(11-11-2013 04:36 PM)CommuterBob Wrote: http://www.commercialappeal.com/news/201...er=popular
Can't read the article because it's behind a paywall. But I can take a guess at what this is.
Memphis has a ton of NCAA tournament credits that will stay with CUSA and CUSA bylaws allow for tournament credits to be used to offset the exit fee. The CUSA exit fee is $500K, with an additional 5 years of TV revenue that must be put into escrow in case the conference TV deal goes down within 5 years. Memphis has earned enough NCAA credits to wipe out the $500K easily, and should eat a good chunk of the $6M put into escrow as well - and they should (as should everyone else leaving CUSA) get that money back at the end of 5 years as CUSA is showing no indication of losing TV revenue. Also, the entry fee into the American was essentially waived as part of the settlement of the "war chest" of exit fees and tourney credits left behind by the departing schools. After all is said and done, Memphis will have made a couple of million dollars in the process (as will most if not all of CUSA's defectors).
Can anyone verify by posting a synopsis of this article?
Synopsis:
1. When Memphis announced it was joining the Big East, a footnote was the possibility of a $6.6M exit fee/media loss penalty, plus the $2.5M entry fee to the Big East.
2. Memphis is still paying the full entry fee to the AAC.
Excerpt: "The U of M remains on the hook for its $2.5 million entry fee to the AAC, even though it was originally supposed to go to the Big East, an AAC spokesman confirmed last week. The Tigers are paying this by forfeiting $500,000 of their annual revenue distribution from the AAC for the next five years."
3. Memphis' exit fee/media loss penalty from CUSA is $0, thanks to leaving behind a lot of NCAA credits, which in 2013, are worth $245,000 each. The $1.7M it placed in escrow has been released.
4. Memphis could earn 1/2 credit per game in BB (up to 2 games max a year) by playing any CUSA teams, neutral or on the road, where CUSA has the TV rights, through the 2018-19 season.
Excerpt: (AD Tom) Bowen said he’s doubtful the U of M does this in 2014-15, “but at some point, it’s an option,” he said. “And many of those institutions are long-standing rivals with us.” Though he didn’t name them, logic would suggest games against UAB, or perhaps Southern Miss.
5. Memphis never considered the $6.6M demand from CUSA to be final, but rather a starting point for negotiations, especially since many other schools are departing CUSA for the BE/AAC, and affecting the new media deal (which looks like they are not losing any money, anyway).
6. AAC revenue still uncertain.
Excerpt: Bowen isn’t sure how much to expect from the AAC in revenue sharing, calling that figure still a “moving target.” The Houston Chronicle reported in July that the University of Houston is anticipating about $2 million annually from the league.
7. The Memphis-Conference USA settlement, signed in August, pledges the school and league not to sue each other. A copy of the settlement was obtained under the TN Open Records Act.
