https://amp.sunherald.com/sports/college...78471.html


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I wasn’t aware that USM was still here

(11-10-2021 08:49 PM)kingcake Wrote:  https://amp.sunherald.com/sports/college...78471.html


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Much more reason to justify the full exit fee. Waive the penalty for the early exit and say, "You're welcome."

I think there's several moving parts that have to be worked out in regards to scheduling with both conferences. Then the question begs is Marshall and ODU going to do the same? If that's the case is there revenue loss for properties leaving in the middle of a media.

I can't answer that because quite honestly I do not know.

I can tell you that Marshall is working on entering the Sunbelt on July 1st 2022 instead of 2023. I would expect all four schools to be pursuing the same thing. Entering in 2022 also means that the schools would pay approx 1.5 Million in exit fees to CUSA vs the 3 Million that was originally reported. Big savings by entering early. Also keep in mind that the new Sunbelt TV deal starts in 2022 at 2-2.5 Million per school. Yet another reason to leave early.

As far as I know, the exit fees are two years revenue. There are two ways to pay this:

1) Stay for the two years and get zero dollars in conference revenue shares
2) Pay the equivalent of two years immediately.

Yeah, we are trying to move early if we can. We will owe the same to CUSA either way, as there doesn't appear to be any real penalty for leaving earlier, other than having to perhaps pay the distribution money up front. But if we can move to the SBC quicker and start generating that greater revenue, it just makes sense if it can be accomplished. From what I'm hearing it's about 50/50 right now that we leave early.

(11-11-2021 10:57 AM)FIU4Ever Wrote:  As far as I know, the exit fees are two years revenue. There are two ways to pay this:

1) Stay for the two years and get zero dollars in conference revenue shares
2) Pay the equivalent of two years immediately.

That's not correct. Somebody has given you some bad information. That's now how it works. It's only one years revenue (Approx 1.5 Mill) per school if Marshall, Southern Miss and ODU leave a year early. With WKU and MTSU confirmed to be staying, that greatly increases the odds that all three of us leave early and will only be on the hook for $1.5. The good news is that if all three leave early, we will be eligible to receive $2-2.5 from the Sunbelt in our first year so its technically an offset of much smaller loss for the schools that are moving.

Leaving early costs more not less. You pay for the priviledge of screwing up scheduling for the conference you are leaving.

Leaving early has always cost more in every instance of conference realignment.

(11-11-2021 11:39 AM)MinerInWisconsin Wrote:  Leaving early costs more not less. You pay for the priviledge of screwing up scheduling for the conference you are leaving.

Leaving early has always cost more in every instance of conference realignment.

It may or may not cost more, depending on the exact language in the by laws. Which I can't find a copy of online anywhere. There are conflicting rumors/reports about the leaving early penalty, if any. But if we are able to start getting the Sun Belt distribution a year earlier, that may offset said penalty. Folks are crunching the numbers, and seeing what can be worked out. But it'd only be the 3 SBC teams, as the AAC isn't ready for the 6 they are adding.

Really don't care who leaves CUSA early for SB or the AAC. But, do I smell a Lawsuit coming? Sounds like somebody is gonna either be fighting over the interpretation of the mandatory EXIT FEES in Mediation or Arbitration or maybe doing battle in a Declaratory Judgment Suit. YIKES!!! On a serious note, hope everybody negotiates an amicable settlement.

(11-11-2021 11:09 AM)MUHERD76 Wrote:  

(11-11-2021 10:57 AM)FIU4Ever Wrote:  As far as I know, the exit fees are two years revenue. There are two ways to pay this:

1) Stay for the two years and get zero dollars in conference revenue shares
2) Pay the equivalent of two years immediately.

That's not correct. Somebody has given you some bad information. That's now how it works. It's only one years revenue (Approx 1.5 Mill) per school if Marshall, Southern Miss and ODU leave a year early. With WKU and MTSU confirmed to be staying, that greatly increases the odds that all three of us leave early and will only be on the hook for $1.5. The good news is that if all three leave early, we will be eligible to receive $2-2.5 from the Sunbelt in our first year so its technically an offset of much smaller loss for the schools that are moving.

So if FIU decided to leave today, we pay $0 to the conference?

If my lease says I stay until the end of contract or pay six months rent I cannot say I'll only pay 3 months.

(11-11-2021 11:39 AM)MinerInWisconsin Wrote:  Leaving early costs more not less. You pay for the priviledge of screwing up scheduling for the conference you are leaving.

Leaving early has always cost more in every instance of conference realignment.

Yes and no.

From what I understand, it still costs USM/Marshall/ODU $3 million or 2 years of distribution. The difference is we still forfeit the 2 years, but for that last year we're actually in a different conference and getting that distribution from that conference.

In a round about way USM/Marshall/ODU is only paying $1.5 (CUSA year 1) and in year 2 CUSA still gets the $1.5 from those three's distributions, but those 3 start getting SBC distribution. That make sense?

The other moving part is the scheduling for both conferences for leaving/incoming schools. That's why it can't happen before July.

So if FIU decided to leave today, we pay $0 to the conference?

If my lease says I stay until the end of contract or pay six months rent I cannot say I'll only pay 3 months.
[/quote]

Yeah it doesn't make much sense to me either, but that seems to be what some are claiming, like the OP linked article. I don't see how we could leave early and owe less money. But in the end it comes down to the details in the contract, and while I know CUSA leadership has been inept, to say the least, I can't imagine they'd be so dumb as to contractually let a team leave early without paying additional penalties. But stranger things have happened.

(11-11-2021 12:04 PM)gdunn Wrote:  Yes and no.

From what I understand, it still costs USM/Marshall/ODU $3 million or 2 years of distribution. The difference is we still forfeit the 2 years, but for that last year we're actually in a different conference and getting that distribution from that conference.

In a round about way USM/Marshall/ODU is only paying $1.5 (CUSA year 1) and in year 2 CUSA still gets the $1.5 from those three's distributions, but those 3 start getting SBC distribution. That make sense?

The other moving part is the scheduling for both conferences for leaving/incoming schools. That's why it can't happen before July.

Distributions, especially those related to media come from you being in the conference and the conference able to sell your home games. Some conferences have explicit GoR, leave as early as you want, we own your home games until the contract ends.

Clearly CUSA cannot sell your home games if you are not in CUSA (we don't have a GoR) so CUSA has to collect whatever is own before you leave.

(11-11-2021 12:08 PM)forphase1 Wrote:  

(11-11-2021 11:54 AM)FIU4Ever Wrote:  So if FIU decided to leave today, we pay $0 to the conference?

If my lease says I stay until the end of contract or pay six months rent I cannot say I'll only pay 3 months.

Yeah it doesn't make much sense to me either, but that seems to be what some are claiming, like the OP linked article. I don't see how we could leave early and owe less money. But in the end it comes down to the details in the contract, and while I know CUSA leadership has been inept, to say the least, I can't imagine they'd be so dumb as to contractually let a team leave early without paying additional penalties. But stranger things have happened.

All depends on how the contract is written.

Now there is a clause that says we must give 14 months of notice which would mean next year sometime, but I'm sure there's jargon in there we're all not privy to.

It's not like the schools are cutting checks either. It's distributions the league/conference gives out. All the leaving schools are forfieting them, meaning we don't get a check from CUSA for the next two years.

There may be something in the contract and bylaws that state if you leave before the notice is up, there's a penalty.. But who knows if it is and what it is.

(11-11-2021 12:14 PM)FIU4Ever Wrote:  

(11-11-2021 12:04 PM)gdunn Wrote:  Yes and no.

From what I understand, it still costs USM/Marshall/ODU $3 million or 2 years of distribution. The difference is we still forfeit the 2 years, but for that last year we're actually in a different conference and getting that distribution from that conference.

In a round about way USM/Marshall/ODU is only paying $1.5 (CUSA year 1) and in year 2 CUSA still gets the $1.5 from those three's distributions, but those 3 start getting SBC distribution. That make sense?

The other moving part is the scheduling for both conferences for leaving/incoming schools. That's why it can't happen before July.

Distributions, especially those related to media come from you being in the conference and the conference able to sell your home games. Some conferences have explicit GoR, leave as early as you want, we own your home games until the contract ends.

Clearly CUSA cannot sell your home games if you are not in CUSA (we don't have a GoR) so CUSA has to collect whatever is own before you leave.

I don't know how deep it goes. I'm not an AD nor have I read the contract, so I don't know what all it entails. I do know that last week I heard that if we needed to whip out the check book and pay all the exit fees we could, so I'm not sure if this was a reference to exiting early or if distributions wasn't going to be acceptable.

(11-11-2021 10:46 AM)MUHERD76 Wrote:  I can tell you that Marshall is working on entering the Sunbelt on July 1st 2022 instead of 2023. I would expect all four schools to be pursuing the same thing. Entering in 2022 also means that the schools would pay approx 1.5 Million in exit fees to CUSA vs the 3 Million that was originally reported. Big savings by entering early. Also keep in mind that the new Sunbelt TV deal starts in 2022 at 2-2.5 Million per school. Yet another reason to leave early.

So let me get this straight. You think you guys can leave early and pay/forfeit less of a penalty than if you stay? Good luck with that.

(11-11-2021 12:18 PM)freshtop Wrote:  

(11-11-2021 10:46 AM)MUHERD76 Wrote:  I can tell you that Marshall is working on entering the Sunbelt on July 1st 2022 instead of 2023. I would expect all four schools to be pursuing the same thing. Entering in 2022 also means that the schools would pay approx 1.5 Million in exit fees to CUSA vs the 3 Million that was originally reported. Big savings by entering early. Also keep in mind that the new Sunbelt TV deal starts in 2022 at 2-2.5 Million per school. Yet another reason to leave early.

So let me get this straight. You think you guys can leave early and pay/forfeit less of a penalty than if you stay? Good luck with that.

It's semantics.. I've stated it above. The $3 million still gets paid due to the distributions, but the schools would technically only lose half due to starting in a new conference early and hopefully getting in on those distributions.

(11-11-2021 12:22 PM)gdunn Wrote:  

(11-11-2021 12:18 PM)freshtop Wrote:  

(11-11-2021 10:46 AM)MUHERD76 Wrote:  I can tell you that Marshall is working on entering the Sunbelt on July 1st 2022 instead of 2023. I would expect all four schools to be pursuing the same thing. Entering in 2022 also means that the schools would pay approx 1.5 Million in exit fees to CUSA vs the 3 Million that was originally reported. Big savings by entering early. Also keep in mind that the new Sunbelt TV deal starts in 2022 at 2-2.5 Million per school. Yet another reason to leave early.

So let me get this straight. You think you guys can leave early and pay/forfeit less of a penalty than if you stay? Good luck with that.

It's semantics.. I've stated it above. The $3 million still gets paid due to the distributions, but the schools would technically only lose half due to starting in a new conference early and hopefully getting in on those distributions.

OK. I think that I get it. Basically, USM (and presumably MU and ODU) is prepared to "pay" whatever the contract or by laws say, and will attempt to move as soon as possible, either July 1, 2022 or 2023. They hope to receive sufficient monies from the Sun Belt to offset their payments or lost revenue from the CUSA, and if they are fortunate perhaps make some revenue. Of course, CUSA may disagree with USM's figures in which case, it will need to be resolved by agreement or litigation.