Non-Key Tweets

[CL82]

To be clear, ND has a GOR that they’d have to pay out. It’s smaller than everyone else though, but it’s still over $100 million at this point. They’d also have a $100 million+ in exit fees. Then whatever damages decided for the contract addendum regarding football. Not that $200+ million isn’t doable with the numbers being thrown around, but it definitely is not nothing. Though heck, I wouldn’t be surprised if the B10 found some change in their seat cushions and bought out the Irish if it came down to it.

Let’s say the value of the ESPN contract is 40 million per school. We know from the special section Notre Dame in the ACC bylaws that the value of football is 80% of that contract. Notre Dame football is independent and not a part of the ACC contract. so the value of Notre Dame‘s grant of rights to the ACC for everything but football would be equal to $8 million a year. The ACC grant of rights runs through 2036. So Notre Dame is theoretically on the hook for $112 million over 14 years. If you consider the time value of money and discount that back to a single payment, depending upon the assumption to use, it’s probably 70 million give or take.

Now keep in mind that’s just the grant of rights. They also have to pay whatever exit fee is applicable. Say it’s $50 million, then the cost for Notre Dame to leave the ACC would be about $120 million. Now, the ACC could play hardball but more or less that’s the number.

Now, if you had the opportunity to make $100 million per year, every year on a go forward basis, would you be willing to pay 120 million for that privilege? If Notre Dame decides it wants to leave the ACC, the cost of exiting isn’t going to stop it.

 

[Chin Diesel]

Shows what big time football has become...$200 million Exit fees becoming pocket change.

Enough. Tell us about the Durango and Steak and Shake.

 

[billybud]

Enough. Tell us about the Durango and Steak and Shake.

and not about the 30 year old 35 inch plasma set ?

 

[JeepCSC]

Let’s say the value of the ESPN contract is 40 million per school. We know from the special section Notre Dame in the ACC bylaws that the value of football is 80% of that contract. Notre Dame football is independent and not a part of the ACC contract. so the value of Notre Dame‘s grant of rights to the ACC for everything but football would be equal to $8 million a year. The ACC grant of rights runs through 2036. So Notre Dame is theoretically on the hook for $112 million over 14 years. If you consider the time value of money and discount that back to a single payment, depending upon the assumption to use, it’s probably 70 million give or take.

Now keep in mind that’s just the grant of rights. They also have to pay whatever exit fee is applicable. Say it’s $50 million, then the cost for Notre Dame to leave the ACC would be about $120 million. Now, the ACC could play hardball but more or less that’s the number.

Now, if you had the opportunity to make $100 million per year, every year on a go forward basis, would you be willing to pay 120 million for that privilege? If Notre Dame decides it wants to leave the ACC, the cost of exiting isn’t going to stop it.

The exit fee was $50 million back when Maryland left. It is now over $100 million and going up each year. But your final line is accurate.

 

[CL82]

The exit fee was $50 million back when Maryland left. It is now over $100 million and going up each year. But your final line is accurate.

I took a quick look and I couldn’t find the exit amount documented anywhere. Is it a multiple of revenue? If so does Notre Dame still pay for a multiple of football revenue, even though it’s not a football member of the conference?

 

[Chin Diesel]

and not about the 30 year old 35 inch plasma set ?

No. Just Steak and Shake. Which is an underappreciated joint for burgers, shakes and shoestring fries.

 

[JeepCSC]

I took a quick look and I couldn’t find the exit amount documented anywhere. Is it a multiple of revenue? If so does Notre Dame still pay for a multiple of football revenue, even though it’s not a football member of the conference?

It’s floating around somewhere. It’s 3 x the operating budget for the ACC and isn’t tied to any one school’s football revenue.

 

[billybud]

No. Just Steak and Shake. Which is an underappreciated joint for burgers, shakes and shoestring fries.

I was in line there once with a crystal and bead wearing hippie...I overheard his order..."Make me one with everything".

 

[TerryD]

It’s floating around somewhere. It’s 3 x the operating budget for the ACC and isn’t tied to any one school’s football revenue.

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://virginiatech.sportswar.com/wp-content/uploads/sites/15/2022/08/2020-21-ACC-Manual-2020-9-17-2.pdf

 

[nelsonmuntz]

Notre Dame is a mediocre program getting by on Boomer nostalgia. So why does every realignment thread need to be about Notre Dame?

 

[CL82]

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://virginiatech.sportswar.com/wp-content/uploads/sites/15/2022/08/2020-21-ACC-Manual-2020-9-17-2.pdf

Where is the exit fee mentioned in there?

 

[billybud]

Because of perceived value...the Irish are one of the most watched teams in the country. And there aren't many huge brands left to grab.

I answerd your question straight up..but realize it may not have been a question but a "grump".

 

[billybud]

A lawyer on an FSU pay board just posted this re Notre Dame and ACC documents...


"Just wanted to pass on that after those Bylaws were shared, I asked FSU to:

1. Please provide a copy of the "ACC-Notre Dame Football Competition Agreement" identified in Section 2.12 of the ACC ByLaws.

2. Please provide a complete copy of the finalized ACC budget for the 2021-22 year."

FSU responded very quickly, with "Mr.....– This email is in response to your public records request to Florida State University (FSU) Office of the General Counsel dated August 3, 2022. There are no documents responsive to this request in the possession/control of FSU. FSU now considers this request closed. Thank you.

Billy's thought...BS

 

[TerryD]

Notre Dame is a mediocre program getting by on Boomer nostalgia. So why does every realignment thread need to be about Notre Dame?

ND is 54-10 the last five years with two playoff berths, but whatever.

The reason is that only ND has the power and the money to make a difference to the Big Ten and SEC.

It is the lynchpin for any future realignment. If it joins the Big Ten, all hell will break loose.

If it stays independent, then the P2 total domination of college football is on hold.

 

[TerryD]

Where is the exit fee mentioned in there?

1.4.5 Withdrawal of Members. To withdraw from the Conference, a Member must file an official notice of withdrawal with each of the 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 2.5.1 of the Bylaws of the Conference (the “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.

 

[TerryD]

A lawyer on an FSU pay board just posted this re Notre Dame and ACC documents...


"Just wanted to pass on that after those Bylaws were shared, I asked FSU to:

1. Please provide a copy of the "ACC-Notre Dame Football Competition Agreement" identified in Section 2.12 of the ACC ByLaws.

2. Please provide a complete copy of the finalized ACC budget for the 2021-22 year."

FSU responded very quickly, with "Mr.....– This email is in response to your public records request to Florida State University (FSU) Office of the General Counsel dated August 3, 2022. There are no documents responsive to this request in the possession/control of FSU. FSU now considers this request closed. Thank you.

Billy's thought...BS

FSU and all other public universities in the ACC may not have a copy...by design.

ND and the ACC are both private entities. No Freedom of Information Act applicability in that case....on purpose.

 

[CL82]

1.4.5 Withdrawal of Members. To withdraw from the Conference, a Member must file an official notice of withdrawal with each of the 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 2.5.1 of the Bylaws of the Conference (the “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.

So if total expenses are $800 million does that mean that exit fees equal $2.4 billion? That can’t be right.

 

[billybud]

FSU and all other public universities in the ACC may not have a copy...by design.

ND and the ACC are both private entities. No Freedom of Information Act applicability in that case....on purpose.

Understand....but maybe not under Florida's Sunshine law....the courts have ruled on a similar issue when FSU reviewed documents on a secure read only web site to avoid the retention of a public record.

FSU officials told reporters that the school’s outside counsel entered a confidentiality agreement with the NCAA that prevented them releasing the documents, which the NCAA made available to FSU in a read-only format through a password-protected Web site.

Twenty-six media outlets filed suit against the NCAA and FSU, arguing that FSU’s status as a state university meant the NCAA response and any other documents exchanged via the secret Web site were public records. In August, Leon County Circuit Court Judge John C. Cooper agreed. He ordered the handover of the two documents the outlets requested — the committee’s 350-page meeting transcript and the June 2 response.

The NCAA argued that enforcing the state’s open records law against them would discriminate against interstate commerce or impose a burden unlike that of other states, but Judge Philip J. Padovano, writing for the court, disagreed. “This case arose in Florida, but it is likely that the NCAA would be dealing with the same issue had it arisen most anywhere in the United States,” he wrote.

It could be that the university signed contracts valued in the $100s of millions and committed themselves to the ACC GOR contract for decades without having the pertinent information such as the ESPN contract or the Notre Dame football participation agreement....Academicians ? What can I say.

 

[FfldCntyFan]

View attachment 78031
So if total expenses are $800 million does that mean that exit fees equal $2.4 billion? That can’t be right.

It looks like that is including costs for each member school. The ACC isn't paying Dabo's salary, Clemson is.

 

[billybud]

It looks like that is including costs for each member school. The ACC isn't paying Dabo's salary, Clemson is.

Not sure what you are implying...but the withdrawal fee (exit fee) is three times the total operating budget of the conference...which is currently $36 million (the conference takes a share equal to a member's share).

 

[JeepCSC]

View attachment 78031
So if total expenses are $800 million does that mean that exit fees equal $2.4 billion? That can’t be right.

It’s the budget of the ACC office, not the budget of all ACC members combined. As mentioned above, the ACC office budget is the same as a full school share.

 

[FfldCntyFan]

Not sure what you are implying...but the withdrawal fee (exit fee) is three times the total operating budget of the conference...which is currently $36 million (the conference takes a share equal to a member's share).

Wasn't implying anything, merely pointing out the flaw in 82's thought process.

If this went over your head I apologize but all you need to do is read the post I was responding to.

 

[billybud]

Wasn't implying anything, merely pointing out the flaw in 82's thought process.

If this went over your head I apologize but all you need to do is read the post I was responding to.

oh...I did not see your reference to a post that you were replying to....

I see why...I do not see CL82's posts. I did page back a page to see what you might be responding to.

 

[CL82]

Wasn't implying anything, merely pointing out the flaw in 82's thought process

Or if not my thought process then my ability to read little tiny graphics on my phone…

 

[CL82]

So let me just restate my original post with the corrected assumptions:

Let’s say the value of the ESPN contract is 40 million per school. We know from the special section Notre Dame in the ACC bylaws that the value of football is 80% of that contract. Notre Dame football is independent and not a part of the ACC contract. so the value of Notre Dame‘s grant of rights to the ACC for everything but football would be equal to $8 million a year. The ACC grant of rights runs through 2036. So Notre Dame is theoretically on the hook for $112 million over 14 years. If you consider the time value of money and discount that back to a single payment, depending upon the assumption to use, it’s probably 70 million give or take.

Now keep in mind that’s just the grant of rights. They also have to pay whatever exit fee is applicable. The bylaws provide that the exit fee is equal to three times the operating budget of the ACC. The ACC takes a full membership share for their operating budget. So under our hypothetical $40 million annual distribution the exit fee would be $120 million. That means collectively they can get out of their partial conference membership for approximately $190 to $212 million.

Now, if you had the opportunity to make $100 million per year, every year on a go forward basis, would you be willing to pay $190 million for that privilege? If Notre Dame decides it wants to leave the ACC, the cost of exiting isn’t going to stop it.

Thanks to @TerryD, @JeepCSC and @FfldCntyFan for their help filling in the pieces