http://www.washingtonpost.com/blogs/terr...mediately/
"To withdraw from the conference a member must file an official notice of withdrawal with each of the conference members and the commissioner on or before August 15 for the withdrawal to be effective June 30 of the following year. Upon official notice of withdrawal, the member will be subject to a withdrawal payment, as liquidated damages, in an amount equal to three times the total operating budget of the Conference (including any contingency included therein), approved in accordance with Section V-1 of the Conference Bylaws, which is in effect as of the date of the official notice of withdrawal. The Conference may offset the amount of such payment against any distributions otherwise due such member for any Conference year. Any remaining amount due shall be paid by the withdrawing member within 30 days after the effective date of withdrawal. The withdrawing member shall have no claim on the assets, accounts or income of the Conference. (Revised: September 2012)"
Of course the ACC is claiming it is enforceable and Maryland is claiming it isn't.
That's about a $27 million exit fee (assuming that the school(s) would pass on any conference distributions this year).
I think conference payouts were around $13-14 million last year, and I'm pretty sure that the conference gets an even cut of how much it pays out.
$13 million * 3 times = $39 million
$39 million less $13 million = $26 million
$14 million * 3 times = $42 million
$42 million less $14 million = $28 million
($26 million + $28 million)/2 = $27 million.
Given that the B1G makes a paper profit of around $20 million in TV alone, and that number is likely pretty accurate accurate, because key elements of their contract expire in the decently near future, there could easily be a $12+ million bump in per year conference payouts. Assume the ticket sales from playing games against teams close to home is offset by the bump from playing big-named teams, and there is a 0% chance that we keep UMD if they get the offer, unless the ACC is really, really popular in Maryland.
We should have put a substantial floor on that buyout.
(11-19-2012 05:13 AM)nzmorange Wrote: [ -> ]That's about a $27 million exit fee (assuming that the school(s) would pass on any conference distributions this year).
I think conference payouts were around $13-14 million last year, and I'm pretty sure that the conference gets an even cut of how much it pays out.
$13 million * 3 times = $39 million
$39 million less $13 million = $26 million
$14 million * 3 times = $42 million
$42 million less $14 million = $28 million
($26 million + $28 million)/2 = $27 million.
Given that the B1G makes a paper profit of around $20 million in TV alone, and that number is likely pretty accurate accurate, because key elements of their contract expire in the decently near future, there could easily be a $12+ million bump in per year conference payouts. Assume the ticket sales from playing games against teams close to home is offset by the bump from playing big-named teams, and there is a 0% chance that we keep UMD if they get the offer, unless the ACC is really, really popular in Maryland.
We should have put a substantial floor on that buyout.
The numbers reported have been 50 million. So they are assuming a budget of over 16 million. Distributions to schools come from the leftover after expenses. Budgets and distributions might look similar but it is only a coincidence. They aren't based on the same number. A portion of the television payout is held back because it approximately covers the budget...not because it is exactly equal to it.
(11-19-2012 05:46 AM)4x4hokies Wrote: [ -> ] (11-19-2012 05:13 AM)nzmorange Wrote: [ -> ]That's about a $27 million exit fee (assuming that the school(s) would pass on any conference distributions this year).
I think conference payouts were around $13-14 million last year, and I'm pretty sure that the conference gets an even cut of how much it pays out.
$13 million * 3 times = $39 million
$39 million less $13 million = $26 million
$14 million * 3 times = $42 million
$42 million less $14 million = $28 million
($26 million + $28 million)/2 = $27 million.
Given that the B1G makes a paper profit of around $20 million in TV alone, and that number is likely pretty accurate accurate, because key elements of their contract expire in the decently near future, there could easily be a $12+ million bump in per year conference payouts. Assume the ticket sales from playing games against teams close to home is offset by the bump from playing big-named teams, and there is a 0% chance that we keep UMD if they get the offer, unless the ACC is really, really popular in Maryland.
We should have put a substantial floor on that buyout.
The numbers reported have been 50 million. So they are assuming a budget of over 16 million. Distributions to schools come from the leftover after expenses. Budgets and distributions might look similar but it is only a coincidence. They aren't based on the same number. A portion of the television payout is held back because it approximately covers the budget...not because it is exactly equal to it.
The new contract avg. payout is $17 million. $17 million * 3 years = $51 million. I think that's where the $50 million is coming from. It is an invalid assumption that the buyout is based on the new contract, and that the new contract isn't back loaded. I could be wrong though.
"They aren't based on the same number."
I don't know about the ACC specifically, but some, maybe most, if not all, conferences make the budget fit their revenue which is exactly one share of their distributions.
(11-19-2012 05:13 AM)nzmorange Wrote: [ -> ]Assume the ticket sales from playing games against teams close to home is offset by the bump from playing big-named teams, and there is a 0% chance that we keep UMD if they get the offer, unless the ACC is really, really popular in Maryland.
Have you seen the way the majority of the ACC travels? I'm willing to bet that wasn't even a concern.
The new contract doesn't go into effect until Syracuse and Pitt join next year, or so I have been told.
(11-19-2012 04:35 PM)catdaddy_2402 Wrote: [ -> ]The new contract doesn't go into effect until Syracuse and Pitt join next year, or so I have been told.
Press releases had it starting with the 2012 season.