C
Cyclone42
Guest
The league is due $20 million, from Nebraska and Colorado. If this is split equally, then we are due a $2 million windfall. I think we should put that money into a down payment on the end zone.
I haven't read the Big 12 bylaws, but I would imagine the money is split equally amongst the remaining members. And that $2 million is going towards the ISU athletic department becoming completely self-sufficient. (a priority of the Regents)
Posse to Lincoln and Boulder
What say we saddle up and ride over to Lincoln, stop by TommO's house and pick up our $1,000,000 check and then head for Boulder and do the same!
Perhaps we can remind TommO that the last time we played ISU in Lincoln, the score was 9-7...
:jiggy:hehehe
What say we saddle up and ride over to Lincoln, stop by TommO's house and pick up our $1,000,000 check and then head for Boulder and do the same!
Perhaps we can remind TommO that the last time we played ISU in Lincoln, the score was 9-7...
:jiggy:hehehe
http://www.cyclonefanatic.com/forum/general-college-sports/93512-colorado-2.html#post1766489
Apparently the buyout is not that simple. See the linked post for more in depth but the nuts and bolts is Colorado owes the Big 12 50% of the revenue they would get from the Big 12 over the next 2 years. Nebraska will owe the Big 12 80% of the revenue.
Credit Rogue52 for doing the work.
With this type of windfall I think ISU should endow scholarships. This is a one time thing (like winning a lottery) and an endowment would pay dividends for years to come.
I have a sneaky suspicion that one of the concessions made by the other teams was to give a larger share of the exit fees to Texas, A&M, and OU.
Something extra financially was given to them besides the TV contract info. That much is known. This seems to be the most likely candidate.
I'll be happy if we see 500K to ISU to be honest.
Something extra financially was given to them besides the TV contract info. That much is known. This seems to be the most likely candidate.
I'll be happy if we see 500K to ISU to be honest.
Won't that be 50% over two years (2010-2011,2011-2012) for CU and 80% over the next year (2010-2011) for NU? That would mean that CU will actually lose more than NU?
The numbers are not finite in this but right now it goes like this.
Colorado assuming they earn $8 million the next 2 years will pay $4 million each year (and when I say pay I mean they will have that money withheld from them)
Nebraska since they are a breaching member giving only 1 year notice has to pay 80% of the 2009-2010 revenue and 80% of their 2010-2011 revenue which will come to around $ 8 millon each year.
So the windfall is $24 million which is split evenly between the remaining schools.
Colorado assuming they earn $8 million the next 2 years will pay $4 million each year (and when I say pay I mean they will have that money withheld from them)
Nebraska since they are a breaching member giving only 1 year notice has to pay 80% of the 2009-2010 revenue and 80% of their 2010-2011 revenue which will come to around $ 8 millon each year.
So the windfall is $24 million which is split evenly between the remaining schools.
I see $16 million
CU: $4 mil (2010) + $4 mil (2011)
NU: $8 mil (2010)
Unfortunately, we can't take money from Nebraska in 2011, they'll be in the Big Ten.
cytech is saying we get 80% of Nebraska's 2009 money as well, I believe. I have no clue whether that's true.
Both schools would owe the 80% for the last two years they are members of the conference. The 2 year notice is from the end of the "current term". The current term refers to membership term in the Big 12. Originally the big 12 was set up until 2006, after that membership automatically renews for 5 years until 2011. Since the end of the "current term" is 13 months away both CU and NE would owe 80% of their revenue.
In the case of NE who is leaving for the 2012 season all their conference revenue for next year is kept by the conference up to the point that equals 80% of their conference revenue of this year and last year. If it still isn't enough then NE would owe the Big 12 the balance.
For CU, the Big 12 would just keep 80% for the next two years until they leave the conference.
The process is all outlined in the By-laws.
In the case of NE who is leaving for the 2012 season all their conference revenue for next year is kept by the conference up to the point that equals 80% of their conference revenue of this year and last year. If it still isn't enough then NE would owe the Big 12 the balance.
For CU, the Big 12 would just keep 80% for the next two years until they leave the conference.
The process is all outlined in the By-laws.
http://www.big12sports.com/fls/10410/pdfs/handbook/Bylaws.pdf?DB_OEM_ID=10410
Section 3 is the important area. I wasn't really sure how the term played into it when I read it, but it could be 80% for both of them.
Section 3 is the important area. I wasn't really sure how the term played into it when I read it, but it could be 80% for both of them.
Wow, that's quite the cost for a marginal increase (if any) increase for NE and even bigger for CO which I think may be less money than had they been part of the new Big 12.
Just maybe TX thought a lot harder about this when KU, KSU, ISU, MZ, and Baylor stuck together. Had 7 teams fallen their termination (7x10 = 70m) plus their loss in revenue (7x8=56m) would have been 126 million / 5 = ~$25 per school. These 5 schools could have done a lot with this money to stay relevant and potentially even "buy" more teams or "market" themselves in other ways.
Did I understand that right... NE will owe 10 + 8 = 18.... CO will owe 10 + 4 + 4 = 18 ?? Or is just the "withholdings" of 8 each?
Just maybe TX thought a lot harder about this when KU, KSU, ISU, MZ, and Baylor stuck together. Had 7 teams fallen their termination (7x10 = 70m) plus their loss in revenue (7x8=56m) would have been 126 million / 5 = ~$25 per school. These 5 schools could have done a lot with this money to stay relevant and potentially even "buy" more teams or "market" themselves in other ways.
Did I understand that right... NE will owe 10 + 8 = 18.... CO will owe 10 + 4 + 4 = 18 ?? Or is just the "withholdings" of 8 each?
it would be 8 + 8 for Neb, and 6.4 + 6.4 for Colorado or 4 + 4 depending on how the bylaws end up getting read.
I am only going by what the bylaws state and nothing else. There were tons of numbers going around last week so I looked up the bylaws on google then to read them to see what they actually say.
I agree there will be lawyers involved and it probably won't end up as simple as the bylaws make it out to be. But it will likely be very close to the numbers we are coming up with.
Those numbers aren't really accurate. Here is a link for the conference revenue by year.
Big 12 distribution
NE and CU calculation:
So based on that in 2010 Big 12 distribution was a total of $139 million which is an average of $11.5 mill per school (So using that as NE and CU revenue, even though it isn't exact because we don't share revenue equally).
So 80% of that would be $9.2ish million per year. So for the last 2 years each school is in the Conference the total sacrifice would be $18.4 million per school.
$18.4 mill from both CU and NE would be $36.8 million total owed to the Big 12.
So that would be $3.68 as Iowa States share of the leaving early fees.
That all of course assumes NE and CU make the league average, and that conference Revenue won't rise (which it should).
The problem is Iowa State will have financial loss from this:
Since we have 4 non-conference games scheduled until 2017 we have too many games scheduled if we go to 9 conference games a year. If we have to buy out of those games to accommodate an extra conference game for 2013-2017 we'd have to buy out 4 games. I assume there would be a buy out at least, unless there is some clause in the contracts to get out of them or reschedule them for future years.
