Here is the article:
http://espn.go.com/college-football/story/_/id/10744431/ohio-state-footb...
The thing that gets me is that Kent State and Cincinnati are getting $850k guaranteed each for those games this year. I am assuming that the payout is less for us as we have a Home-and-Home deal with OSU. Does that make sense?
I doubt OSU does Home-and-Home with other Ohio schools...
Forums:
DISCLAIMER: Forum topics may not have been written or edited by The Key Play staff.
Comments
who is OSU? do you mean anOSU?
I hear it's a great school located out in Corvallis
The payout is LESS because it is going to hurt MORE when we take their money AND their season with an upset win.
Are we just taking their money and their season? Couldn't we party and steal their girlfriends as well?
Yes.........
Hilarious Joke. Hot Girl. Sherlock?!
I don't exactly know how these things work but doesn't the amount that you get paid correlate to the level of competition. This is the major benefit for small programs or D2 schools playing up and getting their ass handed to them... well, except for JMU.. but you know what I mean.
maybe that's wrong...
I think you're right. Its probably actually a tip of that hat VT is being paid less, and almost an insult to Cincinnati that they're being paid so much.
Like you said, he has to be because it is a home-and-home deal. Kent State and Cinn. are not going to get the ticket revenue that we get in 2015 when the Buckeyes come to Lane.
I wonder if VT will be paying Ohio State when they come to Blacksburg? seems odd that one team would pay another for a home and home, but maybe I just don't understand the arrangement
I doubt VT will pay them. The payment is for the deal which helps ticket sales for them and boosts their revenue. So we essentially get a cut of their revenue because they stand to make a lot of money on the game. The payout is likely the difference between the revenue we will make on a home game versus the revenue they will make. You don't see if happen often with schools similar in size like ECU. The other part could be that they are paying us so they can have the home game first.
A 34,000-seat difference between Ohio and Lane means that you make sense.
settin' the record straight
http://www.landgrantholyland.com/2013/10/16/4844282/a-closer-look-at-ohi...
So let me get this straight. We're getting paid $350K from them, then we pay them $350K. Hmm, seems like two wasted checks to me.
that's the point... there will be no checks.
I would imagine that the $350K is to help with travelling expenses since it's the home team who pays the visiting team each year. From reading the article, it appeared to me that the contract was written to protect the teams in the event that one of the two games is cancelled for some unforeseeable reason. If we travel to anOSU they'll pay us $350K for making the trip but if for some reason our game in Bburg is cancelled and they can't make the trip I would think that we are no longer obligated to pay them the $350K.
It's just the lawyers covering arses....it wouldn't be two wasted checks if one of the games never happens.
I would say then that the likely reason for each school to pay $350k to the other is for budgeting purposes. The school will make a budget and use that $350k for some purpose in 2015 while it operates knowing it must pay $350k in 2014. It's all a matter of putting it on paper saying "this is how much is coming in and where it's going and this is how much is going out with where it's going."
For accounting purposes the payments should occur when the event occurs. Cash flow will have to be recorded in the books, so cutting two checks makes sense.
Except we receive their money, invest for a year and make profit, give them 350k back = Profit to us.
That money has already been spoken for...as Buzz's contract!
Yes, except VT also incurs additional expenses first thus negating much, if not all, of the float.