Big 12 Exit Fees and notice

[PecosBill]

Question for those in the know:

In the week of Big East teams Pitt & Syracuse to ACC along with WVU not going to SEC it was reported that the ACC had raised its exit fees to $20million to deter defections and passed unanimously.

Big East has $5million exit fees plus 27 months notice for its members. Big East Commisioner said this week that they would enforce the 27 month notice on Pitt & SYR.

ACC Commsioner that they wouldn't have a problem with the BE contract. So ACC 12 stays 12 teams for 27 months.

The two teams can play in 27 months from notice of Sept 2011 which is mid 2013 season.

What are the current exit fees and notice for the BIG 12 after NU & CU left? I have heard $20 -$30million range on fees but what about notice?

With only 2-3 years left on Fiesta BCS AQ agreement things may be status quo if A&M can't afford an accomodation.

Big 12 Exit fees and notice post NU and CU??

 

[BevoNation]

You're implying that the Big 12 is a well put together and has a competent commissioner. There's your problem right there.

 

[accuratehorn]

I want to know also. Why would the conference reduce those exit fees to facilitate a team breaking the contract, a contract just agreed upon one year ago? Looks like the Big East is demanding teams obey their contract's rules.

 

[HornSwoggler]

Per B12 website & handbook, B12 Handbook, a 2 year notice or membership termination is required. This "withdrawal with proper notice" results in loss of 50% of revenue during the two year period.

see section 3 of Bylaws. (if I interpret it correctly)

"Withdrawal without proper notice" :
18 to 24 month notice - loss of 70% of earned revenue for prior two years;
12 to 18 month notice - loss of 80% of earned revenue for prior two years;
6 to 12 month notice - loss of 90% of earned revenue for prior two years;
0 to 6month notice - loss of 100% of of earned revenue for prior two years.

Exit fee above is paid out of earned revenue owed by conference to school unless fee exceeds amount owed, then school agrees to pay back excess.

So somewhere between 50 and 100% of a 2 year revenue share depending on how far in advance the notice of withdrawal is given.

If TAMU was to get from the conference $8 million per year for the last 2 years prior to leaving and wanted to exit the conference in June 2012 (say 9 months notice), it appears the fee would be 90% of $16 million.

AS BEST I CAN DECIPHER!!!!!!

 

[PecosBill]

The ACC will have to wait 27 months for Pitt and SYR to show up for FB so Nov of 2013 season about 2/3 of the season. ACC has said that is fine.

So no ACC 14 until 2014 plus 2 more schools to get to ACC 16.

The B1G and PAC12 have both said 12 schools are just fine and they both get CCG games and CCG$ for the first time in 2011 season.

The SEC has passed on WVU and Mizzo and may be sensitive to BU legal claims of TI so adding A&M is conditional on 9 schools granting legal waivers in the Big12.

A&M Loftin has suggested $12million is reasonable in exit fees publicly. BU, KU, KSU, IA and TT may think the full 90% or $26million is reasonable assuming the the Big12 is in place.

A negotiated amount will be needed to cover exit fees and make any TI claims by BU et al satisfy the SEC conditional invite. Guess $20M+??

The big expansion to 16 team superconferences will not be happening soon in the AQ conferences as conferences add $20M+/- exit fees and longer notices to their members.

 

[HornSwoggler]

Per this link: TAMU Exit

TAMU earned $11.2 million last year and is projected to earn about $20 million this year from the conference. So, 2 year revenue figure may be about $31 million, 90
% of which is about $28.

As mentioned in the article, Nebraska negotiated their exit fee down and TAMU hopes to do the same. No idea why Nebraska got a break. No idea why TAMU thinks they deserve a break.

 

[PecosBill]

So with the best team they have fielded in over a decade A&M will be playing for free in 2011!

 

[accuratehorn]

So why would anyone agree to negotiating this amount down? What possible benefit to the other teams would there be in cutting aggy some slack?

 

[WabashCannon]

Why give aggy a break? I think NU and CU got a break because 4 or 5 other schools, including UT, thought they would be leaving soon. In this case, it's one school. If I were one of the smaller schools (BU, ISU, KSU, KU) I would insist that aggy pay full penalty.

 

[HornSwoggler]

Apparently, the actual wording in the bylaws is legally not concise so TAMU might take the position that it owes much less if anything. So the B12 would negotiate a deal to avoid legal expenses and uncertain outcome. That is apparently the approach NU and CU took with success.

If you read the actual bylaws, the wording regarding the timing of the value of the last 2 years of revenue is unclear. I read it and was confused so I interpreted it in a common sense way not a legalistic way. I should have known better.

If the B12 continues in operation, they should straighten that out and should have done it last year but the individuals probably saw it as a way to finagle out of paying instead of working together to benefit the conference. Anyone surprised?

 

[accuratehorn]

So you're saying the Big 12 contract is not worth the paper it is printed on? Why am I not surprised?

 

[Joe2005]

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