I guess that means that the Big 12 will hold MU to the exit fee fire.

Maybe if MU delays this thing the Big 12 will just say leave already & forget about the exit fees!

Their fees were based on an intact conference. I would think the damages would be less for Mizzou, as the conference was already badly damages from the losses of aTm, Nebraska, and Colorado.

My guess is that $6 million is the ceiling, and the lawyers negotiate down from there. As many times as Neinas has said the conference will be fine without Mizzou, that could come back to bite him when trying to claim damages.

Yes.

Yes.


I'm not sure what's unclear here - the IIX evidently intends to offer MU some fairly hefty concessions on the exit fees (and probably drop all legal challenges) if Mizzou agrees to stay in the IIX for 2012.

It's probably the right decision for all parties. I'm as eager to get out as the next guy, but I don't want MU or its boosters throwing a ton of money at legal fees (and there would be plenty) if this thing has to go to litigation. There appears to be a lot more animosity surrounding MU's move than there is w/ A&Ms, so MU needs to do something to grease the skids on the way out. Staying in the IIX for the 2012 season would be annoying, but not terribly painful. Sign the contracts with the SEC, save several million and a lot of headache, be ready to hit the ground running in 2013.

Or call their bluff. Seems petty, but it could happen.

I wonder if Mizzou and the Big XII have an agreement that they'll lower the exit fees and let them leave in 2012 if MU doesn't formally move until the BXII has a replacement lined up and ready to go...has to be something like that as to why this is dragging out.

Makes sense with the WVU chat heating up this morning...

Also, there's chatter supposedly this morning too about Notre Dame moving all non football sports to the Big XII as well...

Good luck with that. If $6 million was the ceiling, MU would have announced they were leaving by now.

A damages claim is less relevant when discussing a liquidated damages provision. At that point, all he has to do is establish 'damage' in general, then fall back on the liquidated damages provision.

It's sufficient to form a cause of action, if nothing else. And the way the value of one of these is generally calculated is you take the best case scenario $$ figure and multiply it by the odds of winning then subtract legal fees. So if you're the IIX and you think you have about a 50/50 shot at winning a $24 million lawsuit, then the 'value' of the suit is placed at right around $12 million (minus fees) and that's where you start your negotiations from.

Now the IIX has done some stuff in the interim to make the damages more calculable (i.e. the payoffs from NE and CO), but that again just speaks to the odds of winning. MU may be able to argue that the damages can be clearly calculated, thus making the liquidated damages clause punitive in nature and thus unenforceable. But even then, MU's 'best case' scenario is the $6-9 million the other schools have paid out + legal costs.

MU doesn't really have a hell of a lot of leverage here. The suit is probably worth right around $9 million when you get right down to it. Is it 'fair' to make MU pay more than CU when they leave? No, not really, but fair's got nothing to do with it. MU needs to continuing playing nice until the final figures are agreed upon then get out with as little financial damage as possible.

Every booster dollar not spent on exit fees or legal fees is a booster dollar that can go to facilities. Let's keep an eye on that when discussing this stuff.

The Big XII's expressions of Missouri staying are to appear as though all the impetus of Missouri leaving is their own. The Big XII is really under no deadline to have this done, all the time pressures are really on Missouri. If Missouri wants to play in the SEC next year, they have to give the schedule makers enough time to make that happen and negotiate any changes to their existing schedule for next year, if necessary.

The SEC schedules are made. That's no obstacle. Do you really think time is in the Big IIX's side? The Big IIX has to add a bunch of city schools and apply flame redardant to every couch in the midwest.

If Mizzou was in a hurry, they would already be gone. The longer Mizzou stays, the more the Big IIX is handcuffed.

you are conveniently forgetting that the remaining members met after NU and CU left and all went through everything. These fees are based on that. CU and NU are meaningless.

According top the SEC they haven't done anything except plan for a 13 team schedule, and those are even complete.

After the members left, they put together a bunch of non-binding resolutions and commitments to commit.

They didn't change the by-laws or the fee structures.

The exit fees will be calculated under the same language used when NE and CO left. That language is nebulous at best (and malpractice at worst). It absolutely leaves itself open to challenge and it will definitely be the only reason MU may get out of this thing for around $8 million or less.

What I hadn't really considered to this point was the possibility that the SEC is telling MU that it's offer is contingent on arriving in 2012. Deaton seems pretty dead-set on going to the SEC next season and that just doesn't seem like him. I wonder if the SEC isn't forcing MU's hand a little bit here, in which case we'll probably end up cashing out for a little bit less than Nebraska did.

Good point. I forgot that the other members could meet and go through everything thus unilaterally changing the agreement.

I mean, as long as the other members "went through everything", it's settled.

MU is not in control of this other than trying to minimize exit fees. And if they wait to long, exit fees will go up if they plan to leave next year.