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- Jul 11, 2013
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This was a draw between UMD and the ACC. The ACC got a lot ($31mm) but didnt get the full amount. UMD got out for less than $52mm.
To those who think that this somehow sets a precedent for the future that $31mm is the exit price for the ACC, your an idiot.
There are some specific reasons why UMD was able to get out for less and the next potential exiter might not.
1. The increase was implemented really quickly. It was a majority vote and didnt give UMD a chance to exit in a timely manner (60-90 days). That has been rectified under the GOR/exit fee which has been in effect for almost 1 year now. No one can now say that they didnt have time to exit.
2. Louisville really was as better/as good as UMD. In this case, a good replacement made it easier for UMD to argue that the ACC really didnt suffer lost revenue when they left. I doubt the same replacement will be available the next time around.
3. The annual revenue for the ACC will continue to go up so the "penalty" for exit will increase as well.
4. I expect the ACC network to start in the future. This will only increase revenue and therefore, the potential for lost revenue in the future.
5. The ACC learned from this case and will make sure that the "weaknesses" in their case this time are fixed in the future.
To those who think that this somehow sets a precedent for the future that $31mm is the exit price for the ACC, your an idiot.
There are some specific reasons why UMD was able to get out for less and the next potential exiter might not.
1. The increase was implemented really quickly. It was a majority vote and didnt give UMD a chance to exit in a timely manner (60-90 days). That has been rectified under the GOR/exit fee which has been in effect for almost 1 year now. No one can now say that they didnt have time to exit.
2. Louisville really was as better/as good as UMD. In this case, a good replacement made it easier for UMD to argue that the ACC really didnt suffer lost revenue when they left. I doubt the same replacement will be available the next time around.
3. The annual revenue for the ACC will continue to go up so the "penalty" for exit will increase as well.
4. I expect the ACC network to start in the future. This will only increase revenue and therefore, the potential for lost revenue in the future.
5. The ACC learned from this case and will make sure that the "weaknesses" in their case this time are fixed in the future.