Aggies are upset

[DJR313]

The seven other schools are expected to receive between $14 million and $17 million annually. Big 12 schools have received between $7 million and $12 million annually in recent years.

 

I am no financial brain, but I have no idea how they get these numbers. The payouts will be double what they were. IF NU and CU pay FULL on the penalty that is only 17.6% increase (16% for 10 vs. 12 way split and 1.6% share of penalty) Only one of two contracts are up for negotiations. Granted the current contract is undervalued, but are they are willing to almost double the current contract for what is essentially ONE game that will matter nationally and with no CCG.

 

It's not just you, we've all been wondering where all this magical money the conference has never had before is coming from.

 

My Prediction: The big 12 dies in a huge mess of litigation in just a year or two.

 

The contract payout is the same for 12 teams as it is for 10. Say, for example, the contract is worth $120 million total for 12 teams now, this is $10 million per season. Take 2 teams out, the contract is now $120 million for 10 teams, or $12 million. Add in the fines they are projecting to receive, and that will help bring those numbers close to what they are projecting, but I think the projections are very inflated. I doubt the Big 12 ever receives a dime from NU or CU. They will both fight it until the withholding of payment ultimately implodes the conference and then there will be no one to pay. This is how much I hate the fat bully that is Texas, I would rather $25 million paid to lawyers for representation (no offense AR) than a dime of this money getting in their greedy pockets.

 

This is truly tragic how this is playing out. This is like a trainwreck of a bad relationship that is going to play out for everyone to see.

[junior4949]

Texas legislature or not, I think it's going to be extremely difficult to keep Texas, TT, Baylor, and A&M all in the same conference years from now.

[Lil' Red]

The Big 12 may fall apart sooner then we even expected. It's only a matter of time before these disputes result in someone leaving the conference or the Big 12 fails to hold true on it's commitments.

[junior4949]

You've got to think that the Pac-10 and other major conferences are chuckling a little on the inside watching the Big 12 implode like it is.

[sd'sker]

guys re-freaking-lax. dan "the savior" beebe is in control. no big deal, he'll handle it as well as he did last time.

[GrueneHorn]

http://www.chron.com/disp/story.mpl/sports/college/texasam/7129321.html

Equal shares for all conference members looks more and more peaceful all the time.

 

I wonder why Nebraska voted for (and benefited from) unequal revenue shares from the Big 12?

[HuskerNMO]

It still amazes me that people think that the withdrawl damages are something NU would have to pay. If you take a couple of minutes to read the bylaws you would realize that the Big 12 is going to withhold revenue distributions from NU. The way it will play out most likely (assuming the negotiations fail) is that NU and CU's share of the revenue will be placed into an escrow like account after NU and\or CU files suit to void the clause in the bylaws. Then it will be fought out in the courts as to if the Big 12 gets the whole amount, or any at all.

 

The reasons it probably won't go to court are that the Big 12 and the member schools won't want to have all of the dirty laundry aired about what really happened.

 

Read this, it explains it VERY clearly.

 

http://www.omaha.com...IGRED/707269830

 

In the Big 12's disagreement with Nebraska and Colorado over fees to be paid for leaving the league, Commissioner Dan Beebe said Monday he doesn't expect a court fight. "The odds on that are zero,'' Beebe told The World-Herald. "Nobody wants that. We have great relationships, and I think we'll work it out.''

 

Big 12 bylaws detail penalties for leaving the league, depending on how much notice is given.

 

Perlman, a few days after NU revealed its move to the Big Ten, questioned the idea of any payment.

 

"I thought in the context, (an exit fee) would be inappropriate,'' Perlman said. "From what I understand the Big 12 has done, I think it's even more inappropriate.''

 

No money would be taken out of any current Nebraska account to exit. What the Huskers might lose out on is up to 80 percent of the conference revenue distribution they would have received. That could be as much as $15.5 million.

"We have not focused on the amount of the penalty provided in the bylaws,'' Perlman wrote Monday, "but it is a percentage of two years' distribution.''

 

Beebe said he hopes the disagreement is resolved "by early fall or even before that.''

[74Hunter]

http://www.chron.com/disp/story.mpl/sports/college/texasam/7129321.html

Equal shares for all conference members looks more and more peaceful all the time.

 

I wonder why Nebraska voted for (and benefited from) unequal revenue shares from the Big 12?

That happened like 15 years ago. It's IRRELEVANT.

[In the Deed the Glory]

2012-2013 season it says, following CU's exit?

 

I am curious as to how this entire negotiation happened. I mean, who as an AD and president of a university just takes Beebe's word without having it in writing? A&M brass take a lot of the blame for this situation, that is just terrible business practices in a multi-billion dollar industry. Whenever I've had negotiations, even ones less than a million dollars, I always get commitments in writing.

 

Unbelievable...

[billdozer15]

The seven other schools are expected to receive between $14 million and $17 million annually. Big 12 schools have received between $7 million and $12 million annually in recent years.

 

I am no financial brain, but I have no idea how they get these numbers. The payouts will be double what they were. IF NU and CU pay FULL on the penalty that is only 17.6% increase (16% for 10 vs. 12 way split and 1.6% share of penalty) Only one of two contracts are up for negotiations. Granted the current contract is undervalued, but are they are willing to almost double the current contract for what is essentially ONE game that will matter nationally and with no CCG.

 

It's not just you, we've all been wondering where all this magical money the conference has never had before is coming from.

 

My Prediction: The big 12 dies in a huge mess of litigation in just a year or two.

 

The contract payout is the same for 12 teams as it is for 10. Say, for example, the contract is worth $120 million total for 12 teams now, this is $10 million per season. Take 2 teams out, the contract is now $120 million for 10 teams, or $12 million. Add in the fines they are projecting to receive, and that will help bring those numbers close to what they are projecting, but I think the projections are very inflated. I doubt the Big 12 ever receives a dime from NU or CU. They will both fight it until the withholding of payment ultimately implodes the conference and then there will be no one to pay. This is how much I hate the fat bully that is Texas, I would rather $25 million paid to lawyers for representation (no offense AR) than a dime of this money getting in their greedy pockets.

 

This is truly tragic how this is playing out. This is like a trainwreck of a bad relationship that is going to play out for everyone to see.

 

The other part of the argument that doesnt add up is what happens when the money forfeited by the forgotten five is used up? Once the infusion of exit penalties is absorbed and that is a one time thing, where is this league planning on making up that amount to OU/UT/aTm? As far as I know Beebe is including the forgotten fives money in the $20 mill figure. This thing wont last long.

[junior4949]

http://www.chron.com/disp/story.mpl/sports/college/texasam/7129321.html

Equal shares for all conference members looks more and more peaceful all the time.

 

I wonder why Nebraska voted for (and benefited from) unequal revenue shares from the Big 12?

That happened like 15 years ago. It's IRRELEVANT.

 

Actually, I believe it is relevant. When the Big 12 was formed, the strength of the conference was held in the North primarily by Nebraska; Colorado; and KState. Over the years, the North power has diminished while the South teams have gotten better and hold the upper hand with the exception of A&M. Consequently, two of the three original powers are now headed off to other conferences. The problem with staying in the Big 12 as it currently stands is even if we become a national contender we're still in the weak North. By being a one man show up in the North, we stand a far less chance of TV revenue when playing other North schools than teams in the South playing each other. Financially, it did make sense for us to move to the Big 10 even though I cringe at the thought of it. However, I completely understand how other teams fanbases get the impression that we simply took our ball and went home. There were administrative officials from Nebraska quoted as saying way back then that they didn't feel it was fair that a team be penalized by having to share their revenue with lesser schools.

[knapplc]

http://www.chron.com/disp/story.mpl/sports/college/texasam/7129321.html

Equal shares for all conference members looks more and more peaceful all the time.

 

I wonder why Nebraska voted for (and benefited from) unequal revenue shares from the Big 12?

That happened like 15 years ago. It's IRRELEVANT.

 

Actually, I believe it is relevant. When the Big 12 was formed, the strength of the conference was held in the North primarily by Nebraska; Colorado; and KState. Over the years, the North power has diminished while the South teams have gotten better and hold the upper hand with the exception of A&M. Consequently, two of the three original powers are now headed off to other conferences. The problem with staying in the Big 12 as it currently stands is even if we become a national contender we're still in the weak North. By being a one man show up in the North, we stand a far less chance of TV revenue when playing other North schools than teams in the South playing each other. Financially, it did make sense for us to move to the Big 10 even though I cringe at the thought of it. However, I completely understand how other teams fanbases get the impression that we simply took our ball and went home. There were administrative officials from Nebraska quoted as saying way back then that they didn't feel it was fair that a team be penalized by having to share their revenue with lesser schools.

 

The money was very different back then as well. Most conferences split a pie that is three times the revenue they earned in 1995. When you have an unequal distribution of revenue, those inequalities become more and more exaggerated the higher the dollar amounts you're talking about. If Nebraska made 2-3 million per year more than Iowa State in 1995, the impact is far less than making 6-9 million more per year today. The economics of the league as formed in 1995 didn't mean that the rich schools would vastly outstrip the less rich. It meant that they would be rewarded based on the work they've done, but everyone would be in the same revenue neighborhood.

 

Today that's all changed. TV contracts in the hundreds of millions of dollars make those inequalities far greater, and make the danger of a top-heavy conference even more realistic. The Big 12 simply cannot support itself as a conference of lords and serfs. These minor rumblings are just the start, and Nebraska was smart enough to realize where this was heading, and move to a more stable situation. The fact that it's a more equal revenue-sharing conference is just icing.

[huKSer]

Let's play "Guess what team's message board gave the following quote"

The Big 12 remains a conference held together by dental floss, hype, and the fluttering hands of Dan Beebe, a raft made of driftwood and garbage coming apart in a light squall, a herd of cats Beebe is enticing across the plains with a dwindling supply of Fancy Feast thrown from the back of a smoking pickup truck with three flat tires and a tubercular engine.

[In the Deed the Glory]

um.....The University of Texas.......El Paso?????

 

Wait, do they even have a message board?

[dubsker]

Let's play "Guess what team's message board gave the following quote"

The Big 12 remains a conference held together by dental floss, hype, and the fluttering hands of Dan Beebe, a raft made of driftwood and garbage coming apart in a light squall, a herd of cats Beebe is enticing across the plains with a dwindling supply of Fancy Feast thrown from the back of a smoking pickup truck with three flat tires and a tubercular engine.

 

http://www.everydayshouldbesaturday.com/2010/7/29/1594170/the-curious-index-7-29-2010

 

Looks like it didn't originate from a message board at all.