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You will see when Maryland doesn't pay $50 million.
Maryland is goin to have to litigate their way out of the $50M and will have to pay an amount that is close that nber anyway.
ACC put together economic study to show cost of departure on league and that will legally substantiate the exit fee, i.e, exit fee is not putative.
Maryland is not a big loss for ACC. Easily replaceable with Lousiville (with better national appeal). However, if it sets of a chain reaction, it will be very detrimental. Another reason the exit fee will not be forgiven. And, despite what others have posted, exit fee was immediately enforceable upon ND announcement.
Please don't do this Big Ten.
Best I recall two teams refused to agree to the exit fee amount. I know one team was FSU. Litigation might negate a large amount of the $50m, especially if Maryland never agreed to it. Of course, you can argue that they SHOULD pay it, but the courts may see otherwise.
Nonetheless, Maryland isn't a loss to ACC nor a huge gain to B10. Maryland is Maryland. They are the pride of College Park (one of the worst cities in the U.S.).
Sure, then explain to me why they based their expansion around adding us? If you think backfilling with UConn after Maryland leaving doesn't hurt the ACC you are clueless. Its stunning how stupid people are when it comes to conference expansion.
"I like fixing broken things" - Kevin Plank
No they won't pay anywhere near that amount. FSU has consulted with several lawyers saying the payout won't be anywhere near that amount. It would be punitive damages and that amount would not hold up in court.
Hope like hell FSU gets out while there is still a chance
This post was edited by Dan86 17 months ago
What does Rutgers add? Academics? Basketball? Football?
Well. That is just stupid and bitter.
No. This is jtp's doing. He's kept me around for his bizarre HOF resume.
You are wrong. Not only can the ACC point to its own economic study, but it also has a contemporary market comparable with the Big East. It will be easy to demonstrate that the exit fee is not in fact punitive, but necessary to make the remaining members, to the extent possible, whole.
I don't think you should be relying on the legal advice of an ambulance chaser like your BOT Chairman, Haggard. J/K, not really.
This post was edited by GoingHeels 17 months ago
LOL are you serious? FSU, Maryland and anyother team that wants out any time in the next 2 years won't be paying anywhere near $50 million
How do you define "anywhere near"? And, how is the two year period significant?
Exactly. The $50 million will not be paid. My guess is it will be in the $10-20 million range. The $50 million was jammed through with no notice and bears no connection to the damages incurred by the ACC.
Would be closer to the $20 million as Maryland and FSU didn't agree to the buyout. Threw the 2 year time frame out there as it would make the argument in court of the $50 milliion buyout being punitive and negotiating the buyout down than waiting say 5 years and then doing it.
My understanding, in talking to people connected with the ACC office, is that the exit fee is the same amount as the ACC's annual operating budget, which was determined to be an accurate indicator of damages that would adjust annually to reflect the current market conditions. That number for 2012-13 is just under $50M.
I guess Maryland is about to find out how much of a mitigating factor their failure to immediately give the ACC notice of intent to leave when the exit fee was passed after not voting for the increase will be. . . .
There's no way Maryland can afford that buyout. Does the Big10 really think they add that much to their conference to front a $50 million buy out? I would seriously doubt it. All the people reading into the founder of UA selling his stock to pay for this need to realize he is doing it to avoid huge taxes that go into effect this January.
Would Maryland really be considering this if they didn't have a legitimate way of paying the buyout? Keep in mind Maryland just cut around 7 athletic programs due to not having the funds to keep them going.
The ACC operating budget is a randomly chosen number. It bears no relation to damages. In fact, the ACC will have a hard time proving damages at all because the new TV contract money will now be divided by fewer teams. Arguably, every remaining ACC member will make more money if MD leaves. What are the damages?
Mr. Macintosh just dominating this thread. Strong work
"The regents were told about the talks this weekend but had not received a written presentation as of early Saturday night."
I don't think Maryland has really started doing their due diligence into their legal position with the exit fee.
I, also, think there is a lot of incorrect information out there surrounding the exit fee.
"In September, Maryland voted against the ACC’s plan to increase its exit fee to about $50 million. Maryland considered such a steep fee to be punitive, but the measure was passed."
Just because Maryland considers it punitive, doesn't make it punitive. Similarly, just as you said, just because the ACC doesn't consider punitive, doesn't make it punitive.
The University of Maryland is in serious discussions to join the Big Ten, and the Board of Regents plans Monday to discuss the proposed move, according to two sources with knowledge of the talks.
I guarantee you every ACC member has had their attorneys study the exit fee and knows exactly what the legal arguments are on both sides. MD is not flying blind.
This post was edited by MrWoodson 17 months ago
How did you bold that in my quote?
Regarding the exit fee and due diligence, there is a big difference to really drilling down into the exposure and drafting a memo.
Exit fee won't even matter if they are deciding whether to leave or not. This is a 100 year decision. Whether 50 million or 5 million that's meaningless in the long run.
I'm interested in why the big ten would even want them.
I guess I am in the minority but I see a lot of positives... The BIG picks up the DC, Balitmore, NYC and NJ markets (Those are HUGE). Also Rutgers has done well with big east money (what can they do with BIG money) and MD would have BIG and Under Armour money to help create a successful program. Also they are both good academic and research institutions. Also it is looking more and more like super conferences are coming are way eventually (and it will be all about TV money) I guess it make a lot of sense to me when I look at it
You are acting like this is the first school that has ever left one conference to join another and had to deal with an exit fee. I assure you MD (and every other ACC member) has had their attorneys look at it and provide a legal analysis of how binding it is. That's what lawyers do for a living.
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