Octagon/ Navigate are consultants. One is expansion strategy, and the other is for the media valuation negotiation aspect. Both are highly respected in industry.
Estimate for MWC media deal
- Thread starter bcvegaspt2
- Start date
Thank you for sharing.
So reading this, I would imagine that no school has provided the written notice and exit deposit yet. It makes no sense to do that, you just lose money.
I would imagine they will do it this summer to be compliant and not open the door for doubled fees.
So in the summer next year we "might" have up to 55 mil in poaching fees + 25k from deposits. I have no idea what the payment schedule is for media rights. Are they larger payments done annually, quarterly, monthly? No idea but that plays a role.
If payment are annual then a large chunk of money may be collected, and the 61 mil threshold could be met, and MW may pay that lump sum.
However, that probably isn't the best practice. Since those exit fees will be contested and negotiated down somewhat. Now i think it is pretty safe that it will be at least 1 year media value per school, but again that is not guaranteed.
Also if the exit fees being contested in a lawsuit, I can see an injunction being made in the traitor's behalf. Just because again, they are still a part of this conference and the document that allows the the MW to withhold money is being contested. So if anything is going to be "frozen" I would guess it would be the the idea of withholding the payouts. I would guess the 5k gets collected regardless.
If it stays in the courts March is irrelevant… to get to any sort of adjudication would take months, and then there are the appeals.
They could be hoping for a settlement sooner, but they’re not getting the poaching fees nullified in any short time frame.
And we (the Pac) are doing so well in both areas. They probably come out of Pac meetings feeling like Oliver Douglas from Green Acres after meeting with the Ziffels, Mr. Haney, and Mr. Kimball. Arnold being the most intelligent of the lot.
Well, having met some of those navigate guys myself, I can tell you they are sharp.
But the question is, what directions were they given? Are they saying whats best for the Pac, or whats in line with the scope of the request from pac leadership?
We tried to get Texas State but it seemed their fans and administration only wanted to go to the Pac. That is fine. I think we came out better with UTEP and NIU. I wouldn't mind in the future to pick up another Texas school though.
I need an actual lawyer to chime in here… where’s @reagan21 when you need him?
Page 3 outlines distributions… annually, no later than June 30th. Last year’s payment would have been made prior to the traitors making any announcements, so per the bylaws the next two would be withheld and used to cover exit fees.
Part of the argument being made by at least two of the traitors is that they never notified the MW and therefore aren’t “officially” out of the MW and should have voting rights, etc.
Silly game the courts would likely discourage due to how you’ve acted in public, including publicly announcing that you are in fact joining the PAC. At best this would be viewed as dumb semantics and at worst would likely bias the court against you for violating the spirit of the agreement you signed and trying to “game the system”.
You don’t get to have your cake and eat it too.
As far as any injunction would be concerned, I don’t think the courts could necessarily force the MW to violate their own bylaws and pay the traitors their regularly scheduled payments. They could potentially freeze those payments and prevent the MW from redistributing them while litigation continued, but I can’t see them forcing them to pay while the payments are in dispute.
Again, lots in play that needs to play out, but these fees owed aren’t getting thrown out by a judge any time soon. Depending on how much stomach either side has to continue to pay lawyers it could go on for quite awhile.
Texas State is about as much as they could hope for. But then going on about UTSA and UNT as options to get to 9 or 10 members goes against everything the PAC was trying to accomplish by breaking up the MW.
Maybe.
If it’s to come in as partial members with reduced share and voting rights you’d think the MW would just offer them as full members. 🤷🏽♂️
If they get an offer anywhere below around 80-90%, they likely would be just as well off if the MWC offered them a full membership! That number started at 70%, but it keeps dropping the longer it take the PAC to get a deal. Also, the PAC needs to worry about losing to the MWC, in which case they could very well get hit with all the legal fees, while it is highly unlikely that the MWC would get hit with legal fees since they are the defendant, and the defendant rarely gets stuck with the legal fees of those that filed suit!
I didnt like when the the MW was targeting Texas State. Living here and knowing a good amount of almuni, I have never met a single person that gave 2 shits about anything sports related with that school. They all nearly to the person were UT fans hard core.
That being said, Texas State was the MW's second choice after UTEP FWIW. And they turned us down. Basically holding out for the PAC if that means anything. Probably that the contracts, even at a lesser share was that much better. Likely the reduced share would be temporary, so that could be why they still don't want the to join the MW.
The reason that UNT and UTSA are more likely is that they are not getting the same money as the legacy members like Memphis and Tulane. Which could mean the exit fees could be negotiated down lower since the media value tends to be a major concern with those final settled numbers.
If media distributions are annual then it really doesn't matter whether the traitors have officially notified the conference yet. We'll maybe not. As long as they can't legally witheld any funds then they could be due for this seasons football revenue. Unless all media comes together, not sure how that works.
Wither way the MW would only get to withhold 26 mil in base media revenue if the courts let them.
To your point though, I do think that a judge can prohibit the withholding of the media revenue since because that is the thing that is being disputed. But you may be right that it will be withheld but cannot be used.
Remember according the bylaws they aren't technically out since they haven't officially resigned until they announce to the conference in writing with 5 grand. It seems that legally they can easily have their cake and eat it too. They can sign an agreement with another conference and announce their intent to depart in the media but until they pay that 5 k they are in the MW officially
How can Tulane and Memphis afford to even consider leaving the AAC? I read if they wait and give 27 months notice it is reduced to $10 mill. UConn paid $17 mill when they left for the Big East. Cincy, Houston and UCF paid $18 each to exit
Because they all think contracts don't apply and they can do whatever they want with 0 penalty... sometimes adults need to learn hard expensive lessons or you end up with a stupid society where agreements mean nothing
Not only that, but what if the ACC or Big 12 considers them in the future? Let's say that their AAC buyout is negotiated down to 18 million. Then, the Pac whatever chips in
10 mil each. They each would be on the hook for 8 million plus the Pac buyout, should they try to go to P4.
OP now believes this only applies for schools going from DII to DI. Not FCS to FBS. They're still looking into it.
