(02-05-2014 11:14 AM)ark30inf Wrote: (02-05-2014 09:21 AM)arkstfan Wrote: If I were Chancellor at AState and a provision was put on the table to institute a $10 million exit fee, I'd collude with my counter-part at UL to announce departure.
Either the membership backs down or the membership replaces us while we scurry about trying to raid the other members, I like my chances getting six other FBS members of the Sun Belt to join us.
Even if the fee was only for CUSA or MAC?
Absolutely.
Look everyone is playing shuffleboard.
Right now the plausible plays Sun Belt and CUSA schools have in this game jointly are MWC and AAC. If the best bargaining chip I have as commissioner is: "You can get there from here and we aren't going screw you when you go.", then I'm playing that chip.
Ethically speaking what does it say for a collection of schools to demand ransom in excess of the value of a member?
TV deal bakes out to less than $100k per member. The CFP base share is $1 million per team up to 12 it doesn't matter if we have Houston and Cincinnati as members or EKU and Liberty, that's a static sum. There is variance for the buster money and the quality of play money but those numbers are speculative (see USM collapse).
The reality is if challenged legally these fees have to bear to relationship to the value lost otherwise they will be struck down as punitive.
I can't sit down with the accountants and show that school X leaving cost the league anything. If you leave early, yeah we can calculate some real costs (and that was done with MTSU and FAU) but waiving distribution upon departure is more than adequate compensation when proper notice is given.
Now would the Cajuns go to court to prove they aren't worth $2 million? Probably not. The costs to strike the fee wash much of the savings.
Would Arkansas State go to court to prove they aren't worth $10 million if it were standing between them whatever dream alliance has popped into being? Probably so and the thing would get messy and eventually a reasonable number would be paid.
Net result. You don't get $10 million. You incur added publicity over the school wanting out. You rack up pointless legal fees and in the end you don't get the jackpot payout and you don't keep the school.
If you create an exit fee large enough to deter departure the fee is too large to withstand challenge.