From my post on other side: Where did $$$from NCAA bball Tournament Go

[arbitragegls]

Here is a terrific article from SI on the potential split of the bball schools from the Big East. It is an excellent article...but where it ends is that the bball schools in an elite conference may get nearly $1,000,000 each more than staying in the BE with just the bball share. IMPORTANTLY, for BASKETBALL THE NCAA PAYS OUT according to this article in the following way:

(this says the Big East in '11-'12 received $27,3000,000 from the NCAA bball Tournament. Now if there were 18 teams, that is $1,516,000 per school...in '12-'13 it will be $28,700,000--anyone know where this money is accounted for...has anyone thought fact this should be included in conference payout to each team (wonder what it will be in ACC?)

The way the NCAA pays teams for reaching the NCAA tournament is extremely complicated. Teams aren't given a single, fat check for reaching and advancing in the NCAAs. Instead they are given units for making the NCAA tournament and more for advancing. The value of each unit is approximately $245,000, which is paid to the league over six years.
Units are a huge financial piece in the value of a basketball league. In the Big East's 2011-12 fiscal year, it received $27.3 million in NCAA tournament units (113 earned over previous six years at $242,000). In 2012-13, the league will receive even more -- $28.7 million thanks to 117 units over six years.
"The interesting point is that people focus on the TV dollars," said a Big East official. "Currently our unit dollars as a revenue stream exceed our TV revenue for basketball schools. We generate more dollars from NCAA participation."
A key financial issue here is that the units of schools like Syracuse, Pittsburgh, Louisville, West Virginia and Notre Dame are still going to go into the Big East coffers after those schools left for other conferences. (Rutgers never reached an NCAA tournament in its entire Big East tenure.) Those units are a significant amount of money annually. One of the biggest legal issues to be fought out will be what happens to the league's units? And can the breakaway schools take their units with them?


Read More: http://sportsillustrated.cnn.com/college-basketball/news/20121213/big-east-basketball/#ixzz2ExXhI6ZZ

 

[Noexcuse]

Is Rutgers absolutely the luckiest team in the history of the world? I'm guessing they will skate on the exit fee as well as not losing any Tourney credits (since they never earned any to begin with).

 

[PhatOrange]

" (Rutgers never reached an NCAA tournament in its entire Big East tenure.) "

:rolling::rolling:

 

[PhatOrange]

Louisville, Pitt, Syracuse and ND are going to add a lot of money to the ACC hoops stream. Have to believe it'll far exceed the Big Easts 28 mil.

 

[Noexcuse]

"(Rutgers never reached an NCAA tournament in its entire Big East tenure.) "

:rolling::rolling:

Their high water mark for league games won in a season is 7. They did 6 once too.

 

[dollarbill44]

Their high water mark for league games won in a season is 7. They did 6 once too.

Wow. I just never paid attention to them enough to know that they never even hit .500 in-conference, even with the Geoff Billet-led team, which I think was their best season?

 

[kirbivore]

Wow. I just never paid attention to them enough to know that they never even hit .500 in-conference, even with the Geoff Billet-led team, which I think was their best season?

That 1999 squad had the tourney in their sites, and in classic Rutgers fashion pissed it away down the stretch culminating with a one and done in the BET when they were still in the bubble discussion.

 

[HtownOrange]

Their high water mark for league games won in a season is 7. They did 6 once too.

What an epiphany! I get it now. Rutgers is condemned to never exceed 10 wins, no matter the sport. Rutgers cannot exceed 10 wins, this must be a cosmic law. Solution: Rutgers need to find a sport that plays less than 10 games, including postseason, then maybe they can win a championship in something.

 

[omniorange]

If the conference is dissolved, then the units revert back to the individual institutions that earned them. Which is why what the basketball schools do next will decide the fate of those units. Remember, starting July 1, 2013, Temple comes on board full-time and UCF, Memphis, Houston, and SMU join as full members. Once they are in with UConn, Cincy, and USF that is a legitimate conference in the eyes of the NCAAs based upon the new rules they implemented to help out the WAC. And for sure the Catholic 7 will not have the numbers to dissolve the conference at that point in time.

For the Catholic 7 to take the units they have earned with them to this new conference will only come about if they vote to dissolve the conference. The current by-laws only make mention of a two-thirds vote to dissolve, but supposedly someone inside the Big East is telling ESPN that it requires at least 2 FBS teams and 2 non-FBS to dissolve, although this isn't in the 2011 by-laws that are out on the internet. And we all know how quickly the BE moves on getting any recently agreed upon by-laws into their constitution.

Can see a lawsuit coming for sure, no matter what they decide.

Cheers,
Neil

 

[HtownOrange]

Well summarized, Neil. The hoops schools will lose their own credits if they do not handle this well. I suspect that the football schools need each other at least one more season. The hoops schools may make an agreement to split next June with rights to their NCAA credits and possibly a split on those of WUV, Syracuse, Pitt, ND and Louisville (Rutgers never earned a NCAA credit!). There is simply too much money on the table to not seek a way of retaining those credits for the remaining teams.

I agree that there is likely to be lawsuits. Even if the current/new Big East teams can agree on something, WVU, Pitt, Syracuse, ND and Louisville would have a reasonable claim that the conference they left is dissolved and their credits should revert to them.

There may be one solution where the schools that left may get involved in the discussions so as to preserve their credits (or at least some of it) while agreeing to schedule the hoops schools down the road. This may also be done in football for Cincy, USF and UConn as they would be missing out on the $$$, too.

 

[JrodCuse]

I keep seeing mention of credits. Credits for what? Reaching the NCAA bball tourney? Why do they matter?

 

[omniorange]

I keep seeing mention of credits. Credits for what? Reaching the NCAA bball tourney? Why do they matter?

The NCAA pays out $$$ based upon those earned credits/units.

The Big East got paid close to $25 million as a result of the basketball units at the end of the 2010-11 year.

Cheers,
Neil

 

[javadoc]

I keep seeing mention of credits. Credits for what? Reaching the NCAA bball tourney? Why do they matter?

The topic was covered in one of the linked stories yesterday. Interesting reading, dig it up. It's a byzantine payment system.