$17m early buyout agreement per Blauds | The Boneyard

$17m early buyout agreement per Blauds

Mike Anthony@ManthonyCourant 16m
American Athletic Conference set to announce UConn departure terms have been finalized. Sources: UConn's exit fee will be $17 million, payable in lump sums of $5-plus million each of next two years (AAC withholding distribution money) and about $1 million annually for six years.
 
UConn to pay $17 million in AAC exit fee, depart conference next year

>>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.

As expected, UConn will not be allowed to remain in the AAC as a football-only member and will become an independent program.

“I can confirm that we’re going to be pursuing an FBS, Division I football program,” Benedict said. “We absolutely are committed to being a competitive program and I remain optimistic about our ability to achieve that goal. A lot of that has to do with a lot of conversations that I’ve been having over the past couple weeks with people intimately involved in the process. So I’m excited to move on and really dig in to football now that the exit has been finalized.” <<
 
Forgetting about the amount (which, make no mistake, is big), the only way this makes sense is if UConn has their 2020 schedule complete lined up on paper and Benedict only has to hit **enter**.

I knew I was drawing too much false hope from the UConnblog podcast yesterday. Denial is a strong defense mechanism.
 
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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).

Neill Ostrout @NeillOstrout
My guess is there will be at least one 2-for-1 poaching in the 2020 schedule. As in, UConn approaches two teams set to play each other and negotiates a game for themselves with each.
 
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My first reaction: So we are paying an extra $7M to leave the conference early and giving them bb games but we aren't getting any football games back? I'm not in on these negotiations, but I really feel like UConn needs better lawyers.

But on getting more details:
huskymedic said:
Mike Anthony@ManthonyCourant 16m
American Athletic Conference set to announce UConn departure terms have been finalized. Sources: UConn's exit fee will be $17 million, payable in lump sums of $5-plus million each of next two years (AAC withholding distribution money) and about $1 million annually for six years.
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brasssbonanzaa said:
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This doesn't look so bad.

I'm starting to feel like we might actually pull off being an independent successfully and improve our brand.
 
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It will be interesting to see what AD Dave can come up with for scheduling. Is it going to be closer to BYU or more like UMass' schedule?
 
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An independent UConn football team with this recurring home schedule would be an enormous win for this move:

FCS
1 MAC
1 AAC
1 independent: UMass, BYU, Army, NMSU
2 of not far low/mid tier P5 such as: RU, SU, MD, Wake, Vandy, etc.

If you told me UConn could save the basketball programs, and regularly play an independent home schedule of:
URI
Buffalo
Cincinnati
UMass
Rutgers
Indiana

While no bowl tie-ins hurt, we'd own our TV rights. That's an enormous net positive for the athletic department.
 
AndOne said:
It will be interesting to see what AD Dave can come up with for scheduling. Is it going to be closer to BYU or more like UMass' schedule?
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UMass is in a much different predicament than we are as far as home scheduling. Their on campus facility is way too small to play anyone of note, and their other option is 2+ hours from campus, so they don't want to play games there.
 
CL82 said:
My first reaction: So we are paying an extra $7M to leave the conference early and giving them bb games but we aren't getting any football games back? I'm not in on these negotiations, but I really feel like UConn needs need lawyers.

But on getting more details:




This doesn't look so bad.

I'm starting to feel like we might actually pull off being an independent successfully and improve our brand.
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I think the lesson is wait to see the entire thing pan out before you get too high or too low either way?
 
zls44 said:
I think the lesson is wait to see the entire thing pan out before you get too high or too low either way?
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I agree. I still have to see what that schedule looks like. But if they agreed to such a large amount, they must believe they can make money here. I guess we will see shortly.
 
noeynox said:
I agree. I still have to see what that schedule looks like. But if they agreed to such a large amount, they must believe they can make money here. I guess we will see shortly.
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Agree but of that $17M, $7.5M ($2.5M exit fee + $5M withheld distributions) has already been paid, and another @$3.5 of withheld distributions is apparently anticipated. So on an out of pocket basis, we are looking at $2.5 down + $6M over basically 7 years. That seems like a very good deal.

@Chief00 is right that the $withheld distributions is real money that is otherwise owed to us, but on a cash out of pocket basis, this isn't bad.
 
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The school needs to explain why it makes financial sense to pay an extra 7 million so we can leave with one year notice instead of two. Paying 17 million I would almost expect Big East basketball for the 2019/2020 season. From a football point of view I was looking forward to AAC football in 2020. If they replace home games vs UCF, Temple and Cincy with home games vs garbage teams it will be very disappointing considering we could have given the standard two years notice.

So Aresco finally does his job and negotiates a sweet deal for the AAC and it works against UCONN. Head bang
 
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now the next shoe to drop - does espn adjust the numbers on the AAC media deal.
 
The Truth

UConn is the Only name University this Far East that will play Major P5. In New England, not far from NYC, and near targeted parents for future students & alumni in good jobs. Army won’t play most of these. We have a Institutional sized modern stadium AND we can accommodate the far bigger ticket demands that may come. UMass Liberty NM State ... aren’t in the same class nor Platform. BYU is a great opponent ... but a haul for an AWAY game.

We will do fine. We just need to get far better

Then. We need to snort at the National Media that buried us. We get MSG and enthusiasm. A Brand.
 
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