Maybe Banowsky is secretly a genius. I know a lot of people are upset that he didn't try harder to keep the defectors around and that he backfilled so quickly, but look at it like this.
The six teams that stayed loyal are about to make a lot of money.
Exit fees: 6.5 million * 6 = 39 million
Entrance fees: 2 million * 8 = 16 million
Basketball credits:??? Hopefully someone knows.
So, the six remaining schools get to split $55 million dollars plus basketball credits!
Meanwhile, it will take the defectors ~7 years to break even.
(02-22-2013 05:49 PM)Dorrej Wrote: [ -> ]Maybe Banowsky is secretly a genius. I know a lot of people are upset that he didn't try harder to keep the defectors around and that he backfilled so quickly, but look at it like this.
The six teams that stayed loyal are about to make a lot of money.
Exit fees: 6.5 million * 6 = 39 million
Entrance fees: 2 million * 8 = 16 million
Basketball credits:??? Hopefully someone knows.
So, the six remaining schools get to split $55 million dollars plus basketball credits!
Meanwhile, it will take the defectors ~7 years to break even.
Sorry to pop your bubble but this comment is just another example of the irrational optimism by some who obviously feel the Cusa changes are the best things since sliced bread. Exit fees are no where near the 39 mil and the 16mil entrance fees WILL NOT b e divided among the 6 original schools (or any that remain). Departing schools are responsible for any DECREASE in current tv contract and it appears there has been little if any and they will give up any unused basketball credits but highest amt in any one of the 5 remaining years wouldnt exceed 1 mil.
Banowski has "secretely" cemented his position as commissioner and will have enough votes to continue in that position as the other Sunbelt teams are brought aboard later.
Exit fee article 1
Exit fee article 2
Quote:Conference USA's bylaws state departing members must give at least one year's notice, pay a $500,000 fee and pay their share of the television revenue for the remainder of the contract. The league's agreements with Fox Sports Network and CBS Sports have an estimated value of about $15.6 million per year and were slated to expire at the end of the 2015-16 academic year.
My numbers might be off by some, but according to the only reputable sources I can find it will be much more than your estimate.
If the entrance fees don't get divided between the remaining schools what happens to it?
(02-22-2013 05:49 PM)Dorrej Wrote: [ -> ]Maybe Banowsky is secretly a genius. I know a lot of people are upset that he didn't try harder to keep the defectors around and that he backfilled so quickly, but look at it like this.
The six teams that stayed loyal are about to make a lot of money.
Exit fees: 6.5 million * 6 = 39 million
Entrance fees: 2 million * 8 = 16 million
Basketball credits:??? Hopefully someone knows.
So, the six remaining schools get to split $55 million dollars plus basketball credits!
Meanwhile, it will take the defectors ~7 years to break even.
This is just a consolation prize, and a way to cushion the blow just a little when Tulsa follows the others out the door.
If the remaining schools use the money wisely, it might indeed be a windfall for the next round of conference changes.
The real questions I will see going forward are if the nBE or MWC have any real advantage for the big payout bowl game in 2014, and if you are better off as a program going 7-5 in C-USA (and making a bowl game) or going 5-7 in the nBE (and not bowling).
(02-22-2013 05:49 PM)Dorrej Wrote: [ -> ]Maybe Banowsky is secretly a genius. I know a lot of people are upset that he didn't try harder to keep the defectors around and that he backfilled so quickly, but look at it like this.
The six teams that stayed loyal are about to make a lot of money.
Exit fees: 6.5 million * 6 = 39 million
Entrance fees: 2 million * 8 = 16 million
Basketball credits:??? Hopefully someone knows.
So, the six remaining schools get to split $55 million dollars plus basketball credits!
Meanwhile, it will take the defectors ~7 years to break even.
I've been hard on BB but other than allowing the first set of defectors out without exit fees and, maybe, backfilling too quickly, he has performed well in the role. I like what ya'll have added TBH. Especially, Charlotte, MTSU, and Old Dominion. I think all of those programs have great potential.
There really is no entrance fee money. As I posted in another thread, the entrance fee is paid as a deduction from conference payouts over a period of five years, at 500,000 dollars per year.
Memphis is the only school I have seen that has publicized an estimate of their exit fee...their estimate is 6.1 million dollars, so slightly less than what OP posted.
I believe basketball credits are somewhere around 750,000 dollars apiece. CUSA doesn't have a whole lot of those, however.
(02-22-2013 08:39 PM)Freshy Wrote: [ -> ]There really is no entrance fee money. As I posted in another thread, the entrance fee is paid as a deduction from conference payouts over a period of five years, at 500,000 dollars per year.
Memphis is the only school I have seen that has publicized an estimate of their exit fee...their estimate is 6.1 million dollars, so slightly less than what OP posted.
I believe basketball credits are somewhere around 750,000 dollars apiece. CUSA doesn't have a whole lot of those, however.
True that the entrance fees are paid by deducting from tv distribution but what happens to the money that is deducted? The entrance fee is supposed to be $2.5 million per school. With 6 coming in for FB this season, $500,000 per school withheld, thats $3 million each year for 5 years. Where does that go?
According to the c-USA bylaws the exit fee is $500k plus any loss of tv revenue. I think reporters assumed that the teams leaving would owe the whole tv contract. That would be true if it went to zero.
(02-22-2013 09:43 PM)MinerInWisconsin Wrote: [ -> ] (02-22-2013 08:39 PM)Freshy Wrote: [ -> ]There really is no entrance fee money. As I posted in another thread, the entrance fee is paid as a deduction from conference payouts over a period of five years, at 500,000 dollars per year.
Memphis is the only school I have seen that has publicized an estimate of their exit fee...their estimate is 6.1 million dollars, so slightly less than what OP posted.
I believe basketball credits are somewhere around 750,000 dollars apiece. CUSA doesn't have a whole lot of those, however.
True that the entrance fees are paid by deducting from tv distribution but what happens to the money that is deducted? The entrance fee is supposed to be $2.5 million per school. With 6 coming in for FB this season, $500,000 per school withheld, thats $3 million each year for 5 years. Where does that go?
Usually the general conference fund. It would cover costs associated with bowls, ads, etc
(02-22-2013 09:57 PM)KNIGHTTIME Wrote: [ -> ]According to the c-USA bylaws the exit fee is $500k plus any loss of tv revenue. I think reporters assumed that the teams leaving would owe the whole tv contract. That would be true if it went to zero.
It wasn't reporters, it was C-USA assistant commissioner for public affairs, Courtney Morrison-Archer who said the exit fee would be $6.63 million for ucf, houston, memphis and smu.
I don't know, I think people are interpreting it how they see fit.
Doesn't it say the exit fees have to be paid at the moment the teams announce they are leaving? No possible way to pay something upfront if you don't know what the amount is.
edit: I guess just pay an escrow account
(02-22-2013 05:49 PM)Dorrej Wrote: [ -> ]The six teams that stayed loyal are about to make a lot of money.
Exit fees: 6.5 million * 6 = 39 million
The exit fees are $500,000. If they are any higher, it will be offset by a lower TV deal (because that's the add-on: TV diminution, not the value of the TV contract). You get $500,000 x 6 extra.