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Maryland, Rutgers in talks to join B1G

  • MarineMountie said...

    No, it did not go into effect immediately. Summer of 2013 is when it goes into effect officially. ACC will still try to enforce it though. FSU, Clemson, and GT voted against it as well, FWIW.

    Just curious, do you have a link? Because I've seen a few other message boards provide links saying that it went into effect immediately. You might be right, but I'm skeptical. Mostly because implementing a buyout immediately is what makes sense - you don't vote and then implement it months down the road. That's just asking for schools to bail before it takes effect.

    From attached link:

    "One ACC official told the Orlando Sentinel the upped exit fee goes into effect 'immediately.'

    When pressured further about whether that meant anytime this academic year or sometime next summer, the official responded: immediately, as in 'today.' "

    ACC exit fee Notre Dame: ACC exit fee goes into effect with Notre Dame 'immediately' - Orlando Sentinel

    TALLAHASSEE -- One of the biggest items in Wednesday morning's announcement from the Atlantic Coast Conference about a new partial membership agreement with Notre Dame had to do with an expanded

    articles.orlandosentinel.com
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    psubills62

  • jtpterp said...

    Enjoy the big 12!

    Hey I would rather join the big 12 than the big 10

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    duvalnole

  • You will see when Maryland doesn't pay $50 million.

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    Team Targaryen

    MarineMountie

  • 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.

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    GoingHeels

  • Please don't do this Big Ten.

    A2Wolverines

  • GoingHeels said...

    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.

    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.).

    WRobins

  • Status said...

    He did that so Obama doesn't steal his money

    Please. Don't be so hyperbolic.

    It's for more than just saving 5% on capital gains.

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    "A political call, the fall guy accord...We can't afford to be neutral on a moving train..."

    BamaLivesFootba

  • WRobins said...

    Nonetheless, Maryland isn't a loss to ACC nor a huge gain to B10.

    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.

    BklynTerp

  • GoingHeels said...

    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.

    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 on 11/17/2012 at 5:01 PM

    Dan86

  • It's definitely showing which fans care about basketball and which care about football.

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    "A political call, the fall guy accord...We can't afford to be neutral on a moving train..."

    BamaLivesFootba

  • BamaLivesFootba said...

    It's definitely showing which fans care about basketball and which care about football.

    What does Rutgers add? Academics? Basketball? Football?

    Harry Callahan

  • duvalnole said...

    Hey I would rather join the big 12 than the big 10

    Well. That is just stupid and bitter.

    RaiseHigh said... No. This is jtp's doing. He's kept me around for his bizarre HOF resume.

    jtpterp

  • Harry Callahan said...

    What does Rutgers add? Academics? Basketball? Football?

    Average football. Less than mediocre basketball. Better than average academics. Top market in the country.

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    "A political call, the fall guy accord...We can't afford to be neutral on a moving train..."

    BamaLivesFootba

  • Mr. Macintosh said...

    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

    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 on 11/17/2012 at 5:40 PM

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    GoingHeels

  • GoingHeels said...

    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.

    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

    Dan86

  • Mr. Macintosh said...

    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?

    This post was edited by GoingHeels on 11/17/2012 at 5:49 PM

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    GoingHeels

  • MarineMountie said...

    You will see when Maryland doesn't pay $50 million.

    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.

    MrWoodson

  • GoingHeels said...

    How do you define "anywhere near"? And, how is the two year period significant?

    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.

    This post was edited by Dan86 on 11/17/2012 at 5:56 PM

    Dan86

  • 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.

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    GoingHeels

  • Mr. Macintosh said...

    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.

    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. . . .

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    GoingHeels

  • 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.

    Dan86

  • GoingHeels said...

    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.

    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?

    MrWoodson

  • Mr. Macintosh just dominating this thread. Strong work

    BklynTerp

  • "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.

    Maryland considering a move to the Big Ten conference

    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.

    www.baltimoresun.com
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    GoingHeels

  • GoingHeels said...

    "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.

    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 on 11/17/2012 at 6:14 PM

    MrWoodson