UCONN/IMG sign 15 year extention

[Palatine]

UConn Athletics Department, IMG Announce 15-Year Contract Extension

The partnership has spawned things such as UConn women’s basketball coach Geno Auriemma’s ‘Holding Court’ podcast, a relationship with iHeartMedia Hartford’s 97.9 ESPN and IMG’s Social Plus platform. According to the release, UConn has made more than $17 million since partnering with IMG College Licensing in 1986.

 

[UConn Dan]

"We are thrilled to continue our long-standing and multi-faceted partnership with the entire team at UConn Athletics,” said Tim Pernetti, President of IMG College, in the release.

Hmmm Pernetti is at IMG now?

 

[the Q]

This is an area where conference affiliation can hurt us.

 

[DarthGrumpy]

"We are thrilled to continue our long-standing and multi-faceted partnership with the entire team at UConn Athletics,” said Tim Pernetti, President of IMG College, in the release.

Hmmm Pernetti is at IMG now?

Pernetti went from Rutgers to NYCFC to IMG over the last couple of years.

 

[tcf15]

 

[the Q]

It’s less per year than the old one.

But there is upside.

 

[CL82]

The extension sets a minimum payment that IMG will make to UConn that begins at $6 million in the first year and increases by $10,000 each year after that. The deal, however, is a revenue-sharing agreement in which UConn will receive 100 percent of revenue in the first three years of the contract. The percentage received then decreases to 95 percent for the following two yeas, to 90 percent for the next two years, 85 percent for the three years after and then to 80 percent for the remainder of the contract.
....
The extension also includes a $2 million signing bonus that UConn will receive.

Prior deal was $80M for 10 years, plus incentives. Who benefits from the change?

For UConn, they are getting a much needed up front cash influx. Is it enough to meaning help offset the on campus facilities work being done for soccer, baseball, softball and hockey? Is this just UConn needing money now, or do they anticipate that they will have alternative revenue streams available at the back end of the deal?

For IMG they are giving up current profit sharing for future profit sharing. Is their assumption that UConn will be worth more in the later part of the deal?

It's interesting to speculate.

 

[HuskyHawk]

The extension sets a minimum payment that IMG will make to UConn that begins at $6 million in the first year and increases by $10,000 each year after that. The deal, however, is a revenue-sharing agreement in which UConn will receive 100 percent of revenue in the first three years of the contract. The percentage received then decreases to 95 percent for the following two yeas, to 90 percent for the next two years, 85 percent for the three years after and then to 80 percent for the remainder of the contract.
....
The extension also includes a $2 million signing bonus that UConn will receive.

Prior deal was $80M for 10 years, plus incentives. Who benefits from the change?

For UConn, they are getting a much needed up front cash influx. Is it enough to meaning help offset the on campus facilities work being done for soccer, baseball, softball and hockey? Is this just UConn needing money now, or do they anticipate that they will have alternative revenue streams available at the back end of the deal?

For IMG they are giving up current profit sharing for future profit sharing. Is their assumption that UConn will be worth more in the later part of the deal?

It's interesting to speculate.

Great details. I am quietly hopeful that this signals a confidence on the UConn side that those future year revenues will be higher than they are now.

 

[Exit 4]

Great and in 2022 we will end up extending another 10 years for another little bump in near term money. I'm happy for the vote of confidence and the money, but it scares me to think the administration might borrow against this stream in the short run.

 

[CL82]

Great and in 2022 we will end up extending another 10 years for another little bump in near term money. I'm happy for the vote of confidence and the money, but it scares me to think the administration might borrow against this stream in the short run.

UConn needs continuing cash to maintain a P5 level athletic department. If we don't have that cash today, the back end value is greatly reduced. Just a thought.

 

[UConnSportsGuy]

Great details. I am quietly hopeful that this signals a confidence on the UConn side that those future year revenues will be higher than they are now.

That's the optimistic view.

The cynical view is that the people making this deal at UConn know that they will not still be in their job 12 years from now. So who cares if they give up a portion of revenue 12 years from now when it is someone else's problem if they can maximize their revenue immediately (when they are on the job). You know, like every current politician does

 

[Exit 4]

UConn needs continuing cash to maintain a P5 level athletic department. If we don't have that cash today, the back end value is greatly reduced. Just a thought.

Oh yeah, mortgage Marvin Gardens so we can stay alive to land on Boardwalk. It is what it is. Eyes wide open.

 

[whaler11]

The article makes no sense (not shocking from the Courant we’ve seen their financial takes before and they are clueless)

If UConn gets 100% of the revenue for 3 years and then ridiculous percentages after that..
A. Why would anyone at IMG lift a finger to sell anything
B. What is it that IMG is keeping that allows them to pay 6 million a year for the right to not lift a finger to sell things where UConn gets the ‘revenue’.

Couple of guesses:
A. UConn get squadoosh on streaming revenue and the radio revenue essentially will move towards zero. The TV revenue would seem to be what - advertising on coaches shows? Super duper.

B. ‘Revenue’ in this story does not meet the actual definition of ‘revenue’ in the real world.

 

[Guapo]

The extension sets a minimum payment that IMG will make to UConn that begins at $6 million in the first year and increases by $10,000 each year after that. The deal, however, is a revenue-sharing agreement in which UConn will receive 100 percent of revenue in the first three years of the contract. The percentage received then decreases to 95 percent for the following two yeas, to 90 percent for the next two years, 85 percent for the three years after and then to 80 percent for the remainder of the contract.
....
The extension also includes a $2 million signing bonus that UConn will receive.

Prior deal was $80M for 10 years, plus incentives. Who benefits from the change?

For UConn, they are getting a much needed up front cash influx. Is it enough to meaning help offset the on campus facilities work being done for soccer, baseball, softball and hockey? Is this just UConn needing money now, or do they anticipate that they will have alternative revenue streams available at the back end of the deal?

For IMG they are giving up current profit sharing for future profit sharing. Is their assumption that UConn will be worth more in the later part of the deal?

It's interesting to speculate.

I hope it’s a positive but, based on the UConn experience of the past few years, I’m inclined to believe they are using IMG as JG Wentworth “1-800-NEED CASH NOW”

 

[whaler11]

Great and in 2022 we will end up extending another 10 years for another little bump in near term money. I'm happy for the vote of confidence and the money, but it scares me to think the administration might borrow against this stream in the short run.

Signing a 15 year deal pretty much means one of two things.

1. Our leadership doesn’t perform their fiduciary duty very well
2. Everyone holding on to CR can let go of that ghost.


It’s just them kicking the rock down the road so someone else needs to make the hard decisions.

 

[the Q]

The article makes no sense (not shocking from the Courant we’ve seen their financial takes before and they are clueless)

If UConn gets 100% of the revenue for 3 years and then ridiculous percentages after that..
A. Why would anyone at IMG lift a finger to sell anything
B. What is it that IMG is keeping that allows them to pay 6 million a year for the right to not lift a finger to sell things where UConn gets the ‘revenue’.

Couple of guesses:
A. UConn get squadoosh on streaming revenue and the radio revenue essentially will move towards zero. The TV revenue would seem to be what - advertising on coaches shows? Super duper.

B. ‘Revenue’ in this story does not meet the actual definition of ‘revenue’ in the real world.

It’s “net” revenue I believe. So they’re not losing money.

There is huge potential if they can sell the western half of the state on this. Anything west of Hartford has been rather nonexistent.

 

[the Q]

That's the optimistic view.

The cynical view is that the people making this deal at UConn know that they will not still be in their job 12 years from now. So who cares if they give up a portion of revenue 12 years from now when it is someone else's problem if they can maximize their revenue immediately (when they are on the job). You know, like every current politician does

Yeah I doubt AD Dave expects to be here for the next round of negotiations.

 

[CL82]

Signing a 15 year deal pretty much means one of two things.

1. Our leadership doesn’t perform their fiduciary duty very well
2. Everyone holding on to CR can let go of that ghost.


It’s just them kicking the rock down the road so someone else needs to make the hard decisions.

And how exactly do you come to those conclusions? Weren't you the same guy who criticized the old Big East for not taking the last ESPN deal?

 

[whaler11]

It’s “net” revenue I believe. So they’re not losing money.

There is huge potential if they can sell the western half of the state on this. Anything west of Hartford has been rather nonexistent.

It doesn’t say ‘net’ revenue. And if they mean ‘net’ revenue there are words for that.

The fact it looks like it makes no sense for IMG just begs the question what aren’t they telling us.

 

[CL82]

The article makes no sense (not shocking from the Courant we’ve seen their financial takes before and they are clueless)

If UConn gets 100% of the revenue for 3 years and then ridiculous percentages after that..
A. Why would anyone at IMG lift a finger to sell anything
B. What is it that IMG is keeping that allows them to pay 6 million a year for the right to not lift a finger to sell things where UConn gets the ‘revenue’.

Couple of guesses:
A. UConn get squadoosh on streaming revenue and the radio revenue essentially will move towards zero. The TV revenue would seem to be what - advertising on coaches shows? Super duper.

B. ‘Revenue’ in this story does not meet the actual definition of ‘revenue’ in the real world.

I think it's B. Revenue is a defined item that is a small component of the entire deal. Otherwise, what the heck did IMG buy?

 

[Guapo]

The article makes no sense (not shocking from the Courant we’ve seen their financial takes before and they are clueless)

If UConn gets 100% of the revenue for 3 years and then ridiculous percentages after that..
A. Why would anyone at IMG lift a finger to sell anything
B. What is it that IMG is keeping that allows them to pay 6 million a year for the right to not lift a finger to sell things where UConn gets the ‘revenue’.

Couple of guesses:
A. UConn get squadoosh on streaming revenue and the radio revenue essentially will move towards zero. The TV revenue would seem to be what - advertising on coaches shows? Super duper.

B. ‘Revenue’ in this story does not meet the actual definition of ‘revenue’ in the real world.

Actual hidden camera footage of the UConn/IMG meeting:

 

[whaler11]

And how exactly do you come to those conclusions? Weren't you the same guy who criticized the old Big East for not taking the last ESPN deal?

I come to obvious conclusions based on the fact I understand business.

Obviously the Big East would have been better off taking the last deal, when they refused, ESPN destroyed the league in response. That seems pretty clear even to someone like you in retrospect?

 

[CL82]

Oh yeah, mortgage Marvin Gardens so we can stay alive to land on Boardwalk. It is what it is. Eyes wide open.

More like putting hotels on Marvin Gardens so that if we have the cash to buy Boardwalk if we land on it.

But yeah, I agree, UConn is down a run in the 9th with two strikes and keeps tipping foul balls to stay alive.

 

[whaler11]

I think it's B. Revenue is a defined item that is a small component of the entire deal. Otherwise, what the heck did IMG buy?

The article defines revenue very broadly. Did you not read it?

You actually agree with me but are arguing out of habit.

The deal as stated in the article makes no sense for IMG so what is the real deal.

 

[CL82]

Actual hidden camera footage of the UConn/IMG meeting:

Lol, it's a good deal by any measure. Most P5 programs would jump at the chance for it.