$17m early buyout agreement per Blaud

[TRest]

The conference is said to have sought a much higher exit fee while UConn tried to negotiate something closer to $15 million or below. The sides eventually found a compromise, which involves maintaining an aspect of their partnership because UConn has agreed to schedule four home-and-home basketball series with AAC teams, men’s or women’s. No teams or years have been assigned.

UConn to pay $17 million in AAC exit fee, depart conference next year

UConn will pay the American Athletic Conference a $17 million exit fee in order to leave the conference next summer. The AAC on Friday announced that terms and fees associated with the university&#…

www.courant.com

Hell to the naw.

 

[polycom]

Hell to the naw.

As long as we get to pick the teams it's good...

 

[storrsroars]

I'm enthused. In fact I'm so enthused I'm now expecting a home game vs Auburn.

 

[JMick]

Am I misreading this or did we completely fleece them? Did they hold this past years payment and this upcoming year's, or are we forfeiting this years and next year's payment? Because by next year we'll be receiving big east money to offset that cost, no?

 

[TRest]

As long as we get to pick the teams it's good...

I assume so, but I think we need the hoops programs OOC games as tradeable assets to get some P5 football games. If it's just 4 home and homes total over the next several years, it is doable.

 

[JMick]

I'm intrigued

 

[McLovin]

Geno's already said we'll keep playing USF so there's 1 down. 3 to go. Hopefully Memphis/Wichita MBB since both those coaches/ADs voiced their concern in losing UConn.

I keep forgetting Wichita state is in the AAC.

 

[TRest]

Am I misreading this or did we completely fleece them? Did they hold this past years payment and this upcoming year's, or are we forfeiting this years and next year's payment? Because by next year we'll be receiving big east money to offset that cost, no?

This past year's they already withheld, so next year's too. I think it's a great deal for us to get started ASAP.

 

[tcf15]

Am I misreading this or did we completely fleece them? Did they hold this past years payment and this upcoming year's, or are we forfeiting this years and next year's payment? Because by next year we'll be receiving big east money to offset that cost, no?

Out of pocket, it's pretty much $6M over six years for UConn. Plus four H&H games with AAC teams.

Fleeced.

 

[huskymedic]

I'm intrigued

Neill Ostrout @NeillOstrout 1m
Per a conversation with a learned colleague recently, there may be more Power 5 teams willing to play home-and-home's at PAWSARF in the future than one might think. The $1-$2 million guarantee games aren't healthy for the middle of the pack to pay all the time.

Neill Ostrout@NeillOstrout 2m
And East Hartford/Bradley isn't too difficult a travel ask (as opposed to Storrs, I suppose). And, of course, it's likely to be a very winnable game for (INSERT TEAM NAME HERE).

 

[Chief00]

What? You owe someone 17M, you either pay them with money they owe you or money already in your pocket. Are you saying you'd rather we pay them with money already in our pockets?

We didn’t owe $17m, that was negotiated. What I am saying is that the $10 million was going to be used for normal operational costs. So it needs to be made up. It’s not like something you never thought you had being used.
And this $2 million in travel costs savings isn’t real. Since we don’t know what the biggest component is going to be (football travel) this is all conjecture. Additionally, we are still traveling to the Midwest as part of our conference footprint,
I also suggest we don’t eliminate FL football games because that will hurt recruiting.
Meanwhile, from a BE revenue side - we need to pay an entry fee and we won’t get a full share for years.

 

[Guapo]

Am I misreading this or did we completely fleece them? Did they hold this past years payment and this upcoming year's, or are we forfeiting this years and next year's payment? Because by next year we'll be receiving big east money to offset that cost, no?

This is Aresco (not mad) doing the same thing he did with the tv deal.

He gets to say “17 million!” But when you actually break down the numbers...it ain’t there, Mike.

 

[Guapo]

Yuge.

 

[huskymedic]

And this $2 million in travel costs savings isn’t real. It assumes we will have ZERO travel costs going forward. Since we don’t know what the biggest component is going to be (football travel) this is all conjecture. Additionally, we are still traveling to the Midwest as part of our conference footprint,

No... its projected savings comparing AAC over BE travel for ALL sports. Football $# is a bogey right now but it won't be significantly different than current travel expenditures for football all said and done.

 

[zls44]

Out of pocket, it's pretty much $6M over six years for UConn. Plus four H&H games with AAC teams.

Fleeced.

Mike Aresco is such a great negotiator.

...

When he's across the table from you.

 

[CL82]

And this $2 million in travel costs savings isn’t real. It assumes we will have ZERO travel costs going forward.

Are you sure about that? I'll be a little pissed if that is how that number was calculated.

 

[Fairfield_1st]

The extra $7 million buys a two year earlier departure. Well worth it, especially since the Big East + SNY revenue less travel costs will exceed the American revenue less travel costs.

Glad they got this done quickly.

Isn't the extra $7M just buying us a year earlier release? $10M for 2021, $17M for 2020. As I've said before, we're not rolling in dough and to pay $7M to get out a year early is a lot. Hopefully we end up making more than that in the BE + Football so we can show it was worth it. I understand not killing the momentum, but there's still a fiduciary responsibility.
I think UConn paid too much.

So were basically not even paying anything out of pocket lol. Love it

We're also not putting anything in our pocket. It's still an expensive move.

I sure hope there are a few donors out there lending a helping hand. I'd also feel better if I knew what was possibly happening with SNY for Women's Hoops as well as what the plan for football is. I really want to see the expected revenue so I can stop bitchin' about the exit and entrance dollars.

 

[Da_Aisijimo_Gou]

Thats a lot of words to give no information on football status. Pumped the basketball got accelerated to next summer. The ask for 4 H/H series isn't too steep either. As someone mentioned earlier, we can do it with Cincy and Memphis to help SOS.

Reasonably, Benedict shared immediate focus has been on getting out of jail (AAC). On likely evolving football developments, how few words would be more satisfactory regarding a non-stagnant opportunity?

Hoops scheduling: spread the few AAC games over an extended time period

 

[Guapo]

My sources are saying:

 

[pj]

Isn't the extra $7M just buying us a year earlier release? $10M for 2021, $17M for 2020. As I've said before, we're not rolling in dough and to pay $7M to get out a year early is a lot.

No, we gave notice July 2019, the AAC term is 27 months therefore with no extra buyout we're stuck in the AAC through October 2021. No conference will accept you mid-academic year, so if you fulfill the 27 months notice, you can't actually leave the AAC and join another conference until summer 2022. We're getting out summer 2020 instead, that's a 2 year savings.

 

[JMick]

Out of pocket, it's pretty much $6M over six years for UConn. Plus four H&H games with AAC teams.

Fleeced.

"We're fine, we don't need UConn"

Forces us to play them as part of the exit negotiations.

That is L-O-L funny

 

[tcf15]

Isn't the extra $7M just buying us a year earlier release? $10M for 2021, $17M for 2020. As I've said before, we're not rolling in dough and to pay $7M to get out a year early is a lot. Hopefully we end up making more than that in the BE + Football so we can show it was worth it. I understand not killing the momentum, but there's still a fiduciary responsibility.
I think UConn paid too much.

It's not all upfront though...will be spread out over the next few years.

2019-2020: AAC withholding ~$5M
2020-2021: AAC withholding ~$5M but UConn starts getting full share of Big East $$$ immediately (about $4M but could be higher depending on TV contract negotiations)
2021-2022: $1M to the AAC
2022-2023: $1M to the AAC
2023-2024: $1M to the AAC
2024-2025: $1M to the AAC
2025-2026: $1M to the AAC
2026-2027: $1M to the AAC

 

[polycom]

It's not all upfront though...will be spread out over the next few years.

2019-2020: AAC withholding ~$5M
2020-2021: AAC withholding ~$5M but UConn starts getting full share of Big East $$$ immediately (about $4M but could be higher depending on TV contract negotiations)
2021-2022: $1M to the AAC
2022-2023: $1M to the AAC
2023-2024: $1M to the AAC
2024-2025: $1M to the AAC
2025-2026: $1M to the AAC
2026-2027: $1M to the AAC

But the all knowin chief told me we don't get a full share for a long time. What say you tcf?

 

[pj]

It's not all upfront though...will be spread out over the next few years.

2019-2020: AAC withholding ~$5M
2020-2021: AAC withholding ~$5M but UConn starts getting full share of Big East $$$ immediately (about $4M but could be higher depending on TV contract negotiations)
2021-2022: $1M to the AAC
2022-2023: $1M to the AAC
2023-2024: $1M to the AAC
2024-2025: $1M to the AAC
2025-2026: $1M to the AAC
2026-2027: $1M to the AAC

Conference distributions are paid with a delay while all the accounting is done. I don't know the exact delay but let's say the previous academic year's distribution is paid the following October.

Then the math is:
2018-2019 AAC withholding $5 mn (would have been paid Oct 2019)
2019-2020 AAC withholding $5 mn (would have been paid Oct 2020)
2020-2021 BE UConn gets paid Oct 2021, UConn pays $1 mn to AAC
etc

So for UConn the cashflows are eliminated for two years, it gets no conference distributions in 2019 or 2020, and then 2021-2026 its BE distributions are effectively reduced by $1 mn to be paid to AAC.

 

[tcf15]

But the all knowin chief told me we don't get a full share for a long time. What say you tcf?

h/t @Storrs South