You don’t mind if I put off any post on the game from last night do you? You don’t? Good.
So when last we left the Expansiopocolypse (and for the record, I can’t tell you how disappointed I am that this word has not caught on with anyone), there were reports of a settlement looming between West Virginia and the Big East. The issue was that the numbers being leaked by each side seemed quite wide.
On the Big East side, the settlement would be in the $20 million range. By contrast the WVU side was leaking a figure of $11 million. That seems like quite a wide gap for an imminent settlement.
However, a parsing of what was actually written based on leaks from both sides suggests that both numbers could be correct. Bear with me, there is some math involved, parsing words and abject speculation. In other words, par for the course when it comes to everything else in the process.
Okay, first the WVU side since they have the lower number.
The Mountaineers will pay the conference an $11 million cash settlement to join the Big 12 for the upcoming football season, a source with knowledge of the situation told the Pittsburgh Post-Gazette.
The settlement is expected to bring to an end more than three months of litigation between the school and the conference since the Mountaineers announced in late October that it planned to join the Big 12 in time for the 2012 football season.
The sides are scheduled for an 8:30 a.m. status hearing today on a conference call with Rhode Island Superior Court Judge Michael Silverstein, who ordered the parties into non-binding mediation last month.
The resolution is expected soon, potentially as early as today, sources said, but it remains unclear if the $11 million figure includes a $5 million exit fee called for in the Big East bylaws or if it is in addition to the $5 million. West Virginia already has paid $2.5 million of that fee.
So the first thing that should be noted is that $2.5 to $5 million more could be counted in this. For the moment, I will make the assumption that only $2.5 million could be added to the $11 million figure.
Sources familiar with the negotiations told the Daily Mail Wednesday the university is nearly finished with a resolution to pay a “cash settlement” of $11 million to complete its exit from the Big East.
“Cash settlement” is noticeable there because of the quotes. That might suggest that rather than a lump sum, WVU will be paying in some installments that might total more than $11 million but would hold a present value of $11 million — further bumping the number higher.
Now for something that overlaps and might further explain things.
Other conditions could be involved. One source said the Big East is aware the best way to mitigate damages sustained by losing WVU is by adding a future Big East member sooner than previously planned.
Boise State, for example, is set to join the Big East in 2013, but would have to pay a $5 million buyout to leave the Mountain West Conference early. The Big East – and by extension, WVU – could pay that fee and replace WVU with a school that lessens any damages the Big East might incur by losing the Mountaineers.
This gibes with the report from Brett McMurphy of CBS Sports, who has the Big East sources.
The Mountaineers will join the Big 12 for the 2012-13 school year. However, in a bizarre twist, sources told CBSSports.com that West Virginia officials have contacted future Big East members to see if one could join in 2012 instead of 2013.
The reason is that with West Virginia’s departure to the Big 12, the Big East will be left with only seven football members this fall. Without an immediate replacement for West Virginia, the remaining Big East schools will be scrambling to find a 12th opponent. It’s unknown why West Virginia would assist a league that WVU athletic director Oliver Luck compared to “a ship … seriously going down,” except that it could lower West Virginia’s buyout, sources said.
In this respect, it could very well be that West Virginia might give — let’s say Boise St. — the $5 million it needs to buy its way out of the Mountain West a year early. They would not be giving the Big East the money — so it wouldn’t be part of the money they pay to the Big East — but it would be part of the settlement.
The WVU sourced pieces speak of money paid to the Big East conference. The Big East sourced piece, however, says this.
West Virginia and the Big East Conference are nearing agreement on a settlement worth at least $20 million that would resolve all issues between both parties, college football industry sources told CBSSports.com.
Notice that it doesn’t say that WVU would pay that money to the conference. That makes sense.
So, now let’s run these numbers:
Portion of exit fee already paid ($2.5 million) + “cash settlement” with Big East ($11 million) + Boise St. buyout ($5 million) = $18.5 million
If the money paid to the Big East is done over the next 2-3 years, then we can assume that the total paid will be closer to say $12.5 million to get to the $11 million “cash value.” That adds another $1.5 million, and there it is. $20 million settlement.
Alternatively, if WVU is unable to convince Boise or any of the other future football schools to take money from them to come to the Big East a year early, then WVU would need to compensate the other seven Big East football schools for the scheduling gap and lost revenue.
To keep the numbers simple, let’s pretend it is $1 million per school. That would be $7 million in total, again, not paid directly to the Big East but part of the settlement. Which means the WVU sourced story is still accurate at $11 million to the Big East, while the Big East sourced story is also accurate in terms of the total compensation package.
Fun stuff.
Now for those wondering about what this means for Pitt (and Cuse) going to the ACC in 2012. It means that it won’t happen. No way — and I think rightfully so — will Pitt put itself in that deep just to get out of the conference 2 years early.
For 2013, however, things become a little more logical.
The WVU deal would be the baseline. The first key difference, is that Pitt and Cuse would not have to compensate individual schools or help with a buyout to make up a scheduling gap. The 2013 season will have SDSU, Boise, Memphis, Houston, SMU and UCF in the fold.
There’s a$5-7 million savings.
Next Pitt and Cuse are only leaving one year earlier than the by-laws. Not two. Taking $13.5 million as the amount WVU had to pay the conference to leave two years early. And with the knowledge that under normal rules the amount for leaving would be $5 million after the 27 month wait.
We know that it will then be a negotiation to reach a number between the two figures. The middle ground would be $9.25 million.
That would be a number that could work. Pitt and Cusecould easily make up the additional $4.25 million each with the increased revenue from the ACC. To say nothing of better ticket sales for the improved conference home game slate — because you know the Big East would give Pitt a home conference slate of Memphis, UCF, Cinci and UConn.
Yes, I know what Pederson said as he continues the media rounds about Pitt not paying more than the $5 million exit fee.
But Pitt athletic director Steve Pederson made it clear that while the school is pushing to leave the Big East as soon as possible, it is not going to pay any more than the $5 million exit fee to make it happen.
“No,” Pederson said emphatically when asked Wednesday if Pitt would be willing to increase the amount of money to be able to leave the conference in time for the 2012 season.
But much like Marinatto saying he is holding Pitt, Cuse and WVU until 2014, it is what he has to say publicly for negotiations. You don’t admit how much you are willing to compromise.
There is also another component to Pederson saying Pitt won’t pay more than the $5 million exit fee. It’s about getting donors to help pony up to get Pitt out early. Pederson and Chancellor Nordenberg want Pitt in the ACC at much sooner than later. They won’t be financially reckless, though. The more clamoring by fans — and more importantly the donor base — to get Pitt over to the ACC, the more likely they will start putting their money where there mouth is.
That would help. I wasn’t concerned with from where the money came. Just trying to put together the numbers together so they would match.
Big 12 contributions also would explain why Pitt won’t try to leave this year. The ACC doesn’t need to and won’t help pick up the tab for Pitt and Cuse
WHich begs the question of why they let Mizzou go a year early to the SEC? They could have held them, and spared everyone the headaches.
Alas, you didn’t take my advice!!!
Sorry, not buying it. Say in 5 years some BE school gets an invite to the ACC…would I expect Pitt to pony up money to get them out early? No, I wouldn’t. But would I lend them money if I knew that I was getting it back the following year (less conference revenue sharing money).
I think that WVU is trying to spin this as less than what they actually have to pay. Which likely will be 20 mil
I would say any sort of scheduling like that would be grounds for us to go to the ACC immediately.
Our home schedule is going to be bad enough now, as it is.
HOME
Youngstown State
Virginia Tech
3 home crap conference games
2 spots open
AWAY
Buffalo
Notre Dame
3 crap conference games.
Ol’ Steve-o is gonna have his work cut for himself. Not for us die hards of course, but, for the general public, or casual fan, gonna be a tough sell.
Gonna have to promote Chryst, program moving forward, program moving to the ACC and things of that nature.
Won’t be Florida St, (since WVU just dumped that game), they are looking for a home game also, so anyone with that thought….
Maybe Missouri or A&M??? NOT A RUMOR. Just my thoughts, maybe their schedules are messed up also with their move to the ACC.
Hope he at least gets one good one, two scubs would be hideous!
I think Pitt is handling this very well. WVU is setting the market and we go from there. WVU being forced to go to the Big 12 this year and having to stroke the big check is also priceless (and helps our cause). We stick around for one more year, let HCPC get his feet wet and then we’re off to the ACC to do some damage in 2013 at minimal cost. Beautiful. I’m looking forward to watching it unfold. HTP!
What is the $$ difference for us in the ACC vs. lBE football and bball? Are there separate individual $$ payouts for additional regional and/or national games. Just wondering what the trade-off $$ number is. Like we gain $7 mil against any cost of moving.
I already accept being an idiot if this is out there in plain view (but I won’t pay any attention to it).
The settlement, if there is one, was not presented to the judge. So he said we will proceed, but if a settlement is given to him, he will acknowledge it.
Maybe hashing out some last minute details???
Give up.
Expansionpalooza was so obvious, I gave up my rights without even a fee. He snubbed me, now he has to live with it!!!
Pitt will leave effective June 1. Play same team twice in a year? Sorry, that is absurd!!
I posted it on another board, but i have to get this out. I think people are blowing chrysts ” open the door” comment way out of proportion for a few reasons. One, we know hes not a very good presser so why would we take one little comment and make it the death of the program. What i take from it is chryst is going to get kids that truly want to be at pitt. Two, he recruited quarterbacks, the most important position, and was the closer for a team that became a national power while he was there. If you tell me he cant recruit xall i have to say is look at the quality quarterbacks he got at wisconsin, including russell wilson. The myth that he didnt call recruits for a week after his hiring is, well, a myth. He didnt call the kids that he disliked. The voytiks and shells and bisnowatys of the world got called within days. He didnt recruit the 2013 class very hard at first, ill admit, but he is now. The only recruit that im worried about because of this is robert foster. Hes already visited osu twice sunce urbans arrival and is visiting psu soon. He hasnt visited pitt since chrysts hire. Thats obviously something that needs to change. Well see just how good of a recruiter chryst is this year. There are a lot of players at the top of chrysts list that are also on urbans board so well see
I wrote about this year being the year of the injury, and hope we are not cursed again this year. The O-line was hammered last year.
Does anyone know how the rehab is coming? It’s great that Lumpy is back, but how healthy will he be? Also Rotherham got his chance and went down, How are Turnley’s feet?
How is Graham coming along and will Mason play again?
Todd Thomas was banged up and I am sure there are others.
I guess we will find out in spring practice, so I am hoping our training staff is on the top of their game.
If we are healthy maybe we can go out of the Big East with a bang. I guess we don’t have to worry about the Mounties this year.
Maybe we could play Syracuse 6 times and that would be our conference games.
To really save money, we could play Syracuse, home, 3 times in a row, Fri, Sat and Sun, then, the following week, we go to the carrier dome for a weekend of 3!!!
Someone shoot this thing and put it out of it’s misery!!!!!!!!!!
If Pitt has an extra $10 million laying around for this crap, then I’d rather see them stay in the BE for another year and use that money to help students pay their tuition, build a laboratory, or replace all the books in the library that always seemed be missing when I was a student there. People keep saying how all the sports money these schools are prostitiuting themselves for is beneficial to the students academically, but I don’t see it personally. Kudos to Stevie P. for refusing to pay more than $5 million, but that’s still too much money just to line the pockets of the BE – it could do a lot more good on campus.
Seems to me that no school should be beholdent to a conference, which are not educational institutions, government agencies, or any legitimate type of overseeing body – they’re just greedy unnecessary appendages with too much power. Why should a conference commissioner have any power over a university president in deciding what a school does with it’s extracurricular activities? (and yes, that’s what sports are…) Oh yeah, silly me – I forgot that all higher education in the US is now being run by ESPN.
As far as WVU and the BE, Pitt needs to file suit immediately, hire an “asshole” lawyer and become a pain to the BE. Enough already…
RichRod stepped it up even more when he came in 2001. If you compare their roster now, 5, 10 or 20 years ago to Pitt’s, you will see a much bigger influx of recruits from the south.
As you seen in the Orange Bowl, Stedman Bailey, Tavon Austin and company had speed to burn .. as did Devine, White and Slaton … etc, etc.
I understand your premise about a spread being competitive (and it needs to be knownn even how good Pitt has done with its 2-3 star Florida talent) but moving to a spread requires a wholesale change, not just a few players.
Yes, it is an educational instituion first, but, frankly, I’ve paid enough in personal and business taxes, donations to the athletic, AND academic departments, plus many tuitions in my family, that if it’s just gonna be thown into a pool, I’d rather see them in the ACC sooner than later.
Also, remember, no one is jumping ship unless they are going to make money.
Even WVU, you hear 20 Million being tossed around. Believe me, the bean counters wouldn’t give their go ahead, unless the ROI is strong.
Same with Pitt, if the ROI is good, they’ll go, if not, they’ll stay.
Again, if someone can guarantee me the money will go right to student tuition, I’m all for it.
And I think we all know, that ain’t gonna happen!!
If Pitt, believes in the end, that no matter what, we can’t go to the ACC this year, we have to wait until 2013 at the earliest…….
Pitt and Syracuse leaving early (now) would cause a disaster for the BE of untold magnitude………..
Nordy and Steve tell the BE,
“look, if you don’t want us to jump ship right now for 2012, and cause you to have a total mass chaos, we want a contract written up that…
1.) only holds us to 2013, not 2014 and
2.) we want the 5 million dollar exit fee waived!!!!!!!!!!!
This is genius. Ya, it’s called extortion I guess.
I call it just letting them know the facts.
This is brilliant, we stay and get prepped for the ACC, we leave a year early without any noise, and we save 5 million dollars!!!!!!!
What’s their cell numbers???
There is no doubt that Pitt and Cuse will have openings to leave after 2012-3 … and with all of the new teams coming in next year, it shouldn’t have a big impact to the BE.
If you’re replying to me, I’m not talking about 2013. I’m talking about the talk of Pitt and Syracuse leaving now, for the 2012 season, this fall, which there has been much talk about.
Ya, they’ll be fine for 2013, if Pitt and Syracuse decide to leave now, the BE conference would have 5 members for the upcoming season.
UCONN, CINCY, LOUISVILLE, USF and RUTGERS.
You may have been replying to someone else, so, disregard if the case.
Personally, I can live with another year in the BE knowing there are greener pastures ahead.
I really just hope they don’t do some sort of playing the same team twice thing. Seems kind of tacky (sp)??? Ha ha, never tried to spell tacky beofre. (I’m probably not even close).
A year to have Coach Chryst settle in may be a good thing.
Hail to Pitt
