Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Exit Fees Will Have Major Impact on Conference Re-Alignment
Author: Scarinci Hollenbeck, LLC
Date: February 21, 2014
Key Contacts
Back
Conference re-alignment has been plaguing college athletics for a couple years now, with many schools making the jump from one league to another. At one point, it even seemed like the storied Big-12 Conference was going to be disbanded – but that didn’t end up happening.
One of the most recent schools to move is Rutgers University, which made the jump from the American Athletic Conference – formerly the Big East – to the Big Ten. According to ESPN, the school and league recently agreed to an $11.5 million exit fee.
However, other schools have run into legal issues attempting to switch conferences. Both the league and school have to agree to an exit fee, which seems to be difficult between the Atlantic Coast Conference and University of Maryland. These two parties are currently involved in a legal battle over the exit fee, as the league wants $50 million from Maryland, but the school believes it should be much lower.
The decision on this exit-fee could have significant ramifications on future realignment. If it is ruled that Maryland does in fact have to pay the ACC $50 million, it could deter future schools from leaving the conference. However, on the other end of the spectrum, should the exit fee be significantly reduced, schools could bolt from the ACC to other conferences.
The AAC could have this same problem with the much lower exit fee agreed to by the league and Rutgers. With schools such as the University of Connecticut and University of Cincinnati both attempting to get in a different conference, the AAC may want to consider establishing a much higher exit fee.
It appears as though we are a long way before conference re-alignment is in the past, and it will be interesting to see if schools like UConn and Cincinnati are able to make a clean exit in the future.
- Industries: Entertainment & Media
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.