Exit fees can't always be enforceable

[PoppyHart]

I understand that the ACC voted to increase their exit fee to an astronomical $50 million.

But for the life of me, I can't see how this is universally enforceable without some sort of "reasonable time to leave" offset.

MD and FSU apparently voted against the increase.

Equity must allow those schools, if not all, to get out of their arrangement within a reasonable timeframe. If not, its the corporate/educational equivalent of unlawful imprisonment.

 

[zls44]

Would SU/Big East exit fee be used as an example?

 

[upperdeck]

but didnt they also agree to abide by the rules of the conf when then joined in.

 

[PoppyHart]

Would SU/Big East exit fee be used as an example?

You mean the fee increase after they left? Or was there an increase after BC et al left in 2004-05?

 

[PoppyHart]

but didnt they also agree to abide by the rules of the conf when then joined in.

Sure, but it's not like you can simply switch conferences at the drop of a hat. It's not like liquidating a stock. There's a limited supply, and often no immediate landing spots.

It's not the Hotel California.

 

[zls44]

You mean the fee increase after they left? Or was there an increase after BC et al left in 2004-05?

I meant the negociation when they left. Did SU pay the full amount? Am I confused- hey, it's a lot of fleeing teams to keep track of, here.

 

[orange79]

I meant the negociation when they left. Did SU pay the full amount? Am I confused- hey, it's a lot of fleeing teams to keep track of, here.

We agreed to pay $2.5M more (or was it $5M?????) to leave earlier.

 

[PoppyHart]

Yeah, the fee had been in place for several years iirc, but we wanted to also break the 27 month notice period. I believe the fee was doubled just recently, and would theoretically apply to Rutgers or whoever. Wonder who voted against that increase?