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Conference Realignment: If I Was Richer, I’d Still Be With Ya
Posted: September 8, 2011 by Frank the Tank in Big East, Big Ten, Sports
Tags: Big 12, Big Ten Expansion, Oklahoma Sooners, Oklahoma to Pac-12, Pac-12 Expansion, SEC Expansion, Texas A&M to SEC, Texas to the Big Ten
77
It’s been a crazy couple of days to say the least. We saw the SEC vote to conditionally accept Texas A&M, Baylor and a bunch of other Big 12 schools holding up the A&M move by refusing to sign some legal waivers, rumors stating the Pac-12 doesn’t really want to expand but will still add Oklahoma and Oklahoma State, Texas and Notre Dame are heading to the Big Ten, and the Big East may pick up some Big 12 leftovers, and now it may be all for naught with the Big 12 possibly being saved (in part by BYU). So, by the time you read this post, it might be completely outdated with how fast the news and rumor mill has been churning. Anyway, I have few thoughts on the latest developments:
1. Can’t blame Baylor (and others) for legal stance – As a lawyer, if I was representing any institution in this scenario, whether it’s Baylor, Iowa State or Texas, there’s NFW that I’d let it sign a blanket waiver of legal rights to the SEC and if such institution wanted to proceed, I’d insist upon some type of considerable payment in return. A waiver of this nature wouldn’t be enforceable without some type of consideration from SEC, anyway.
In the case of Baylor, there might literally be no amount of consideration outside of the preservation of the Big 12 itself (as long-term AQ status trumps short-term monetary payoffs) that could justify signing that waiver. Whether Baylor actually has a case with respect to tortious interference against the SEC isn’t really relevant here. At face value, this type of case is probably a loser. The Big East attempted to sue the ACC on similar grounds back in 2003 and ultimately settled for $5 million total, which is effectively pocket change that wouldn’t even cover 50% of one year of conference TV revenue for just one Big 12 school. However, Mike Slive would know that insisting upon a waiver of legal rights would cause an allergic reaction among Big 12 members as a legal principle. I don’t think much of Dan Ponzi Beebe, but he was correct in his statement that it’s unprecedented for a raiding conference to ask for waivers of legal rights from those left behind in the raided conference. It doesn’t make sense for the SEC to do this from a practical standpoint unless they have some other motives outside of the legal realm (which we’ll get to in a moment). That being said…
2. Can’t blame Texas A&M for being volcanically pissed off – As a business man, I have a hard time seeing the value in attempting to keep around a school that clearly doesn’t want to be there. As long as Texas A&M pays all of the exit fees that it has agreed to with the Big 12 (which by all accounts it plans to do), then the Aggies should be free to go as they please. Whether Oklahoma or others might leave after the Aggies (thereby dissolving the Big 12) shouldn’t be the problem of Texas A&M or the SEC. It’s in the best interests of everyone within the Big 12 to move on as quickly as possible. Now, I believe that Aggies have some misplaced anger toward Baylor in the sense that the SEC is the entity that is requesting something that no other Big 12 school (unless it’s heading out the door for the West Coast) would reasonably sign. Which gets to the next point…
3. SEC isn’t doing this for purely legal reasons – As I’ve done several times before on this blog, I’ll point to Mr. SEC, who I believe had a spot-on commentary on the SEC’s true motives in asking for these waivers: Mike Slive wants to see if he can cause Larry Scott and the Pac-12 to act first. Personally, I doubt Slive will win this particular game of chicken since, by all accounts, the Pac-12 is only going to act if A&M moves first. Still, it doesn’t really hurt the SEC to attempt this tactic, where the conference can just wait awhile and then decide to proceed with expansion without the Big 12 waivers.
Conference Realignment: If I Was Richer, I’d Still Be With Ya
Posted: September 8, 2011 by Frank the Tank in Big East, Big Ten, Sports
Tags: Big 12, Big Ten Expansion, Oklahoma Sooners, Oklahoma to Pac-12, Pac-12 Expansion, SEC Expansion, Texas A&M to SEC, Texas to the Big Ten
77
It’s been a crazy couple of days to say the least. We saw the SEC vote to conditionally accept Texas A&M, Baylor and a bunch of other Big 12 schools holding up the A&M move by refusing to sign some legal waivers, rumors stating the Pac-12 doesn’t really want to expand but will still add Oklahoma and Oklahoma State, Texas and Notre Dame are heading to the Big Ten, and the Big East may pick up some Big 12 leftovers, and now it may be all for naught with the Big 12 possibly being saved (in part by BYU). So, by the time you read this post, it might be completely outdated with how fast the news and rumor mill has been churning. Anyway, I have few thoughts on the latest developments:
1. Can’t blame Baylor (and others) for legal stance – As a lawyer, if I was representing any institution in this scenario, whether it’s Baylor, Iowa State or Texas, there’s NFW that I’d let it sign a blanket waiver of legal rights to the SEC and if such institution wanted to proceed, I’d insist upon some type of considerable payment in return. A waiver of this nature wouldn’t be enforceable without some type of consideration from SEC, anyway.
In the case of Baylor, there might literally be no amount of consideration outside of the preservation of the Big 12 itself (as long-term AQ status trumps short-term monetary payoffs) that could justify signing that waiver. Whether Baylor actually has a case with respect to tortious interference against the SEC isn’t really relevant here. At face value, this type of case is probably a loser. The Big East attempted to sue the ACC on similar grounds back in 2003 and ultimately settled for $5 million total, which is effectively pocket change that wouldn’t even cover 50% of one year of conference TV revenue for just one Big 12 school. However, Mike Slive would know that insisting upon a waiver of legal rights would cause an allergic reaction among Big 12 members as a legal principle. I don’t think much of Dan Ponzi Beebe, but he was correct in his statement that it’s unprecedented for a raiding conference to ask for waivers of legal rights from those left behind in the raided conference. It doesn’t make sense for the SEC to do this from a practical standpoint unless they have some other motives outside of the legal realm (which we’ll get to in a moment). That being said…
2. Can’t blame Texas A&M for being volcanically pissed off – As a business man, I have a hard time seeing the value in attempting to keep around a school that clearly doesn’t want to be there. As long as Texas A&M pays all of the exit fees that it has agreed to with the Big 12 (which by all accounts it plans to do), then the Aggies should be free to go as they please. Whether Oklahoma or others might leave after the Aggies (thereby dissolving the Big 12) shouldn’t be the problem of Texas A&M or the SEC. It’s in the best interests of everyone within the Big 12 to move on as quickly as possible. Now, I believe that Aggies have some misplaced anger toward Baylor in the sense that the SEC is the entity that is requesting something that no other Big 12 school (unless it’s heading out the door for the West Coast) would reasonably sign. Which gets to the next point…
3. SEC isn’t doing this for purely legal reasons – As I’ve done several times before on this blog, I’ll point to Mr. SEC, who I believe had a spot-on commentary on the SEC’s true motives in asking for these waivers: Mike Slive wants to see if he can cause Larry Scott and the Pac-12 to act first. Personally, I doubt Slive will win this particular game of chicken since, by all accounts, the Pac-12 is only going to act if A&M moves first. Still, it doesn’t really hurt the SEC to attempt this tactic, where the conference can just wait awhile and then decide to proceed with expansion without the Big 12 waivers.