C-USA / Mount.West Multi-million Dollar Mistake?

[UConnDan97]

According to the Orlando Sentinel today, there are some real question marks pertaining to the millions of dollars that the new Big East teams would have had to pay. Their merger is happening in part to void existing tv contracts so that they can negotiate a new one. In doing so, have they cost themselves millions in exiting fees? (maybe BizLaw can post on this one)
http://www.orlandosentinel.com/mobile/sports/os-ucf-cusa-exit-fee-0217-20120216,0,2842059.story

 

[nelsonmuntz]

The exit fees are peanuts compared to what the CUSA/MWC will generate from a new TV deal. I don't imagine the new league would do anything extraordinary to slow down their merger just to get the exit fees.

 

[UConnDan97]

The exit fees are peanuts compared to what the CUSA/MWC will generate from a new TV deal. I don't imagine the new league would do anything extraordinary to slow down their merger just to get the exit fees.

I guess what I'm really wondering about is the type of deal that a C-USA/MW merger can generate. If they believe that they can generate 3 million or 5 million more per team in a new contract by voiding the old one, then I guess they shouldn't care about all of the departing teams' exit fees. But why not wait until 2014, and collect all of them??? Why the rush to get that extra year of revenue, only to forfeit XXmillion in combined exit fees?? This is where I need someone who understands the actual figures of a new tv deal to show me the math on it. Maybe they will recover those funds for 2013, but if not....wow....

 

[Jericho]

I think there's too many moving parts here to get a concrete answer. Not to mention, I'm not aware of anyone who has seen the bylaws of TV contracts in question. Since Con-USA does appear to require 1 year's notice for schools to leave, it means all the new Big East schools gave their notice to leave prior to any potential dissolution (which has yet to happen). So at the very least, I suspect there should be some fees. However, it appears the exits fees are based in part by the the TV contract. And that's where things can get real sticky. Such as when is the TV contract voided/conference dissolved, what caused which action (as in did the defections cause the dissolution, etc...). Of course, as UConnDan stated, maybe they'll make way more money on the new deal to really care if they forfeited some dollars with this move.

 

[RS9999X]

If you go by the 200% rule then that's $2.6 million additional per team.

Temple was at the board meeting and is rumored to be the 16th football school.

There is the possibility 3 football teams are added--Temple, UMass and a team from the West. Also Temple isn't 100% sure on basketball in the A-10 and to add to the confusion Temple is indicating they are in the BE if Louisville leaves.

http://brett-mcmurphy.blogs.cbssports.com/mcc/blogs/entry/29532522/34753656