Mediator assigned in Maryland vs. ACC lawsuit

[upstater]

Adidas obviously thinks so. They endorsed it with a huge apparel contract just last month.

What does Under Armour give MD?

 

[btstimpy]

What does Under Armour give MD?

I don't know the amount of the Undor Armour deal with Maryland. The originial was $3.5 million per year, but it should be close to expiration or recently renewed. I can't find the amount anywhere. If you can it would be nice to know. Kevin Plank is an alumni and donor to Maryland for other things, but don't know the apparel branding number.

Adidas has given Michigan $8.2 million per year and Louisville $7.7 million or so per year ($39 million for 5 years). Under Armour gave Notre Dame a big one assumed in the range of these, and of course it is not public.

 

[huskypantz]

I don't know the amount of the Undor Armour deal with Maryland. The originial was $3.5 million per year, but it should be close to expiration or recently renewed. I can't find the amount anywhere. If you can it would be nice to know. Kevin Plank is an alumni and donor to Maryland for other things, but don't know the apparel branding number.

Adidas has given Michigan $8.2 million per year and Louisville $7.7 million or so per year ($39 million for 5 years). Under Armour gave Notre Dame a big one assumed in the range of these, and of course it is not public.

MD got 34 mil over 10 years, signed in January - expires 2024.

 

[itgoeslike]

I don't know the amount of the Undor Armour deal with Maryland. The originial was $3.5 million per year, but it should be close to expiration or recently renewed. I can't find the amount anywhere. If you can it would be nice to know. Kevin Plank is an alumni and donor to Maryland for other things, but don't know the apparel branding number.

Adidas has given Michigan $8.2 million per year and Louisville $7.7 million or so per year ($39 million for 5 years). Under Armour gave Notre Dame a big one assumed in the range of these, and of course it is not public.

http://www.al.com/sports/index.ssf/2014/01/how_much_do_colleges_get_for_s.html

 

[upstater]

MD got 34 mil over 10 years, signed in January - expires 2024.

So, essentially, there is much more to these deals than people think.

Tax purposes. Income to Under Armour from Maryland is small so UA doesn't pay much tax. Then UA Pres. donates big sum and reduces his tax.

 

[Fishy]

So, essentially, there is much more to these deals than people think.

Tax purposes. Income to Under Armour from Maryland is small so UA doesn't pay much tax. Then UA Pres. donates big sum and reduces his tax.

No - the deals are actually pretty simple.

 

[upstater]

No - the deals are actually pretty simple.

Well, then, MD's stuff is 1/2 as popular as Louisville's.

 

[Fishy]

Well, then, MD's stuff is 1/2 as popular as Louisville's.

And Maryland gets about twice as much as Virginia and Virginia Tech does....but that's really not much of a barometer.

The Maryland deal is online, as is the other two. They're very straightforward.

The Louisville deal is a little cute - it was structured to make create a headline, but cash is only $1.5M per year. (Michigan makes $3.8M in cash from adidas on a deal signed several years back - who do you think adidas values more? UM's deal expires in 2016 and they'll no doubt sign a monster deal then, but if adidas ever offers another school a better deal than the one they give UM, they have 30 days to bump UM back to the top.)

Lots of sizzle in the UL deal, but the steak is about the same size as everyone else.

 

[upstater]

And Maryland gets about twice as much as Virginia and Virginia Tech does....but that's really not much of a barometer.

The Maryland deal is online, as is the other two. They're very straightforward.

The Louisville deal is a little cute - it was structured to make create a headline, but cash is only $1.5M per year. (Michigan makes $3.8M in cash from adidas on a deal signed several years back - who do you think adidas values more? UM's deal expires in 2016 and they'll no doubt sign a monster deal then, but if adidas ever offers another school a better deal than the one they give UM, they have 30 days to bump UM back to the top.)

Lots of sizzle in the UL deal, but the steak is about the same size as everyone else.

I admire UL for always inflating the money line. Jurich rolls UL's donations into BBall revenue, and that program becomes the nation's richest. Pretty cute. Football, meanwhile, lags way way behind.

 

[nelsonmuntz]

I'm amazed you spend so much time misstating people's positions. I have no reason to think anyone was given bad advice. It would make sense to adopt these as the best plan you have (in terms of chances of keeping members together), and when you adopt them you say they work even though you don't know. Unless you know that lawyers never speak their client's position but only the truth.

Except that the legal ground these GOR's are breaking is about as innovative as an S Corp.

 

[TerryD]

I don't know the amount of the Undor Armour deal with Maryland. The originial was $3.5 million per year, but it should be close to expiration or recently renewed. I can't find the amount anywhere. If you can it would be nice to know. Kevin Plank is an alumni and donor to Maryland for other things, but don't know the apparel branding number.

Adidas has given Michigan $8.2 million per year and Louisville $7.7 million or so per year ($39 million for 5 years). Under Armour gave Notre Dame a big one assumed in the range of these, and of course it is not public.

It is supposed to be at least $9 million a year for ten years. One report says at least $100 million for ten years, the other says at least $90 million for ten years.

I say "at least" because ND has the option of taking some of that compensation as Under Armour stock.

It is being called the biggest apparel deal in college sports history.

http://msn.foxsports.com/college-fo...n-ncaa-history-means-for-notre-dame-ua-012114

http://www.forbes.com/sites/montebu...ys-from-the-new-under-armour-notre-dame-deal/

http://espn.go.com/college-football...e-most-valuable-apparel-contract-ncaa-history

 

[nelsonmuntz]

People maintain this illusion that the GOR's are breakable because they hope for chaos, and chaos is opportunity for a school on the outside like UConn. I get all that. I also think it is so wildly unrealistic that I am quite confident that no one in a position of power in Storrs considers the implications of breaking a GOR for even a nanosecond, because it is not going to happen.

Either there needs to be some sort of new incentive for conferences to add schools, or UConn needs to make itself valuable enough to make our admittance overwhelmingly compelling to the ACC or Big 10. The latter is the smarter plan.

Some of those bytes wasted discussing how Texas will break a GOR that they can't and don't want to break should be used on figuring out how to make UConn more valuable to another league. The bogey is $20MM a year for the ACC and about $35MM a year for the Big 10, going to $45MM/year. For UConn to even get on their radar, I think UConn has to be generating well over $15MM a year from television and multimedia. What is that number now? $2MM from the AAC and maybe $8MM in Tier 3/multimedia?

http://www.sportsbusinessdaily.com/...-Recently-Signed-Multimedia-Rights-Deals.aspx

(that link is over 3 years old and those rights are based on UConn still in the Big East, so they may have changed)

UConn is not getting into any league if that is all it is generating. UConn has to prove that it is a major revenue producer, not just promise it is. The best way to show UConn's value in New York is to break off from the AAC TV contract and go it alone for TV. I don't care if we do it within the AAC framework or outside of it. Signing the AAC/ESPN TV agreement was the stupidest decision in a long line of stupid decisions by this league. Exposure doesn't pay the bills. Either the league needs to get smarter or UConn needs to get smarter. WE NEED MORE REVENUE.

 

[Doggie Style]

What does Under Armour give MD?

Answer: Anything they want! Aside fro the Under Armour contract, Kevin Plank who owns the company is their "Burton" times 15! If you recall, one of the triggers that sent rumors flying that Maryland was heading to the B1G was the fact that several weeks prior to the announcement, Plank cashed in 50mil worth of his Under Armour stock! A sum that has Maryland covered regardless of the outcome of their litigation with the ACC! He also gives countless $$$ to Maryland's School of Business etc... They are sitting pretty in this whole thing on account of Plank, Maryland is VERY fortunate to have such a loyal supporter.

 

[bingethinker]

Answer: Anything they want! Aside fro the Under Armour contract, Kevin Plank who owns the company is their "Burton" times 15! If you recall, one of the triggers that sent rumors flying that Maryland was heading to the B1G was the fact that several weeks prior to the announcement, Plank cashed in 50mil worth of his Under Armour stock! A sum that has Maryland covered regardless of the outcome of their litigation with the ACC! He also gives countless $ to Maryland's School of Business etc... They are sitting pretty in this whole thing on account of Plank, Maryland is VERY fortunate to have such a loyal supporter.

UA is also expected to be the corporate sponsor of the new multi-sport, multi-million dollar indoor practice facility Maryland is planning near its football stadium. UA/Plank are very good to Maryland.

 

[HuskyHawk]

Piece of cake. Boy there are some stupid lawyers out there in Big 12 country. And ACC country. And Big 10 country. And at ESPN. And in the music, television and movie industry. All you have to do is physically restrain the cameraman from coming into your building and you are home free.

I really don't know where you get this stuff. You have a very skewed view of the law of contracts and property. You say things like, "it isn't a contract, it's a sale", except that every sale is a contract and is governed by contract law. The only minor exception to that is sales of real property, where property law plays a larger role. But the GOR involves the sale of a license to intellectual property rights. Then you say that somehow specific performance is included in most contracts, when it is fact only normally stipulated as a remedy in non-disclosure agreements and sales of real property. It is otherwise extremely rare. Specific performance is an equitable remedy that is only available where the legal remedy (damages) is "inadequate".

As for lawyers being stupid, some are, but if you think there is any lawyer, anywhere that is capable of drafting a perfect contract, then you are delusional (this lawyer did get his JD at a Big XII school). You also make a lot of assumptions about the intent of the parties. I guarantee that the GOR contract and the network contract with the conference, has lawyers on both sides, negotiating against each other. This is not a situation where all sides had the same exact ideal set of terms or common interest. Not by a long shot. The schools don't want the GOR at all, as it is a restriction on them. They accepted it to allow the conference more leverage in negotiating with the network, but do you think they made it as strong as possible? Of course not, they made it as weak as they possibly could, while still meeting the minimum requirements of the network. How weak? We don't know as none of them have been litigated yet. Don't act as if there is some level of incompetence if a GOR is broken, in fact, that would represent very good lawyering by the schools. Their job is to make sure their school can get out of it, while providing some base level of comfort to the network.

 

[06029]

then you are delusional

One of the most accurate statements made in this 4 page thread.

 

[CL82]

. For UConn to even get on their radar, I think UConn has to be generating well over $15MM a year from television and multimedia. What is that number now? $2MM from the AAC and maybe $8MM in Tier 3/multimedia?

So in your opinion, the value of school is determined by its current media deal? An instant after joining a P5 conference UConn's media rights would be in line with the other members right? How do you reconcile that?

Do you think, perhaps, a P5 conference might talk to their television partners prior to making an offer to a school as to what impact a new addition might have? Do you think the B1G might also consider the numbers of homes in the schools home state?

 

[UConn9604]

People maintain this illusion that the GOR's are breakable because they hope for chaos, and chaos is opportunity for a school on the outside like UConn. I get all that. I also think it is so wildly unrealistic that I am quite confident that no one in a position of power in Storrs considers the implications of breaking a GOR for even a nanosecond, because it is not going to happen.

Either there needs to be some sort of new incentive for conferences to add schools, or UConn needs to make itself valuable enough to make our admittance overwhelmingly compelling to the ACC or Big 10. The latter is the smarter plan.

Some of those bytes wasted discussing how Texas will break a GOR that they can't and don't want to break should be used on figuring out how to make UConn more valuable to another league. The bogey is $20MM a year for the ACC and about $35MM a year for the Big 10, going to $45MM/year. For UConn to even get on their radar, I think UConn has to be generating well over $15MM a year from television and multimedia. What is that number now? $2MM from the AAC and maybe $8MM in Tier 3/multimedia?

http://www.sportsbusinessdaily.com/...-Recently-Signed-Multimedia-Rights-Deals.aspx

(that link is over 3 years old and those rights are based on UConn still in the Big East, so they may have changed)

UConn is not getting into any league if that is all it is generating. UConn has to prove that it is a major revenue producer, not just promise it is. The best way to show UConn's value in New York is to break off from the AAC TV contract and go it alone for TV. I don't care if we do it within the AAC framework or outside of it. Signing the AAC/ESPN TV agreement was the stupidest decision in a long line of stupid decisions by this league. Exposure doesn't pay the bills. Either the league needs to get smarter or UConn needs to get smarter. WE NEED MORE REVENUE.

Are you still hanging your hat on a George Michael case that was tried in London under the laws of another sovereign nation and with a completely different set of facts?

I'm not saying that GORs are definitely breakable but I know for a fact that they are not definitely unbreakable.

 

[nelsonmuntz]

So in your opinion, the value of school is determined by its current media deal? An instant after joining a P5 conference UConn's media rights would be in line with the other members right? How do you reconcile that?

Do you think, perhaps, a P5 conference might talk to their television partners prior to making an offer to a school as to what impact a new addition might have? Do you think the B1G might also consider the numbers of homes in the schools home state?

The Big 10 might, or they might say UConn is worth $10MM a year so why should we pay them $40?