B1G bottle of Red Whine... Rutgers accuses AAC of holding back $2.5m

[huskymedic]

Rutgers accuses Big East successor of holding back $2.5 million in exit fee dispute

http://www.nj.com/rutgersfootball/i...ding_back_25_million_in_exit_fee_dispute.html

“The conference’s withholding caused budgeting complications for Rutgers, as it unexpectedly came in the last week of Rutgers’ fiscal year, and less than a week before a massive restructuring of New Jersey’s public universities.”

 

[TRest]

Hope the stadium doesn't get foreclosed. They can always raise the money by hitting the student fee slush fund that floats the athletic department for another loan. They could also save that much by canning C. Stringer, but would be fighting the resulting lawsuit for the next 5 years.

 

[whaler11]

Odd article. They drop in the money was restored in the second to last paragraph.

 

[CL82]

Rutty owes the Big East (AAC) $10M but complains about the timing of it's receipt of $2.5M. Perfect, just perfect.

If I'm a B1G pres. I'm thinking "Crimeny what did we get ourselves into." I'd laugh about it but a smooth RU transition helps pave the way for a possible UConn invite.

 

[coachcap]

I'm sure that D.J. Spanky, Rutgers Al, RU Princess, & the rest of their frenetic fanbase won't mind a little increase in their season tickets to offset the cost of doing business.

 

[whaler11]

Rutty owes the Big East (AAC) $10M but complains about the timing of it's receipt of $2.5M. Perfect, just perfect.

If I'm a B1G pres. I'm thinking "Crimeny what did we get ourselves into." I'd laugh about it but a smooth RU transition helps pave the way for a possible UConn invite.

I'm pretty sure one could make the argument they only owe 5 pretty easily. If someone docked me 2.5 million 2 months before it was due I'dbe annoyed as well.

 

[CL82]

I'm pretty sure one could make the argument they only owe 5 pretty easily. If someone docked me 2.5 million 2 months before it was due I'dbe annoyed as well.

I think 10 M is the right number but let's say it is 5M. If I'm owed 5M and I own $2.5M there's no way that I make that payment especially where Rutty is disputing the (10M) 5M that owe me. Maybe I'd escrow it pending a resolution of the dispute but probably not.

 

[whaler11]

I think 10 M is the right number but let's say it is 5M. If I'm owed 5M and I own $2.5M there's no way that I make that payment especially where Rutty is disputing the (10M) 5M that owe me. Maybe I'd escrow it pending a resolution of the dispute but probably not.

Clearly the AAC knew they had no legal right since they immediately restored it. They aren't owed the money until August.

You think 10 million is the right number because you want to penalize Rutgers. The process was a joke and it will end up 5.

 

[CL82]

Clearly the AAC knew they had no legal right since they immediately restored it. They aren't owed the money until August.

You think 10 million is the right number because you want to penalize Rutgers. The process was a joke and it will end up 5.

No Kreskin, I think that 10M because that was the number that was in place at the time RU left. At the end of the day 10, 5 or none it really isn't going to significantly impact them with the B1G money they are getting. On the other hand the members of this league are going to be scratching for around for cash for the foreseeable future.

 

[whaler11]

No Kreskin, I think that 10M because that was the number that was in place at the time RU left. At the end of the day 10, 5 or none it really isn't going to significantly impact them with the B1G money they are getting. On the other hand the members of this league are going to be scratching for around for cash for the foreseeable future.

LOL yeah set after they were gone without allowing them to vote.

5 million certainly matters to them.

 

[CL82]

LOL yeah set after they were gone without allowing them to vote.

5 million certainly matters to them.

Golly you should call them up and let them know, because they aren't making that argument but I'm sure that you are right. Right now they are claiming either that the clause should be declared void or that the Big East waived it because of intermittent enforcement.

 

[whaler11]

Golly you should call them up and let them know, because they aren't making that argument but I'm sure that you are right. Right now they are claiming either that the clause should be declared void or that the Big East waived it because of intermittent enforcement.

I imagine they know since it's in the article and they are the source.

Rutgers contends it has a vested right to pay a withdrawal fee of only $5 million, while the conference contends that its membership approved an increase to $10 million in its Nov. 2012 bylaws. That charge was approved over the objections of then-Rutgers athletic director Tim Pernetti, who was not allowed to vote on the issue when the changes were made, according to the university.

 

[CL82]

I imagine they know since it's in the article and they are the source.

Rutgers contends it has a vested right to pay a withdrawal fee of only $5 million, while the conference contends that its membership approved an increase to $10 million in its Nov. 2012 bylaws. That charge was approved over the objections of then-Rutgers athletic director Tim Pernetti, who was not allowed to vote on the issue when the changes were made, according to the university.

The invite to B1G came after the increase to 27 months and $10M.

Linky

 

[whaler11]

The invite to B1G came after the increase to 27 months and $10M.

Linky

Yeah that's another article that talks about when the vote was and doesn't talk about when it took effect. I'm sure they voiced opposition and didn't vote for this eventuality.

I highly doubt in the end they pay more than 5. Once you start splitting it, it's pretty insubstantial to any school anyway.

 

[CL82]

Yeah that's another article that talks about when the vote was and doesn't talk about when it took effect. I'm sure they voiced opposition and didn't vote for this eventuality.

I highly doubt in the end they pay more than 5. Once you start splitting it, it's pretty insubstantial to any school anyway.

Not your original claim:

LOL yeah set after they were gone without allowing them to vote.

Regardless, I wouldn't be surprised if they ended up compromising on it but I think RU should pony up the 10M and move along.

 

[whaler11]

Not your original claim:


Regardless, I wouldn't be surprised if they ended up compromising on it but I think RU should pony up the 10M and move along.

Yes I may be wrong. The vote happened before they left - hard to tell if they chose not to vote or weren't allowed. The only article I have seen about when it became an actual by-law notes November but no date.

I highly doubt it sticks and I don't blame Rutgers for fighting it. Of course you think they should pay and move along it's not your $5 million. If it was UConn fighting the exit fee you'd be clamoring about the other side.

 

[BoatShow]

No Coach Flood in the thread no care.

 

[CL82]

Yes I may be wrong. The vote happened before they left - hard to tell if they chose not to vote or weren't allowed. The only article I have seen about when it became an actual by-law notes November but no date.

I highly doubt it sticks and I don't blame Rutgers for fighting it. Of course you think they should pay and move along it's not your $5 million. If it was UConn fighting the exit fee you'd be clamoring about the other side.

Clamoring? I think not. That said. The Big East has a withdrawal provision. Rutgers knew they were being courted by the B1G when this vote came up. They could have withdrawn prior to the vote. They did not. They ought to pay and move on. Now, if I were there GC would I try to get out of it? Absolutely, but that doesn't change the analysis.