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+---- Thread: Exit Fee info directly from C-USA bylaws (/thread-620677.html)
Exit Fee info directly from C-USA bylaws - MinerInWisconsin - 02-26-2013 10:40 AM
Since the exit fee questions and threads come up fairly often, like today's thread about Memphis basketball credits, maybe the bylaws could be pinned on this board for quick reference.
Section 3.06 of the bylaws gives complete information on exit fees.
There is a flat fee of $500,000 with one years notice. You can give 6 years notice (lol) and not pay a dime.
A school can use the value of ncaa basketball credits to offset the price of leaving.
Here is an excerpt followed by a link to the bylaws. Sounds to me like Memphis, due to its high quality basketball over the years, may not owe anything out of pocket but, of course does give up some income that it has earned.
"The withdrawal fee shall be reduced by the value of any NCAA basketball fund units earned by the withdrawing member that will be
paid to the Conference and not distributed to the withdrawing member after the effective date of the withdrawal. The withdrawal fee
shall be increased by the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of
the withdrawal.
To secure its obligation to pay the withdrawal fee, the withdrawing member shall provide at the time of giving notice of withdrawal a
bond or other security reasonably satisfactory to the Conference's Board of Directors (provided, however, that the Director representing
the withdrawing member may not participate or vote in connection with any such decision) in the amount of the reasonably expected
withdrawal fee (as estimated in good faith by the Commissioner), which shall remain in effect until the withdrawal fee is paid.
The amount by which the remaining members of the Conference suffer reduced television rights fees, if any, shall be determined by the
Commissioner after discussion with the withdrawing member, the other Conference members, and the holder(s) of the Conference
television contract(s). The determination of the Commissioner relative to such reduction on a good faith basis shall be final and binding
upon the withdrawing member and upon all other members of the Conference."
http://grfx.cstv.com/photos/schools/tuls/genrel/auto_pdf/2011-12/misc_non_event/C-USA_Handbook.pdf
RE: Exit Fee info directly from C-USA bylaws - AndreWhere - 02-26-2013 10:51 AM
USM should go ahead and give the six-year notice.
RE: Exit Fee info directly from C-USA bylaws - MinerInWisconsin - 02-26-2013 02:24 PM
(02-26-2013 10:51 AM)AndreWhere Wrote: USM should go ahead and give the six-year notice.
Yeah, why is that even an option? Who is ever going to give 5 or 6 years notice of leaving? Makes no sense.
RE: Exit Fee info directly from C-USA bylaws - gdunn - 02-26-2013 02:46 PM
(02-26-2013 02:24 PM)MinerInWisconsin Wrote:(02-26-2013 10:51 AM)AndreWhere Wrote: USM should go ahead and give the six-year notice.
Yeah, why is that even an option? Who is ever going to give 5 or 6 years notice of leaving? Makes no sense.
Don't mind Andre.. He thinks that we can just call up any conference and tell them we're joining and we're in.
RE: Exit Fee info directly from C-USA bylaws - KNIGHTTIME - 02-26-2013 03:06 PM
The NCAA credits are owned by the conference. I don't get the report that Memphis can use their credits. Maybe the conference allows the individual teams to keep a portion of the money?
RE: Exit Fee info directly from C-USA bylaws - SgtGoldenEagle - 02-26-2013 03:09 PM
(02-26-2013 02:46 PM)gdunn Wrote:(02-26-2013 02:24 PM)MinerInWisconsin Wrote:(02-26-2013 10:51 AM)AndreWhere Wrote: USM should go ahead and give the six-year notice.
Yeah, why is that even an option? Who is ever going to give 5 or 6 years notice of leaving? Makes no sense.
Don't mind Andre.. He thinks that we can just call up any conference and tell them we're joining and we're in.
I have to admit from the many post of his, he doesn't seem to be very informed and lacks a lot of understanding and is not looking very thoughtfully at the whole issue. In his defense however, many people do that not only in sports but many other issues and events. Knee jerk reaction is very common.
RE: Exit Fee info directly from C-USA bylaws - shiftyeagle - 02-26-2013 03:11 PM
WHERE'S THE MONEY LEBOWSKI?
RE: Exit Fee info directly from C-USA bylaws - FloridaJag - 02-26-2013 03:13 PM
(02-26-2013 10:40 AM)MinerInWisconsin Wrote: Since the exit fee questions and threads come up fairly often, like today's thread about Memphis basketball credits, maybe the bylaws could be pinned on this board for quick reference.
Section 3.06 of the bylaws gives complete information on exit fees.
There is a flat fee of $500,000 with one years notice. You can give 6 years notice (lol) and not pay a dime.
A school can use the value of ncaa basketball credits to offset the price of leaving.
Here is an excerpt followed by a link to the bylaws. Sounds to me like Memphis, due to its high quality basketball over the years, may not owe anything out of pocket but, of course does give up some income that it has earned.
"The withdrawal fee shall be reduced by the value of any NCAA basketball fund units earned by the withdrawing member that will be
paid to the Conference and not distributed to the withdrawing member after the effective date of the withdrawal. The withdrawal fee
shall be increased by the amount of any and all assessments or debts that the member owes to the Conference as of the effective date of
the withdrawal.
To secure its obligation to pay the withdrawal fee, the withdrawing member shall provide at the time of giving notice of withdrawal a
bond or other security reasonably satisfactory to the Conference's Board of Directors (provided, however, that the Director representing
the withdrawing member may not participate or vote in connection with any such decision) in the amount of the reasonably expected
withdrawal fee (as estimated in good faith by the Commissioner), which shall remain in effect until the withdrawal fee is paid.
The amount by which the remaining members of the Conference suffer reduced television rights fees, if any, shall be determined by the
Commissioner after discussion with the withdrawing member, the other Conference members, and the holder(s) of the Conference
television contract(s). The determination of the Commissioner relative to such reduction on a good faith basis shall be final and binding
upon the withdrawing member and upon all other members of the Conference."
http://grfx.cstv.com/photos/schools/tuls/genrel/auto_pdf/2011-12/misc_non_event/C-USA_Handbook.pdf
Thanks for the info. + 1
RE: Exit Fee info directly from C-USA bylaws - MinerInWisconsin - 02-26-2013 03:15 PM
(02-26-2013 03:09 PM)SgtGoldenEagle Wrote:(02-26-2013 02:46 PM)gdunn Wrote:(02-26-2013 02:24 PM)MinerInWisconsin Wrote:(02-26-2013 10:51 AM)AndreWhere Wrote: USM should go ahead and give the six-year notice.
Yeah, why is that even an option? Who is ever going to give 5 or 6 years notice of leaving? Makes no sense.
Don't mind Andre.. He thinks that we can just call up any conference and tell them we're joining and we're in.
I have to admit from the many post of his, he doesn't seem to be very informed and lacks a lot of understanding and is not looking very thoughtfully at the whole issue. In his defense however, many people do that not only in sports but many other issues and events. Knee jerk reaction is very common.
I just took his remark as a bit of humor, nothing more. The 6 year notice thing is kind of silly for any of us because what conference out there would say "your invited" and then wait 6 years for you?
RE: Exit Fee info directly from C-USA bylaws - FloridaJag - 02-26-2013 03:16 PM
For some reason the reputation button is not working. I will add the rep point later.
RE: Exit Fee info directly from C-USA bylaws - MinerInWisconsin - 02-26-2013 03:17 PM
(02-26-2013 03:06 PM)KNIGHTTIME Wrote: The NCAA credits are owned by the conference. I don't get the report that Memphis can use their credits. Maybe the conference allows the individual teams to keep a portion of the money?
The conference bylaws spell it out pretty clearly that those credits can offset the exit fees.
RE: Exit Fee info directly from C-USA bylaws - Native Georgian - 02-26-2013 04:21 PM
(02-26-2013 03:06 PM)KNIGHTTIME Wrote: The NCAA credits are owned by the conference.Agreed.
Quote:I don't get the report that Memphis can use their credits. Maybe the conference allows the individual teams to keep a portion of the money?Unclear, but I guess it's possible.
RE: Exit Fee info directly from C-USA bylaws - randaddyminer - 02-26-2013 11:15 PM
(02-26-2013 04:21 PM)Native Georgian Wrote:(02-26-2013 03:06 PM)KNIGHTTIME Wrote: The NCAA credits are owned by the conference.Agreed.
Quote:I don't get the report that Memphis can use their credits. Maybe the conference allows the individual teams to keep a portion of the money?Unclear, but I guess it's possible.
he is in denial because ucf has no credits, and if memphis used all their credits and still has to pay almost 1.7 million so far, you can imagine how much ucf is going to have to come up with.
RE: Exit Fee info directly from C-USA bylaws - oldtiger - 02-27-2013 10:45 AM
(02-26-2013 11:15 PM)randaddyminer Wrote:(02-26-2013 04:21 PM)Native Georgian Wrote:(02-26-2013 03:06 PM)KNIGHTTIME Wrote: The NCAA credits are owned by the conference.Agreed.
Quote:I don't get the report that Memphis can use their credits. Maybe the conference allows the individual teams to keep a portion of the money?Unclear, but I guess it's possible.
he is in denial because ucf has no credits, and if memphis used all their credits and still has to pay almost 1.7 million so far, you can imagine how much ucf is going to have to come up with.
Everything is relative.
There are advantages to being a large university. As do a lot of us, Central Florida funds a good bit of its athletics with student fees.
In round numbers, +/- $6 Million, spread over +/- 40K students over a 2 year period equals +/- $75 per year for each student.
RE: Exit Fee info directly from C-USA bylaws - USM Birds of War - 02-27-2013 11:54 AM
(02-26-2013 03:17 PM)MinerInWisconsin Wrote:(02-26-2013 03:06 PM)KNIGHTTIME Wrote: The NCAA credits are owned by the conference. I don't get the report that Memphis can use their credits. Maybe the conference allows the individual teams to keep a portion of the money?
The conference bylaws spell it out pretty clearly that those credits can offset the exit fees.
Money is taken off the top first. $200,000 is given to a school making the tournament, then $100,000 for each game played after the first one. Some of what's left is given to schools based on how many non-conference, division I wins it had during the season. Memphis can probably forfeit that money, and it goes back into the pool.
RE: Exit Fee info directly from C-USA bylaws - oldtiger - 02-27-2013 12:12 PM
This does put an interesting light on where mid-level conferences earn money, other than TV.
I realize that bowls are different than basketball credits and bowl money is paid in/close to the current year, where basketball credits are spread out over multiple years. However, the amount of $ one program can earn for the conference, short of a BCS bid, is significantly different for the 2 events.
"Football drives the bus" is probably true in the big conferences, but not so much in the midlevel space that we operate. I'm not posting this as a fan of a "basketball school" because, believe it or not, we've been to as many bowls as several of our conference members over the last 10 years.
RE: Exit Fee info directly from C-USA bylaws - stever20 - 02-27-2013 02:15 PM
(02-26-2013 03:17 PM)MinerInWisconsin Wrote:(02-26-2013 03:06 PM)KNIGHTTIME Wrote: The NCAA credits are owned by the conference. I don't get the report that Memphis can use their credits. Maybe the conference allows the individual teams to keep a portion of the money?
The conference bylaws spell it out pretty clearly that those credits can offset the exit fees.
I think it probably was a vestige of when Louisville and others were in the conference quite frankly.
RE: Exit Fee info directly from C-USA bylaws - Freshy - 02-27-2013 02:49 PM
UCF should be able to mitigate some of their costs in exit fees through their championship game appearances in football. While the media rights are factored into a contract, some of the conference-controlled money earned through the title game is not. UCF can use this as a bargaining chip the same way Memphis did, although to a much lesser extent. In other words, Memphis deserved a break because they earned the conference money it otherwise would not have gotten. UCF has a lesser claim to the same argument. At least, that is how I understand it.
RE: Exit Fee info directly from C-USA bylaws - oldtiger - 02-27-2013 03:44 PM
(02-27-2013 02:49 PM)Freshy Wrote: UCF should be able to mitigate some of their costs in exit fees through their championship game appearances in football. While the media rights are factored into a contract, some of the conference-controlled money earned through the title game is not. UCF can use this as a bargaining chip the same way Memphis did, although to a much lesser extent. In other words, Memphis deserved a break because they earned the conference money it otherwise would not have gotten. UCF has a lesser claim to the same argument. At least, that is how I understand it.
I'm no expert and it's all a little murky, but I really don't think that Memphis used any "bargaining chip" or got a break (that wasn't in the agreement). I thought that the basketball credits were defined in the agreement. Perhaps the championship game receipts, or a portion there of are also defined in the agreement.
After the outcry from the last exit "one off" agreements, I'm not sure how much bartering will happen this time.
We owe +/- $6.5 million and haven't welched on that amount anywhere that I can see. I'm not sure that all departing programs are taking that view.