[Husker] buyout penalties

[Mike Jaixen]

>From my understanding, "penalty" clauses are not enforcable.  But "liquidated damages" are slightly different; it's a negotiated settlement based on the harm that one's actions cause to another if the agreement is broken.  The "damages" are due to the conference, not each individual school, and the conference is free to disperse the funds however they please.

But in this situation, Harvey Perlman is going to argue that no damage was done to the Big XII.  In fact, the conference's TV negotiations (as well as the comments of Missouri Governor Nixon) indicate that the Big XII has not been harmed by Nebraska's departure, thus no need for the damages clause to set in.  ESPN/ABC has indicated that they will not change the terms of their existing TV deal, so no damage was done there.  (In fact, on a per-school basis, the Big XII will earn more.)  Fox is actually bidding more for the upcoming Big XII deal  than for their current Big XII deal, so no damage there either.

 Mike Jaixen
http://huskermike.blogspot.com
http://www.cornnation.com




________________________________
From: STUART JONES <dopc67 at comcast.net>
To: husker at tssi.com
Sent: Wed, June 16, 2010 8:01:12 AM
Subject: [Husker] buyout penalties

What would the civil implications be in this deal if NU has to go to court
to avoid "liquidated damages" -not a penalty?" It's ok to damage 8 teams but
not the semi sacred 2 and the sacred one? That three teams get rewarded for
not breaking a contract they were ready to break? I'm not a lawyer but the
equity of this looks pretty weird.
Stuart Jones


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