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

[LloydMooresLegs]

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."

And reduce the $30 million by legal fees (if the conference fought for a larger share) and the difference between what the C7 will get from year one of Fox deal vs. what would have been the 2013 BE deal.  

[GGGG]

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."

I think he is underselling the exit fees.  Aren't they $10M per school?  Or are they less for basketball?

[nathanhm]

10M for all sports members, 5M for non football memebers

[Litehouse]

I thought exit fees were $5 Million for basketball schools and $10 Million for football.

But I think the writer is improperly combining the exit fee and leaving early issues.  We would have had to pay the ext fee AND wait 27 months, so getting out 2 years early is an added benefit he didn't factor in.  Plus, whatever NCAA credits we start accruing next year we get to keep for sure, and we won't leave extra credits behind with the LEAST schools.

[GGGG]

OK thanks.  Another issue.  Do the non-football schools have equal rights to the pot of money for exit fees, etc?  

[Litehouse]

I don't think so.  I read somewhere that the exit fees were split along the normal lines of football/basketball revenue distribution, whatever that is.

[muarmy81]

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.

yeah...while I wish we could have taken more money, in the end it's not that bad considering we get to keep the name and MSG.

[Litehouse]

WVU, Syracuse, Pitt, Louisville, Rutgers and ND are all paying to leave and having to wait longer.  I think TCU, Boise State and SDSU are even paying some money.

On the other hand, we're getting paid, leaving right away, and get to keep the name and MSG.

[Strokin 3s]

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

One of the dumbest, but one of the smartest movies I have seen.

[The Process]

One of the dumbest, but one of the smartest movies I have seen.

Totally agree.  However, I can't watch Dax Shepherd on any movie or TV show anymore without saying "I like money."

[bilsu]

Does DePaul, Seton Hall St. John's and Providence get a bargin in this settlement? It sounds like MU, Georgetown, Villanova are giving up their NCAA credits as part of the settlement.

[GGGG]

I don't think so.  I read somewhere that the exit fees were split along the normal lines of football/basketball revenue distribution, whatever that is.

OK, if that is the case, than the C7 weren't due 7/10ths of the pot of money like the Georgetown board states.  That means they paid a lot less than $30M for the name and tournament site.

[Otule's Glass Eye]

The Catholic 7 group–Seton Hall, DePaul, Georgetown, Villanova, St. John's Georgetown and Providence

I think they're forgetting someone