JayBee
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Post by JayBee on Jul 6, 2024 21:23:38 GMT -5
Schools have got to do better job of engaging outside counsel when it comes to these deals with these companies. ...and they should know better being they have a law school.
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Post by The Professor on Jul 8, 2024 12:37:48 GMT -5
Very true. Which is why its interesting that they are in this situation
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Post by blessedaggie84 on Jul 8, 2024 14:38:15 GMT -5
In the same way we dont fully use our Engineer programs for stuff we do on our campus why would you expect Central to use their law program to help with this contract stuff?
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jbrob
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Post by jbrob on Jul 8, 2024 14:54:05 GMT -5
Don't most athletic programs operate in the red?
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aggieclt
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Post by aggieclt on Jul 9, 2024 8:38:55 GMT -5
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Post by aggie2039 on Jul 9, 2024 9:18:27 GMT -5
BySteven J. GaitherPosted on July 9, 2024 Durham, NC – July 8, 2024 – Peak Sports, represented by attorney Cooper Walker of Frost Echols, has formally addressed concerns over recent statements made by Dr. Skip Perkins, Athletic Director at HBCU North Carolina Central University (NCCU). Walker’s letter, sent to the NCCU Board of Trustees and the Office of the Chancellor, clarifies what the company views as inaccuracies in Perkins’ comments about the contractual relationship between NCCU and Peak Sports. During the NCCU Board of Trustees meeting on June 25, 2024, Dr. Perkins made several statements that Peak Sports believes to be factually incorrect. The disputed claims include assertions that Peak Sports receives 40 percent of all sales revenue, whether sold by Peak Sports or the institution, and that NCCU has made numerous attempts to terminate the contract. Walker outlined the actual terms of the agreement, specifying that the Durham, NC-based HBCU retains 100 percent of revenue up to $100,000 annually, while Peak receives 100 percent of the revenue between $100,000 and $275,000. Revenue beyond $275,000 is shared, with 60 percent going to NCCU and 40 percent to Peak Sports. This contradicts Perkins’ claim that Peak Sports gets 40 percent of everything sold. Letter-to-NCCU-Athletics Additionally, Walker refuted the statement that Peak Sports gets 40 percent of items sold by NCCU. He clarified that although the original contract had such a clause, it was amended on May 5, 2023, to allow NCCU to raise funds independently without owing a share to Peak Sports. This amendment, signed by Perkins, means that Peak only earns from sponsorships it directly secures. Peak Sports does not intend to pursue legal action, provided the inaccuracies are rectified in the Board’s official records and addressed in the next Board meeting. hbcugameday.com/2024/07/09/hbcu-ads-statements-refuted-in-letter-by-peak-sports-attorney/
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Maxell
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Post by Maxell on Jul 9, 2024 9:54:28 GMT -5
It's actually a really bad deal. If Peak secures $500K in advertising, Peak gets $265K of it. That's 53 percent!
It's only good for NCCU if Peak secures less than $100K.
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Post by aggie2039 on Jul 9, 2024 10:02:12 GMT -5
It's actually a really bad deal. If Peak secures $500K in advertising, Peak gets $265K of it. That's 53 percent! It's only good for NCCU if Peak secures less than $100K. One cost to consider is manpower cost savings...how much does a FTE cost for NCCU to secure $500K? You must have a certain caliber of person to speak with corporations and negotiate. Must pay atleast $70K in salary
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Post by Aggie One on Jul 9, 2024 10:09:46 GMT -5
The only explanation I could figure out for anyone in their right mind to sign this suicide pact is they never believed they would ever exceed that threshold in advertising revenue. That's beyond being just shortsighted. That is the definition of malfeasance.
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Maxell
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Post by Maxell on Jul 9, 2024 10:15:18 GMT -5
It's actually a really bad deal. If Peak secures $500K in advertising, Peak gets $265K of it. That's 53 percent! It's only good for NCCU if Peak secures less than $100K. One cost to consider is manpower cost savings...how much does a FTE cost for NCCU to secure $500K? They are only getting $235K cash in hand in my example.
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Post by aggie2039 on Jul 9, 2024 10:22:11 GMT -5
One cost to consider is manpower cost savings...how much does a FTE cost for NCCU to secure $500K? They are only getting $235K cash in hand in my example. I understand, just looking at cost benefit analysis. They need to secure $400K is sponsorship to break even if they had 1 full time employee doing the job
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Post by Bornthrilla on Jul 9, 2024 10:30:33 GMT -5
It's actually a really bad deal. If Peak secures $500K in advertising, Peak gets $265K of it. That's 53 percent! It's only good for NCCU if Peak secures less than $100K. One cost to consider is manpower cost savings...how much does a FTE cost for NCCU to secure $500K? You must have a certain caliber of person to speak with corporations and negotiate. Must pay atleast $70K in salary Actually, I can kind of see the logic in what NCCU was thinking. It will take at least $100K (salary & benefits) to get just one good corporate development officer on staff. So if this deal guarantees you at least $100K in profit, the next $175k would in theory be going directly to the outside sales staff and their overhead. The school gets all of that initial $100K and the outside sales staff gets 0 and assumes all of the risks. While that next $175 in profit might sound like way too much to be giving away, if NCCU looked at the 10 year average of their annual advertising revenue and saw that they were only getting less than $200K even on a good year, they might figure they'd receive the same net profit in this deal without having to do any actual work. This is pretty much a lazy man's way for doing corporate sales. Little effort, small reward.
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Post by Bornthrilla on Jul 9, 2024 10:35:06 GMT -5
The question is what is a legitimate ad revenue goal for a school like NCCU?
And also, what would be a legit ad revenue goal for a school like A&T?
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A&T-roy
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Post by A&T-roy on Jul 9, 2024 10:43:59 GMT -5
If what Peak says is right and what Perkins said is wrong, Perkins should be in trouble.
Quote a bit different from actuals.
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Post by westcoastaggie on Jul 9, 2024 10:48:57 GMT -5
The question is what is a legitimate ad revenue goal for a school like NCCU? And also, what would be a legit ad revenue goal for a school like A&T? I think for A&T, we should look at what a few of our FCS Peers receive revenue-wise in this venture and look at what our comparable NC System schools receive (App State, UNCC, ECU, NCCU, UNCG, WCU). Here's an example of the corporate sponsorship, endorsement, and licensing revenue featuring A&T and these schools. knightnewhousedata.org/reports/4cab35bdFrom this data, for us the min should be $500,000 with a goal of $1 million. I am just not sure what expense should go into that. I'm assuming, just based on my experience, we'd probably spend about $175,000 - $250,000.
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