In Depth Look: Chicago State’s New Member Agreement to Join the NEC

Recently, we were able to obtain a copy of the New Member Agreement between Chicago State and the NEC. This document is from way back in Deccember of 2023 when the Cougars agreed to join. So it’s old news, I suppose.

But just because it’s old news doesn’t necessarily mean it’s not worthwhile to talk about. For one thing, I haven’t previously seen the nitty gritty details of the contract discussed. And for another, we’ve obviously been talking a little bit about the prospects of Chi State going from the NEC to the OVC. Our opinion? Not happening.

Our opinion isn’t based purely on conjecture. Some of it is from a deep read of this very contract, and so let’s talk about the in depth details that are worth knowing about the terms between the NEC and Chicago State.

Membership Terms

This looks to be pretty standard stuff. Chi State agrees to provide the documentation that proves it is meeting conference obligations, will put all of their teams in the NEC for sports sponsored by the league, and will actually meet obligations. This is in the Conference Code, which I do not have a copy of.

Intellectual Property

This section is an agreement that Chicago State and the NEC will mutually announce that Chicago State is joining the NEC. Additionally, the NEC can use Chicago State’s name, logos, and brand identities without paying a fee.

Representations and Warranties

An interesting note in this section is that outstanding obligations to the former conference is a requirement here. I was unaware that this was something that would be necessary- in the days of big exit fees, it would seem to me that sometimes a large fee might take some time to repay. It does also mention the importance of the school being able to meet the transition obligations, which I suspect is in reference to the transition from Division II to Division I, but I can’t confirm this.

Sorry. I’m not a lawyer.

It also requires that the president of a university is able to enter into the agreement, Chicago State is an associate member in any other conference in good standing, and that there is no agreement preventing Chicago State from meeting obligations.

Payments

We’ve all been waiting for this. Payments are the juicy part, after all.

Unfortunately, this is one of the sections that is somewhat censored. But there’s still some good information here. Remember, most of this contract- if not all- is likely very similar to the ones any new addition would have signed.

The NEC will reimburse either half or a blacked out flat fee of any associate membership exit fees. (I had long been told that the NEC was willing to reimburse RMU to get them to leave the OVC-Big South, and this seemingly confirms that). It appears this is considered the Signing Bonus.

If, however, Chicago State leaves within 10 years of joining, it will have to pay back said signing bonus. This is in addition to fees for entering the conference (blacked out) and an exit fee. There are two fees outlined: one for within the first four years in the conference, and one within the first ten years. These are blacked out, but we can assume the four year fee is higher.

Chicago State pays annual dues to be in the conference, and there is a separate additional football dues. Chicago State gets revenue distribution as outlined by the NCAA.

Given the known fees, can Chicago State really leave for the OVC? I guess it depends on what’s blacked out.

Termination

Chicago State has the right to leave the conference as outlined by the Conference Bylaws (we don’t have a copy of this). They’ll pay the termination fees as outlined (the NEC will not recoup expenses unless the association is long term) and the fee is not considered a penalty, which I suspect is a legal consideration of some kind. If the Entry Fee is not yet paid off, it is due immediately upon termination of membership.

Miscellaneous

This agreement takes place in New Jersey and any lawsuits must be heard there. This (along with the Conference Code) embodies the entire understanding between the NEC and Chicago State. The agreement is binding, even if there is leadership changes. A signed facsimile is still binding. There’s a clause about defending the conference in the event of a withdrawal from another league, but this does not apply to Chicago State.

Exhibit A

If Chicago State discontinue a sport sponsored by the conference, a financial penalty is assessed. Chicago State needs to reach average operating budgets for all conference sports by 2026-27. Chicago State agrees to get the Front Row equipment, an instant replay system, and at least 3 LED scorers tables for the basketball court.

Again, I am not a lawyer, but that’s the contract as I understand it.