CL82
NCAA Men’s Basketball National Champions - Again!
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Let’s say the value of the ESPN contract is 40 million per school. We know from the special section Notre Dame in the ACC bylaws that the value of football is 80% of that contract. Notre Dame football is independent and not a part of the ACC contract. so the value of Notre Dame‘s grant of rights to the ACC for everything but football would be equal to $8 million a year. The ACC grant of rights runs through 2036. So Notre Dame is theoretically on the hook for $112 million over 14 years. If you consider the time value of money and discount that back to a single payment, depending upon the assumption to use, it’s probably 70 million give or take.To be clear, ND has a GOR that they’d have to pay out. It’s smaller than everyone else though, but it’s still over $100 million at this point. They’d also have a $100 million+ in exit fees. Then whatever damages decided for the contract addendum regarding football. Not that $200+ million isn’t doable with the numbers being thrown around, but it definitely is not nothing. Though heck, I wouldn’t be surprised if the B10 found some change in their seat cushions and bought out the Irish if it came down to it.
Now keep in mind that’s just the grant of rights. They also have to pay whatever exit fee is applicable. Say it’s $50 million, then the cost for Notre Dame to leave the ACC would be about $120 million. Now, the ACC could play hardball but more or less that’s the number.
Now, if you had the opportunity to make $100 million per year, every year on a go forward basis, would you be willing to pay 120 million for that privilege? If Notre Dame decides it wants to leave the ACC, the cost of exiting isn’t going to stop it.