UConn/Cincy/USF divorce offer to C7

[🏀]

Two of those three (UCONN and Cincy) have been publicly humping the ACC's leg trying to get in for the past few years.  Joining the C7 would be a terrible idea - they'll keep holding onto that dream just like Dayton fans are holding tightly to the dream of the C7 joining the A10.

Sorry, PTM, for that visual.

Dayton has bigger dreams than that, see the UDPride thread 'Path to the A-10 12 seed'

[Dawson Rental]

Likely the starting offer. It will get reduced but if we want to be rid of these guys it will cost us. I think moving on has intrinsic economic value as opposed to arguing over what will amount to a couple mil each.

Moving on's intrinsic value is something that should benefit both parties.

[GGGG]

That's a good point. I don't have the contract in front of me but there is an uneven distribution of tv dollars with the majority going to the football schools. Forfeited football dollars from  defectors would accrue to the remaining football schools. Hence what appears to be a very skewed distribution could reflect the mandated football-basketball split.

Also, the remaining schools really have nothing left to lose here.  Unlike the C7, they are going to be losing money with their next television contract and likely see a future with a bunch of bills to pay and not quite knowing where it is all going to come from.  They have every reason to fight hard for this money.

[TJ]

That's a good point. I don't have the contract in front of me but there is an uneven distribution of tv dollars with the majority going to the football schools. Forfeited football dollars from  defectors would accrue to the remaining football schools. Hence what appears to be a very skewed distribution could reflect the mandated football-basketball split.

All the more reason to get the hell out.  When it was 9 football/7 basketball it made sense, but now it's 7 bball/3 fball and the football schools still have more power and veto rights and get more money.

[Litehouse]

I obviously don't know the details of the contracts, but would dissolving the league only help the departing schools? (Cuse, Pitt, Rutgers, UofL, ND)  If the league dissolves, can those schools avoid paying their exit fees?  Do those schools then get to keep their NCAA credits?  There could be much more to gain for the C7 and the Leftover 3 by not dissolving.

[GGGG]

I obviously don't know the details of the contracts, but would dissolving the league only help the departing schools? (Cuse, Pitt, Rutgers, UofL, ND)  If the league dissolves, can those schools avoid paying their exit fees?  Do those schools then get to keep their NCAA credits?  There could be much more to gain for the C7 and the Leftover 3 by not dissolving.

These are really good questions and why the "nuclear option" of attempting a dissolution is very likely going to be more protracted and expensive.

[Litehouse]

If we dissolve, WVU might even come back asking for a refund.

[MU Fan in Connecticut]

I thought the league could not be dissolved without at least one vote from a football school which is why this was not an option.

[Knight Commission]

I thought the league could not be dissolved without at least one vote from a football school which is why this was not an option.

Wrong. Its based on 2/3 vote. The C7 has the numbers. The only somewhat legal question is whether Temple would have a vote but based on multiple reports, their vote would only count beginning July 1.

I worry that we are so afraid of losing the Fox deal we are at risk of leaving a ton of money on the table.

[mug644]

Wrong. Its based on 2/3 vote. The C7 has the numbers. The only somewhat legal question is whether Temple would have a vote but based on multiple reports, their vote would only count beginning July 1.

I worry that we are so afraid of losing the Fox deal we are at risk of leaving a ton of money on the table.

Like the (recently old) Big East left all that money on ESPN's table, led by the Pitt President (IIRC).

[GGGG]

Wrong. Its based on 2/3 vote. The C7 has the numbers. The only somewhat legal question is whether Temple would have a vote but based on multiple reports, their vote would only count beginning July 1.

You are correct.  The bylaws are attached to the suit here:

http://news.providencejournal.com/breaking-news/2011/11/04/bigeast_v_wvu_110411.pdf

The issue that will be contested are that football revenues are specifically allocated to football schools, but it never specifically states how withdrawl fees are allocated.  My guess is what they did is take the traditional ratio of football:basketball television revenue, but added a premium for the Big East name, the MSG contract, AND allowing the schools to leave the conference early.

[MUMountin]

You are correct.  The bylaws are attached to the suit here:

http://news.providencejournal.com/breaking-news/2011/11/04/bigeast_v_wvu_110411.pdf

The issue that will be contested are that football revenues are specifically allocated to football schools, but it never specifically states how withdrawl fees are allocated.  My guess is what they did is take the traditional ratio of football:basketball television revenue, but added a premium for the Big East name, the MSG contract, AND allowing the schools to leave the conference early.

The bylaws may have been amended after the WVU lawsuit.

[Knight Commission]

The bylaws may have been amended after the WVU lawsuit.

Doubtful and if so, it would not be detrimental to the C7, as amendments require 3/4 approval.

[MUMountin]

Basically:

• C7 get $15 million
• Incoming football schools get $1 million
• $5 million to cover splitting the Big East office
• $72 million to Uconn, Cincinnati, and USF

http://ajerseyguy.com

Big pay day coming for Big East 3
March 3, 2013 – 5:29 pm

But with a Big East  cash fund of close to $100 million available for distribution each of those schools should be collecting a check of between 18 and 25 million once the settlement is reached according to sources familiar with the talks between the Big East and the Catholic 7 schools who are pushing for a withdrawal by July 1.

The $100 million total is a combination of the nearly 70 million dollars the Big East has and will collect in exit fee money from schools that have left or have announced they are leaving. Another approximately $30 million check will come to the Big East offices from the NCAA as "unit" shares for conference teams participation in the NCAA men's basketball tournament.

According to sources, the offer that the Big East football faction has presented the Catholic 7 group consisting of St. John's, DePaul, Providence, Marquette, Seton Hall, Georgetown and Villanova is a lump sum of between 10 and 15 million dollars.

Using a generous estimate of 15 million, that reduces the total to 85 million dollars

Each of the new Big  East schools that will be part of the Big East football league next season–SMU, Houston, Memphis, Central Florida and Temple will receive approximately $1 million, which reduces the total by another $5 million down to 80 million.

New members committed to join the Big East in 2014 such as Tulane and East Carolina and Navy which is scheduled to join in 2015 (in football only)could also receive a payment if they honor their commitment , which should reduce the total to 77 million.

The Big East office will then take an operating cost fee of another $5 million, which will  reduce the total to 72 million, which will then be divided evenly between Cincinnati, UConn and South Florida.

FWIW, A Jersey Guy later tweeted that the C7 are asking for $35M of the $100M.  So, we're probably just seeing the negotiation positions being staked out, with likely resolution somewhere in between. As others have said, too much at stake to let this get bogged down in litigation, so I imagine that the C7 will eventually come down close to the initial offer of 10-15--maybe low 20s?  Just guessing here.

[Knight Commission]

You are correct.  The bylaws are attached to the suit here:

http://news.providencejournal.com/breaking-news/2011/11/04/bigeast_v_wvu_110411.pdf

The issue that will be contested are that football revenues are specifically allocated to football schools, but it never specifically states how withdrawl fees are allocated.  My guess is what they did is take the traditional ratio of football:basketball television revenue, but added a premium for the Big East name, the MSG contract, AND allowing the schools to leave the conference early.

The other thing to note is that the C7 could dissolve and then control how assets are distributed with only a simple majority (i.e. they could potentially vote to distribute the entire 100 mil to themselves). In light of these provisions a 15 million (out of 100 mil) offer is not reasonable.

[TallTitan34]

Dayton has bigger dreams than that, see the UDPride thread 'Path to the A-10 12 seed'

Link (this really needs to be seen):
http://www.udpride.com/forums/showthread.php?t=22708

[Archies Bat]

The other thing to note is that the C7 could dissolve and then control how assets are distributed with only a simple majority (i.e. they could potentially vote to distribute the entire 100 mil to themselves). In light of these provisions a 15 million (out of 100 mil) offer is not reasonable.

I'm unable to find the link now, but there was quite a bit of discussion when the C7 started breaking away that there was a clause in the bylaws that required one football school to vote for dissolution for it to be a valid vote.  Maybe someone else can locate that thread.

[Eldon]

Link (this really needs to be seen):
http://www.udpride.com/forums/showthread.php?t=22708

Kinda makes you feel sorry for them...