Ask The Networks. No way AAC gets a good contract with the 3 best schools leaving. NY6 money will be lost too. I’m sure there are other bonuses that will be lost when the conference turns into another CUSA.
AAC wants additional $35M exit fee for UH, UCF, Cincy to leave before 2023 Football Season
- Thread starter GoldenFunk
- Start date
Cue the 'People's Court' theme. Picture most of us walking down to the defendant's pulpit in cheap 3 piece suites and loads of files under our arms. Most of the files comprise of comic books, old UCF football programs, and copies of National Geographic. "In the case of... 'Unnecessary Roughness'."
Plaintiff: AAC= Provides a signed legal binding document, evidence of devastating financial loss after it's 3 flagship teams leave
Defendant: UCF Fans= After furiously writing notes. For dramatic effect, we brandishing a black plastic comb to fix our combover, straighten our clip on ties, and hold up a finger to buy time to review our fresh page of notes. Getting too close to the microphone we make our defense, "That's not fair!"
Case is dismissed we are ordered to pay $45 m + court fees
Plaintiff: AAC= Provides a signed legal binding document, evidence of devastating financial loss after it's 3 flagship teams leave
Defendant: UCF Fans= After furiously writing notes. For dramatic effect, we brandishing a black plastic comb to fix our combover, straighten our clip on ties, and hold up a finger to buy time to review our fresh page of notes. Getting too close to the microphone we make our defense, "That's not fair!"
Case is dismissed we are ordered to pay $45 m + court fees
All three programs have to be unified if they are going to fight it.
Walking away with flipping the bird at the conference (which would never happen), would be the equivalent to quitting your job in a blaze of glory and wondering why your future employer doesn't like you from day 1 or chooses to no longer hire you.
Odds are it will be reduced, but any one that thinks because UConn paid $7million a few years ago means that's the standard is not being realistic.
Walking away with flipping the bird at the conference (which would never happen), would be the equivalent to quitting your job in a blaze of glory and wondering why your future employer doesn't like you from day 1 or chooses to no longer hire you.
Odds are it will be reduced, but any one that thinks because UConn paid $7million a few years ago means that's the standard is not being realistic.
The UCONN payment set a standard. If the AAC doesn’t like it then they should have negotiated better with UCONN. The UCF amount will differ based on several factors but the UCONN payment is the starting point.
Things have changed since UConn left. The current tv contract went into effect after UConn left.
(not supporting the walk away BUT...) The future employer didn't like Texas' attitude for years/decades, it doesn't seem to have hurt them any. just a semi-joke.
But we never made 7million a year the whole time we were in the AAC. So 2013-2023 thats 10 years at maybe a 4M per year average. So 40M.
Why would we pay 45m to leave 12 months early?
Which by the way they want us gone in 2023. They have new teams coming in. They want our extra money above the 10M. They will bend.
They might as well have asked for 100 Billion dollars. Cue Dr. Evil.
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This is pure speculation. They can try to submit a valuation as evidence but unless the TV networks exercise a clause to pay less money in the time that we exited early, it only hurts the AAC in future renegotiations that would occur after the exit. The conference has to prove damages now from leaving early not at some future time that’s beyond when the normal exit time would be from now.
Fixedknight, What “evidence of devastating financial loss” are you referring to if we leave after 21 months notice instead of the contractually required 27 months notice?
What actual damages can the AAC prove by us leaving 6 months early?
What actual damages can the AAC prove by us leaving 6 months early?
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When did the new contract go in effect and our previous earnings should be what the lawyers focus on. We’ll see how good the lawyers are but we’ll be gone after this season.
I AM an attorney and have been practicing since 2002. What are your credentials? It’s even more fun watching someone who can’t support their position with facts attack the messenger because they can’t disprove the message.
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I’m not a lawyer but I stayed at a Holiday Inn Express last night! 😉
We created alot more value than UConn and as a result, the AAC will lose alot more value when we leave. Hence the $35 m
Let’s make this simple so that even a high school student can understand. What quantifiable (provable) damages can the AAC demonstrate by competent, substantial and admissible evidence by virtue of UCF leaving 5-6 months early? The $10 million exit fee represents “liquidated” damages (damages agreed upon by both parties to a contract when the damages are not capable of precise calculation). These liquidated damages compensate the AAC for the “value” they lose by our departure. The AAC would have to show with precision the damages (if any) they sustained based upon the breach limited to the 5-6 month breach period after they undertook reasonable measures to mitigate their losses. If each member of the AAC (at contract formation) is paid the same amount of money before and after UCF leaves (irrespective of the breach) how can damages be shown? That is the $35 million question.
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We are required to give 27 months notice and we have given 21 months notice if we start playing in 2023. The exit fee already negotiated when we signed the contract was a $10 million exit fee upon giving the required 27 months notice of our intention to leave the conference. The fact that the duration of the current contract was for 10 years has nothing to do with the required notice.
Companies make decisions based on predictions.
One could forecast/estimate the impact on the remaining 9 teams revenue, change in TV payouts, attendance, alumni donations, etc. as a result of UCF, Cinci, and UH leaving over the course of say the next 3 years using statistical methods.
The AAC could contract with an independent economics consulting firm to get these $ numbers. UCF, Cinci, and UH can then contract an expert witness, say a famous sports economics professor, to argue the consulting firms methods are bogus.
Dude, the relevant time frame is 6 months. The difference between the required notice of 27 months and the actual notice given of 21 months. If we give them 27 months notice there is no breach and we pay an exit fee of $10 million stipulated in the contract. What on God’s green earth does 3 years have to do with this?
Dear AAC,
If UH wants to be in Big 12 in 2023, AAC wants another $35 million
Houston, Cincinnati and Central Florida are facing an extra charge from the American...www.houstonchronicle.com
Love,
UCF
I think a potential problem with us leaving early is not so much damages that UCF would owe the AAC, but rather that the Big12 would not take us early if we didn’t negotiate our early departure. I don’t think the Big12 wants to be caught up in litigation as a result of tortious interference with our current contract with the AAC.
Saw in an interview with the BIG 12 commish and he said they release their football schedules in October for the next year. So if we are in for 23 then yeah this will all come together one way or the other in the next few months.
I predict we will be in the BIG 12 in 2023 with a payout of no more than 15 million per school. Aresco is just grandstanding.
I predict we will be in the BIG 12 in 2023 with a payout of no more than 15 million per school. Aresco is just grandstanding.
I have to agree, if the teams decided to tell Aresco to pound sand. The AAC stands to lose around 45 million if we are going by the 15 mil early exit per team. I don't see them missing that paycheck for just a few months delay.
So if they tell Aresco to pound sand, they are not obligated to pay anything? I think if the teams show they won't negotiate, the courts will favor AAC in that one party breached a contract and refused to make amends.
University of Cincinnati, AAC working on settlement that allows UC to join Big 12 early
"We're trying to do it amicably," American Athletic Conference Commissioner Mike Aresco said.
www.cincinnati.com
University of Cincinnati, AAC working on settlement that allows UC to join Big 12 early
"We're trying to do it amicably," American Athletic Conference Commissioner Mike Aresco said.www.cincinnati.com
OOOOOOPS, 1st crack. If you're dumb... you try to come to an agreement with 1 of them. The other 2, which at least UCF has not as much 'value' in Aresco's eyes, and let's bet honest Houston is not the football team that UC or UCF is (or atleast equal to UCF), then you just crapped the.......
If UC can go with a $$$ release, then UCF which has, again in Aresco's eyes, not done as much as UC this last year, can go with a lesser price. Yes, I know that's not evil, useless lawyer's/psycho's eyes, just the rest of us, but....
Correct, the 10 million is the exit fee in the conference contract. No dispute no way around that fee. The dispute is what to pay leaving 5 months early.
If anyone thinks the AAC is just as good today as in 3 years from now you don’t know anything about collegiate sports.
No one disputes this, and everyone on this board will think the AAC will be CUSA or worse. But they also are just nervous about UCF getting hit hard financially and want to hope that they can walk out with minimum penalty.
If UCF was stuck in AAC and it was Memphis, Houston, Cincinnati leaving same fans would be saying the fee should be $50 million each.
