UConn/Cincy/USF divorce offer to C7

[Aughnanure]

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.

[Eldon]

Not sure if anyone's seen this yet, but in his post before the UCONN/Cincy/USF money split, he says

"Forget the part about Notre Dame being part of the Catholic 7 for a year. A large segment of the  Catholic 7 group really doesn't want the Irish as a one and done participant."

[JoBo2756]

"Forget the part about Notre Dame being part of the Catholic 7 for a year. A large segment of the  Catholic 7 group really doesn't want the Irish as a one and done participant."

Love this.

[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.

I'd be ok with this.  He also says that if we'd stay the extra year, we'd get double the 10-15 million.  So, even at that estimate ($20-30M), we'd get at most a little over $4M a school.  As is, we get $1.5-2 per school.  For a year early exit, considering the difference in the media deals for the two different leagues for next season, and throwing in the Big East name and (hopefully) the MSG--I think this is a pretty fair deal.

[dsense3034]

Not sure if this would be actually possible, but anyway UConn, Cincy and South Florida go Indpendent in football and join the C-7 in all other sports, it would bring the C7 to 12 teams (with Butler and Xavier). Just food for thought.

[chapman]

Wonder how their ESPN deal is structured next year as far as if the C7 leaves or not, or if it was done with the assumption that they're gone?  If it's fixed regardless of in-or-out they get a little extra cash just by having the C7 leave now.  Pennies compared to the ~$100M being distributed here though. 

Cash flow of the above is also significant - a "lump sum" could be a big benefit for the C7...conference NCAA credits pay out over time, and who knows what the schedule for collecting exit fees looks like and if it will get reduced or held up in litigation.

[muwarrior69]

I guess will know for sure if/when FOX makes their announcement on Tuesday.

[keefe]

Fair enough. A bit heavy handed by the BE3 but hell, look at the neighborhood they get to live in for the next many years. I would have a claw back mechanism that if any of those BE3 go to the ACC or any other conference the monies revert back to the pot for equal distribution. I am also assuming that the remaining capital assets convey - Brand, MSG, PPE associated with BE offices in Providence. This latter point, getting the current BE offices, will significantly reduce many of the administrative headaches associated with a start up. The existing PPE and staff offers a turn key solution for the transition - meaning we stay put and they migrate out. I doubt they want to stay in RI. All we need to do is fill certain key slots but many of the BE back office functions are already in place.

[nathanziarek]

Not sure if this would be actually possible, but anyway UConn, Cincy and South Florida go Indpendent in football and join the C-7 in all other sports, it would bring the C7 to 12 teams (with Butler and Xavier). Just food for thought.

This has been discussed here a ton...basically, no football members since they cause instability. I can't think of a single reason to bring South Florida along in any case.

[Knight Commission]

Ridiculous offer. If the c7 votes to dissolve they basically would get 70 million and possibly the intangibles (in a lengthy legal battle). The intangibles are not worth 55 million.  They are worth 1 million tops.

[keefe]

Ridiculous offer. If the c7 votes to dissolve they basically would get 70 million and possibly the intangibles (in a lengthy legal battle). The intangibles are not worth 55 million.  They are worth 1 million tops.

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.

[Avenue Commons]

Didn't we leave our Final 4 shares with CUSA to go to Big East?

[Brewtown Andy]

$10 million split 7 ways is essentially a free year's worth of TV money on the current deal.

That's the walk away money to leave in July? Fine.

[westcoastwarrior]

I agree Knight....everyone if forgetting the fact that the C7 can dissolve the Beast...which might still be the best thing to do.

[Brewtown Andy]

Didn't we leave our Final 4 shares with CUSA to go to Big East?

NCAA pays out tournament appearance money over 5 years, so yes.

[Brewtown Andy]

I agree Knight....everyone if forgetting the fact that the C7 can dissolve the Beast...which might still be the best thing to do.

Now that they've announced their intention to leave, I don't know if they can, much like how Louisville & Notre Dame no longer have a vote.

[GGGG]

Not sure if this would be actually possible, but anyway UConn, Cincy and South Florida go Indpendent in football and join the C-7 in all other sports, it would bring the C7 to 12 teams (with Butler and Xavier). Just food for thought.

Not gonna happen.

[GGGG]

Fair enough. A bit heavy handed by the BE3 but hell, look at the neighborhood they get to live in for the next many years. I would have a claw back mechanism that if any of those BE3 go to the ACC or any other conference the monies revert back to the pot for equal distribution. I am also assuming that the remaining capital assets convey - Brand, MSG, PPE associated with BE offices in Providence. This latter point, getting the current BE offices, will significantly reduce many of the administrative headaches associated with a start up. The existing PPE and staff offers a turn key solution for the transition - meaning we stay put and they migrate out. I doubt they want to stay in RI. All we need to do is fill certain key slots but many of the BE back office functions are already in place.

Agreed.  Take the offer with some legal protection. 

[forgetful]

If that deal includes the BigEast name and MSG as well as keeping tournament shares (for each team individually) take the offer and run.

edit.  Just read the entire article.  That number includes the tournament shares.  I still say take the money and run.  According to the article we are leaving 15 million on the table and getting the Big East name (good deal) we are also getting to start the Fox contract earlier (~2 million more per team for the 1 year compared to the existing ESPN deal) so in the end we come out $1M short of where we would be if we waited a year, but also get the Big East name.

[GGGG]

Ridiculous offer. If the c7 votes to dissolve they basically would get 70 million and possibly the intangibles (in a lengthy legal battle). The intangibles are not worth 55 million.  They are worth 1 million tops.

There is some legal question as to whether or not they can do that.  Furthermore the ensuing legal battle would likely deplete a bunch of this money anyway.  And my understanding is that the football schools are due more of the money anyway.

[warriorstrack]

http://www.youtube.com/watch?v=6MneA9pgLVw

Something like this.

[chapman]

Do we really want to fight Pitt/Cuse/RU/UL/ND for exit fee money?  That costs money too.  There's a ton of risk holding a claim on it and hoping it's all  going to come in timely, clean, and without any legal battles.  The lump sum offer allows us to move on and forget about all of that.  They'll probably get a little more, but IIRC the claim from a month or two ago said $41M was their share but assumed the bylaws' full two year notice, so $15M to go July 1 isn't as lowballed as it sounds.

[MUMountin]

If that deal includes the BigEast name and MSG as well as keeping tournament shares (for each team individually) take the offer and run.

edit.  Just read the entire article.  That number includes the tournament shares.  I still say take the money and run.  According to the article we are leaving 15 million on the table and getting the Big East name (good deal) we are also getting to start the Fox contract earlier (~2 million more per team for the 1 year compared to the existing ESPN deal) so in the end we come out $1M short of where we would be if we waited a year, but also get the Big East name.

I wonder how the negotiations are handling the current year's tourney credits--it'd be great if we were allowed to retain the credit's for whatever happens this year.  With G'town and MU both poised to make decent runs, and 'nova maybe squeaking in, that could be a nice start for the new BE. 

[The Process]

Not sure if this would be actually possible, but anyway UConn, Cincy and South Florida go Indpendent in football and join the C-7 in all other sports, it would bring the C7 to 12 teams (with Butler and Xavier). Just food for thought.

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.

[keefe]

There is some legal question as to whether or not they can do that.  Furthermore the ensuing legal battle would likely deplete a bunch of this money anyway.  And my understanding is that the football schools are due more of the money anyway.

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.