| 24 January 2012
As further updates and information have become available, we have felt it's best to resolve any confusion. Due to the sensitive nature surrounding conferences and finanancial settlements, we have updated our article.
The Big East and WVU have come to a settlement on the lawsuit surrounding WVU's intent to leave the Big East for the Big XII. Today the Big East announced that they would be welcoming The Naval Academy into the conference in 2015. The Big East also stated that they would be immediately increasing the exit fee from the conference to $10 Million. As a reminder, in October the Big East schools, including WVU, voted to increase the exit fee to $10 million. However, that increase was only to be implemented with the addition of a new school to the conference. That new school was originally supposed to be TCU.
Now that TCU is Big XII bound the next school(s) to join will be those who were announced for the 2013 season. The immediate increase to the exit fee allows all parties to move forward while still adhering to the conference bylaws. On the surface it looks as if WVU is paying the $10 million exit fee in addition to the $2.5 they had already paid. However, that is not entirely the case.
The Big East/WVU settlement coincides with the immediate increase to the exit fee. WVU has agreed to pay the $10 million exit fee as a settlement to the Big East. When WVU announced their intent to leave the Big East and join the Big XII they were only bound to the $5 million exit fee. WVU immediately sent $2.5 million of that fee to the Big East with their official letter of intent. Although the Big East stated that they did not accept the letter as an official announcement they willing kept the $2.5 million.
The Big East can only claim damages of WVU's departure for the 2012 season because of the additional schools entering in 2013. WVU would be responsible for approx. $7.5 million in damages for that year. WVU will also be responsible for the rest of the $5 million exit fee they are bound to. Therefore, WVU will be responsible for an additional $10 million to fulfill their settlement agreement with the Big East. The $2.5 already paid and the additional $10 they will owe totals $12.5 million.
As stated in the original article, the Big XII has also helped with the agreement of scheduling Big XII and Big East schools for home and home contracts. This helps the Big East financially for a media standpoint.
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