ISU Would Pay 3.85 Million Penalty Over Contract Appeal

**cyclone13** · 09-12-2011, 11:34 AM

Sports marketing: ISU would pay $3.85 million penalty over contract appeal | The Des Moines Register | DesMoinesRegister.com

Can anyone help me understanding this ?

**huntt26** · 09-12-2011, 11:39 AM

Yeah I'm confused.

**Stormin** · 09-12-2011, 11:42 AM

It sounds like if we nullify our agreement with Learfield then ISU would have to pay a penalty.

**StormnClone58** · 09-12-2011, 11:43 AM

my head hurts after trying to read that ... my understanding is that isu would have to pay a "no bid" fee to learfield sports communications if another company made a bid on the contract to do so ...

**SvrWxCy** · 09-12-2011, 11:43 AM

Basically it sounds that if Iowa State were to bid their tier 3 rights back out they would have to pay this penalty to do so.. So for example, if the big 12 were to create a new channel for the tier 3 rights we would likely have to pay some sort of penalty to Leerfield to switch over. No huge deal as far ad I'm concerned and not sure why it is a story today.

**SvrWxCy** · 09-12-2011, 11:44 AM

Basically it sounds that if Iowa State were to bid their tier 3 rights back out they would have to pay this penalty to do so.. So for example, if the big 12 were to create a new channel for the tier 3 rights we would likely have to pay some sort of penalty to Leerfield to switch over. No huge deal as far ad I'm concerned and not sure why it is a story today.

**Ames** · 09-12-2011, 11:44 AM

They didn't put the contract out for competitive bidding by a lot of companies. They just signed with Learfield. It's in the contract that if some other company sues (and wins) by finding something illegal with that process or has to void the contract for some reason then ISU pays Learfield the $3.85 million. Most gov stuff goes out for bid or has some kind of RFP process.

But I'm not a lawyer so who knows.

**crash_zone** · 09-12-2011, 11:57 AM

Why didn't they get a bid on it in the first place? And why have it set so far out into the future? If the B12 falls apart, it helps us with some income I guess.....?

**Tre4ISU** · 09-12-2011, 11:59 AM

I would think that somehow, if the Big12 was responsible, for example creating a B12 Network, they would foot some of this.

**rebecacy** · 09-12-2011, 12:00 PM

Originally Posted by cyclone13

Sports marketing: ISU would pay $3.85 million penalty over contract appeal | The Des Moines Register | DesMoinesRegister.com

Can anyone help me understanding this ?

IT'S A NON_ISSUE, WHOMEVER BOUGHT THR RIGHTS AWAY FROM LEARFIELD WOULD PAY THE PENALTY !!!!! Frik'in RAG again.

**JD720** · 09-12-2011, 12:26 PM

Originally Posted by rebecacy

IT'S A NON_ISSUE, WHOMEVER BOUGHT THR RIGHTS AWAY FROM LEARFIELD WOULD PAY THE PENALTY !!!!! Frik'in RAG again.

Wrong. ISU might try to negotiate that with the new party, but it wouldn't be a given.

**JD720** · 09-12-2011, 12:29 PM

Originally Posted by SvrWxCy

No huge deal as far ad I'm concerned and not sure why it is a story today.

ESPN had a story about Iowa's contract with Learfield. I'm not really sure why either is a story, but I would guess the register saw the Iowa story so they decided to look into the ISU contract.

http://www.cyclonefanatic.com/forum/...ting-deal.html