That was the amount negotiated when the other 3 schools gave about 22 months notice to the American. SMU is giving the American 10 months notice.

The other 3 are paying out their $18 mill over a 14 year period. This is about $3.8 mill a year. UConn is also paying $1 mill a year for the next 4 so that is $4.8 for the next few years.

I would estimate SMU having to pay about $24 mill because of the short notice. If over 14 years, that will come out to another $1.7 mill a year.

So, for the next 3-4 years the American may be earning $6.5 million annually for nothing. That's about equivalent to 20 NCAA tourney credits. For reference the Big East last year when UConn won the title earned 15 tourney units.

SMU doesn't seem to care about the price. Apparently, they and their boosters have deep enough pockets to weather any financial storm.

(09-05-2023 01:52 PM)Nerdlinger Wrote:  SMU doesn't seem to care about the price. Apparently, they and their boosters have deep enough pockets to weather any financial storm.

Works for me, I vote to fleece em

Let's pay $18M to get out of a league paying us money to get in one where we will make nothing.

Hmmmm... that sounds like a great idea. LET'S DO IT !!!!

(09-05-2023 01:52 PM)Nerdlinger Wrote:  SMU doesn't seem to care about the price. Apparently, they and their boosters have deep enough pockets to weather any financial storm.

While this is true it certainly shouldn't ever be said by the SMU side. Would be ruinous for their negotiating position.

(09-05-2023 01:54 PM)Bear Catlett Wrote:  Let's pay $18M to get out of a league paying us money to get in one where we will make nothing.

Hmmmm... that sounds like a great idea. LET'S DO IT !!!!

They're going to be making more money in the ACC than in the AAC. Just all of that will come from non-media contract sources.

(09-05-2023 01:54 PM)Bear Catlett Wrote:  Let's pay $18M to get out of a league paying us money to get in one where we will make nothing.

Hmmmm... that sounds like a great idea. LET'S DO IT !!!!

Um, they're making more in the ACC from the CFP/NCAAT/non-media rights distributions alone.

(09-05-2023 01:43 PM)HP-TBDPITL Wrote:  That was the amount negotiated when the other 3 schools gave about 22 months notice to the American. SMU is giving the American 10 months notice.

The other 3 are paying out their $18 mill over a 14 year period. This is about $3.8 mill a year. UConn is also paying $1 mill a year for the next 4 so that is $4.8 for the next few years.

I would estimate SMU having to pay about $24 mill because of the short notice. If over 14 years, that will come out to another $1.7 mill a year.

So, for the next 3-4 years the American may be earning $6.5 million annually for nothing. That's about equivalent to 20 NCAA tourney credits. For reference the Big East last year when UConn won the title earned 15 tourney units.

it's 10 million up front (actual exit fee) with the rest (negotiated damages) being spread out over 14 years.

(09-05-2023 01:56 PM)IWokeUpLikeThis Wrote:  

(09-05-2023 01:54 PM)Bear Catlett Wrote:  Let's pay $18M to get out of a league paying us money to get in one where we will make nothing.

Hmmmm... that sounds like a great idea. LET'S DO IT !!!!

Um, they're making more in the ACC from the CFP/NCAAT/non-media rights distributions alone.

I've learned that poster doesn't let the truth get in the way of a negative quip

(09-05-2023 01:56 PM)IWokeUpLikeThis Wrote:  

(09-05-2023 01:54 PM)Bear Catlett Wrote:  Let's pay $18M to get out of a league paying us money to get in one where we will make nothing.

Hmmmm... that sounds like a great idea. LET'S DO IT !!!!

Um, they're making more in the ACC from the CFP/NCAAT/non-media rights distributions alone.

Correct, a move to the ACC with autonomy status is a slam dunk.

If the usual holds true, new schools only get a portion of what earned while they are there. Thus year one SMU gets 0 TV plus a share of what is earned that year, 2nd year share of 2 years credits ect. My guess is they may break even around year 6 or 7.

SMU was middle of the road AAC and will be bottom feeder in ACC. That said it is still likely a good move for them. Taking the long road to higher ground makes sense.

$17M, $18M, $20M, whatever.

(09-05-2023 02:03 PM)esayem Wrote:  

(09-05-2023 01:56 PM)IWokeUpLikeThis Wrote:  

(09-05-2023 01:54 PM)Bear Catlett Wrote:  Let's pay $18M to get out of a league paying us money to get in one where we will make nothing.

Hmmmm... that sounds like a great idea. LET'S DO IT !!!!

Um, they're making more in the ACC from the CFP/NCAAT/non-media rights distributions alone.

I've learned that poster doesn't let the truth get in the way of a negative quip

OK... how much?

(09-05-2023 02:13 PM)Bear Catlett Wrote:  OK... how much?

Based on this article, the ACC distributed about $40M per school 2 years ago.

https://richmond.com/sports/college/teel...4f72d.html

Once the CFP expands there will be more money. I suspect they'll average over $10m per year over the next 9 years just on non-TV revenues.

It seems like the AAC has designed a weird type of revenue generating model. The value of the conference is not driven by the media contract, nor football nor basketball performance. Rather, the AAC’s biggest financial asset is earned via exit fees. They learned a lesson from the dismantling of C-USA, but they haven’t determined how to best use their war chest. Right now they’re riding a roller coaster with an increasingly scary future.

For example, the OUT exit fees are being used by the B12 to finance the call-ups of BYU, Cincinnati, UCF and Houston. The R8 programs took a huge financial gamble, but it paid off with a much more stable power conference.

The ACC averages closer to $15M in non media revenue distributions now. SMU will get that, plus some bonus for hosting Cal/Stanford Olympic events against eastern ACC schools.

SMU is not going to be hurting. And I doubt they pay much different than UConn who also left on shorter notice and paid $17M. The schools who went to the Big 12 paid $18M. The notice period length doesn't seem to be that much, rather whatever the lawyers can work out. The American wants the cash and move on rather than hold anyone hostage, and SMU wants to move on and will a bit more to do so. If it's closer to $20M than $16M, so what. Both sides are business people, they'll work it out.

(09-05-2023 02:30 PM)Wahoowa84 Wrote:  It seems like the AAC has designed a weird type of revenue generating model. The value of the conference is not driven by the media contract, nor football nor basketball performance. Rather, the AAC’s biggest financial asset is earned via exit fees. They learned a lesson from the dismantling of C-USA, but they haven’t determined how to best use their war chest. Right now they’re riding a roller coaster with an increasingly scary future.

For example, the OUT exit fees are being used by the B12 to finance the call-ups of BYU, Cincinnati, UCF and Houston. The R8 programs took a huge financial gamble, but it paid off with a much more stable power conference.

This is the long term play for UMass - get into the AAC just before everyone leaves and be the last team standing. Keep ~$200 million in exit fees and use it to build a new reasonably sized on campus stadium.

We got this.

I would think atten improves, that would also generate income

(09-05-2023 02:32 PM)e-parade Wrote:  

(09-05-2023 02:30 PM)Wahoowa84 Wrote:  It seems like the AAC has designed a weird type of revenue generating model. The value of the conference is not driven by the media contract, nor football nor basketball performance. Rather, the AAC’s biggest financial asset is earned via exit fees. They learned a lesson from the dismantling of C-USA, but they haven’t determined how to best use their war chest. Right now they’re riding a roller coaster with an increasingly scary future.

For example, the OUT exit fees are being used by the B12 to finance the call-ups of BYU, Cincinnati, UCF and Houston. The R8 programs took a huge financial gamble, but it paid off with a much more stable power conference.

This is the long term play for UMass - get into the AAC just before everyone leaves and be the last team standing. Keep ~$200 million in exit fees and use it to build a new reasonably sized on campus stadium.

We got this.

Temple does need a travel partner. Memphis, USF and Tulane are being mentioned as potential candidates if the power conferences are looking to expand further. This may be UMass’ chance.

(09-05-2023 02:32 PM)e-parade Wrote:  

(09-05-2023 02:30 PM)Wahoowa84 Wrote:  It seems like the AAC has designed a weird type of revenue generating model. The value of the conference is not driven by the media contract, nor football nor basketball performance. Rather, the AAC’s biggest financial asset is earned via exit fees. They learned a lesson from the dismantling of C-USA, but they haven’t determined how to best use their war chest. Right now they’re riding a roller coaster with an increasingly scary future.

For example, the OUT exit fees are being used by the B12 to finance the call-ups of BYU, Cincinnati, UCF and Houston. The R8 programs took a huge financial gamble, but it paid off with a much more stable power conference.

This is the long term play for UMass - get into the AAC just before everyone leaves and be the last team standing. Keep ~$200 million in exit fees and use it to build a new reasonably sized on campus stadium.

We got this.

Gotta say, so far the plan is working to perfection.