Wichita State pays $2.5 million entrance fee to join American conference

Wichita State wired $2.5 million to the American Athletic Conference earlier this week to pay its entrance fee, athletic director Darron Boatright said.

The fee and other details regarding Wichita State’s entrance into the American — which becomes official on July 1 — are in the American Athletic Conference Membership Expansion Agreement dated June 15 and released on Friday by the university.

Boatright said the entrance fee was paid for with a loan to the Wichita State University Intercollegiate Athletic Association from the Wichita State University Foundation. It will be repaid, he said, from private funds. Fund-raising is ongoing and Boatright declined to reveal the amount in hand.

Wichita State will also pay $41,400 annually into the American’s reserve fund for five years, as other conference members did at the time of their membership.

▪  The contract refers to Wichita State as a “Basketball/Olympic Sports-only Member.” WSU is required to maintain its current roster of 15 sports.

▪  Should WSU decide to add football at the Football Bowl Subdivision — a move ruled out in the foreseeable future by university president John Bardo — it will not compete in the American unless approved by conference members. The conference must be notified at least one year in advance should WSU want to add sports to compete in the American other than football.

▪  WSU transfers the ability to represent its media rights to the American on July 1, except for the remainder of the local television package with Cox Kansas. WSU’s contract with Cox Kansas expires after the 2017-18 season.

▪  Wichita State will not share in previous NCAA Tournament basketball revenue earned by conference members.

▪  Wichita State’s share of conference payments from media rights and sponsorship revenues is also limited because it does not sponsor football. In its fourth year of membership, it will receive $250,000 annually, money designed to help WSU recover from losing its share of NCAA Tournament revenue earned as a Missouri Valley Conference school and forfeited by leaving the MVC.

WSU estimates the move to the American will cost it around $1 million in money lost from MVC revenues, the majority of that coming from NCAA Tournament victories. Those annual distributions account for the bulk of WSU’s money — in 2015-16 it received $769,402 in gross NCAA Tournament revenue from the MVC to account for its three NCAA games.

▪  WSU, as are all American members, is eligible for a $650,000 bonus for making the men’s Final Four and $300,000 for making the women’s Final Four.

This story was originally published June 23, 2017 at 5:56 PM with the headline "Wichita State pays $2.5 million entrance fee to join American conference."