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  1. #41

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    Oh it's certainly meaningless in some circumstances.

    Quote Originally Posted by Old Line Hokie View Post
    Exit fee will be a minimum of $14-$15 Million no matter what happens in court. Maryland will never leave the ACC without paying an exit fee. Big East, Big 12, A-10,.. schools have paid exit fees. Maryland agreed to that exit fee when Pitt and Syracuse were added.

    If the $52 Million exit isn't such a big deal, why is Maryland suing over it? If $52 Million is a "red herring", why won't ACC schools just leave now? What issue(s) is really stopping other ACC schools from leaving right now if the exit fee is just a "red herring"?
    FSU would probably pay 60 million if it meant a slot in the SEC. It probably doesn't mean much to UNC either. I'd say that if any school decided a B1G slot was in its long term best interests, the 50 million would be a minor consideration. For calculations on the margin though, like FSU and/or Clemson moving to the B12, that 50 million is huge.

    As for Maryland suing over the exit fee: you do that because you can. I think the possiblity of paying 50 million vs 15 million was meaningless to Maryland's decision. They'll make up the 35 million dollar delta in a few years.

  2. #42
    Old Line Hokie's Avatar
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    Quote Originally Posted by lawhokie View Post
    FSU would probably pay 60 million if it meant a slot in the SEC. It probably doesn't mean much to UNC either. I'd say that if any school decided a B1G slot was in its long term best interests, the 50 million would be a minor consideration. For calculations on the margin though, like FSU and/or Clemson moving to the B12, that 50 million is huge.

    As for Maryland suing over the exit fee: you do that because you can. I think the possiblity of paying 50 million vs 15 million was meaningless to Maryland's decision. They'll make up the 35 million dollar delta in a few years.
    I agree that some schools like FSU and Clemson may take the gamble and pay a $52 Million exit fee in order to fulfill their SEC membership dreams. The reality is FSU isn't that financially stable and UNC is in need of more revenue for all its sports. Click here: http://m.bizjournals.com/triangle/bl...-athletic.html

    We may know this week how much revenue the new ESPN/SEC contract will bring each SEC member school. We should know soon how much the new revised ACC/ESPN contract will bring each ACC member school. We should know by the end of the year if the ACC wants to establish a network similar to the BTN and SECN. All these events will clear things up. The ACC exit fee amount may not be settled for some time. I still have doubts about the money that will be generated by the BTN. I've been involved in business for 3 decades and I know all about "promises" being made by salesman (commissioners in college athletics). Most never live up to their expectations. Nothing in life is guaranteed. There are too many variables that prevent such revenue projections to actually becoming reality. Schools like Wake and BC would be taking a bigger risk at paying a $26 million exit fee in order to join a more lucrative conference. Wealthier schools like UNC and UVa would be more likely to eat the $26 Million exit fee. As for Tech, they would probably be more in line with Wake and BC. Tech has always been very conservative and cautious when it comes to financial matters.

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