C7 gets Big East name, MSG | Split to be announced tomorrow

[MileHigh]

So help me understand this and I apologize if someone has walked through this before...I think I am getting hung up on bball money vs football money and everything

Using a round number of $100 million, you have the C7 + UCONN/USF/Cincy.  Are those 3 schools selling/negotiating away the Big East name/MSG/etc...for the majority of the $100 million??  Or the incoming schools like Temple and company have some say?  I'm thinking majority rules, why are the 3 making bank?  Assuming equal voting power etc...

Again, I apologize that I'm getting lost in the mess.

[NotAnAlum]

I'm surprised that those 3 seem to wield all the power vs the C-7.  It was my understanding that because of the unique situation of holding a voting super majority until June that the C-7 could threaten to rewrite the bylaws to assign the rights to exit fees and credits in a manor more beneficial to themselves.  They could use that power to negotiate a "fair" division of money rights when they leave. (I thought they hadn't effectively left YET they just had notified the BE that they INTENDED to leave).  The BE name is worth something so the remaining 3 certainly hold that as a chip but this is playing out like the C-7 are in such a hurry to leave that they are just caving on everything just to get out.  

[MUMonster03]

That is a ridiculous amount for those 3 schools, especially since USF has contributed next to nothing in NCAA tournament money or bowl revenue.

Their basketball hasn't done anything, but they made it to bowl games every year from 2005-2010 and won 4 of those. So they have added bowl revenue. I wish people would look into things before bashing our opponents and their contributions.

[GGGG]

Last we heard, it was going to be around $15 million with the basketball schools pushing for about $5 million each. Going backwards to $10 million seems odd, along with the fact that the AP writer said that we will secure MSG - but I have always read/heard that that decision is really up to MSG and is not part of the negotiation.

The BE has to give up the rights...and apparently MSG has already signed off.

That is a ridiculous amount for those 3 schools, especially since USF has contributed next to nothing in NCAA tournament money or bowl revenue.

Yeah, well they would have gotten a hell of a lot more had the BE accepted the initial television offer from ESPN.  They get a bunch of $$$, but they are screwed in their next contract.

[GGGG]

Catholic 7caves in; FB schools hit $30 million jackpot
http://ajerseyguy.com/?p=5471

In the end, in a financial battle of "chicken" the Catholic 7 group of schools wanting to leave the  Big East, sooner, rather than later, blinked and backed down, accepting a financial buyout far below what they hoped to receive.

According to sources familiar with the talks that have been  held between the Catholic 7 group of schools and the Big East football schools, the deal that will be finalized and announced on Wednesday will pay each of the remaining football schools-Connecticut, Cincinnati and South Florida nearly $30 million each from a conference  cash reserve in excess of $114 million.

Yeah, the old BE was holding all the cards here.  The C7 wanted out and had to pay for it.

But honestly, I think if you would have mentioned back in December that the C7 would get the Big East name, the MSG location, AND get to avoid all exit fees and pocket about $1.5M each, people would be pleased.

Not to mention a television deal that pays out almost twice as much as they were receiving previously.

[Aughnanure]

Where is the $100 million coming from? Wasn't it a few days ago it was like $60 million?

[jesmu84]

I'm confused. Why was there a "game of chicken" if the BBall schools held the voting majority?

Also, if Fox pushed so hard for a departure now, I wonder how much incentive they are giving the Bball schools to take less money from the pot...

[GGGG]

I'm confused. Why was there a "game of chicken" if the BBall schools held the voting majority?

Because the Bball schools are the ones technically leaving.  Remember to leave this quickly they actually owed the conference exit fees.  They avoid the exit fees, but in the process lost rights to the cash in the form of exit fees paid by the other schools (WVU, Rutgers), and tourney credits.

And yeah, I think the Fox contract becomes less valuable if they have to wait a year.

[ChicosBailBonds]

I'm confused. Why was there a "game of chicken" if the BBall schools held the voting majority?

Also, if Fox pushed so hard for a departure now, I wonder how much incentive they are giving the Bball schools to take less money from the pot...

But they didn't have the majority because of how the conference breakup (or non breakup) occurred.  The C7 didn't have enough votes to disband the conference, so their "majority" didn't mean much.  When the C7 pushed to get out earlier for the Fox money, the leverage all shifted to the remaining Big East schools.

[StillAWarrior]

A lot of this is semantics -- we're paying exit fees -- we're just "paying" them by forgoing future income that we could have had.  Of course I wish we could have reduced our exit fees (i.e., preserved our right to more of the future income), but I'm really happy that we seem to be making a fast, clean break.

[StillAWarrior]

When the C7 pushed to get out earlier for the Fox money, the leverage all shifted to the remaining Big East schools.

Never, ever, ever tell the car salesman that the car you're test-driving is your dream car.

[GGGG]

A lot of this is semantics -- we're paying exit fees -- we're just "paying" them by forgoing future income that we could have had.  Of course I wish we could have reduced our exit fees (i.e., preserved our right to more of the future income), but I'm really happy that we seem to be making a fast, clean break.

Yep.  Well stated.

[Pakuni]

Yeah, the old BE was holding all the cards here.  The C7 wanted out and had to pay for it.

But honestly, I think if you would have mentioned back in December that the C7 would get the Big East name, the MSG location, AND get to avoid all exit fees and pocket about $1.5M each, people would be pleased.

Not to mention a television deal that pays out almost twice as much as they were receiving previously.

And not to mention starting the conference this fall, as opposed to waiting another year.

[Norm]

Their basketball hasn't done anything, but they made it to bowl games every year from 2005-2010 and won 4 of those. So they have added bowl revenue. I wish people would look into things before bashing our opponents and their contributions.

I stand corrected about USF football.

2010 - Belk Bowl (formerly known as the Meineke Car Bowl) - $1.6 million payout
2009 - International Bowl - $750,000 payout
2008 - St. Petersburg Bowl (now known as the Beef O'Brady Bowl) - ??
2007 - Sun Bowl - ??
2006 - PapaJohn's Bowl (now known as BBVA Compass Bowl)
2005 - Meineke Car Bowl (now known as Belk Bowl)

[muwarrior69]

I still would like to know the schools that will be added?

[Dawson Rental]

The majority of the money we're looking at is exit fees from football playing schools - who by leaving seriously eroded the remaining three football schools negotiating leverage for future football TV deals.  While the C7 leaving reduces their payout for basketball games.  The leftovers are being hit hard in the pocket in terms of (at the very least the immediate) future TV revenue.  They need the cash to hold them over until they can establish the new conference or get the hell out to a BCS conference themselves.  By leaving a year early, the new and improved Big East Conference members (like MU) get an immediate uptick in their basketball TV revenue from Fox.  It's a reasonable deal, IMO.

[jsglow]

You guys have missed the buried paragraph in ajerseyguy's article.  Sure the C7 might be leaving more on the table for UConn, et al.  That's because Fox seemingly made up the difference not wanting this to drag out any longer.  If you think about it, this negotiation is really between Fox and ESPN.  Surprise, surprise.

[Norm]

So, will the C7 get a little extra money from Fox to make up for the money they leave behind? The $1.5 million hit they each take with this deal?

[jsglow]

So, will the C7 get a little extra money from Fox to make up for the money they leave behind? The $1.5 million hit they each take with this deal?

That's what ajerseyguy suggested he's heard.

"To make up for the financial short fall of the Catholic 7, sources suggested that Fox might be willing to increase its offer (reportedly $40 million a year for what has been projected as a 10 to 12 team league) by an additional 10 to 12 million, which would get the Catholic 7 schools in the financial comfort zone they seek."

[MU82]

Yeah, the old BE was holding all the cards here.  The C7 wanted out and had to pay for it.

But honestly, I think if you would have mentioned back in December that the C7 would get the Big East name, the MSG location, AND get to avoid all exit fees and pocket about $1.5M each, people would be pleased.

Not to mention a television deal that pays out almost twice as much as they were receiving previously.

Agree wholeheartedly, Sultan.

Marquette and the other 6 got everything they wanted except they would have liked more money. Yeah, well join the club. We'd all like more money.

To us folks out here in Reality Land, it's all just play money, anyway. It doesn't affect a single element of any of our lives. I don't see why anybody here would be outraged or even a little annoyed.

We are free of a bad football conference, we don't have to go through the motions of competing in some kind of 20-team monstrosity of a horrible conference next season, we have the Big East name, we have MSG, we have a television network that has big plans for us, we finally have a semblance of stability and sanity.

And according to one intrepid reporter with unimpeachable sources, we might even get Siena and Detroit!

The money? To me, it isn't even secondary. Hell, it's barely 11th-dary.

[The Process]

"To make up for the financial short fall of the Catholic 7, sources suggested that Fox might be willing to increase its offer (reportedly $40 million a year for what has been projected as a 10 to 12 team league) by an additional 10 to 12 million, which would get the Catholic 7 schools in the financial comfort zone they seek."

http://www.youtube.com/v/sZHCVyllnck

[brewcity77]

But they didn't have the majority because of how the conference breakup (or non breakup) occurred.  The C7 didn't have enough votes to disband the conference, so their "majority" didn't mean much.  When the C7 pushed to get out earlier for the Fox money, the leverage all shifted to the remaining Big East schools.

We had enough votes, but the bylaws stated to dissolve the conference at least one basketball and one football team had to vote in favor. Should've cut a back-door deal with UConn and offered them $40M to vote yes to dissolve. Would've let us keep the rest, left Cincy and USF spinning in the wind, and UConn is probably the only one of the three underhanded enough to agree to it.

[Aughnanure]

From the GTown Board

"At best we would have split the total pot of $110m. At best, that would have been, what? About $75m for the C7. By leaving early, though, we are subject to exit fees, so reduce that number by $35m. Now, we are at $40m. It appears we have given up $30m of that in negotiating for the name and the "right" to MSG, whatever that means, leaving us $10m. Do you think the name and all of its history is worth $30m? You may not think so, but I'd go ahead and wager that since about 99% of the population is not paying any attention whatsoever to the larger broad story of the whole Big East divorce, let alone the esoteric minutia of it, we are better served exiting these negotiations with the known brand name. In a year from now, most people will just see that the Big East Tournament is on tv and will never even remember there was a breakup/divorce of any kind. They will just see a seamless history stretching back to its conception. There is incredible value in that. Certainly more than $30m worth. They can have the golden eggs, I'm taking the goose."

[Aughnanure]

We had enough votes, but the bylaws stated to dissolve the conference at least one basketball and one football team had to vote in favor. Should've cut a back-door deal with UConn and offered them $40M to vote yes to dissolve. Would've let us keep the rest, left Cincy and USF spinning in the wind, and UConn is probably the only one of the three underhanded enough to agree to it.

I wonder what would happen if UConn left in 2 months? Is there a clause to rework the deal?

[The Process]

We had enough votes, but the bylaws stated to dissolve the conference at least one basketball and one football team had to vote in favor. Should've cut a back-door deal with UConn and offered them $40M to vote yes to dissolve. Would've let us keep the rest, left Cincy and USF spinning in the wind, and UConn is probably the only one of the three underhanded enough to agree to it.

But then we would have had to change our motto to "Cura personalis... except when screwing the LEAST."