$17m early buyout agreement per Blaud | Page 2 | The Boneyard

$17m early buyout agreement per Blaud

Dooooooomed said:
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.
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I keep forgetting Wichita state is in the AAC.
 
JMick said:
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?
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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.
 
JMick said:
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?
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Out of pocket, it's pretty much $6M over six years for UConn. Plus four H&H games with AAC teams.

Fleeced.
 
JMick said:
I'm intrigued
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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).
 
polycom said:
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?
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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.
 
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JMick said:
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?
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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.
 
Chief00 said:
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,
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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.
 
Chief00 said:
And this $2 million in travel costs savings isn’t real. It assumes we will have ZERO travel costs going forward.
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Are you sure about that? I'll be a little pissed if that is how that number was calculated.
 
pj said:
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.
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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.

aburks41 said:
So were basically not even paying anything out of pocket lol. Love it
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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.
 
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McLovin said:
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.
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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
 
Fairfield_1st said:
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.
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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.
 
Fairfield_1st said:
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.
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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
 
tcf15 said:
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
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But the all knowin chief told me we don't get a full share for a long time. What say you tcf?
 
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tcf15 said:
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
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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 said:
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
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So 2019-20 no revenue in.
2020-21 is a wash or slight revenue in, but if you add the BE entry fee here, it's more likely no revenue + a little out of pocket.
2021-2027 I'm fine with the $1M per. Hopefully our new revenue model more than makes up for that $1m.
So for 2 years we're playing for free as far as the AAC is concerned.
 
Guapo said:
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.
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If I owe you 5 million and you owe me 5 million either I can write you a check and you can write me one or we can both call it even and save the cost of the stamp. In this case though Chief is correct that we now have 5 million dollar hole in the budget that needs coverage.
 
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TRest said:
You're kidding, right?
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Not at all. If UConn floated a number that says 'hey we'll be saving $2M in travel costs' and that number was calculated using an anticipated $0 in travel costs, that means the school, essentially lied to the public. That would be utter horse sheet. I doubt that that is the case though,
 
CL82 said:
Not at all. If UConn floated a number that says 'hey we'll be saving $2M in travel costs and that number was calculated using an anticipated $0 in travel costs, that means the school, essentially lied to the public. That would be utter horse sheet. I doubt that that is the case though,
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I meant about chief knowing the actual details. He's more of a big picture guy.
 
CL82 said:
Not at all. If UConn floated a number that says 'hey we'll be saving $2M in travel costs' and that number was calculated using an anticipated $0 in travel costs, that means the school, essentially lied to the public. That would be utter horse sheet. I doubt that that is the case though,
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No chance that's how UConn calculated the numbers, but people who want to paint this as a bad deal need to spin some numbers in their favor
 
Drew said:
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so basically ya'll are gonna be a buy game team for a bunch of big P5 schools? i guess that's fun
 
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