The University Senate passed a resolution at its meeting on Wednesday endorsing a compromise about how the Big East conference exit fee would be paid. Syracuse University Athletics, according to the compromise, would be charged at least 25 percent of the $7.5 million fee.

“The ACC provides a revenue stream not available at the level of the Big East,” said Craig Dudczak, chair of the senate’s Committee on Budget and Fiscal Affairs. “The decision was never whether we’d go to the ACC, but who’d pay for it.”

The compromise still needs to be approved by the Board of Trustees, which initially approved having non-athletic centers pay the majority of the fee. The argument was that the move to the Atlantic Coast Conference would benefit the entire university, Dudczak said. He, along with members of budget committee, negotiated the compromise with the administration.

The Board of Trustee’s initial decision was met with debate in the spring, and led to the senate passing a resolution for SU Athletics to absorb the cost. Chancellor Nancy Cantor suggested the Board of Trustees put its plan on hold in May, Dudczak said, so a compromise could be reached.

The compromise consists of two parts. First, SU Athletics would be charged 25 percent of the exit fee in increments during 10 years. Second, should athletics receive additional, unexpected revenue — or “windfall unrestricted revenue”— 15 percent would go toward reducing the balance other areas of the university would pay.

For example, Dudczak said, if the athletic department received additional revenue from a new ACC TV contract, 15 percent would go toward paying the exit fee.

The issue of who should pay the exit fee has been controversial, as the decision would have to balance both the interests of the athletic department and the rest of the university. But in several senators’ opinions, the compromise provides the best possible outcome.

“Like most compromises, it’s not as good as you’d like, but it’s a compromise,” said Robert Van Gulick, a professor of philosophy, at the meeting. “But we were able to lead to change, and that set an important precedent.”

For Deputy Athletics Director Herman Frazier, the exit fee is worth every penny. He believed staying in the Big East conference any longer would hurt the university financially.

“When these opportunities present themselves, they put us in the position to go forward,” he said.

Some details of the compromise:

– SU has already paid two exit fee payments of $2.5 million and $1 million. An additional $1 million will be paid in each of the next four years.

– SU Athletics’ contribution, with the compromise, would increase from $375,000 — or 5 percent — to at least $1.875 million during the next 10 years.

– The athletic department will get about $14 million from ACC membership this fiscal year. This is an increase of $6-$7 million from the Big East’s estimated payment to SU during the last fiscal year.

– The total financial benefit to the schools and colleges during a 10-year period would total to approximately $17 million.

Published on October 10, 2013 at 1:56 am

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