No Bowl Distribution for MD

[OrangePA]

http://www.washingtonpost.com/blogs...ot-receive-distributed-bowl-revenue-from-acc/

The Terps better make some big money from the B1G.

 

[HtownOrange]

It is merely accounting. UMD gets nothing from the ACC but its share is deducted from anything they owe on their way out the door. It is a means of an offended party to ensure at least partial payment for the injury sustained.

It is big news because UMD is strapped for cash but I am sure they planned on this and have a "bridge" loan or something to get them beyond the ACC and initial B1G periods of reduced cash flow.

 

[texascpa]

Awesome and expected. The bigger thing I get out of that column is the expected total payout, which is higher than what most on this board have been estimating. That puts us over $3.5 million (15 shares, correct?) for our share. Isn't that more than the BE football tv contract last year?

 

[javadoc]

It is merely accounting. UMD gets nothing from the ACC but its share is deducted from anything they owe on their way out the door. It is a means of an offended party to ensure at least partial payment for the injury sustained.

It is big news because UMD is strapped for cash but I am sure they planned on this and have a "bridge" loan or something to get them beyond the ACC and initial B1G periods of reduced cash flow.

That's not "merely" accounting. It's cash in hand for the conference, as if UMD were paying a portion of its exit fee immediately, even while the court cases drag on.

 

[orange79]

This is interesting - I didn't know this.

Revenue and expense payouts from the ACC also depend on how many bowl-game tickets a school sells. Each ACC school is responsible for the cost of the first 6,000 tickets. The ACC partially covers the next 2,000 tickets if they go unsold. Once a school sells 8,000 tickets, the ACC foots the bill for any other unsold tickets and that money comes from the bowl distribution pool.

 

[orange79]

This is interesting - I didn't know this.

Revenue and expense payouts from the ACC also depend on how many bowl-game tickets a school sells. Each ACC school is responsible for the cost of the first 6,000 tickets. The ACC partially covers the next 2,000 tickets if they go unsold. Once a school sells 8,000 tickets, the ACC foots the bill for any other unsold tickets and that money comes from the bowl distribution pool.

It is so nice to be in a real conference.

 

[GFTakedown]

Reliant stadium holds more than 70,000. The tickets are selling from $30 to $100.
Using the article and SU having half the stadium then...
SU- 8000 tickets for $65 each = $520,000 (used average ticket price)
ACC - 27000 tickets for $30 each = $810,000 or 27,000 tickets for $100 = 2,700,000

Doesn't make sense with a payout of 1.7 million!! I must be reading something wrong.

 

[SF Cuse]

That's not "merely" accounting. It's cash in hand for the conference, as if UMD were paying a portion of its exit fee immediately, even while the court cases drag on.

They've been holding back ever since Maryland announced. The ACC is not naive enough to think Maryland will write them a check when they leave, especially as it drags on in court.

 

[GoSU96]

Awesome and expected. The bigger thing I get out of that column is the expected total payout, which is higher than what most on this board have been estimating. That puts us over $3.5 million (15 shares, correct?) for our share. Isn't that more than the BE football tv contract last year?

Yes

 

[PhatOrange]

Reliant stadium holds more than 70,000. The tickets are selling from $30 to $100.
Using the article and SU having half the stadium then...
SU- 8000 tickets for $65 each = $520,000 (used average ticket price)
ACC - 27000 tickets for $30 each = $810,000 or 27,000 tickets for $100 = 2,700,000

Doesn't make sense with a payout of 1.7 million!! I must be reading something wrong.

being a lower tier bowl game i cant believe the schools would be on the hook for 70,000 tickets. i think the bowl would be extremely hard pressed to sell that many if you had an 8-4 nebraska team playing and 8-4 clemson team or worse.

 

[MadNY3]

http://www.washingtonpost.com/blogs...ot-receive-distributed-bowl-revenue-from-acc/

The Terps better make some big money from the B1G.

I had the opportunity to have dinner with Coach Edsall and his wife Tuesday.

I think Maryland is headed for a heap of trouble. I have vested reasons to believe otherwise, but...oof.

 

[HtownOrange]

That's not "merely" accounting. It's cash in hand for the conference, as if UMD were paying a portion of its exit fee immediately, even while the court cases drag on.

Your overall point is good. I only differ in that if UMD should receive a favorable ruling, the ACC could owe some of the withheld monies. In the end, I still think that each school gets a nice windfall, or cash in hand as you say.

 

[Marsh01]

I had the opportunity to have dinner with Coach Edsall and his wife Tuesday.

I think Maryland is headed for a heap of trouble. I have vested reasons to believe otherwise, but...oof.

Death Spiral

 

[Millhouse]

I had the opportunity to have dinner with Coach Edsall and his wife Tuesday.

I think Maryland is headed for a heap of trouble. I have vested reasons to believe otherwise, but...oof.

did you eat at chuck e cheese?

 

[Chip]

I had the opportunity to have dinner with Coach Edsall and his wife Tuesday.

I think Maryland is headed for a heap of trouble. I have vested reasons to believe otherwise, but...oof.

Well if it makes them feel any better you can tell them that I thought their luxury suites at the football stadium were beautiful. We were on the other side of the stadium, and since they were empty, we had a great view.

 

[OrangePA]

Well if it makes them feel any better you can tell them that I thought their luxury suites at the football stadium were beautiful. We were on the other side of the stadium, and since they were empty, we had a great view.

I couldn't see to the top of Byrd Stadium - I think the cloud cover blocked some of my view.

It was cold, pretty empty but a lot of fun and a great win for the Orange.

 

[44PRIDE]

I had the opportunity to have dinner with Coach Edsall and his wife Tuesday.

I think Maryland is headed for a heap of trouble. I have vested reasons to believe otherwise, but...oof.

Not sure if you are serious or not. But if you did indeed have lunch with HCRE, could you please provide some more details on the "heap" of trouble you speak of?

 

[orange79]

Not sure if you are serious or not. But if you did indeed have lunch with HCRE, could you please provide some more details on the "heap" of trouble you speak of?

He is serious. As for whether he is at liberty to elaborate, I will let Mad say. I would guess that at best, he would only be able to speak in the most general terms, which would probably not say much more than what we could already surmise.

 

[javadoc]

Your overall point is good. I only differ in that if UMD should receive a favorable ruling, the ACC could owe some of the withheld monies. In the end, I still think that each school gets a nice windfall, or cash in hand as you say.

As is yours.

I haven't checked to see what is Maryland's balance owed at this point. Makes me wonder, as well - is the conference holding the withheld funds in escrow pending resolution of the case? If so, then it's not really cash in hand. Maybe we'd get to keep the interest, if it swings UMD's way in the end.

 

[BlazeOrange]

As is yours.

I haven't checked to see what is Maryland's balance owed at this point. Makes me wonder, as well - is the conference holding the withheld funds in escrow pending resolution of the case? If so, then it's not really cash in hand. Maybe we'd get to keep the interest, if it swings UMD's way in the end.

Financial ignorance on display here: when money is held in escrow or just withheld for some reason, how do they calculate the interest owed when it is ultimately paid? Is it just whatever was actually earned or is there a standard formula tied to something (prime interest rate during the time period, etc.) that determines how much should be added on? Basically, can the person holding the money out-earn the amount that they'll have to ultimately pay out (Turning Stone, here we come!)? What if their handling underperforms the expected earnings?

I'd imagine in most cases, things are just negotiated and never get into detailed breakdowns.

 

[cpatrocks]

Reliant stadium holds more than 70,000. The tickets are selling from $30 to $100.
Using the article and SU having half the stadium then...
SU- 8000 tickets for $65 each = $520,000 (used average ticket price)
ACC - 27000 tickets for $30 each = $810,000 or 27,000 tickets for $100 = 2,700,000

Doesn't make sense with a payout of 1.7 million!! I must be reading something wrong.

I don't think the the schools/conferences signed up to be responsible for all 70,000 tickets -- there must be some sort of cap...the article is not clear on that.

 

[javadoc]

Financial ignorance on display here: when money is held in escrow or just withheld for some reason, how do they calculate the interest owed when it is ultimately paid? Is it just whatever was actually earned or is there a standard formula tied to something (prime interest rate during the time period, etc.) that determines how much should be added on? Basically, can the person holding the money out-earn the amount that they'll have to ultimately pay out (Turning Stone, here we come!)? What if their handling underperforms the expected earnings?

I'd imagine in most cases, things are just negotiated and never get into detailed breakdowns.

I think interest owed has to be part of the initial agreement. Security deposits on apartment rentals are a good example. I don't know if interest is typically owed on such deposits, but I know I never got any back when I was renting. I think the agreement would also have to specify the interest calculation method.

 

[Moontan]

It wouldn't surprise me if HCRE has been asked to defer some of his pay.

 

[shantydaze]

I don't think the the schools/conferences signed up to be responsible for all 70,000 tickets -- there must be some sort of cap...the article is not clear on that.

I believe most bowls require each school to purchase 12,000 tickets and the remaining tickets are sold to the public/corporations.

 

[MadNY3]

Not sure if you are serious or not. But if you did indeed have lunch with HCRE, could you please provide some more details on the "heap" of trouble you speak of?

A lotta people have a lotta doubts about HCRE.

And not sure how much INSIDE money will be put towards the program.