Wait.. it'll cost $14.5M to make this move?

[ScottVib]

Not only is the exit fee not expected to only be $10M, but the Big East is charging an entry fee. From the Courant:

Some financials of the situation became clearer Monday. Sources told The Courant the exit fee from the AAC could be as high as $12 million because UConn would not be giving a full 27 months notice. The first payment of $2.5 million would be due once UConn notified the AAC of its withdrawal. The Big East entry fee is believed to be about $2.5 million.

 

[WrenchFan69]

The cost will be negotiated in all areas. There's talks that Fox/Big East will help pay our exit fee, doubt they turn around and charge an entry fee. We'll see.

 

[noeynox]

The entry fee could come in the form of a reduced payout.

The key to all this is what happens to FB.

 

[BlueDogs]

How about ponying up $120 Million to go B1G which would pay itself back in 6 years, plus generate huge economic benefits. Nah, let’s think small and join a catholic league and strand a $100 Million investment. FIDIOTS.

 

[WrenchFan69]

How about ponying up $120 Million to go B1G which would pay itself back in 6 years, plus generate huge economic benefits. Nah, let’s think small and join a catholic league and strand a $100 Million investment. FIDIOTS.

How does spending $120m get us to the B1G

 

[UConnRock]

Are bigtime hoops donors going to cover the fees?

 

[metsfan2323]

How does spending $120m get us to the B1G

Give it all to the decision makers in that conference in unmarked envelopes. That's probably what Louisville did with the ACC.

 

[metsfan2323]

Serious question:

Can we give the AAC 27 months notice for our football team which would give us three more football seasons in that conference? 19, 20, 21. At least negotiate a 2020 football season in the AAC.

 

[LoyalFanCT]

I wonder if anyone from UConn called the ACC this week. Would they have second thoughts about telling UConn no way in the past? If UConn goes New Big East, and the ACC ever comes calling, the exit fees alone would basically keep UConn from joining.

 

[JMick]

How about ponying up $120 Million to go B1G which would pay itself back in 6 years, plus generate huge economic benefits. Nah, let’s think small and join a catholic league and strand a $100 Million investment. FIDIOTS.

You always have the worst takes lol

 

[BlueDogs]

You always have the worst takes lol

You don’t understand finance

 

[WrenchFan69]

You don’t understand finance

Please explain how spending $120m gets us into the B1G

 

[noeynox]

I wonder if anyone from UConn called the ACC this week. Would they have second thoughts about telling UConn no way in the past? If UConn goes New Big East, and the ACC ever comes calling, the exit fees alone would basically keep UConn from joining.

We'd pay whatever it took to make that move.

 

[JMick]

You don’t understand finance

Says the guy who is drooling over a sunk cost

 

[zls44]

How does spending $120m get us to the B1G

Screw it, he's rolling.

 

[BlueDogs]

Please explain how spending $120m gets us into the B1G

Back of the napkin....They payout $44 Million in rev share per team. We pay into the conference and defer rev share participation for 3 years. $120 Million in bonded borrowing costs 5% in interest debt service ($6 Million a year). We fill seats at near capacity (netting up 20,000 seats from around 12-15k paying seats to 37k seats) more revenue on the order of $5 Million. In year 4, we start collecting our conference share, which goes toward funding programs and reducing debt service. The overall reduction in state subsidy would drop from $40 Million to a net $20 Million if 50% went back to pay down principal and balance to programs.. In year 6 after the initial 3 year non-rev share period, its paid off. In the meantime, 1st rate competition is in town, generating local revenues (hotels, food and leisure) and pulling in visitors. If the problem is approached as a finance and economic development challenge, I’m quite sure you could package up a solution that would generate interest from a P5 like the B1G.

 

[HuskyBandDad]

Please explain how spending $120m gets us into the B1G

Simple. It does not.

 

[WrenchFan69]

Back of the napkin....They payout $44 Million in rev share per team. We pay into the conference and defer rev share participation for 3 years. $120 Million in bonded borrowing costs 5% in interest debt service ($6 Million a year). We fill seats at near capacity (netting up 20,000 seats from around 12-15k paying seats to 37k seats) more revenue on the order of $5 Million. In year 4, we start collecting our conference share, which goes toward funding programs and reducing debt service. The overall reduction in state subsidy would drop from $40 Million to a net $20 Million if 50% went back to pay down principal and balance to programs.. In year 6 after the initial 3 year non-rev share period, its paid off. In the meantime, 1st rate competition is in town, generating local revenues (hotels, food and leisure) and pulling in visitors. If the problem is approached as a finance and economic development challenge, I’m quite sure you could package up a solution that would generate interest from a P5 like the B1G.

This is the single dumbest thing I've ever read on this forum. Do you partake in crack?

 

[HuskyBandDad]

Back of the napkin....They payout $44 Million in rev share per team. We pay into the conference and defer rev share participation for 3 years. $120 Million in bonded borrowing costs 5% in interest debt service ($6 Million a year). We fill seats at near capacity (netting up 20,000 seats from around 12-15k paying seats to 37k seats) more revenue on the order of $5 Million. In year 4, we start collecting our conference share, which goes toward funding programs and reducing debt service. The overall reduction in state subsidy would drop from $40 Million to a net $20 Million if 50% went back to pay down principal and balance to programs.. In year 6 after the initial 3 year non-rev share period, its paid off. In the meantime, 1st rate competition is in town, generating local revenues (hotels, food and leisure) and pulling in visitors. If the problem is approached as a finance and economic development challenge, I’m quite sure you could package up a solution that would generate interest from a P5 like the B1G.

Eyeballs. Eyeballs is all that counts. If it is as easy as you layout then why don’t schools who have a lot more $$ then UConn does do this type of buy in?

 

[TJT]

The AAC is not going to be in any mood to reduce UConn's payout. My bet is they play hardball and demand the full payout. They have nothing to lose.

 

[ZooCougar]

The snark in me says that we made this move because the wbb fan base doesn’t know how to use their smart TVs.

 

[huskymedic]

 

[The Viking]

I wonder if anyone from UConn called the ACC this week. Would they have second thoughts about telling UConn no way in the past? If UConn goes New Big East, and the ACC ever comes calling, the exit fees alone would basically keep UConn from joining.

The exit fee would mean nothing compared to the annual payout of a P5 conference - unless the exit fee was like 300 million perhaps.
And I have no doubt we reached out to the B1G and ACC one last time before going after the BE again.

 

[AZHuskiePop]

The AAC is not going to be in any mood to reduce UConn's payout. My bet is they play hardball and demand the full payout. They have nothing to lose.

I believe it can be partially paid or almost entirely paid by forfeiting NCAA distribution money from Football Playoffs and NCAA BB tourney distribution.

 

[Jaybird65]

The cost will be negotiated in all areas. There's talks that Fox/Big East will help pay our exit fee, doubt they turn around and charge an entry fee. We'll see.

The identified Big East entry fee has been stated as 2.5 million by several sources. There are also reports that UConn will not receive a full share of conference revenues for up to 5 years after joining. Hopefully we have good negotiators but I haven't seen evidence that would make me hopeful of such.