CSU/USU suing MW over exit fees

[rebeltob]

Colorado State, Utah State suing Mountain West Conference over exit fees

Mired in a realignment struggle for members, the Pac-12 and Mountain West are at the center of the latest conference realignment shakeup.

sports.yahoo.com

 

[Meister_Rebel]

They agreed to the Exit Fees when they joined. They say they haven't given notice yet the entire world knows they committed to join the PAC. They are upset that UNLV is going to get $20 million. Wah!

I like that we are keeping all the revenue from current distributions to satisfy their exit fees.

 

[Rebel_Luv]

Colorado State, Utah State suing Mountain West Conference over exit fees

Mired in a realignment struggle for members, the Pac-12 and Mountain West are at the center of the latest conference realignment shakeup.

sports.yahoo.com

IF we lose that case we are IDIOTS for not joining the PAC 7 or whatever it is.

 

[Meister_Rebel]

IF we lose that case we are IDIOTS for not joining the PAC 7 or whatever it is.

If we lose the case the MW won't have the money to pay us. We would be free to become the 8th Pac-12 team.

 

[RebelSoldat]

Most likely trying to settle for lower fees but we'll see

 

[WarthogRebel]

Most likely trying to settle for lower fees but we'll see

Hoping to extend the payments for years in the future

 

[reagan21]

Most likely trying to settle for lower fees but we'll see

This is the answer.

The complaint even tries to bring up the poaching fees which should not be in front of that Colorado court; that is a penalty on the Pac2 not CSU and USU.

Those cases will settle. I really wish the MWC had the resources to just stand their ground. Pac2 and new schools do have leverage though as the MWC would not want all that money tied up for a 18 months in 2 separate lawsuits. They need cash and the only way to get cash now is to settle those lawsuits.

 

[Rosegreen1]

PAC is in trouble. No tv deal and members are crying about fees already.

 

[ckfitz]

IF we lose that case we are IDIOTS for not joining the PAC 7 or whatever it is.

If we lose the case the MW won't have the money to pay us. We would be free to become the 8th Pac-12 team.

I don't think that we can be considered as an idiot, if there are rules in place which everyone agreed to when the conference was formed. The only entity that will get rich are the attorneys.

 

[Rosegreen1]

This is the answer.

The complaint even tries to bring up the poaching fees which should not be in front of that Colorado court; that is a penalty on the Pac2 not CSU and USU.

Those cases will settle. I really wish the MWC had the resources to just stand their ground. Pac2 and new schools do have leverage though as the MWC would not want all that money tied up for a 18 months in 2 separate lawsuits. They need cash and the only way to get cash now is to settle those lawsuits.

The MW has the leverage and can afford to go through the courts, remember the fees can and will be collected via withholding distributions from bowls, postseason winnings etc.

Utah State is probably broke as shit right now with their football program mired in legal issues and paying New Mexico a buyout for hiring Bronco + his new contract. That’s why they are crying they have to pay the fees. Same with Colorado State, their stadium deal was terrible and probably can’t afford this move without pairing down the fees.

Remember the NPAC won’t be seeing any money or payouts anytime soon. They have no tv deal and no sponsors for revenue to distribute to help athletic budgets for next year and immediately when the 2026 fiscal year starts. Going to be tough sledding for the NPAC because it’s just another G5 conference.

 

[Loyal Coug1]

If we lose the case the MW won't have the money to pay us. We would be free to become the 8th Pac-12 team.

Where does this article come up with "$19-38M/team" and "$150-250M" total? I thought it was $17Mx5=$85M and $56M poaching? Total of $141M?

 

[Bullmastiff 1]

The MW has the leverage and can afford to go through the courts, remember the fees can and will be collected via withholding distributions from bowls, postseason winnings etc.

Utah State is probably broke as shit right now with their football program mired in legal issues and paying New Mexico a buyout for hiring Bronco + his new contract. That’s why they are crying they have to pay the fees. Same with Colorado State, their stadium deal was terrible and probably can’t afford this move without pairing down the fees.

Remember the NPAC won’t be seeing any money or payouts anytime soon. They have no tv deal and no sponsors for revenue to distribute to help athletic budgets for next year and immediately when the 2026 fiscal year starts. Going to be tough sledding for the NPAC because it’s just another G5 conference.

Next years basketball units and all media deal money gets diverted to the MWC remaining teams correct? They get none of it?

 

[RebelinWA]

Where does this article come up with "$19-38M/team" and "$150-250M" total? I thought it was $17Mx5=$85M and $56M poaching? Total of $141M?

Its 3 to 6 times the revenue distribution. I believe the exact distribution for football will come post bowl games, or at the end of Boise's run.

 

[Meister_Rebel]

Where does this article come up with "$19-38M/team" and "$150-250M" total? I thought it was $17Mx5=$85M and $56M poaching? Total of $141M?

$55 million for poaching. The 19-38 is only accurate if there is less than one year or more than one year notice. I think they just lumped things together because they are idiots. The $17 was also not 100% accurate. There is no $17 million base line in the contract as what it really says is that it's 3 times the most current/recent annual fiscal year revenue distribution. Since BSU earned more they will pay more. Everyone else will pay based on their revenue which is actually more than the $17 million. It's more variable due the number of NCAA basketball units and any shared bowl revenue. I don't have the contract but I know dollars are variable annually/ fiscal year.

Edit: @Loyal Coug1 Check your new Pac12 contract. I believe they stole err used the same wording we have in our contract about the 3 times for revenue distribution. I believe seeing that when that contract was posted someplace.

 

[RebelinWA]

Next years basketball units and all media deal money gets diverted to the MWC remaining teams correct? They get none of it?

Yes, all of those units are forfeit to the exiting members.

 

[Meister_Rebel]

Next years basketball units and all media deal money gets diverted to the MWC remaining teams correct? They get none of it?

I think they only get what is left over after we keep their exit fees.

edit: Yes, I do believe the same as what @RebelinWA said about tourney units.

 

[Loyal Coug1]

Yes, all of those units are forfeit to the exiting members.

Hmm, that is mildly surprising. I believe that the Pac-12 traitors shared in FY 2024 distributions of BB units, etc, not counting the mild penalty they agreed to pay for leaving ($5M each). The units they left behind of course reverted to the Pac-2.

 

[Rosegreen1]

$55 million for poaching. The 19-38 is only accurate if there is less than one year or more than one year notice. I think they just lumped things together because they are idiots. The $17 was also not 100% accurate. There is no $17 million base line in the contract as what it really says is that it's 3 times the most current/recent annual fiscal year revenue distribution. Since BSU earned more they will pay more. Everyone else will pay based on their revenue which is actually more than the $17 million. It's more variable due the number of NCAA basketball units and any shared bowl revenue. I don't have the contract but I know dollars are variable annually/ fiscal year.

Edit: @Loyal Coug1 Check your new Pac12 contract. I believe they stole err used the same wording we have in our contract about the 3 times for revenue distribution. I believe seeing that when that contract was posted someplace.

That’s why CSU and Utah State are the only ones in the lawsuit. I believe they haven’t formally joined the PAC, even though verbally they accepted the invite. The other schools won’t join the lawsuit for reasons you just posted, they just signed a similar agreement.

 

[Meister_Rebel]

That’s why CSU and Utah State are the only ones in the lawsuit. I believe they haven’t formally joined the PAC, even though verbally they accepted the invite. The other schools won’t join the lawsuit for reasons you just posted, they just signed a similar agreement.

If they prevail in the lawsuit it pretty much muddies up the Pac12 contract for their future exit fees since they used the same wording in their new Pac12 contract as the MW contract.

 

[reagan21]

The MW has the leverage and can afford to go through the courts, remember the fees can and will be collected via withholding distributions from bowls, postseason winnings etc.

Rule #1 in a lawsuit. The party holding the money always has the leverage. We are asking them to pay us. They hold the money. They have the leverage. MWC has promised UNLV and AFA a bunch of money. Money they won't have until those exit/poaching fees are paid. That money is tied up in a lawsuit and would be for a LONG LONG time. The MWC will need that money, and that's why the Traitors have leverage.

 

[dcut03]

All I know is this, every other instance of realignment the exit fees have been negotiated down 100% of the time. Even SMU paying 27 or mill was a negotiated number.

The MW's exit fees are extremely harsh and egregious compared to the value of the media contact. In terms' of percentages it is an absurd amount compared to other conferences in recent years.

All of the other conferences have agreed upon numbers in their bylaws, but they were negotiated down. No one has paid in full. SMU got the closest it seems, but they also left without with < 1 year notice. Most other cases It has been a ~2 year notice, or like the PAC where they didn't have a contract. The MW defectors have ~ 2 year notice so they can use the B12 and ACC defectors as examples, hell even the PAC teams pay 50% of their fees ( plus a bonus 1.5 mil a piece for leaving the PAC 2 so high and dry)

The poaching fees on top of all of this was a separate agreement and technically agreed upon by the PAC and not the teams so that is separate.

However, essentially there are trying to double dip. I can see that the poaching fees at least come into play with exit fee negotiations because of that.

If this gets in court or some sort of arbitration these fees will get reduced, you can almost guarantee it. There has been plenty of recent precedent as examples for the going rate for these things.

My guess is that the poaching fees are upheld, but the exit fees will be drastically reduced. Even if the poaching fees are thrown out, I think the exit fees get reduced, but if they hold up, I think the exit fees get reduced even more.