A new and better FBS thread

[BigHorns]

This story moved fast with a lot of questionable "journalism". Both articles above are from fall 2023. This one is March 2024 has direct on the record quotes.
https://www.espn.com/college-sports/...exiting-pac-12

The $5Mx10 is basically the Comcast repayment. That was going to be withheld no matter what.
$1.5Mx10 is chump change at this level. It probably doesn't even pay the legal fees and staff buyouts.
PAC has no warchest. They're a financial basketcase.

That's $65m forfeited by departing schools this year, effectively as departure/exit fees. The departing schools also had to provide some guarantees regarding the PAC network/Comcast deal liabilities.

In addition, PAC has other assets, and will still collect some CFP and NCAA tourney credits that are significant for at least another 3-5 years.

They are playing with something in the ballpark of at least $200-400m, and have a lot of motivation to rebuild rather than get absorbed into MWC.

[Grizzled]

That's $65m forfeited by departing schools this year, effectively as departure/exit fees. The departing schools also had to provide some guarantees regarding the PAC network/Comcast deal liabilities.

In addition, PAC has other assets, and will still collect some CFP and NCAA tourney credits that are significant for at least another 3-5 years.

They are playing with something in the ballpark of at least $200-400m, and have a lot of motivation to rebuild rather than get absorbed into MWC.

Does that cover the buyouts for schools to move from conferences that have as many (or more) tourney credits coming as the Pac12. Plus a TV contract that may be worth less. They have money but I don’t think it moves the needle as much when digging a little deeper. Could be wrong though.

[BigHorns]

Does that cover the buyouts for schools to move from conferences that have as many (or more) tourney credits coming as the Pac12. Plus a TV contract that may be worth less. They have money but I don’t think it moves the needle as much when digging a little deeper. Could be wrong though.

PAC wants to grab the best MWC schools and position themselves to be seen as the #5 FBS conference, which would give them the last CFP bid slot most years. It would become an uphill battle for any other G5 conference to get a CFP bid.

They have enough cash to assist with MWC buyouts, which might be paid back to PAC over a number of years. It will all come down to what package of schools PAC can assemble, and what the media rights deal looks like for that. I suspect they can top the MWC per school payout if they skim only the top schools/markets.

Again, rumors are flying about an announcement in next few months, so we'll know more by the time football season starts. These things always move a little slow with all the moving pieces. PAC 2 really didn't own/control their own conference until March, and there was no way for them to make any moves prior to that.

[taper]

That's $65m forfeited by departing schools this year, effectively as departure/exit fees. The departing schools also had to provide some guarantees regarding the PAC network/Comcast deal liabilities.

In addition, PAC has other assets, and will still collect some CFP and NCAA tourney credits that are significant for at least another 3-5 years.

They are playing with something in the ballpark of at least $200-400m, and have a lot of motivation to rebuild rather than get absorbed into MWC.

Why are you not getting this? PAC doesn't have exit fees and the 10 leaving schools didn't open their wallets out of the goodness of their hearts. Comcast was a known liability they knew they'd have to pay, along with several existing lawsuits like the Holiday Bowl.
$65M - already spent on Comcast, conf HQ downsizing, and legal fees.
CFP per school share is ~$7M each, which is already spent to the MWC for a FB schedule. (this drops to $360k in 2026, another disaster for them)
NCAAT credits are about $16M annually, but that's paid to the conference and they'll spend all of it on operations.
There's nothing there. How on earth are you turning the above $95M that's already spent into a $200-400M war chest?

[The_Sicatoka]

PAC doesn't have exit fees ...

Truth, and worth repeating.

Other than jointly paying the last cable bill, the 10 gave the 2PAC a no-alimony divorce.

[GCWaters]

This is an interesting take:

https://x.com/TJAltimore/status/1774403261904077057

[runtheoption]

PAC wants to grab the best MWC schools and position themselves to be seen as the #5 FBS conference, which would give them the last CFP bid slot most years. It would become an uphill battle for any other G5 conference to get a CFP bid.

They have enough cash to assist with MWC buyouts, which might be paid back to PAC over a number of years. It will all come down to what package of schools PAC can assemble, and what the media rights deal looks like for that. I suspect they can top the MWC per school payout if they skim only the top schools/markets.

Again, rumors are flying about an announcement in next few months, so we'll know more by the time football season starts. These things always move a little slow with all the moving pieces. PAC 2 really didn't own/control their own conference until March, and there was no way for them to make any moves prior to that.

Why are you not getting this? PAC doesn't have exit fees and the 10 leaving schools didn't open their wallets out of the goodness of their hearts. Comcast was a known liability they knew they'd have to pay, along with several existing lawsuits like the Holiday Bowl.
$65M - already spent on Comcast, conf HQ downsizing, and legal fees.
CFP per school share is ~$7M each, which is already spent to the MWC for a FB schedule. (this drops to $360k in 2026, another disaster for them)
NCAAT credits are about $16M annually, but that's paid to the conference and they'll spend all of it on operations.
There's nothing there. How on earth are you turning the above $95M that's already spent into a $200-400M war chest?

The 2 of you are on completely different pages with massively different numbers being stated. Where in the heck does anyone find a definitive answer?

[The_Sicatoka]

This is an interesting take:

https://x.com/TJAltimore/status/1774403261904077057

Yowzah! Good find GCW.

[WhoRepsTheLurker]

The 2 of you are on completely different pages with massively different numbers being stated. Where in the heck does anyone find a definitive answer?

In the post right above yours and by reading the links

They drop down to a high G5 level ($60 M from $90+) which they will obviously feel deeply, but that has no bearing on their desire or ability to rebuild the top western 'G5' in the shape they want it. Remains to be seen if is viable. Exit fees are always negotiable and Gloria has a soft spot for the PAC

[The_Sicatoka]

In the post right above yours and by reading the links

They drop down to a high G5 level ($60 M from $90+) which they will obviously feel deeply, but that has no bearing on their desire or ability to rebuild the top western 'G5' in the shape they want it. Remains to be seen if is viable. Exit fees are always negotiable and Gloria has a soft spot for the PAC

2PAC ain't your daddy's PAC. Even $60M could be optimistic.

And I don't see the MWC front range schools (Wyo, UNM, USU) being amenable to discounted exit fees because they will be 'left behind' in that scenario and are watching the 'left behind' 2PAC's strife.