Chin Diesel
I've always been crazy but it's kept me from going
- Joined
- Aug 24, 2011
- Messages
- 35,295
- Reaction Score
- 118,804
For the right school $200 million would be well worth it. An additional piece of the equation however is if the school(s) leaving the ACC will need to also buy-in to the B1G or SEC.
Also, a school (full member) can approach the conference offering $200 million only to have the conference respond $400 million. New ground will be broken when this happens and speculation is all anyone has to base the buyout calculations on. Where this differs from anything most finance people have ever worked on is the diminished value of revenues to remaining schools once the few depart. This could cause a discount rate to work in reverse.
The increased price for being first one out is best option for a new landing place. The reward for waiting and getting a lower buyout is fewer opportunities for a landing spot once you leave.