAIGHT Wrote:  In lawyers hands now-- I thought it was already. Both sides posturing. I thought it was two years of conference distributions regardless.

Question for lawyers. Would you want your name on cusa’s legal strategy here?

I don't know if any lawyer could answer that without knowing the specifics of the contract.
02-11-2022 07:17 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
C-USA attorney is ready!
[Image: Henry-Winkler-Arrested-Development.jpg]
02-11-2022 07:22 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
This from latechs bb


From the conference bylaws in the latest C-USA Handbook that I have (2015-2016):

3.06 Withdrawal From Conference.
No member of the Conference may withdraw from the Conference except pursuant to and as allowed by this Section 3.06. No member may withdraw from the Conference without providing the Conference prior written notice. Any and all withdrawals from the Conference shall be effective on July 1 of the year specified in the notice of withdrawal; provided, however, that the withdrawing member must afford the Conference notice at least fourteen months prior to the effective date of the withdrawal (i.e. no later than May 1 of the prior year). However, if a Member makes statements or takes actions that evidence intent of such Member to withdraw from the Conference either currently or in the future, such actions will be determined as notice of withdrawal by a three-fourths (3/4) vote of the remaining Members of the Board of Directors. In the event that a member attempts to leave the Conference without fully complying with the notice of withdrawal requirements set forth above, the Conference shall be entitled to equitable relief without having to prove actual injury, irreparable or otherwise, including, but not limited to, an injunction requiring the member to comply fully with the notice of withdrawal requirements set forth above, to fulfill all of its obligations as a Conference member, and to remain in the Conference until the earliest permissible date upon which the member could have, under the circumstances, withdrawn with full and proper prior notice as required above. The members agree that any attempted withdrawal of a member without full compliance with the prior notice requirements set forth above would cause a disruption in the scheduling of competitions among the members for which there is no adequate remedy at law which would cause harm that would not in any respect be compensated by payment of a withdrawal fee, and for which, therefore, equitable relief is appropriate.

The withdrawing member shall be responsible for the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of the withdrawal. From the date of notice of withdrawal, the withdrawing member shall have no rights to receive distribution of Conference revenues of any nature (i.e. the Conference shall be entitled to retain distribution for two fiscal years) and shall continue to be obligated to pay Conference expenses, assessments, or debts. Further, the term of office of any Board Member representing a Withdrawing Member shall automatically expire and such Chief Executive Officer shall no longer be a Board Member of the Conference effective as of the notice date or determination of notice to withdraw and such Withdrawing Member shall not be entitled to have a representative on the Board of Directors thereafter. During the period thereafter the number of Board Members shall automatically be reduced by the number of Withdrawing Members; and the Withdrawing Member(s) shall not be permitted to attend any meeting of, vote on any matter before, receive notice of any meeting of, or receive copies of materials distributed to the Board of Directors; the Conference shall however, inform the Chief Executive Officer of a Withdrawing Member about matters (as determined by the Commissioner in his sole discretion) that may materially impact the Withdrawing Member during the period prior to the effective date of the withdrawal in a manner disproportionate to the Withdrawing Member and shall provide the Chief Executive Officer of the Withdrawing Member with a reasonable opportunity for discussion with the Board of Directors on such issues as requested Each of the Members agrees that withdrawal of a member from the Conference would cause damage and financial hardship to the Conference and its continuing members, that the financial consequences to the Conference and its continuing members of such withdrawal cannot be measured or estimated with certainty at this time, and that the withholding of distributions pursuant to the preceding paragraph is a reasonable method of compensating the Conference and the continuing members for such damage and financial hardship and is not and shall not be construed as a penalty.

3.07 Suspension and Expulsion.
A member shall be subject to suspension or expulsion for cause by the Board of Directors (provided, however, that the Director representing the withdrawing member may not participate or vote in connection with any such decision) pursuant to Section 5.02©(iii) if the member:
(a) Fails to meet its financial obligations to the Conference;
(b) Violates any of the provisions of these Bylaws or the rules and regulations of the Conference (collectively referred to as "Conference Legislation") or the NCAA; or,
© Engages in a course of conduct significantly contrary to the best interests or reputation of the Conference and the remaining members of the Conference as determined by the Board of Directors.

A member suspended or expelled for cause shall not be entitled to receive a return of any initiation fee or subsequent contributions paid by it to the Conference, nor shall it (a) be relieved of any financial obligations to the Conference arising prior to such suspension or expulsion, including, without limitation, assessments made pursuant to Section 3.04; or, (b) be entitled to distributions, if any, of Conference income, whether pursuant to Section 5.02(b)(xii) or otherwise, for the fiscal year in which suspension or withdrawal occurs or for any subsequent fiscal years. The suspension or expulsion of a member for cause shall not be deemed a waiver by the Conference or other Conference members of any claims it or they may have against the member for losses or damages incurred as a result of the conduct giving rise to such suspension or expulsion.
02-11-2022 07:27 PM
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Post: #13
RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
From above

Withholding of distribution is a reasonable method of compensation.
(This post was last modified: 02-11-2022 07:33 PM by Soaring Eagle.)
02-11-2022 07:30 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 07:30 PM)Soaring Eagle Wrote:  From above

Withholding of distribution is a reasonable method of compensation.

So we'll miss out on a few bags of peanuts, a few food vouchers to Western Sizzlin', and some coupons to Jeep's kids toyline.
02-11-2022 07:45 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 07:45 PM)TTT Wrote:  
(02-11-2022 07:30 PM)Soaring Eagle Wrote:  From above

Withholding of distribution is a reasonable method of compensation.

So we'll miss out on a few bags of peanuts, a few food vouchers to Western Sizzlin', and some coupons to Jeep's kids toyline.

Since we’ll make more in the SB than the withheld distribution it is a no brainer to leave now.
02-11-2022 07:50 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 07:50 PM)Soaring Eagle Wrote:  
(02-11-2022 07:45 PM)TTT Wrote:  
(02-11-2022 07:30 PM)Soaring Eagle Wrote:  From above

Withholding of distribution is a reasonable method of compensation.

So we'll miss out on a few bags of peanuts, a few food vouchers to Western Sizzlin', and some coupons to Jeep's kids toyline.

Since we’ll make more in the SB than the withheld distribution it is a no brainer to leave now.

Not only this, the amount of travel costs we'll save is considerable. Can't remember the #'s off the top of my head but the University put out a statement back in the Fall when we first announced, and detailed a lot of the travel cost savings and it was SUBSTANTIAL.
02-11-2022 07:58 PM
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Post: #17
RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 07:13 PM)gdunn Wrote:  Basically what I saw from Pete Magee was CUSA issued schedules today and that’s when USM and Marshall said bye.

And ODU as well. It's pretty clear that the presidents of the 3 schools have coordinated things on putting this statement out. All of them put it out simultaneously at or around 3 PM today EST. The key part of the statements even read the same.
02-11-2022 08:06 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 08:06 PM)ODU BBALL Wrote:  
(02-11-2022 07:13 PM)gdunn Wrote:  Basically what I saw from Pete Magee was CUSA issued schedules today and that’s when USM and Marshall said bye.

And ODU as well. It's pretty clear that the presidents of the 3 schools have coordinated things on putting this statement out. All of them put it out simultaneously at or around 3 PM today EST. The key part of the statements even read the same.

When I posted that I hadn’t seen ODUs. Should’ve figured that since we’ve been in it since day 1 of this.
02-11-2022 08:08 PM
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RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 07:27 PM)Soaring Eagle Wrote:  This from latechs bb


From the conference bylaws in the latest C-USA Handbook that I have (2015-2016):

3.06 Withdrawal From Conference.
No member of the Conference may withdraw from the Conference except pursuant to and as allowed by this Section 3.06. No member may withdraw from the Conference without providing the Conference prior written notice. Any and all withdrawals from the Conference shall be effective on July 1 of the year specified in the notice of withdrawal; provided, however, that the withdrawing member must afford the Conference notice at least fourteen months prior to the effective date of the withdrawal (i.e. no later than May 1 of the prior year). However, if a Member makes statements or takes actions that evidence intent of such Member to withdraw from the Conference either currently or in the future, such actions will be determined as notice of withdrawal by a three-fourths (3/4) vote of the remaining Members of the Board of Directors. In the event that a member attempts to leave the Conference without fully complying with the notice of withdrawal requirements set forth above, the Conference shall be entitled to equitable relief without having to prove actual injury, irreparable or otherwise, including, but not limited to, an injunction requiring the member to comply fully with the notice of withdrawal requirements set forth above, to fulfill all of its obligations as a Conference member, and to remain in the Conference until the earliest permissible date upon which the member could have, under the circumstances, withdrawn with full and proper prior notice as required above. The members agree that any attempted withdrawal of a member without full compliance with the prior notice requirements set forth above would cause a disruption in the scheduling of competitions among the members for which there is no adequate remedy at law which would cause harm that would not in any respect be compensated by payment of a withdrawal fee, and for which, therefore, equitable relief is appropriate.

The withdrawing member shall be responsible for the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of the withdrawal. From the date of notice of withdrawal, the withdrawing member shall have no rights to receive distribution of Conference revenues of any nature (i.e. the Conference shall be entitled to retain distribution for two fiscal years) and shall continue to be obligated to pay Conference expenses, assessments, or debts. Further, the term of office of any Board Member representing a Withdrawing Member shall automatically expire and such Chief Executive Officer shall no longer be a Board Member of the Conference effective as of the notice date or determination of notice to withdraw and such Withdrawing Member shall not be entitled to have a representative on the Board of Directors thereafter. During the period thereafter the number of Board Members shall automatically be reduced by the number of Withdrawing Members; and the Withdrawing Member(s) shall not be permitted to attend any meeting of, vote on any matter before, receive notice of any meeting of, or receive copies of materials distributed to the Board of Directors; the Conference shall however, inform the Chief Executive Officer of a Withdrawing Member about matters (as determined by the Commissioner in his sole discretion) that may materially impact the Withdrawing Member during the period prior to the effective date of the withdrawal in a manner disproportionate to the Withdrawing Member and shall provide the Chief Executive Officer of the Withdrawing Member with a reasonable opportunity for discussion with the Board of Directors on such issues as requested Each of the Members agrees that withdrawal of a member from the Conference would cause damage and financial hardship to the Conference and its continuing members, that the financial consequences to the Conference and its continuing members of such withdrawal cannot be measured or estimated with certainty at this time, and that the withholding of distributions pursuant to the preceding paragraph is a reasonable method of compensating the Conference and the continuing members for such damage and financial hardship and is not and shall not be construed as a penalty.

3.07 Suspension and Expulsion.
A member shall be subject to suspension or expulsion for cause by the Board of Directors (provided, however, that the Director representing the withdrawing member may not participate or vote in connection with any such decision) pursuant to Section 5.02©(iii) if the member:
(a) Fails to meet its financial obligations to the Conference;
(b) Violates any of the provisions of these Bylaws or the rules and regulations of the Conference (collectively referred to as "Conference Legislation") or the NCAA; or,
© Engages in a course of conduct significantly contrary to the best interests or reputation of the Conference and the remaining members of the Conference as determined by the Board of Directors.

A member suspended or expelled for cause shall not be entitled to receive a return of any initiation fee or subsequent contributions paid by it to the Conference, nor shall it (a) be relieved of any financial obligations to the Conference arising prior to such suspension or expulsion, including, without limitation, assessments made pursuant to Section 3.04; or, (b) be entitled to distributions, if any, of Conference income, whether pursuant to Section 5.02(b)(xii) or otherwise, for the fiscal year in which suspension or withdrawal occurs or for any subsequent fiscal years. The suspension or expulsion of a member for cause shall not be deemed a waiver by the Conference or other Conference members of any claims it or they may have against the member for losses or damages incurred as a result of the conduct giving rise to such suspension or expulsion.

I'm not a lawyer, but it seems like the bolded sentence is C-USA's trump card in all this. That sentence claims that C-USA has a right to get an injunction that forces the SBC 3 to stay one more year. So while they can't force the schools to pay exit fees, perhaps they are trying to hold them hostage to get exit fees.

Am I interpreting this right? Is this even enforceable? Hopefully a real lawyer will chime in and give us some clarification.
02-11-2022 08:20 PM
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Post: #20
RE: Brett McMurphy: there is no financial penalty in by-laws (CUSA)
(02-11-2022 08:20 PM)GEAUX UL Wrote:  
(02-11-2022 07:27 PM)Soaring Eagle Wrote:  This from latechs bb


From the conference bylaws in the latest C-USA Handbook that I have (2015-2016):

3.06 Withdrawal From Conference.
No member of the Conference may withdraw from the Conference except pursuant to and as allowed by this Section 3.06. No member may withdraw from the Conference without providing the Conference prior written notice. Any and all withdrawals from the Conference shall be effective on July 1 of the year specified in the notice of withdrawal; provided, however, that the withdrawing member must afford the Conference notice at least fourteen months prior to the effective date of the withdrawal (i.e. no later than May 1 of the prior year). However, if a Member makes statements or takes actions that evidence intent of such Member to withdraw from the Conference either currently or in the future, such actions will be determined as notice of withdrawal by a three-fourths (3/4) vote of the remaining Members of the Board of Directors. In the event that a member attempts to leave the Conference without fully complying with the notice of withdrawal requirements set forth above, the Conference shall be entitled to equitable relief without having to prove actual injury, irreparable or otherwise, including, but not limited to, an injunction requiring the member to comply fully with the notice of withdrawal requirements set forth above, to fulfill all of its obligations as a Conference member, and to remain in the Conference until the earliest permissible date upon which the member could have, under the circumstances, withdrawn with full and proper prior notice as required above. The members agree that any attempted withdrawal of a member without full compliance with the prior notice requirements set forth above would cause a disruption in the scheduling of competitions among the members for which there is no adequate remedy at law which would cause harm that would not in any respect be compensated by payment of a withdrawal fee, and for which, therefore, equitable relief is appropriate.

The withdrawing member shall be responsible for the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of the withdrawal. From the date of notice of withdrawal, the withdrawing member shall have no rights to receive distribution of Conference revenues of any nature (i.e. the Conference shall be entitled to retain distribution for two fiscal years) and shall continue to be obligated to pay Conference expenses, assessments, or debts. Further, the term of office of any Board Member representing a Withdrawing Member shall automatically expire and such Chief Executive Officer shall no longer be a Board Member of the Conference effective as of the notice date or determination of notice to withdraw and such Withdrawing Member shall not be entitled to have a representative on the Board of Directors thereafter. During the period thereafter the number of Board Members shall automatically be reduced by the number of Withdrawing Members; and the Withdrawing Member(s) shall not be permitted to attend any meeting of, vote on any matter before, receive notice of any meeting of, or receive copies of materials distributed to the Board of Directors; the Conference shall however, inform the Chief Executive Officer of a Withdrawing Member about matters (as determined by the Commissioner in his sole discretion) that may materially impact the Withdrawing Member during the period prior to the effective date of the withdrawal in a manner disproportionate to the Withdrawing Member and shall provide the Chief Executive Officer of the Withdrawing Member with a reasonable opportunity for discussion with the Board of Directors on such issues as requested Each of the Members agrees that withdrawal of a member from the Conference would cause damage and financial hardship to the Conference and its continuing members, that the financial consequences to the Conference and its continuing members of such withdrawal cannot be measured or estimated with certainty at this time, and that the withholding of distributions pursuant to the preceding paragraph is a reasonable method of compensating the Conference and the continuing members for such damage and financial hardship and is not and shall not be construed as a penalty.

3.07 Suspension and Expulsion.
A member shall be subject to suspension or expulsion for cause by the Board of Directors (provided, however, that the Director representing the withdrawing member may not participate or vote in connection with any such decision) pursuant to Section 5.02©(iii) if the member:
(a) Fails to meet its financial obligations to the Conference;
(b) Violates any of the provisions of these Bylaws or the rules and regulations of the Conference (collectively referred to as "Conference Legislation") or the NCAA; or,
© Engages in a course of conduct significantly contrary to the best interests or reputation of the Conference and the remaining members of the Conference as determined by the Board of Directors.

A member suspended or expelled for cause shall not be entitled to receive a return of any initiation fee or subsequent contributions paid by it to the Conference, nor shall it (a) be relieved of any financial obligations to the Conference arising prior to such suspension or expulsion, including, without limitation, assessments made pursuant to Section 3.04; or, (b) be entitled to distributions, if any, of Conference income, whether pursuant to Section 5.02(b)(xii) or otherwise, for the fiscal year in which suspension or withdrawal occurs or for any subsequent fiscal years. The suspension or expulsion of a member for cause shall not be deemed a waiver by the Conference or other Conference members of any claims it or they may have against the member for losses or damages incurred as a result of the conduct giving rise to such suspension or expulsion.

I'm not a lawyer, but it seems like the bolded sentence is C-USA's trump card in all this. That sentence claims that C-USA has a right to get an injunction that forces the SBC 3 to stay one more year. So while they can't force the schools to pay exit fees, perhaps they are trying to hold them hostage to get exit fees.

Am I interpreting this right? Is this even enforceable? Hopefully a real lawyer will chime in and give us some clarification.

I think the issue is the SB3 notified CUSA of their early departure, contacted the conference to discuss exit fees, and the conference blew them off and continued to say they expected the schools to play this coming year.
02-11-2022 08:26 PM
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