ACC, Maryland reach $31 million settlement in lawsuit
By Dave Tucker @TestudoDave on Aug 8 2014, 1:45p
http://www.testudotimes.com/2014/8/8/5983305/maryland-acc-lawsuit-settlement-result
The University of Maryland and Atlantic Coast Conference have reached a settlement over Maryland's exit fee.
The University of Maryland and Atlantic Coast Conference have reached a $31 million settlement over the school's departure for the Big Ten Conference, it was announced on Friday.
Maryland has agreed that the ACC will keep the sum of $31,361,788 previously withheld in order to resolve the lawsuits, and the ACC has agreed that Maryland will have no obligation to make any other payments to the ACC. In addition, the lawsuits filed in the State of North Carolina and Maryland will be dismissed.
The settlement ends a dispute between the University of Maryland and ACC about a $54 million dollar exit fee that the ACC wanted Maryland to pay, but that Maryland felt wasn't obligated to uphold for a number of reasons. The ACC had been withholding revenue payments to Maryland once the school announced their intent to leave and join the Big Ten and it appears the two sides agreed to just let the ACC keep that money and both would walk away from the lawsuit.
"The University of Maryland is proud of our long and storied 61-year association with the Atlantic Coast Conference," said Wallace D. Loh, president of the University of Maryland, in a release from the school. "Today's agreement helps usher in exciting new eras for both the University and the ACC. We wish the conference and our ACC university colleagues well."
We'll have more on this and what it means for Maryland moving forward in the coming days.
IOW, let's just move on.
I still have a hard time seeing Maryland in the B1G. So many memorable games in the ACC with Gary Williams coaching players like Joe Smith, Steve Francis, Juan Dixon, Steve Blake, Chris Wilcox among others. It's a great get for the B1G for basketball, no doubt. Football, not so much.
The only positive of Big Ten expansion is Bo Ryan saying Muralind or Murlind on a much more frequent basis.
I know its all about $$$.
And some of the moves make sense outside of the television money. (Nebraska, A&M, TCU)
But so many just don't make sense on the field. (Maryland, Missouri, West Virginia)
After seeing all of the wheeling and dealing in the old Big East, however brief for Marquette, it makes me very satisfied to know that our conference is stable. In a span of just over a year, the league lost Syracuse, Pittsburgh, Notre Dame, West Virginia, Rutgers and Louisville. For about 3 weeks in December 2012, it looked like we would be stuck in a "best of the rest" conference with Tulane, East Carolina, Houston, SMU and UCF.
So grateful that we are in a stable conference with like-minded Catholic universities with a clear emphasis towards basketball. That, and our strong contract with Fox Sports, there is absolutely no doubt in my mind that our future with Big East is stronger than ever.
Quote from: GoldenWarrior11 on August 08, 2014, 03:11:57 PM
After seeing all of the wheeling and dealing in the old Big East, however brief for Marquette, it makes me very satisfied to know that our conference is stable. In a span of just over a year, the league lost Syracuse, Pittsburgh, Notre Dame, West Virginia, Rutgers and Louisville. For about 3 weeks in December 2012, it looked like we would be stuck in a "best of the rest" conference with Tulane, East Carolina, Houston, SMU and UCF.
So grateful that we are in a stable conference with like-minded Catholic universities with a clear emphasis towards basketball. That, and our strong contract with Fox Sports, there is absolutely no doubt in my mind that our future with Big East is stronger than ever.
Until the ACC decides it wants to poach Georgetown and potentially SJU and Nova.
Quote from: dbwarriors on August 08, 2014, 03:22:39 PM
Until the ACC decides it wants to poach Georgetown and potentially SJU and Nova.
Yeah I don't think that's going to happen. It would have been done already. These conferences don't want to deal with non-football members.
Quote from: The Sultan of Sunshine on August 08, 2014, 03:24:54 PM
Yeah I don't think that's going to happen. It would have been done already. These conferences don't want to deal with non-football members.
Agreed. That's how the old Big East died. You had the non-football members fighting with the football members over the direction of the conference. It lead to Virginia Tech leaving, Miami leaving, Boston College leaving, and the rest of the mass exodus leaving in 2011-2012. Georgetown (or any current Big East school) wouldn't want to be a part of that again.
Quote from: GoldenWarrior11 on August 08, 2014, 03:40:10 PM
Agreed. That's how the old Big East died. You had the non-football members fighting with the football members over the direction of the conference. It lead to Virginia Tech leaving, Miami leaving, Boston College leaving, and the rest of the mass exodus leaving in 2011-2012. Georgetown (or any current Big East school) wouldn't want to be a part of that again.
Well I'm not sure about the last sentence. If the ACC invited Marquette, Georgetown or any BE school to be a basketball only member, I would think that invitation would be taken very seriously.
Quote from: GoldenWarrior11 on August 08, 2014, 03:11:57 PM
After seeing all of the wheeling and dealing in the old Big East, however brief for Marquette, it makes me very satisfied to know that our conference is stable. In a span of just over a year, the league lost Syracuse, Pittsburgh, Notre Dame, West Virginia, Rutgers and Louisville. For about 3 weeks in December 2012, it looked like we would be stuck in a "best of the rest" conference with Tulane, East Carolina, Houston, SMU and UCF.
So grateful that we are in a stable conference with like-minded Catholic universities with a clear emphasis towards basketball. That, and our strong contract with Fox Sports, there is absolutely no doubt in my mind that our future with Big East is stronger than ever.
UConn, Cincy, Temple, Memphis, Villanova, DePaul, St. Johns, Seton Hall, USF, and Georgetown would have been part of that conference as well.
Quote from: GoldenWarrior11 on August 08, 2014, 03:40:10 PM
Agreed. That's how the old Big East died. You had the non-football members fighting with the football members over the direction of the conference. It lead to Virginia Tech leaving, Miami leaving, Boston College leaving, and the rest of the mass exodus leaving in 2011-2012. Georgetown (or any current Big East school) wouldn't want to be a part of that again.
If offered, any current Big East team would jump at the opportunity to leave for the ACC.
Quote from: dbwarriors on August 08, 2014, 04:16:50 PM
If offered, any current Big East team would jump at the opportunity to leave for the ACC.
Why would anyone offer them to do it? That's the bigger question. Basketball is a tiny tiny tiny fish in all this. The tv contracts are set financially already, adding a non football school doesn't add to the coffers very much, if at all, for those conferences. Simply no need to dilute the dollars for each member school by taking on a non-football school. Could it happen? Sure. Will it happen? Hard to see a financial argument that makes sense for a Power 5 conference to do it.
Quote from: dbwarriors on August 08, 2014, 04:16:50 PM
If offered, any current Big East team would jump at the opportunity to leave for the ACC.
Any school that would go to the ACC as a basketball only member would be treated as second class without having football. And didn't the Big East prove the hybrid model doesn't work? As I mentioned in another thread, with the Big East pledging to follow the "power 5" legislation, the BE could see some schools wanting to join so they can be with the haves rather than the have nots.
Do we really have to start this up again?
Quote from: ChicosBailBonds on August 08, 2014, 04:38:53 PM
Why would anyone offer them to do it? That's the bigger question. Basketball is a tiny tiny tiny fish in all this. The tv contracts are set financially already, adding a non football school doesn't add to the coffers very much, if at all, for those conferences. Simply no need to dilute the dollars for each member school by taking on a non-football school. Could it happen? Sure. Will it happen? Hard to see a financial argument that makes sense for a Power 5 conference to do it.
Right. I'm well aware of all of the above. I simply stated, if offered, any BE team would leave for the ACC...in a heartbeat. A rebuttal to what someone else posted.
I realize I'm in the minority, and I'm not trying to stir up another realignment/conference superiority debate, but I feel that the current Big East schools realize that they are in a strong position right now, and drastic change isn't necessary (regarding a move to other conference). History has shown that departing Big East schools to the ACC has not always been positive.
Boston College, leaving the Big East for the ACC in 2005, have not won a single ACC tournament, and have been regular season champions just once (in basketball). They have made the NCAA tournament just 4 times since leaving (in 10 seasons). They have not won a single ACC title in football.
Miami, having won two National Championship and 9 conference championships in football in the Big East, have not won one of either since moving to the ACC. They have made the NCAA tournament just twice in basketball since the move.
Finally, with Virginia Tech, for all the ridicule they have received with Buzz's decision to leave, they are the only school that has fared better athletically with their move to the ACC, winning numerous league championships (football wise). Basketball is still very poor, as we all know.
The jury is still obviously out on Syracuse, Pittsburgh, and Notre Dame, but does anyone really see those schools as being as competitive or more competitive in the ACC? I certainly don't. What would the purpose of a move (for any Big East school) be? It definitely wouldn't be to advance athletics (as almost all of the schools would be thrashed by the ACC). It wouldn't be to partner with like-minded institutions (variety of public and private schools). Money would have to be REALLY good, as we are getting more money now from Fox Sports.
I just don't see it.
Quote from: dbwarriors on August 08, 2014, 03:22:39 PM
Until the ACC decides it wants to poach Georgetown and potentially SJU and Nova.
How would it benefit the ACC to poach schools already in its geographic area? They don't get any more TV deals and they dilute everyone with a smaller share.
Not that this would happen (or should happen) ... but financially it makes more sense for the SEC to poach them to expand to the Northeast.
None of the "power 5" are getting into the basketball only business, plain and simple.
Quote from: dbwarriors on August 08, 2014, 04:16:50 PM
If offered, any current Big East team would jump at the opportunity to leave for the ACC.
Really. How much do the ACC schools get in TV money for basketball alone? How much do the Big East schools get from FoxSports for basketball? Which is higher?
How many NCAA invites can the ACC get in a good year for the conference? How many top programs would an ex-Big East school have to fight to get one of those ACC invites? What effect would frequently missing the NCAA tournament have on a school's recruiting?
Any Big East school would bolt for the ACC if offered. $$$$$, prestige, and a seat within the power (albeit a second class one). It would be a no brainier decision.
Would the ACC offer? I doubt it. Not at this point. The only way I could see it happening is if the ACC found a way to make money by becoming the "ultimate" basketball conference. They are already the best basketball conference but if they decided to expand to something crazy like 24 teams. The logistics are mind boggling but I feel like they could probably attract some pretty sweet deals for that kind of content
Quote from: TAMU Eagle on August 09, 2014, 12:09:37 AM
Any Big East school would bolt for the ACC if offered. $$$$$, prestige, and a seat within the power (albeit a second class one). It would be a no brainier decision.
Would the ACC offer? I doubt it. Not at this point. The only way I could see it happening is if the ACC found a way to make money by becoming the "ultimate" basketball conference. They are already the best basketball conference but if they decided to expand to something crazy like 24 teams. The logistics are mind boggling but I feel like they could probably attract some pretty sweet deals for that kind of content
I'm not convinced. Money? My understanding is that the big East is currently getting the most TV money for men's basketball of any conference, at least until the Big Ten and SEC cable packages kick in big dollars.
Prestige? We just had a great year. We finished in the top half of the bottom half of the ACC for the third straight year!
A seat at the table? It'd be a kind of "children should be seen and not heard" kind of seat, wouldn't it?
On the other hand, there would be the allure of the occasional road trip to Blacksburg.
Quote from: LittleMurs on August 09, 2014, 06:19:16 AM
Prestige? We just had a great year. We finished in the top half of the bottom half of the ACC for the third straight year!
Some people thought this was a reason we shouldn't have joined the Big East in the first place.
The biggest reason that you accept that invite is to not be left behind if the Power 5 decides to do their own thing.
Big Ten media revenue per school, including the BTN with a new deal looming: $24.6mm
ACC media revenue per school with a new deal inked: $12.9mm
At $11.7mm more per year, Maryland is better off in three years+ tops, just on media, after considering the settlement.
As we discussed, for some of these school like with WVU, the fear of being left behind was greater than the long-term financial benefit, after considering their payout. Slam dunk decision for Maryland.
No brainer move. Prestige, money, exposure, stability, own TV network potentially in next couple years, Power 5, etc, etc. Easy decision. Ask any BE HC or AD.
Quote from: Dr. Blackheart on August 09, 2014, 07:14:39 AM
Big Ten media revenue per school, including the BTN with a new deal looming: $24.6mm
ACC media revenue per school with a new deal inked: $12.9mm
At $11.7mm more per year, Maryland is better off in three years+ tops, just on media, after considering the settlement.
As we discussed, for some of these school like with WVU, the fear of being left behind was greater than the long-term financial benefit, after considering their payout. Slam dunk decision for Maryland.
Your ACC number is way off.i think it's around 17-18M
Quote from: Atticus on August 09, 2014, 07:32:14 PM
Your ACC number is way off.i think it's around 17-18M
The new deal that the ACC signed with ESPN when Maryland made their decision soon after the deal was inked was for $12.9mm in 2011 but it escalated with the moving parts and adds after (to keep the conference from falling apart with Maryland's exit --remember, GA Tech and UNC were also rumored on the way out to the B1G, and Miami and FSU were rumored to the SEC. Yes, it went up after the movement after, but for analysis, you have to compare back so it is apples to apples.
http://www.newsobserver.com/2012/05/10/2054760/acc-espn-agree-on-36-billion-tv.html
Quote from: Dr. Blackheart on August 09, 2014, 09:26:40 PM
The new deal that the ACC signed with ESPN when Maryland made their decision soon after was $12.9mm in 2011 but it escalated with the moving parts and adds after to keep the conference from falling apart with Maryland's exit (remember, GA Tech and UNC were also rumored on the way out to the B1G, and Miami and FSU were rumored to the SEC). Yes, it went up after the movement after.
http://www.newsobserver.com/2012/05/10/2054760/acc-espn-agree-on-36-billion-tv.html
Yes. And GTechs booster club announced that their payout this summer was just under 23M (TV, NCAA credits and bowl money).
Quote from: Atticus on August 09, 2014, 09:30:53 PM
Yes. And GTechs booster club announced that their payout this summer was just under 23M (TV, NCAA credits and bowl money).
The new B10 deal will be at least $10M more annually.
Quote from: LittleMurs on August 09, 2014, 06:19:16 AM
I'm not convinced. Money? My understanding is that the big East is currently getting the most TV money for men's basketball of any conference, at least until the Big Ten and SEC cable packages kick in big dollars.
Prestige? We just had a great year. We finished in the top half of the bottom half of the ACC for the third straight year!
A seat at the table? It'd be a kind of "children should be seen and not heard" kind of seat, wouldn't it?
On the other hand, there would be the allure of the occasional road trip to Blacksburg.
The ACC's tv contract for basketball is estimated to be worth $5M per team. That's higher than the BE. Plus, the ACCs contract was renegotiated. The BE's contract hit the open market. Big difference
Quote from: Atticus on August 09, 2014, 09:30:53 PM
Yes. And GTechs booster club announced that their payout this summer was just under 23M (TV, NCAA credits and bowl money).
In the B1G, Maryland's incremental credits and bowl revenue, are at worst equal but most likely higher than than that, so zero sum game or higher in their decision process. Not only that, but the ACC bowl selection is worse overall...while most lower tier bowls are not profitable to start with (ticket guarantees, travels costs, ND getting higher ACC bowl picks). Add in the upcoming B1G media deal, the jump decision was an easy one.
The legal wrangling over the past few years was to reduce their exit fee from $52.2 to $31.4mm. The Terps won hook, line and sinker. I am sure GTech would have made the same decision if the exit fee debate was not hanging out there.
Quote from: Atticus on August 09, 2014, 10:01:07 PM
The ACC's tv contract for basketball is estimated to be worth $5M per team. That's higher than the BE. Plus, the ACCs contract was renegotiated. The BE's contract hit the open market. Big difference
Just curious...where have you seen a breakdown between the basketball contract and the rest of their television rights?
Quote from: The Sultan of Sunshine on August 09, 2014, 10:06:08 PM
Just curious...where have you seen a breakdown between the basketball contract and the rest of their television rights?
Two days and counting, Atticus.