CSNbbs

Just a little more clarification as to Maryland's deal with the B1G as compared to Nebraska.
There is lots of info for Big 12 folks as well.
The whole article is interesting but I've pulled an excerpt regarding Maryland since they are in court with the ACC currently.



http://www.omaha.com/article/20140209/NE...the-corner

Quote:Terrapins' sweet deal evens out over time

Did the University of Mary­land get a better deal from the Big Ten than Nebraska?

There seems little doubt Maryland will be receiving more money than NU, from the very start of its league entry this fall. But Big Ten officials maintain that the underlying principles of the two deals are the same.

In December 2012, the Big Ten announced Maryland and Rutgers as the league's 13th and 14th members.

Neither has much football history to speak of, each with a single conference championship over the past 25 years. However, the Big Ten hopes the schools will help the Big Ten Network make inroads into the lucrative New York and Baltimore-Washington TV markets — a significant expansion of the network's reach.

But to get Maryland, the Big Ten had to pay a price — apparently many millions more in league payouts than Nebraska is being paid.

Sports Illustrated and the Washington Post both report Maryland negotiated a front-loaded deal, with league money it would have received far in the future moved into the pact's first six years. The school will reportedly receive $32 million next year and $43 million by 2017.

It appears the school also had considerable leverage — arguably much more than Nebraska had two years earlier.

Maryland already was getting a reported $20 million a year from the Atlantic Coast Conference and had no reason to take less. It also couldn't afford to take less, as its strapped athletic department recently had to cut seven sports.

And Maryland faces a steep $52 million penalty for leaving the ACC, an issue that's currently in court. If the Big Ten really wanted Maryland, it was going to have to overcome that hurdle.

But Brad Traviolia, the Big Ten's deputy commissioner, said the Big Ten essentially followed the same template in its deals with Nebraska, Rutgers and Maryland.

The Big Ten used the same six-year phase-in term. And all the deals attempt to hold schools harmless — that is, ensure that schools do not lose money compared with what they were receiving from their old leagues.

Because the schools were coming from different leagues, with varying levels of conference revenue, that required different hold harmless payments. It took only $14 million two years ago to hold Nebraska harmless when it left the Big 12.

Traviolia would not confirm that Maryland's deal was front-­loaded. But he said he believed all three schools are treated equally over the long run.

It appears that even with the big penalty Maryland could face, the Big Ten's higher payouts over time compared with the ACC's turned the move into a financial winner for the school.

Less is known about Rutgers' deal. But its previous conference, the Big East, was self-destructing into a basketball-only league and reportedly paid the school less than $10 million. If the Big Ten indeed followed the same principles, Rutgers' phase-in payments would be smaller than Nebraska's.

In the end, NU Chancellor Harvey Perlman said he voted in favor of both Maryland's and Rutgers' entry into the Big Ten — doing so with full knowledge of the terms.

Said Perlman: “I have no concern that Nebraska was treated unfairly relative to Rutgers, relative to Maryland, or relative to where we would have been had we not gone into the league.''

So basically Maryland was bribed.

The chat had some good info as well.

"Bribed," no. But, apparently, the Big Ten was willing to go quite far to secure Maryland.

Problem with sweetheart deals and schools that are said to be means and not necessarily ends, any chaser program is going to want this kind of deal here on out, unless the Big Ten has more Rutgers-types in their sites, who will do anything for that invite.

Considering Johns Hopkins is kind of calling the shots in their lacrosse arrangement, apparently Maryland schools really know how to do business.

(02-10-2014 10:23 PM)The Cutter of Bish Wrote: [ -> ]"Bribed," no. But, apparently, the Big Ten was willing to go quite far to secure Maryland.

Problem with sweetheart deals and schools that are said to be means and not necessarily ends, any chaser program is going to want this kind of deal here on out, unless the Big Ten has more Rutgers-types in their sites, who will do anything for that invite.

Considering Johns Hopkins is kind of calling the shots in their lacrosse arrangement, apparently Maryland schools really know how to do business.

Just sounds like their buy-in is backloaded, not front loaded.

Meanwhile Nebraska this year will be about $25 million behind Iowa St. since they joined the Big 10. And of course, they have passed on any Tier III they could have earned on their own. OU is making around $7 million a year on media Tier III.

(02-10-2014 10:05 PM)TexanMark Wrote: [ -> ]So basically Maryland was bribed.

Nice attempt to twist. A deal was made, just like how a deal was made with EVERY school that left the Big East for the ACC.

Every single one of them knew they would make more money in the ACC. A bribe? By your definition, yes.

Everyone should read the entire article. The B1G members are going to get paid. And yes, Maryland will make over $100 million more over 10 years than if they had stayed in the ACC.

Obviously they had to work with Maryland. Strategically they cut the ACC territory in half and took the two biggest Atlantic markets making them Big 10 territory.

Just like how the Big 10 got the premiere Northeastern program in Penn State 20 years ago, essentially dooming the Big East from the get go.

What makes this interesting is Maryland was apparently The Big Tens only option and they knew it. How else could they hold so much leverage. If there were all these ACC schools lining up to join the Big Ten like some would have us believe, why not just move on to Virginia or Georgia Tech?
CJ

No one is trying to "have you believe" that ACC schools were lining up to join the Big Ten. What is with you guys making things up? Do you really believe this? Is this a wide spread belief? Why do fans of the newest ACC members act like they have been ACC fans for years and take great umbrage to what happened?

The Big Ten talked to other schools, they talked back. Nothing happened, no big deal. Seriously, can you guys get over it?

Less cash now = quicker path to full equity in BTN

More cash now = longer buy-in

Nebraska's Pay Day is coming. Have your fun while it lasts.

What this really shows is how badly Delany wanted Notre Dame, and how pizzed off he was that the ACC got ND.

He wanted to get back at the ACC so badly that he gave a sweetheart deal to Maryland.

(02-11-2014 09:23 AM)Wedge Wrote: [ -> ]What this really shows is how badly Delany wanted Notre Dame, and how pizzed off he was that the ACC got ND.

He wanted to get back at the ACC so badly that he gave a sweetheart deal to Maryland.

Maryland will have less equity than Rutgers in BTN until their buy-in is complete. 10 years from now Rutgers will have received more cash from the Big Ten (out of BTN).

(02-11-2014 09:23 AM)Wedge Wrote: [ -> ]What this really shows is how badly Delany wanted Notre Dame, and how pizzed off he was that the ACC got ND.

He wanted to get back at the ACC so badly that he gave a sweetheart deal to Maryland.

The article says they got the same deal. They just shifted the cash around so that Maryland gets more early on while Rutgers gets more later. Both get more than they were previously earning.

(02-11-2014 07:06 AM)He1nousOne Wrote: [ -> ]No one is trying to "have you believe" that ACC schools were lining up to join the Big Ten. What is with you guys making things up? Do you really believe this? Is this a wide spread belief? Why do fans of the newest ACC members act like they have been ACC fans for years and take great umbrage to what happened?

The Big Ten talked to other schools, they talked back. Nothing happened, no big deal. Seriously, can you guys get over it?

You have to understand Louisville, Rutgers, Syracuse, Pitt and West Virginia fans have all heard for years how our conference sucked and any accomplishments any of us made were somehow lesser than the same accomplishments of say an ACC/B1G/Big12/Pac-12/SEC school. Over time it's worked into our collective psyches to be defensive and a little conspiracy theory prone. It's taking a while for all of us to deprogram as we adjust to being in stable, higher perceived conferences.

Quote:Less is known about Rutgers' deal. But its previous conference, the Big East, was self-destructing into a basketball-only league

That's not accurate... the conference remains an all-sport conference, who's football champion won its BCS bowl game last month. The Big East that Rutgers announced it would leave in November 2012, changed its name to the American Athletic Conference, but the conference's charter and constitution remains in tact. It swapped the Big East name with the departed Catholic Schools for over $100-million in NCAA Credits and Exit Fees to be left behind. The current "Big East" is an entirely new conference, while the old "Big East" conference is known as the American.

(02-11-2014 11:04 AM)IceJus10 Wrote: [ -> ]

Quote:Less is known about Rutgers' deal. But its previous conference, the Big East, was self-destructing into a basketball-only league

That's not accurate... the conference remains an all-sport conference, who's football champion won its BCS bowl game last month. The Big East that Rutgers announced it would leave in November 2012, changed its name to the American Athletic Conference, but the conference's charter and constitution remains in tact. It swapped the Big East name with the departed Catholic Schools for over $100-million in NCAA Credits and Exit Fees to be left behind. The current "Big East" is an entirely new conference, while the old "Big East" conference is known as the American.

That consists of 4 schools who have been there over a year, 3 schools that have been there over 2 years and no schools that were full members in 2004. While it will include 7 schools that were in CUSA a year ago and 9 who have been CUSA members.

The American may "officially" be the Big East, but the reality is that the Big East left and some of them took the name with them. Of the Big East lineup from 2010, 1 is in the Big 12, 1 is heading to the Big 10, 4 (counting ND) are in the ACC joining 3 earlier defectors, 7 are in the Big East (including 5 30+ year members) and only 3 are in the American. The ACC and Big East are more the "Big East" than the American is. And the American is more the "CUSA" than the CUSA is.

Moral of the story.

It was a far easier decision for Nebraska to leave the Big XII and far easier decision for Rutgers to leave the Big East than it was for an ACC to go to the Big 10.

Rumor mill claims the Big 10 contacted multiple ACC schools (Georgia Tech, Florida State, Virginia, North Carolina have all been mentioned with relatively good credibility given we are talking realignment rumors) but the one facing the greatest financial distress was the only one to take the bait.

Any ACC could have come out ahead financially going to the Big 10 but the difference was not so great to be compelling except for the school that had over-relied on debt financing.

(02-11-2014 11:23 AM)arkstfan Wrote: [ -> ]Any ACC could have come out ahead financially going to the Big 10 but the difference was not so great to be compelling except for the school that had over-relied on debt financing.

Um, then why the $50M fence and the GoR?

In the bigger picture, Maryland is a $1.7B corporation. Athletics is a fraction of that, but unlike Rutgers, (I believe) they can't subsidize sports from the general fund (or perhaps directly from students -- not sure).

Anyway, I don't know why it continues to be so important to paint the picture that B1G picked off the weakest of the herd when most of Maryland is just as strong as anything the ACC has to offer. Granted, academics don't earn much for the rest of the conference, but I believe the Big Ten is quite content with Maryland joining the club. If it was about athletics, Louisville would be in, but I doubt there was any interest in Louisville. None.

(02-11-2014 11:41 AM)SeaBlue Wrote: [ -> ]

(02-11-2014 11:23 AM)arkstfan Wrote: [ -> ]Any ACC could have come out ahead financially going to the Big 10 but the difference was not so great to be compelling except for the school that had over-relied on debt financing.

Um, then why the $50M fence and the GoR?

In the bigger picture, Maryland is a $1.7B corporation. Athletics is a fraction of that, but unlike Rutgers, (I believe) they can't subsidize sports from the general fund (or perhaps directly from students -- not sure).

Anyway, I don't know why it continues to be so important to paint the picture that B1G picked off the weakest of the herd when most of Maryland is just as strong as anything the ACC has to offer.

Maryland is a good program but Maryland like many corporations has found itself in a situation where it was solvent (comparing assests to liabilities) but had such debt that they were approaching a position of being unable to cash flow their debt.

Maryland is a good property but they aren't North Carolina or Florida State in market value.