Exit Penalty

[sd'sker]

i asked this question in a different thread, but it did not get any responses, and i think this topic is gaining interest and worth talking about.

here it is: or any legal minded huskers (or big 10 fans, or whatever) on here, i have a question about the buy-out. a contract cannot stipulate a 'penalty', no court would uphold such a condition. so often the contract makers will stipulate 'liquidated damages'. the amount of damages that are foreseeable and the conference will reasonably incur by an early departure. now for my question: if the big 12 will receive a greater revenue even without NU and CU, then would not the liquidated damages be nonexistent, because the foreseeable loss will not come to fruition? remedies was not my greatest class, but i was just wondering if anyone else had any thoughts...

[GBRsal]

excellent point. i also believe that our departure was not by choice but rather brought about as the result of an unethical conspiracy between the universities of texas, missouri and colorado and therefore any penalties are null and void. furthermore, i believe the university of nebraska is due actual and punitive damages from those three entities.

[Lil' Red]

I hope if we have to pay it that we do it on the condition that is distributed equally and Texas, OU, and A&M don't get most of it.

[ticks]

I believe Nebraska will fight it. I think that was made quite evident by Pearlman. I have no idea if they will win.

[BIGREDFAN_in_OMAHA]

They stayed together to spite us and to make Nebraska pay it. only half

 

Beebe probably promised to split the pot with the schools with Texas taking the first skim.

[knapplc]

We'll cost them as much in legal fees as they'll collect from us.

 

I say let 'em go after it. We'll see them in court, and drag it out long enough that the conference will dissolve before we have to pay a dime.

[MUTigerFan]

Nebraska won't pay it. They just won't receive the TV revenue checks they were expecting. And remember... Harvey Perlman's a lawyer. "Penalty? What penalty? We don't owe no penalty!"

[fro daddy]

excellent point. i also believe that our departure was not by choice but rather brought about as the result of an unethical conspiracy between the universities of texas, missouri and colorado and therefore any penalties are null and void. furthermore, i believe the university of nebraska is due actual and punitive damages from those three entities.

sure...

 

And i believe money grows on trees. That JFK was really a robot and that you will give me one million dollars.

[fro daddy]

We'll cost them as much in legal fees as they'll collect from us.

 

I say let 'em go after it. We'll see them in court, and drag it out long enough that the conference will dissolve before we have to pay a dime.

 

as MUTF said, its acctually the opposite. THe conference will with hold payment to NE. If NE chooses to pursue that money they will need to sue spending as much in fees as they would stand to collect and most likely the conference will be folded by the time a resolution is made leaving NE out twice as much without a way to recover

[VA Husker Fan]

No legal background here, and I haven't seen the contract, but it sounds like the exit clause was spelled out. I think Pearlman may have been thinking the Big 12 would dissolve, and didn't want to lose 2010-11 money just because we were earlier out the door a bit earlier than Texas and their gaggle. Now that they're staying, I think we're going to lose the 90% of the Big 12 revenue we would've gotten. Sounds to me like the Big 10 will make sure we're compensated for that, perhaps over time, though Delaney said the financial information will not made public.

[kansas husker]

I hope if we have to pay it that we do it on the condition that is distributed equally and Texas, OU, and A&M don't get most of it.

 

Hate to be the one to break the bad news to you, but I believe one of the conditions of keeping those three was that the rest of the confrence forfiets their share. So all of the exit pennalties from both Nebraska and Colorado would go to the three you mentioned.

[BigWillie]

We'll cost them as much in legal fees as they'll collect from us.

 

I say let 'em go after it. We'll see them in court, and drag it out long enough that the conference will dissolve before we have to pay a dime.

 

This.

 

We will never pay that full fee, and I think Harvey is making that pretty clear.

[sd'sker]

what if we play in a bcs game? do we keep that money?

[Nexus]

I'd love to contribute to this conversation, but my lack of knowledge in the field of contract law (or law in general) prevents me from doing such. Therefore I'm willing to let "real" lawyers duke this one out.

[bugeater17]

If we wish to fight this it will depend on how the money is distrubted (as mentioned before). If the university receives the money and is required to pay it back or if the conference withholds the money and distributes the 20% (according the reports i've seen the future liquidated damages penalty is 80%). Unfortunately for us most of what will determine the outcome is documents we will never see and discussions behind closed we may never hear about(if allowed in as evidence because of heresy). However, the public comments I have seen come from Texas and the pac-10 will only help our case (the discussions dating back months and possible collusion between members of the conference).