Boise State exit fee from Mountain West could be $21 million

By Brian Murphy
bmurphy@idahostatesman.com

Boise State could owe as much as $21 million if it decides to change conferences for next season, the Mountain West confirmed Thursday. The Albuquerque Journal first reported the exit fees.

Here's how it works (and all numbers are approximate):

— If Boise State reaches a BCS game this season, its year-end revenue distribution from the Mountain West would be roughly $7 million. According to the Mountain West's exit fee clause, the Broncos would forfeit that amount AND the greater of $5 million OR double the year-end distribution ($14 million).

That's how you get to $21 million.

— If Boise State did not make a BCS game this season, the Broncos would forfeit their year-end distribution (around $1.9 million) AND the greater of $5 million OR double the year-end distribution ($3.8 million).

In that case, it would be $1.9 million plus $5 million for a total of $6.9 million.

— If Boise State were to give a year's notice (and leave for 2013), the Broncos would only forfeit their year-end distribution from the 2012-13 academic calendar.

Here is the Mountain West bylaw regarding exit fees that was passed in June and voted on by Boise State. The Mountain West added the exit fee after Utah, BYU and TCU left without penalty.

"Effective June 6, 2011 and thereafter any notice of resignation given by any member shall be subject to the notice dates referenced in subparagraph (a) above and the following: (a) the resigning member shall forfeit its final year of revenue payable no later than the Effective Date; (b) if the resigning member gives notice after the established “Notice Date”, the resigning member shall forfeit its final year of revenue and shall pay to the Conference a sum of five million dollars ($5,000,000) OR double the amount of the final year’s revenue, whichever is greater. All monies shall be paid no later than the Notice Date. (Revised June 2011)

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Who signed up for this league? I mean seriously?

So in order to leave the conference they are encouraging Boise State to not win out and earn less revenue for the league in order to have a lower exit fee. Or, what Boise State could do is win out and decline a BCS bowl game invite, therefore our end of year ranking is still high, with a good overall win-loss record and save ourselves some money. As Ackey would say that's some "Mickey Mouse conference" we joined.

Be careful....

you may jeopardize your status with other Broncos by quoting Akey, especially in support of your view.

Sit over there, son. The School Counselor will be in shortly.

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

Ha ha... now BSU gets to lay in the bed they made

Remember the good 'ol days when the MWC move was the greatest thing in BSU football history? Too bad, so sad.

Sometimes trying to claw your way to greener pastures comes at a cost.

At least Boise State has

At least Boise State has been worthy enough to go to a different conference as well as be considered by an AQ conference. U of I wouldn't even get an invite from the Big Sky because they know the Idaho State Begals would whoop all up on the VANDULLS!! Are the VANDULLS even gonna win another game there, SOME_GUY?

bbbroncos, no one is encouraging BSU to not win out

Think about it... there are stiffer $$ penalties for high-profile (winning) teams who defect because obviously the conference is interested in keeping those members the most.

Right

And my employer isn't encouraging me to take 2 days off by making me use 8 hours flex before I can use any sick time.

I get it that the penalty is intended to make teams stay, but honestly, if BSU truly wants out this year, and doesn't want to pay $21M, there is an easy way to get there. With the way it is written, it is cheaper to not win out (if we hypothetically were invited to another conference it 2012). That said, there is no way BSU would throw a game or decline a BCS bowl. As Murph said in the chat, BSU would most likely instead give the one year notice rather than eat an extra $14M (that they don't have).

No Blue on Blue, no noise makers, no Utah-BYU-TCU, Mount US alliance, horrible exit fee for earning added revenue for the league...all equals Mickey Mouse conference.

When your exit fee from your non Auto AQ conference is more than double the exit fee of the Auto AQ conference you are thinking about joining, you know you are in a joke of a conference.

You go sit with the other one.

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

Get over yourself

This is not some MWC thing. Do you know why Fresno State and Nevada are still in the WAC? Why Syracuse and Pittsburgh are not going to the ACC until 2013? Why TCU is still in the MWC this year? That's right, hotshot: they faced the exact same issue that Boise State is facing right now.

The thought that Boise State would have incentive to throw a game so they could reduce their penalty is frankly white trash thinking, and an insult to Boise State's program.

The loss is a big number only if BSU acts stupidly

This is a really badly phrased title.

Why would BSU seek to pay another $14M or similar simply to start in a new conference next year?

There is no real rush, and it only makes sense to take the time to do it right.

I have no doubt that Kustra would do just that.

Moreover, all these numbers are negotiable, on both sides of the deal. Some conferences pay the exit fee of teams they want to have join -- the Big East seeking to add BSU to keep its AQ status is a good example of one that might. I am sure that will be explored as well.

What is not likely, even enough to be a "could be" is that Boise State would rush matters without thinking and end up with the $21 million fee. That is why the title is badly phrased.

The loss is a big number only if BSU acts stupidly

This is a really badly phrased title.

Why would BSU seek to pay another $14M or similar simply to start in a new conference next year?

There is no real rush, and it only makes sense to take the time to do it right.

I have no doubt that Kustra would do just that.

Moreover, all these numbers are negotiable, on both sides of the deal. Some conferences pay the exit fee of teams they want to have join -- the Big East seeking to add BSU to keep its AQ status is a good example of one that might. I am sure that will be explored as well.

What is not likely, even enough to be a "could be" is that Boise State would rush matters without thinking and end up with the $21 million fee. That is why the title is badly phrased.

Can you read? I mean seriously?

This is revenue we would lose. Revenue is earned. They wouldn't ask Boise State to write a check for $21 Million, they simply wouldn't give us a check for $21 Million at the end of the year.

So,....

you would be okay with your employer just not giving you your paycheck and saying "I'm not penalizing you or costing you any money, I'm just not giving you some money you have earned"?

Yep

If I walk out without giving due notice, my employers can withhold a paycheck. Like Boise State did when I refused to quit from the Pavilion and was forced out.

Here are some other examples where it's completely fair: if I leave my apartment before the lease expires, I still have to pay 30 days rent AND a buyout fee. If I use a full year's worth of sick leave and quit my job in March, they'll withhold my revenue for the sick time I hadn't earned yet. If I were to make an album for a record label then refuse to promote or tour, they can withhold revenue from royalties. If I work at a research lab and discover a new miracle cure but leave before it's approved for sale, they keep the patent.

People, this is exactly how every other contract in life is written. The whole idea of a contract is that the other side can rest assured that if you don't hold up your end, they can recoup expenses for your loss.

Oh, the irony, bronco24...

Can YOU read, moron? Haha. Wow.

BSU loses its earned revenue AND pays an exit fine, which is "the greater of $5 million OR double the year-end distribution."

Um... not so much..

Bronco 24 is right.. It's YOU who apparently cannot read.

No more marshmallows.

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

Are there actually illiterite folks here with a friend reading?

It could be possible and I would thank the reader as well but I'm doubtful.

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

Ridiculous

This Mtn. West move was the worst possible deal for us. We are off of ESPN and stuck with the Mtn. Commissioner Thompson doesn't promote our interests. We have been disrespected by allowing the whole "blue-on-blue" prohibition (as if it was the uniforms that have made us nigh unbeatable). Now, the Pièce de résistance ... we can't get out of this crap-hole of a league unless we pay $21 million to prop up a bunch of teams that are sub-standard even when compared to the teams in the WAC. I love Dr. Kustra and Coach Pete and I never had a problem with Gene but this is a mess we've gotten into.

Hey bmurphy

Hope you're happy... your article has brought out all the conspiracy theorists who bought into the sensationalist idea that the MWC is somehow gouging Boise State by agreeing to the terms of the contract.

Paranoid schizocornflakery

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

Actually an investment that is worth it

If Boise stays in the MWC, it will cost them $300 million in the next decade, both in lost revenue from being in the title hunt, and also multiplied by remaining in a league where they cannot reach the highest levels they seek... aka a National Championship because they are pulled down by weak competition. Maybe in 10 years Boise can revisit a Western Conference- but only if the members of that league also do their part to be considered a top shelf conference and enjoy the benefits of membership in the elite.

As the Vandals have a prayer of ending up in the Alliance, any fool knows it will be a low-rent district in college football. Mitigate and negotiate with the MWC, and move on up to Tier 1.

Big Picture

If we stay in the Mountain West, Boise State will be fine. If we give up $21 Million to join a BCS conference, Boise State will be fine. In the big picture, non of this will matter.

Yes, I would give up a paycheck if I was going to earn double somewhere else. Look forward, not behind.

Wanna buy my house?

whoever spearheaded and negotiated the move to WAC 2 should be fired. oops, he already was. maybe i can get someone from BSU to buy my house?

soap apera saga nation days of our lives

I get a kick out of the nations program coming this far in thirty since they won the division 1 double a title coached by Jim Criner and all the beat writers from here feed us this information another slow day

Nation stay where you are

if you do it will not make sports center anymore enjoy the season must be a slow sports day

BSU should get a U of I lawyer and ......

sue the MWC for misrepresentation because the MWC were in, isn't the MWC we agreed to join.

I'm just kidding about the U of I lawyer, but I bet it made ya read my post ;-)

I think that is one of the reasons ole Kustra

is actually playing ball with the Big East. He got told no blue on blue, in the middle of a MWC business call. The fact that MWC people were dictating a fashion choice like they are on TLC should have been a red light. Now with a comish that doesnt like us the way the WAC comish did I think Kustra is just kind of taking time and doing due dilligance this time. But when it is all said and done, BSU to the Big East is really kind of already a done deal.

ole Kustra

Potato Head who is your inside source let me guess Potato Head

Pay to Play

It is interesting that TCU is not only paying the MWC a large exit fee but is also obligated to the Big East for another 5 milion to get out. No team has turned down an upgrade due to an exit fee. That being said, it looks like waiting until 2013 is a better move. Pitt and Syracuse are not leaving the BEAST until 2014. Not sure there is room in conference until then.

TCU pays nothing...

... to the MWC. There was no exit fee when they, BYU, and Utah chose to leave. The exit fee was implemented as a reaction to TCU leaving.

tc u pays nothing

whining whining whining oh by the way get your facts right

Even it it cost $21,000,000

BSU is still better off than the vandals. I love all the vandals coming out of the closet because they have nothing to cheer for, so their only hope is to cheer against BSU. No matter what, BSU will be better off without the dregs of the north as a partner in football.

Yea

If you base your worth as a university on a football program. 21 Million - no problem. Just raise season ticket prices and cut some more academic programs...again.....

I wouldn't care if BSU was still playing in the BIG SKY

Boosters will cover the cost. The only academic programs that have been cut from BSU are vo-tech and that was because of CWI, not football.

However, season tickets will once again be raised, and, again, the stadium will still sell-out. And the vandals will still have to use creative accounting to get to 10,000 in the barn at comparatively free ticket prices.

Personally, I don't like the move to the Big East.

The only reason to do it is money. BSU can make up the $21 simply by receiving the TV money in the Big East and always getting a large share of BCS money simply by being in a AQ conference. Put it this way, BSU leaving the WAC is going to cost that conference about $1,000,000 per team this year. BSU will make more money as a member of an AQ conference than the entire WAC will make next year for football, even if we don't go to a BCS bowl. I think that is crazy, but it is the world of D1A football these days.

big sky is a good option

if the nation was in the big sky again most of the people around here would smile more

And you could see the big smiles on their faces?

.

What if he could? Wouldn't it be nice?

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

RIP BCS

Doesn't matter whether stay in MWC or slide over to Big East for BCS automatic bowl bid...because BCS can't survive this scenario:
Broncos win rest of games.
Tulsa wins Conf USA championship...undefeated so far in league...final game vs Huston will probably be for crown...and BSU has already blown away the Golden Hurricans.
Toledo is only unbeaten in MAC league play and likely champion...Broncos have already disposed of them.
Fresno State and Nevada lead the WAC standings, and the Broncos have already trampled them both.
Georgia is looking like winner of the SEC east division and could beat the west leader in championship game...which is in Atlanta...Broncos already beat these dogs.
If all this happens (and why not--10 years ago nobody would have thought such speculations sane by 2011) Boise will be the undefeated chamption of its own league and will have defeated the champs of four other leagues...and it will have several NFL draftees among its seniors...and its quarterback will have the most victories of any major college QB ever...and he will also be a Heisman finalist.
If a team with such a record was not invited to play in the BCS championship game, the BCS would be gone...it would have to commit harikari in shame. And surely the BCS would do the honorable thing.

Interesting

I didn't even think about the home advantage if UGA plays in the championship game, though I'm not sure it would be enough. That said, one of the first articles Brad Edwards (espn's BCS guru) wrote this year was that Boise State's schedule might actually be their strength this year, and the first BCS rankings have at least proven the OOC part by putting Boise State above Stanford, Wisconsin, and Clemson.

Also, virtually everything I've read has suggested that if Georgia wins the SEC (which would mean LSU and Alabama would have at least one loss each), that would elevate Boise State to play in the National Championship. The only team that could beat them out (presuming the Big 12 champ is already in) would be Wisconsin. and they wouldn't be able to say they beat the SEC champs.

Bonwell - very interesting

So BSU and UGA met again in the Natty game?

I wonder what the probability is of this scenario happening?

VNDL

Zero is the

probability....

A higher chance would be Oklahoma v Boise for the NC....

Remember to vote everyday

Vote once a day everyday

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http://www.voteobrien.org/

http://www.coachoftheyear.com/default.aspx#fbid=tGZTZqaQcI3

GO BRONCOS

bashful vote for what

please explain bashful

vote for Obama Weisberg

You will fit right in.

STOP STOP STOP STOP STOP

For goodness sakes, people... give us ONE place to not have to read about politics.

Then why in the he11 are y'all doing it to COLLEGE FOOTBALL?!?

Sounds like a stuck pig that can't begin to die fast enough.

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

potato head

you are going to be reported to you know who

Yes, we all got that, come down and talk if you would.

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I NEVER hate telling you I was right...I would be dead if I did. Get real.

Weisberg, no I dont know who

could you explain?