Arizona State Univ. "is terminating its athletics multimedia rights agreement with IMG College," claiming more than $5M in damages from IMG for "failure to meet contract obligations," according to Jeff Metcalfe of the ARIZONA REPUBLIC. Documents show that the dispute with IMG -- ASU's rights holder for football, men's basketball, women's basketball and baseball since '09 -- "goes back to at least" October '12. ASU "sent IMG a notice of default in August 2013 then subsequently conducted an audit of IMG's performance and payments while seeking a resolution that it never achieved." ASU VP/Media Relations & Strategic Communications Kevin Galvin yesterday in a statement said, "We were hopeful that a smooth transition process could be put in place as we begin to seek a new partner to promote Sun Devil athletics and discussions about IMG's outstanding obligations to the university continue. But as of Oct. 27, IMG will no longer be managing multimedia rights for ASU athletics." Documents stated that IMG's "inability to 'provide full and effective coverage' throughout Arizona as well as in Las Vegas and Southern California is where ASU has suffered the greatest damage." ASU claims that it "is owed $4,295,393 for 'failure to provide (sufficient) radio coverage' and considers that only a base-market loss with alternative calculations putting the loss at more than" $8M. ASU also "is seeking in damages from IMG: $763,270 for required radio spots it did not receive, $536,124 for a trade credit dispute and to recover its audit costs." There also "is an issue over [a] royalty payment from a Pac-12 wireless buyout." Documents show that in February, when ASU named Ray Anderson VP/Athletics, it "renewed efforts to come to a resolution with IMG." It "is not certain what action, if any, IMG might attempt against ASU for contract termination" (ARIZONA REPUBLIC, 10/22).
REVENUE JUMP: Metcalfe reports ASU during FY '13-14 "generated a school-record" $74.7M in revenue, giving the athletic department a "small surplus for a second consecutive year." ASU is up about $9M "in revenue and expenses" over '12-13, when it was at $65.6M "in both categories." The school's revenue jump is "mostly due to ticket sales [up $3.3M], primarily because of having seven regular-season home football games" last year. There are six home games this year, as well as a "lower seating capacity due to the start of reconstruction at Sun Devil Stadium" (ARIZONA REPUBLIC, 10/22).
