UCONN/IMG sign 15 year extention

[Exit 4]

All I know is we monetized a slew of outer years today and there is no way any administration can resist using this new pot of funds today. So today is good while years blank to blank most likely got a lot thinner.

Are there any other of tomorrow’s assets we can sell today?

 

[the Q]

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.

The article can be wrong?

Guess this is my chief moment....

 

[the Q]

All I know is we monetized a slew of outer years today and there is no way any administration can resist using this new pot of funds today. So today is good while years blank to blank most likely got a lot thinner.

Are there any other of tomorrow’s assets we can sell today?

Naming rights for the new athletic stadiums?

 

[CL82]

Nope. That’s the point. That part of the deal sounds wildly favorable for UConn if you use a traditional definition of revenue.

So what does ‘revenue’ mean and what did they give up in trade.

Yep that is exactly the point. It's interesting, not only the what but the why.

 

[Dooley]

The decrease from $8M/yr to $6M/yr is just a reflection of conference affiliation. Nothing more, nothing less.

Compared to every other G5 athletic department, I would guess that only BYU would approach that level of financial backing from IMG/other. So this news is still positive in that sense - we're still sitting at the top of the G5 food chain. Whether or not that is good or bad can be argued until we're Husky blue in the face.

 

[housekeys]

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.

I agree that CR is a pretty much a ghost at this point, but if you are implying that this deal somehow prevents UConn from going to the Big10 if invited, you are wrong. CR first, ask questions, litigate and pay penalties later, YKWIM.

 

[Fishy]

The article is an absolute mess - it’s a fairly traditional rights deal.

It has nothing to do with conference realignment, has no impact on conference realignment and portends nothing in terms of future realignment.

 

[HuskyHawk]

The article is an absolute mess - it’s a fairly traditional rights deal.

It has nothing to do with conference realignment, has no impact on conference realignment and portends nothing in terms of future realignment.

Your marketing skills need some work. Wasting a perfectly good opportunity to drive clicks to the CR board.

 

[whaler11]

I agree that CR is a pretty much a ghost at this point, but if you are implying that this deal somehow prevents UConn from going to the Big10 if invited, you are wrong. CR first, ask questions, litigate and pay penalties later, YKWIM.

The article is an absolute mess - it’s a fairly traditional rights deal.

It has nothing to do with conference realignment, has no impact on conference realignment and portends nothing in terms of future realignment.

Anyone who has any realistic dream that UConn was going to end up in a better conference doesn’t sign a 15 year deal.

it doesn’t get any simpler than that.

You sign a 15 year deal because you look at how much longer Geno coaches and panic at what that means. That’s the argument for 15 years.

 

[Fishy]

Whatever.

 

[Dooley]

Anyone who has any realistic dream that UConn was going to end up in a better conference doesn’t sign a 15 year deal.

it doesn’t get any simpler than that.

I don't think this would matter because most P5 conferences have their T3 & ancillary media rights embedded into their conferences' overall media deals. In other words, most P5 conference members forfeit T3 rights. I think all but the Big 12 does this.

But I don't think CR is on the horizon any time soon so no need for everyone to get all up in arms about this.

 

[whaler11]

BTW - Dave Benedict’s next job is at IMG (-135).

 

[whaler11]

I don't think this would matter because most P5 conferences have their T3 & ancillary media rights embedded into their conferences' overall media deals. In other words, most P5 conference members forfeit T3 rights. I think all but the Big 12 does this.

But I don't think CR is on the horizon any time soon so no need for everyone to get all up in arms about this.

The rights UConn sells to IMG everyone else keeps too.

Who is saying get up in arms? It’s another data point nothing is happening.

In case you haven’t noticed on Diaco, Ollie and others... some people need a lotta breadcrumbs before they get home.

 

[housekeys]

Anyone who has any realistic dream that UConn was going to end up in a better conference doesn’t sign a 15 year deal.

it doesn’t get any simpler than that.

You sign a 15 year deal because you look at how much longer Geno coaches and panic at what that means. That’s the argument for 15 years.

Anyone who has any realistic dream that UConn was going to end up in a better conference doesn’t sign a 15 year deal.

Sure they do. And you know why?

You sign a 15 year deal because you look at how much longer Geno coaches and panic at what that means

You gave the answer yourself. There are plenty of reasons for signing; no hope in CR, as you state, is not one of them. This is a business decision that needed to be addressed at this time and it was. It has nothing to do with CR.

I guess I just disagree. Nothing more to be said.

 

[CL82]

Anyone who has any realistic dream that UConn was going to end up in a better conference doesn’t sign a 15 year deal.

it doesn’t get any simpler than that.

You sign a 15 year deal because you look at how much longer Geno coaches and panic at what that means. That’s the argument for 15 years.

Not so much. You sign a 15 year deal because the money is good and it adds consistency to your revenue stream. It doesn't get any simpler than that.

So, let me ask you, if IMG was confident that UConn had no value, why would lock into a 15 year deal? If IMG felt that that UConn's value was on the decline, why would it back load if profits interest?

We can agree that there is zero evidence that UConn's conference affiliation is going to change in the foreseeable future. I suppose there's always hope, but hope is faith based not data based.

 

[whaler11]

Anyone who has any realistic dream that UConn was going to end up in a better conference doesn’t sign a 15 year deal.

Sure they do. And you know why?

You sign a 15 year deal because you look at how much longer Geno coaches and panic at what that means

You gave the answer yourself. There are plenty of reasons for signing; no hope in CR, as you state, is not one of them. This is a business decision that needed to be addressed at this time and it was. It has nothing to do with CR.

I guess I just disagree. Nothing more to be said.

The deal they signed goes down in 2018 dollars every year for 15. Even if inflation is only 2% - 6.15 million in 2033 is only 4.6 million in 2018 dollars.

I’m certainly open to the idea they are just inept, but otherwise is a pretty tacit admission that the future is not bright.

They are like 3 months from hitting payday lenders borrowing against 2025 revenues so they can grab an escape hatch and never make a tough decision. They got 2 million today - so screw the future.

 

[CL82]

The decrease from $8M/yr to $6M/yr is just a reflection of conference affiliation. Nothing more, nothing less.

Compared to every other G5 athletic department, I would guess that only BYU would approach that level of financial backing from IMG/other. So this news is still positive in that sense - we're still sitting at the top of the G5 food chain. Whether or not that is good or bad can be argued until we're Husky blue in the face.

Mmm, conference affiliation and the change of the media right market which seems to be cooling off.

 

[Skiblets]

Anyone who has any realistic dream that UConn was going to end up in a better conference doesn’t sign a 15 year deal.

it doesn’t get any simpler than that.

You sign a 15 year deal because you look at how much longer Geno coaches and panic at what that means. That’s the argument for 15 years.

Surprised by your take on the 15 year contract Whaler. You're a smart dude
Contracts like these would have change provisions written into it to protect up and downside for both parties. So you do sign a 15 year deal if you're comfortable with the change provisions. e.g. 'Both parties agree to re-opening contract should UConn join or be extended an invite to join a P5 Conference'. I've been a part of enough contracting in my time that they always has flexibility written into them...

 

[whaler11]

Surprised by your take on the 15 year contract Whaler. You're a smart dude
Contracts like these would have change provisions written into it to protect up and downside for both parties. So you do sign a 15 year deal if you're comfortable with the change provisions. e.g. 'Both parties agree to re-opening contract should UConn join or be extended an invite to join a P5 Conference'. I've been a part of enough contracting in my time that they always has flexibility written into them...

Yep would love to know what outs exist. There could be some on the downside as well.

Would love to see the shell of the Courant provide a check on government and do better than publish an incoherent rehashing of a press release... but here we are.

It might be a good deal when we see the details... but the guaranteed money declining every year (in real dollars) for 15 looks like stealing from tomorrow to pay for today.

 

[Skiblets]

Yep would love to know what outs exist. There could be some on the downside as well.

Would love to see the shell of the Courant provide a check on government and do better than publish an incoherent rehashing of a press release... but here we are.

It might be a good deal when we see the details... but the guaranteed money declining every year (in real dollars) for 15 looks like stealing from tomorrow to pay for today.

Agree on your last point. Gladly pay you tomorrow for a hamburger today kinda thing

 

[the Q]

Yep would love to know what outs exist. There could be some on the downside as well.

Would love to see the shell of the Courant provide a check on government and do better than publish an incoherent rehashing of a press release... but here we are.

It might be a good deal when we see the details... but the guaranteed money declining every year (in real dollars) for 15 looks like stealing from tomorrow to pay for today.

It probably is. But they were also concerned that it would not get a much better deal from anyone else. This isn’t a huge media market even when you combine new haven and Hartford, and with IMG not getting much of anything from the former, it’s not the same asset they thought they were getting in the last deal.

 

[Palatine]

It probably is. But they were also concerned that it would not get a much better deal from anyone else. This isn’t a huge media market even when you combine new haven and Hartford, and with IMG not getting much of anything from the former, it’s not the same asset they thought they were getting in the last deal.

#30th largest in the nation. It's a big market.

 

[the Q]

#30th largest in the nation. It's a big market.

That included new haven.

Whcih is not pulling it’s weight, at all

 

[huskymedic]

That included new haven.

Whcih is not pulling it’s weight, at all

In what sense/metric is New Haven not “pulling its weight” - opinion vs data based?

 

[huskymedic]

More from IMG: IMG College - UNIVERSITY OF CONNECTICUT EXTENDS RELATIONSHIP WITH IMG

>>The debut of Social Plus includes an embedded correspondent within UConn Athletics to produce and distribute social and digital content. This new feature provides fans with consistent behind-the-scenes access across a variety of sports. Some of the content includes sponsor integration, accommodating the shifting opportunities for brands to creatively connect with fans.<<

 

[the Q]

In what sense/metric is New Haven not “pulling its weight” - opinion vs data based?

In terms of sponsorship money from the area.

 

[Storrs South]

More from IMG: IMG College - UNIVERSITY OF CONNECTICUT EXTENDS RELATIONSHIP WITH IMG

>>The debut of Social Plus includes an embedded correspondent within UConn Athletics to produce and distribute social and digital content. This new feature provides fans with consistent behind-the-scenes access across a variety of sports. Some of the content includes sponsor integration, accommodating the shifting opportunities for brands to creatively connect with fans.<<

We have been missing this for awhile. The AD used to churn out a lot more content from the Emily Noonan's and Erica Wachter's of the world that did extensive sit down interviews with players and behind the scene access stuff. It's about time they brought that back.