Discussion in 'CU Buffs Newsroom' started by RSSBot, Jun 21, 2010.
If Colorado gives two (2) years notice, they have to forfeit 50% of their conference revenues for each of the last two years. If CU received $10 million in conference revenues in 2010, and it has to forfeit $5 million. If CU received $10 million in conference revenue in 2011, it has to forfeit another $5 million. That equates to $10 in total revenue lost.
If Colorado leaves after 2010, it has to give up 80% of its conference revenue. If CU receives $10 million in conference revenue in 2010, it has to forfeit $8 million.
$10 million > $8 million
If CU leaves after 2010 they would actually save $2 million.
More fun with math:
CU exit penalty: $9M
UT share of B12 revenue: $12M
CU share of B12 revenue: $8M
Annual Difference: ($4M)
UT's disproportionate gain over 5 years: ($20M)
Avg mileage for conf play - CU: 750
Avg mileage for conf play - UT: 300
Difference: 450 miles x $0.32/mile x 120 traveling team x 4 road games x 14 seasons: ($1M)
Damages to CU reputation and recruitment due to CCG never being played in Denver: ($4M)
The way I see it, CU should claim ($20+$1+$4) $25M for damages associated with participating in a Texas-centric conference.
i dont see how the big 12 can force CU out and Still expect them to pay 80% they gave there 2 year notice... in fact if they force CU they should be able to get out without any fee
In order for this math to work CU would need to make $8 million the first year in the 12 PAC/2011. If not money wise it's smarter to take the 2 year $5 mil per hit. If the alternative is $8 mil for one year and ? from the PAC.
B12 2years= lets use round numbers $20-$10=$10 mil
B12 1 year=$10-$8=$2 mil + what from the PAC to make up the difference. If it's not $8 mil or something close it's not worth it.
Let Clark Evans handle the negotiations, by the time he's done, CU will be getting paid to leave the B12.
From the numbers being thrown around, it should be close to that number, or more. But if it's close, there are so many advantages to getting started with the new conference rather than spending another year as a lame duck in the Mack 10. And with UNL gone, an 11 team league with one 6 team division and one 5 team division would be a scheduling nightmare. The Mack 10 has as much reason to want this to happen in 2011 as anybody, imo....
how did they force CU out? are you expecting them to say that next year is our last year?
they arent gonna want an unbalanced league and with nebraska leaving next year and us "supposedly" staying until the 2012-2013 season they would force us out of the conference after this season... i say we shouldn't have to pay because they are removing us from the league
If they force us out 1 year early we shouldn't have a revenue hit, so in my head they get 50% of 1 year.
I think/hope that this is what happens.
Agree totally. If the number is close get out.
Separate names with a comma.