Chuck Landon: Fees for exiting C-USA not cheap

[Harry]

Welcome to "Second Guess" Tuesday.

This is much like two-for-Tuesday specials, but with opinions instead of pasta.

Would it really cost a Conference USA member school only $400,000 in exit fees to leave for another league?

Not even close.

Granted, it sounded like that at first.

When C-USA commissioner Judy MacLeod had an informal chat with media members during the recent Conference USA Football Kickoff event in Irving, Texas, she reportedly commented that the exit fee would be two year's worth of revenue.

So, lots of people leaped to the conclusion MacLeod was talking about just television revenue. Since the projected television revenue in 2016-17 and 2017-18 is only $200,000 annually per school, folks arrived at the $400,000 exit figure.

But as it turns out, the exit fee isn't based on only television revenue.

"It would include any revenue allocated after a school would submit their notice of withdrawal," explained Courtney Morrison-Archer, C-USA's associate commissioner for public affairs. "Schools must provide 14 months notice.

"So, before May 1 of year 20XX to withdraw June 30 of year 20XX plus one."

And that includes all revenue?

"All revenue," confirmed Morrison-Archer.

That makes a lot more sense, not to mention a lot more dollars.

According to figures published by The Virginian-Pilot newspaper in Norfolk, Va., C-USA is projected to have $53,757,000 in revenue for 2016-17.

read more:  http://www.herald-dispatch.com/sports/marshall_sports/chuck-landon-fees-for-exiting-c-usa-not-cheap/article_ee3aa126-5615-5354-bec2-c0cad747762a.html

[GrandGreen]

That is a lot of money to jump to something as shaky as the AAC.   

[wardly]

Rice has the money, [replacing Houston] but Marshall may not[replacing Cincy].

[MCMLXXX]

Over 5.6 million over two years plus an entry fee into a new conference would seem to be cost prohibitive for most schools. Could La Tech afford that on their budget?

[MCMLXXX]

It may be easier for Sun Belt schools to leave. I think their current exit fee is a case of RC Cola and a box of moon pies.  

[Ryan Munthe]

Affirm my position of standing pat in CUSA, aiming for MWC. AAC is going to die, and will be the next WAC. Pseudo-power conferences like the AAC don't last, because they're first to be poached.

Edited August 2, 2016 by Ryan Munthe

[hickoryhouse]

I like where we are in the cusa.   Higher profile than the belt and still a place where we can go through all these growing pains.   The fact that it is cos prohibitive to leave is great for us at this point.   Hopefully it will add some stability in an otherwise shaky ncaaf landscape. 

[Arkstfan]

Double check the math.

Then, there's $16.1 million from the College Football Playoff; $14,257,000 in bowl and college football playoff revenue; 

I don't believe CUSA is getting $30 million a year in CFP and bowl revenue. The reported figure to the NCAA for CUSA was $16.6 million bowls and CFP combined and the league reported bowl expenses of nearly $4 million so only $12.7 million was available for distribution.

https://www.ncaa.org/sites/default/files/2015-16DIFB_Postseason-Revenue-Excess-by-Conterence_20160426v2.pdf

Landon appears to be over-stating CUSA revenue by $17 million or $1.2 million per year per team assuming UAB is still taking a full share. That makes the departure cost roughly $3.2 million and that's not a check written, it's just revenue being foregone.

Fascinating that the buyout has been changed. The departees paid around $4.4 million under a formula that was $500,000 cash, forfeit one year of revenue plus liability for the decrease in TV rights for the life of the TV contract.

Coupled with the decision to do a short TV contract sure looks like pre-planning for departure.

Edited August 3, 2016 by Arkstfan

[greenb.o.g.]

All I can say about this article is thank gawd for other conference member newspapers. 

This is the kind of information one would never see in the DRC.

[oldguystudent]

On 8/2/2016 at 5:59 PM, MCMLXXX said:

It may be easier for Sun Belt schools to leave. I think their current exit fee is a case of RC Cola and a box of moon pies.  

Well, you have to escape the sobbing Karl Benson as he grasps desperately to your calves while you walk away.

[Arkstfan]

17 hours ago, oldguystudent said:

Well, you have to escape the sobbing Karl Benson as he grasps desperately to your calves while you walk away.

Well if the article is wrong about CUSA revenue as it appears to be, Sun Belt departure is higher than CUSA at $2 million plus foregoing a year of revenue.