(02-13-2014 06:15 PM)Dasville Wrote: Are media rights considered assets of a Conference in a situation with a GoR?
I am 99% sure that is the case.....you are basically granting the rights to all of your content to the conference in exchange for a share of the proceeds from the conference
the difference between that and a buyout clause (and I am far from a lawyer) is that a buyout clause basically sets a starting point for liquidated damages to be contested in court to be disputed and fought over based on the claim that if we leave we are not doing X amount of financial damage to the conference
with the Big 12 as an example when MU and A&M left the Big 12 had a new 2nd tier deal with Fox in place that specified 10 teams in the conference and they had a 1st tier deal with ESPN that was set to expire in a few years
so as soon as the Big 12 added 2 teams, FOX was satisfied and the contracts stayed whole well MU and A&M can make the claim that there was no actual financial harm to the Big 12
then you get into the court case about "future value"......and then IF that had drug out (it did not of course MU and A&M and the Big 12 reached an agreement) well in the middle of all that again if it had drug out here is the Big 12 signing a new 1st tier deal with ESPN several years early......and getting good money for doing it
so again here is MU and A&M with a claim of no financial harm to the Big 12.....then you have to drag in media partners and potential media partners to say well if A&M and MU had stayed VS TCU and WVU we might have paid Y more dollars ect and on and on it goes
it is like the ACC Maryland deal.....the ACC has a 13 year (or 15 or whatever) deal in place that stays whole when Maryland leaves and how in the hell do you put a value on potential damages 15 years down the road from no Maryland......so you start with the 52 million penalty for leaving and work your way from there
and if that gets down low enough and others say "we can swing that to move to conference Z for more cash".......well out the door they go
with the GOR you are not arguing over dollars you have simply signed away the rights to your home games and the league owns them there is no money to fight over
and as I pointed out perhaps a team could get away with 1 (MAYBE 2) years of playing no "home games" but not a chance in hell they could survive 3 or more of all "away" games and or playing home games that most likely would not get on TV (which sucks for you and your new conference mate you are playing)
so it just makes it unattractive to leave and there is no starting dollar amount to fight over there is just contract law about you made this agreement to assign rights live with it.....or I suppose litigate it "forever" while not getting conference dollars and not getting on TV and or playing all "away" games until one day in the future (probably when the GOR ends) it all settles for whatever
it makes it much more risky for a school to say lets wade unto the unknown of what the courts will rule VS saying "OK they want 52 million lets get that down to something acceptable and GTFO ASAP"