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Associate AD [810]
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How to solve the Maryland exit fee problem
Nov 9, 2013, 9:09 AM
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I just read the comments from the Louisville AD that things are still up in the air as to when they can join the ACC due to Maryland's lawsuit and the unknown of when Mary may actually get out.
So the ACC is sticking by their guns and forcing Maryland to pay up the exit fee. Wouldn't the ACC prefer the prominence of Louisville's athletics over Maryland right now.......I mean a basketball NC, top 10 football team, College World Series baseball team?
Here is my solution to the ACC getting Maryland out, getting paid the exit fee, and getting Louisville in.....
Louiville got only $4 million in TV rights from the Big East last year and they are expected to receive at least $16 million in TV rights from the ACC in their first year in the conference. That is $12 million more Louisville stands to make once in the ACC......why can't Maryland, Louisville and the other ACC member schools agree to take a portion of Louisville's increase to pay Maryland's exit fee and allow Maryland to pay a lower exit fee?
I'm sure Louisville prefers an ACC home and even if $5 million a year of the ACC TV payment went to Maryland's exit fee that would still mean they are getting $7 million more than if they stayed where they are in a second rate conference.
Maryland wants to leave for the B1G and the ACC should want the benefits from the national reputation of Louisville's athletics. If Maryland actually said, "Screw it, we're staying in the ACC", isn't this a lose-lose for everyone?
Maryland is broke from what I read and I am sure they have a problem paying an enormous exit fee that they never signed/agreed to. Getting Maryland to actually pay the exit fee may never happen, and additionally, what if the ACC actually loses the Maryland lawsuit?
Lawsuits can take years....the ACC needs to get creative and get Mary out and Louisville in....somehow.
Thoughts?
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110%er [7191]
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Re: How to solve the Maryland exit fee problem
Nov 9, 2013, 9:14 AM
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Cut the exit fee in half(from 50 mil to 25),and set up a plan where Maryland takes 5 years to pay it back.
Good for the conference,good for Louisville,and good for the Big 10 cause they are getting a program that in actuality stinks.
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Orange Blooded [4787]
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the big10 would then sue maryland for $1 more than
Nov 9, 2013, 9:16 AM
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marylands' buyout, for breach of contract.
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Varsity [236]
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The ACC may not want to set a precedent that the exit fee is
Nov 9, 2013, 9:34 AM
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negotiable. If they show they are not serious about making schools pay it, we are back to the unstable conference with rumors of schools leaving every week. That was the point of making the exit fee so onerous.
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Orange Blooded [2519]
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Just get Obama to pay it from his stash***
Nov 9, 2013, 9:46 AM
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110%er [9174]
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^^This
Nov 9, 2013, 11:25 AM
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Obama is a F!'n crook.
-Doc
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Orange Blooded [2663]
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^^Idiot in Residence***
Nov 9, 2013, 3:14 PM
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Orange Blooded [2837]
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Don't be so hard on yourself***
Nov 9, 2013, 7:49 PM
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Orange Blooded [2213]
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^^^^POTD...***
Nov 9, 2013, 8:49 PM
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Commissioner [901]
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no we should make them pay every dime. if we don't, it will make us look weak again brother***
Nov 9, 2013, 9:47 AM
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Associate AD [810]
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Re: no we should make them pay every dime. if we don't, it will make us look weak again brother***
Nov 9, 2013, 8:53 PM
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I realize my post below is really long, so in response to your comment I'll just copy this portion:
Contracts are broken all the time. When one breaks a contract the other party is not owed anything except what they have lost due to the breaking of the contract.....the suffering party is owed damages/loss they incur from the breaking of the contract. A person or entity is not supposed to be punished for breaking a contract. That's bordering on mafia tactics. To get out of a contract you pay the damages or loss the other party will suffer and your done, you're out it.
I'll just throw an analogy out there....let's say you and I are members of a golf club...we pay annual dues and other fees and when we joined we signed an agreement that if we quit the club there would be an exit fee of $2,000. Well let's say things aren't going so well in the golf industry (which they aren't btw) and members are growing concerned that some members may quit and this could mean the club would be at risk. Now there are a lot of members who love their membership in the club, have plenty of money and want to stay members until they die....in fact this is the feeling of most of the members. So the membership takes a vote that the exit fee will be increased to $50,000, making it difficult if not impossible for anyone to quite the club....this passes by a majority but a few vote against it.....you being one of the dissenters. Well, things are happening in your life that make you want to if not have to quit the club....too bad for you though, there is now a $50,000 exit fee.
So in my analogy above, do you think it fair you should have to pay the $50,000 exit fee? Or do you think it would be more fair for you to pay an exit fee that would be equal to whatever the club loses by you leaving? What if the club has someone else available to take your place?....is the club even harmed? The club's $50,000 exit fee was only intended to harm someone who wanted to quit and make it impossible for them to quit.....it was punitive and it's not legal.
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Orange Blooded [4504]
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If UNC was leaving instead of MD, would MD want UNC to
Nov 9, 2013, 10:18 PM
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pay? I would say yes. Also using the 50k exit fee for an individual that isn't receiving 17 million from the club isn't even remotely comparative.
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Orange Blooded [4504]
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Meant to type 50 million not thousand.***
Nov 9, 2013, 10:20 PM
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Associate AD [810]
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Re: If UNC was leaving instead of MD, would MD want UNC to
Nov 9, 2013, 10:34 PM
[ in reply to If UNC was leaving instead of MD, would MD want UNC to ] |
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Sorry 5, I don't understand your comment.
Of course anyone wanting to stay would like the one leaving to pay as much as possible. What someone wants and what is legal are two totally different things.
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Orange Blooded [3730]
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The Terps were planning on a messy law suit to then...
Nov 9, 2013, 9:57 AM
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...skirt around the exit fee by pulling the ACC into an endless series of negotiations and settlements.
The Maryland athletic department is loaded with incompetency from top to bottom. The Terps deserve to be taken dry on this for the full $50M. That true up exit fee will go a long way in lieu of having to wait for Louisville.
The ACC has got to cut this Maryland goiter completely out, sending a clear message that the stability of the conference is paramount and this musical chair game between conferences will cost you dearly.
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Associate AD [810]
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How do you make them pay it if they can't?
Nov 9, 2013, 10:07 AM
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If Maryland can't pay it and has to stay in the conference, then what? That is one of the points of my comments.
Like you said, the exit fee is "onerous" and obviously the intent of the exit fee is to make it so a school CAN'T leave.......but what if the conference is replacing a crap program with a exponentially better program? Is it really in the conference's best interest to keep the crap program just "on principle" so the conference doesn't look weak? This seems to be the "cutting off your nose to spite your face" scenario.
You know what the sign of a weak conference is?.......an exit fee. The SEC has no exit fee. The ACC is looking much better stability-wise than they were a year ago and adding Louisville will only enhance the conference and it's stability. The ACC needs to move on this and not let it drag out and everyone gets screwed.
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CU Guru [1207]
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Re: How do you make them pay it if they can't?
Nov 9, 2013, 12:45 PM
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You got it. The exit fee is the problem. If anyone wants to leave then don't let the door hit you on the way out.
Goodbye
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CU Guru [1071]
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Re: How do you make them pay it if they can't?
Nov 9, 2013, 4:54 PM
[ in reply to How do you make them pay it if they can't? ] |
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You obviously just plain do not understand.
It doesn't matter whether Maryland can pay the fee or not. They are already out of the conference.
No one can make them rejoin. It is a done deal.
All the law suit id for is to force them to ppay the exit fee.
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Associate AD [810]
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Aiken, I am simply referencing the comments from the
Nov 9, 2013, 7:46 PM
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President of Louisville. He said their entry in 2014 depends on "what happens with Maryland". What does this mean other than Maryland isn't completely out yet?
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110%er [5977]
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The ACC has stopped all payments to
Nov 9, 2013, 10:26 AM
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Maryland once they found out Maryland was leaving. I would assume two years of no payment is 40M. The ACC is only at the exit fee...
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All-In [30593]
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This is a good point***
Nov 9, 2013, 10:31 AM
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Associate AD [810]
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Re: The ACC has stopped all payments to
Nov 9, 2013, 11:04 AM
[ in reply to The ACC has stopped all payments to ] |
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Your statement seems to contradict that the Louisville AD says he's not sure when Maryland will be out. If the ACC is not paying Maryland then Maryland is most assuredly leaving next summer.....they have no choice.
Just for arguments sake......if there is a court hearing regarding this exit fee, Maryland would seem to have a good argument:
- never signed exit fee agreement
- tells ACC they're leaving and ACC forces payment of exit fee
- Maryland can't pay/won't pay fee so ACC withholds payments to Maryland
- Maryland is still participating in conference but not getting paid, therefore they argue they are "forced" to leave
Again, the point of the exit fee is to make it so a school CAN'T leave. By enforcing the exit fee the ACC is making it so Maryland HAS to leave. If Maryland argues in court they had no choice but to leave because they no longer were receiving income then that seems a winnable argument.
I don't think a conference can have it both ways: by this I mean, the exit fee is meant to make it so a school can't leave but if a school actually decides to leave the conference withholds payment so a school is forced to leave.
Maryland will be challenging these "onerous" exit fees that some conferences have and I'm not sure these conferences have a winnable case.
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All-In [30593]
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UMD and FSU voted against it.... so they'll use that***
Nov 9, 2013, 11:25 AM
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Orange Blooded [4787]
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CU Guru [1071]
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Re: The ACC has stopped all payments to
Nov 9, 2013, 4:59 PM
[ in reply to The ACC has stopped all payments to ] |
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What does this have to do with anything? That money has absolutely nothing to do with the exit fee and how about a source that the ACC hasn't made any payments to Maryland in 2 years or that it should have been 10 million dollars a year?
I am almost certain that Maryland has been paid for playing all the different sports they have participated in. If you are saying they haven't been paid their share of the ACC annual payments to member schools, that would be because they quit and are no longer a member school.
They still have to pay the exit fee and this has nothing to do with that.
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All-TigerNet [13038]
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Screw Maryland. I'd rather bankrupt their AD or force
Nov 9, 2013, 11:07 AM
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the Big Ten to pay it for them then let them off the hook and dip into Louisville's share.
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CU Medallion [52399]
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How about the other schools opt to not play UM,
Nov 9, 2013, 11:36 AM
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forcing them to pay up and get out if they continue to hold up Louisville! No one forced UM to leave in the first place.
I can't wait until they are gone for good.
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Associate AD [810]
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Re: How about the other schools opt to not play UM,
Nov 9, 2013, 12:30 PM
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> forcing them to pay up and get out if they continue
> to hold up Louisville! No one forced UM to leave in
> the first place.
>
> I can't wait until they are gone for good.
I guess some are posting just to say something with no thought behind their comments.
Not playing Maryland would mean for instance that should Clemson have a home game with Maryland it would lose a couple of million in income by not playing the game.....or if you're saying Clemson should just replace Maryland with some other school then Clemson just gets sued by Maryland for not playing a game in which Clemson is contractually obligated.
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CU Medallion [52399]
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UM is not on any of the ACC teams' schedules for next year
Nov 9, 2013, 1:54 PM
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Can the ACC teams be forced to add them back? When they decided to leave the conference did that not nullify existing game contracts? Was there a provision that allowed them to reschedule if it did not work out?
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CU Medallion [52399]
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They do have Syracuse scheduled, but that is all***
Nov 9, 2013, 1:58 PM
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CU Medallion [52399]
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Associate AD [810]
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Re: *Crickets* I guess I did put some thought behind what I said
Nov 9, 2013, 3:03 PM
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Just got back from lunch....didn't know I was supposed to wait on your reply 
Sorry, I misinterpreted your point and I was thinking of a scenario where Maryland is still in the ACC but other member schools refuse to play them.
If Maryland is not on anyone's schedule for next year and the Louisville AD is saying he's not sure if Louisville will be in the ACC in 2014, then the ACC may have an even bigger problem than I realized.
Louisville can't disengage from their conference if they don't know what is going to happen with Maryland.....at least if you read their AD's comments this is the implication. A school can't fill out a football schedule in a weekend....these are done more than a year prior. Louisville and the ACC may have some problems filling out some football dates in 2014.
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CU Medallion [52399]
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Re: *Crickets* I guess I did put some thought behind what I said
Nov 9, 2013, 8:57 PM
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Maryland could be in trouble schedule-wise as well, unless they go ahead and play the Big 10. I just wonder if there were any provisions made for the ACC schools to add them back should all the legal problems not be resolved in time for next season. If not, I don't see how individual schools could be forced to do it.
Here is UM's schedule, BTW: http://www.fbschedules.com/ncaa-14/big-ten/2014-maryland-terrapins-football-schedule.php
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CU Guru [1730]
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Very Democratic of you
Nov 9, 2013, 1:01 PM
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To make the fee come out of someone's else pocket because they don't want to pay it.
The reason the ACC HAS to stick it to UMD is that this fee was to discourage exactly what UMD is doing. If the ACC allows UMD to leave without paying the full fee, it just makes it tempting for the next team to leave if the B10 or SEC wants to expand again. Have no doubt , if those two conferences want a team, they are likely to get them. Teams that are likely to get picked off:
BC, Cuse, FSU, VT
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Associate AD [810]
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Re: Very Democratic of you
Nov 9, 2013, 1:13 PM
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No the "democrat" thing to do is to put a fee on someone they didn't want or vote for and which is of no benefit to them and only benefits someone else.
Here's the thing also, how is the ACC harmed if it replaces Maryland with Louisville? Why is this a bad thing for the conference. If you're worried that future teams could leave without consequence then just tell those teams you can leave if you get us an equal or better replacement....otherwise pay the exit fee.
Worst case scenario is Maryland can't pay, can't leave and the ACC doesn't get Louisville....how is this good for the ACC?
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All-TigerNet [10890]
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The ACC, Big Ten will get this resolved because scheduling
Nov 9, 2013, 2:56 PM
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for both conferences ride on this for next season including new divisions for the B10. Wait until the heat starts getting poured on the B10 and ACC by the networks. Too much depending on this move.
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Orange Blooded [2663]
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Nobody is holding Louisville up because of Maryland.
Nov 9, 2013, 3:13 PM
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they are gone after this year. Nobody cares if there's still an ongoing lawsuit over the exit fee or not. I saw that article earlier and it's absolutely ridiculous. What does the guy think Maryland is going to do? Hold up its Big 10 schedule because it's in a lawsuit?
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CU Guru [1071]
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Re: How to solve the Maryland exit fee problem
Nov 9, 2013, 4:48 PM
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There IS no Maryland exit fee problem on the ACC end.
Of course the ACC would prefer Louisville over Maryland but they CAN'T back down on this because of the horrible precedent it would set with the other members.
All of the comments that follow about "what if Maryland can't pay" are completely immaterial because, when the ACC wins the law suit, Maryland will HAVE to pay, even if they have to borrow it or the Big Ten pays it for them. The Big Ten has already paid Maryland some money to make the move and the reason they wanted Maryland so badly in the first place was because of it giving them access to the Washington DC TV area, translate big bucks. That is worth a ton of money to the Big Ten and, if they want Maryland so badly, let them pony up the money.
Then, there a lot of comments about Maryland not voting for the exit fee. Maryland is a part of the ACC and has one vote, just like all the other members of the conference. Are all of these people complaining about Maryland and FSU not voting for the exit fee trying to say that every member of the ACC can simply ignore any and all rules they didn't vote for??? Give me a break. That would be complete anarchy, like Congress right now.
The only reason I mention Congress is because one commenter said earlier that they thought this should be a Democratic process, I assume meaning one school, one vote, and a reply was made making some reference to a Democrat process, evidently attempting to bring politics in here. Well, a democratic process means that the minority has to go along with the majority that's all and had nothing to do with politics.
The only ones with problems with the exit fee are Maryland and the Big Ten. There have been many comments here about Maryland not having to pay the exit fee or winning the law suit that have obviously been made by folks who know absolutely nothing about the law. The fact that Maryland didn't vote for it is has absolutely nothing to do with it and the fact that they claim they can't pay has nothing to do with it, either. Many people and companies have lost law suits that they couldn't pay and they simply went bankrupt. I don't believe that the University of Maryland is anywhere near bankruptcy and is also a public university. The State of Maryland wouldn't let them go bankrupt, either, but there's little chance of that anyway. It is only the Maryland sports budget that is broke, not the whole university.
Finally, the ACC invited Louisville to join. Why should Louisville have to pay one cent to bale out Maryland? That is absurd, especially in light of what you said in regard to Louisville being such a boon to the ACC, both in stature and financially.
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Associate AD [810]
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Hey Aiken - thanks for your comments
Nov 9, 2013, 8:45 PM
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But things are not as black and white as you describe.
The exit fee is punitive. It was meant to be punitive when it was voted in and it was meant to prevent schools from leaving. We can agree on that right? I mean that's the point of it, to be so harmful to a school that the school can't leave.
In that regard, why not make the exit fee a billion dollars? What if the other schools had voted for a billion dollar exit fee, would you still say Maryland has to pay it? Would that be fair?
The Big 12 has a $19 million fee; the Big East has a $5 million fee; the Big Ten and Pac-12 do not have exit fees but have media contracts through 2027 and 2024, respectively; and the SEC does not have an exit fee.
I'm sure those media contracts at the other conferences are a big deal but the fact is no other conference has an exit fee near to what the ACC has. The University of Maryland only wants to negotiate a lower exit fee and be done but the ACC will have none of it. They want their $52 million.
Well Maryland lawyers are arguing the exit fee is "punitive and not compensatory", meaning the exit fee is meant to harm instead of simply compensate the conference for whatever losses it incurs from Maryland leaving.
Go read some articles and quotes from those in the know. The ACC CANNOT punish Maryland for leaving, and that is what the exit fee is meant to do. The conference CAN sue for the damages/loss incurred by Maryland leaving.
So that is part of the ACC's lawsuit against Maryland, they claim that the ACC will suffer "substantial harm" from Maryland leaving.....but when Swofford announced that Louisville would be joining the ACC he said that bringing in Louisville would not affect the value of the ACC's television deal with ESPN. Weird, I thought the ACC would be harmed by Maryland leaving? Guess not. So that means the exit fee is purely a punitive payment as the ACC will apparently not suffer by Maryland leaving and Louisville joining.
Contracts are broken all the time. When one breaks a contract the other party is not owed anything except what they have lost due to the breaking of the contract.....the suffering party is owed damages/loss they incur from the breaking of the contract. A person or entity is not supposed to be punished for breaking a contract. That's bordering on mafia tactics. To get out of a contract you pay the damages or loss the other party will suffer and your done, you're out it.
I'll just throw an analogy out there....let's say you and I are members of a golf club...we pay annual dues and other fees and when we joined we signed an agreement that if we quit the club there would be an exit fee of $2,000. Well let's say things aren't going so well in the golf industry (which they aren't btw) and members are growing concerned that some members may quit and this could mean the club would be at risk. Now there are a lot of members who love their membership in the club, have plenty of money and want to stay members until they die....in fact this is the feeling of most of the members. So the membership takes a vote that the exit fee will be increased to $50,000, making it difficult if not impossible for anyone to quite the club....this passes by a majority but a few vote against it.....you being one of the dissenters. Well, things are happening in your life that make you want to if not have to quit the club....too bad for you though, there is now a $50,000 exit fee.
So in my analogy above, do you think it fair you should have to pay the $50,000 exit fee? Or do you think it would be more fair for you to pay an exit fee that would be equal to whatever the club loses by you leaving? What if the club has someone else available to take your place?....is the club even harmed? The club's $50,000 exit fee was only intended to harm someone who wanted to quit and make it impossible for them to quit.....it was punitive and it's not legal.
From what I have researched, the ACC will lose this lawsuit and that is why they need to get off their high horse and get creative to get this exit fee issue settled with Maryland now.
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Orange Blooded [4744]
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Maryland's Idenity belongs in the ACC.
Nov 9, 2013, 5:13 PM
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However, it was taken over by an administration who disregards it's traditions and wishes of a majority of alumni who would prefer to remain in the ACC.
Louiville is a great replacement for Maryland.
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All-In [25393]
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I realize I'm jumping off a cliff; however, this entire
Nov 9, 2013, 8:32 PM
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imbroglio over Maryland's departure and the exit fee appears to be nothing less than the conference taking advantage of a longtime loyal friend and member, and I find it disgusting.
There are three givens: Maryland opposed the exit fee, and they chose to leave shortly after the exit fee agreement took effect. The ACC then promptly invited the Cards, who quickly and enthusiastically accepted.
While I believe Maryland will eventually realize the move was a mistake, they chose to do so out of a dire financial necessity, even though large numbers of their fans disagreed. Thus, this dogged pursuit by the ACC of the fee smacks of kicking someone when they're down...and it smells to the high heavens of Tobacco Road snobbery.
As far as I'm concerned, I wish Clemson had taken the high road and stood by Maryland. They have been a steady, loyal friend off the field and worthy foe on the field for over 60 years. And by God, they deserve better.
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Orange Blooded [3257]
TigerPulse: 100%
Posts: 7167
Joined: 7/27/99
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Let them both stay and we are at 16 + ND....perfect.***
Nov 9, 2013, 10:23 PM
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Replies: 41
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