Rutgers Sues The Big East

[OrangeOnions]

http://espn.go.com/new-york/college...3564/rutgers-sues-big-east-exit-fee-wait-time

 

[Marsh01]

F Rutgers

 

[orangepassion]

Classy, as always. Schiano would be proud.

 

[orange79]

So, they want to get out of paying any exit fees? Why not just negotiate a lower fee, like SU and Pitt did? Also, the lawsuit "alleges the Big East has failed to collect $39.5 million in withdrawal fees from departing schools -- money that was set to be divided up among remaining members." Didn't we pay an initial installment when we informed them we were leaving? Maybe they are talking about money beyond that initial installment. That $39.5M would seem to include the entire WFVU portion and the remaining SU and Pitt money, if my math is right. I thought the remaining money owed was due at the end of the negotiated interim period. If so, how can they say the league failed to collect money not yet due? Did TCU ever pay the $5M they negotiated?

 

[orange79]

And for the lawyers out there - would declaring the league bylaws void have any effect beyond letting anyone walk without penalty? Could we recoup what we have already paid?

 

[Whitey23]

This is exactly why the ACC needs to stand firm with Maryland.

Rutgers points to the way the Big East allowed Syracuse, Pittsburgh, TCU and West Virginia to leave the league before the 27-month waiting period, and alleges the Big East has failed to collect $39.5 million in withdrawal fees from departing schools -- money that was set to be divided up among remaining members.

 

[MaxwellCuse]

So, what does Rutgers mean when they say the Big East has failed to collect $39 million in exit fees? Does this mean we haven't paid anything to Providence? I don't think that is the case is it?

 

[OrangeXtreme]

Tell Snooki and JWoww to find their checkbooks.

 

[crales44]

Well, this has the look of a right-old fuster cluck.

 

[N.Y. Orangeman]

Classy as ever...

 

[Chip]

So we didn't pay yet? Nice.

 

[All4SU]

The BE and all of the teams who were in it should sue Buttgers for 15 years worth of checks they collected without contributing anything to the conference's coffers.

 

[44PRIDE]

If the BBall schools decide to dissolve the Football part of the conference, do we (or any of the schools for that matter) still owe an exit fee?

 

[OrangeChris]

So, they want to get out of paying any exit fees? Why not just negotiate a lower fee, like SU and Pitt did?

We didn't negotiate a lower fee. We negotiated a higher fee in exchange for leaving early. IIRC, Big East had a $5 million exit fee (since raised to $1o million after our departure), but we paid $7.5 million in order to reduce the 27-month period.

 

[JD]

We have already "paid" $5 million when we indicated we were leaving, most likely they withheld payments due us.

 

[cto]

Did TCU ever pay the $5M they negotiated?

TCU was not required to pay an exit fee ... because they had been in the BE for about two minutes... and never played a game in any sport.

 

[Opus]

Well this IS Rutgers, so odds are they will lose this.

 

[Moontan]

My understanding of BE bylaws is that 50% of the exit fee is due at the time that the conference departure notice is given. Without that payment the 27-month clock doesn't start ticking. The remaking 50% is due upon departure (unless other arrangements have been made). It appears that the BE withholds a portion of a school's TV and tournament revenues in escrow and applies that toward the exit fee.

Based on this understanding, I believe that Syracuse & Pitt have already paid (or made arrangements to pay) $2.5M each. Based on further announcements by the parties involved, agreement has been reached on how Syracuse & Pitt will provide the remaining $5M that each school owes to the Big East as part of their July 1, 2013 departure.

I expect that Louisville & ND have paid the BE $5M, each, and will be negotiating their additional exit fees to be able to leave the conference by July 1, 2014.

If Rutgers has not done the same then in theory, their 27-month clock has not started running. Given their financial woes, it's to be expected that they'd try to avoid or reduce payment of the exit fee. Methinks they'll insist on using disbursement of previously due exit fees toward their own payments. That would only include their share of payments from TCU, WfVU, Syracuse, Pitt & ND.

 

[Alsacs]

This lawsuit is modeled after WVU lawsuit against the Big East not the SU or Pitt departures. The Big East didn't reduce the withdrawal fee for any of those 3 schools. All 3 paid more money in exchange for reducing the waiting period. The B1G isn''t going to contribute like the Big 12 did for WVU and the TV contract of the B1G won't be affected by the lack of RU's inclusion in the B1G like the Big 12. Maryland is joining for 2014 and Rutgers based on the 27 month time frame wouldn't be able to join till 2015. This lawsuit will end with Rutgers agreeing to pay a little bit more than 10 million probably 15 million to be allowed to leave for 2014 with Maryland. Classless decision by RU to sue as the alleged reasons for relief are stupid, but Aresco probably told RU to pound salt when they asked to leave for 2014 so they have to sue.

 

[Moontan]

TCU was not required to pay an exit fee ... because they had been in the BE for about two minutes... and never played a game in any sport.

That was the belief for a while.

TCU and the Big East did reach a settlement earlier this year. While some believe that they paid the full amount, I suspect the figure fell in the $1M-$3M range.

See the following articles for details:

http://www.bizjournals.com/memphis/...7/pitt-tcu-pay-big-east-40m-in-exit-fees.html

http://articles.courant.com/2012-07...0719_1_smu-and-houston-27-month-exit-exit-fee

 

[sutomcat]

http://espn.go.com/new-york/college...3564/rutgers-sues-big-east-exit-fee-wait-time

What dolts.

I hope the Big East handles this by refusing to bend at all on the amount of time they need to stay and the amount of money they need to pay.

 

[rrlbees]

The BE and all of the teams who were in it should sue Buttgers for 15 years worth of checks they collected without contributing anything to the conference's coffers.

So very true. For a long long long time, rutgirls didn't put one plug nickel into the BE kitty. All they did was take take take. While other schools were going to bowl games or NCAA basketball tournaments or both and putting money into the BE kitty for disbursement to ALL achools, rutgirls was sitting at home watching on TV and accepting those BE welfare checks.

Whether it was the BE, the rutgirls general student fund or the state of NJ, all they did was have their hand out. Their claim to any fame is a Thursday night game 6 years ago and a few piddly paying bowl games that after expenses, probably netted the BE $1.89.

Now THEY want to sue? THEY wanted the increased fees. What a sad program.

 

[IthacaMatt]

http://espn.go.com/new-york/college...3564/rutgers-sues-big-east-exit-fee-wait-time

For the record, because I'm sure the question will be asked, I think Rutgers chances are better than Maryland's, because the Big East has been somewhat arbitrary in the way it has applied the exit requirements in the past couple years. The Big East has been all over the map. That will work to Rutgers' benefit.

 

[goodroc]

TCU was not required to pay an exit fee ... because they had been in the BE for about two minutes... and never played a game in any sport.

Hmm would this be same if we left to go to big ten??

 

[IthacaMatt]

This lawsuit is modeled after WVU lawsuit against the Big East not the SU or Pitt departures. The Big East didn't reduce the withdrawal fee for any of those 3 schools. All 3 paid more money in exchange for reducing the waiting period. The B1G isn''t going to contribute like the Big 12 did for WVU and the TV contract of the B1G won't be affected by the lack of RU's inclusion in the B1G like the Big 12. Maryland is joining for 2014 and Rutgers based on the 27 month time frame wouldn't be able to join till 2015. This lawsuit will end with Rutgers agreeing to pay a little bit more than 10 million probably 15 million to be allowed to leave for 2014 with Maryland. Classless decision by RU to sue as the alleged reasons for relief are stupid, but Aresco probably told RU to pound salt when they asked to leave for 2014 so they have to sue.

All good points about exiting Big East teams paying MORE (except for TCU). But if anyone modeled their case on the West Virginia complaint, they are crazy. Any lawyer who read the WVU complaint would find it to be a steaming pile of poo. Very poorly drafted, even by West Virginia standards.