Uneven revenue distribution model picking up steam in the ACC? (The Clemson Insider)

[FlippinCrazy!]

Except that Clemson and FSU voluntarily voted to allow BC in knowing there was an equal division of conference revenues.

Pissed is the wrong word. You don't get to marry the match club captain and then be pissed you didn't marry the head cheerleader. They want to change the historical basis for sharing revenues. Within the limitations of their existing agreements (or their right to break them and pay damages), they have the right and ability to do that.

I would say when your wife suddenly grows ugly, dumb, annoying and is sapping your money, and you can pick anyone else in the world, I would lawyer up and get a divorce. I’m also not married so idk…

 

[hardcorehusky]

Didn't the original Big East give Miami unequal revenue share or a bigger piece of bowl money? How did that work out for all involved?

 

[Platt81]

FSU is 29-30 over the last five seasons. To claim to be superior (yes I know the brand is more visible than many others in ACC) and be a game below .500 in a conference you’re basically saying you’re better than is a tough argument in the world of what have you done for me lately.

 

[TMB4405]

This is very interesting. It makes me laugh that they complain about 42Mil in distributions. It just highlights how ridiculous the entire landscape is. I may not be around to see it as I am aging rapidly but it goes to show you this will turn into a “league” of 30-50 teams and the remaining teams will either fold up or play at a different level. His rants are a mix of entitlement (with a shread of truth) and posturing. He’s basically telling the rest of conference (other than Clemson)…..”you all suck”.

 

[ScottVib]

The 15% of value that FSU is claiming sheds a lot of light on the other schools worth. Between FSU, Miami, and Clemson, those schools likely are making up 40-50% of the value, though I’d guess closer to the 50% side if not higher. Throw in UNC and Duke, that number may be looking more like 55% - 70% of value (again I’m more inclined itd be closer to that 70% than the 55%).

I'd take Miami out of the first group. It's probably FSU/Clemson -gap- UNC -gap- Majority of the pack -gap- Syracuse/Pitt/BC/Wake

 

[uchusky32]

FSU and Miami had every opportunity to be Clemson and blew it. Win on the field conference gets money.

 

[UCFBfan]

The plot thickens…

So, the really interesting question is if you are one of the lesser lights in the ACC is there greater value in you taking a reduced share in order to keep FSU and Clemson in the conference, or does it make more sense to let them try and break the GOR and then live off their exit fee and GOR settlement payment plus a reduced amount from ESPN?

This is where I think these schools need to be. I'd love to know where ESPN is in all of this business? It's their property so they will have some say but if the rest of the conference says no and Clemson decides to test the ability to break the GOR and bolt, will they let it get to that??

This whole thing is going to be fun to watch. I know we are on the outside looking in still and would love to be a part of the madness, but watching the Pac-12 fall apart and now the ACC possibly start infighting is going to be fun!

 

[Drew]

Where are Miami Clemson and FSU going exactly? What incentive do the other ACC schools have to take an uneven revenue share? They’re not getting a B1G invite and they’re not getting a SEC invite. They’re not leaving the ACC with the existing GOR and trying to start their own league and they’re almost assuredly not going independent.

I’d call their bluff if I was a president in the ACC. They have nowhere to go.

 

[CL82]

This is where I think these schools need to be. I'd love to know where ESPN is in all of this business? It's their property so they will have some say but if the rest of the conference says no and Clemson decides to test the ability to break the GOR and bolt, will they let it get to that??

This whole thing is going to be fun to watch. I know we are on the outside looking in still and would love to be a part of the madness, but watching the Pac-12 fall apart and now the ACC possibly start infighting is going to be fun!

It’s nice not to dread this stuff while it’s happening.

 

[WestHartHusk]

FSU probably should have rattled the cages when they were good and fans cared about their games.

 

[Ha Who]

FSU probably should have rattled the cages when they were good and fans cared about their games.

Karma

 

[jostar1]

So basically, the football schools are declaring war on the schools with basketball tradition and success. “You’re a traditional basketball power? Sorry don’t care.”

It's deja vu all over again.

 

[Bobol]

Approval of different revenue distribution by majority of ACC school may sufficient cause for dissenting members to declare GOR invalid by reason of subsequent material change.

 

[businesslawyer]

The smaller brands will ultimately do as they are told, because being 2nd class in the ACC is better than the alternative. That said, someone will fight this once they realize the larger programs consider them 2nd class.

The first question: in which category do you place a post- Coach K Duke?

They are second tier. People here keep wanting to think hoops matters more than it does.

 

[businesslawyer]

I would say when your wife suddenly grows ugly, dumb, annoying and is sapping your money, and you can pick anyone else in the world, I would lawyer up and get a divorce. I’m also not married so idk…

Here’s the problem with your analogy — on a national scale, BC was ugly, dumb and annoying when the ACC proposed to it,

 

[businesslawyer]

Where are Miami Clemson and FSU going exactly? What incentive do the other ACC schools have to take an uneven revenue share? They’re not getting a B1G invite and they’re not getting a SEC invite. They’re not leaving the ACC with the existing GOR and trying to start their own league and they’re almost assuredly not going independent.

I’d call their bluff if I was a president in the ACC. They have nowhere to go.

The GOR is a different issue. I am as a lawyer where I always was on that, which is not certain that it would work to lock up broadcasts (as opposed to entitle the non-breaching party to money damages), but put that aside. You don’t think the SEC would take FSU and Clemson today if offered them, phasing in the transition from ACC revenue to SEC revenue over a few years? The SEC would take them in a nanosecond. It has no dilutive effect on the conference, and it goes a HUGE way to accomplish what the SEC wants to accomplish, which is to put the P-2 on their own stage, as the dominant player on the field with an economically powerful but not as good in football Big Ten.

 

[CTFAN4LIFE]

Where are Miami Clemson and FSU going exactly? What incentive do the other ACC schools have to take an uneven revenue share? They’re not getting a B1G invite and they’re not getting a SEC invite. They’re not leaving the ACC with the existing GOR and trying to start their own league and they’re almost assuredly not going independent.

I’d call their bluff if I was a president in the ACC. They have nowhere to go.

Disagree - unless you are just saying this over the next year or two. Because beyond that, the top ACC football schools will have both the B1G and SEC interested. When the CFP expands in 2026, the conference revenue from it will in all likelihood be based on game units (like March Madness is), so there'll not only be more money to be made from CFP TV revenue but also from games/wins by conference member schools. The currently large football revenue streams are going to become HUGE when both those things happen - so huge that even the seemingly impenetrable ACC GOR will become less of an impediment. And many believe that the SEC and B1G will be the ones inordinantly writing the specific rules of how the huge sums will be spread across the P2/P5/G5. Time will tell and that time is coming pretty fast.

 

[UCFBfan]

Thinking more on this, I bet SEC and B1G schools are watching how this plays out too. They may be bathing in money but there's no way OSU or a PSU is ok with making the same as Rutgers or Maryland. Same in the SEC. You gotta bet that Bama, LSU, Georgia aren't ok with making the same as Vandy or Mizzou. Maybe saying "being ok with" is the wrong term, it's more that they feel they should be getting more than those schools.
They won't say it out loud but if they see this sliding scale play out favorably in the ACC, I bet there will be some wheels starting to move in some bigger programs.

 

[CL82]

Approval of different revenue distribution by majority of ACC school may sufficient cause for dissenting members to declare GOR invalid by reason of subsequent material change.

Which in turn would give the schools who would be getting a greater share the opportunity to leave for an even greater share. Interesting observation.

Since no change in distribution rights can be made without member school approval does that mitigate that risk so long as conference voting procedures are adhered to?

 

[MilliniumPrince]

They are second tier. People here keep wanting to think hoops matters more than it does.

I agree with you, but as a former resident of that area, I guarantee you Duke doesn't agree.

This is all about football and fanbases.

 

[MilliniumPrince]

Where are Miami Clemson and FSU going exactly? What incentive do the other ACC schools have to take an uneven revenue share? They’re not getting a B1G invite and they’re not getting a SEC invite. They’re not leaving the ACC with the existing GOR and trying to start their own league and they’re almost assuredly not going independent.

I’d call their bluff if I was a president in the ACC. They have nowhere to go.

I think the Big 12 would take FSU and Clemson in heartbeat. They might take Louisville as well. I think Fox would sweeten the pot for a Big 12 that includes FSU and Clemson.

 

[Chin Diesel]

It’s hard to say how that would work. BC has stunk, but they are probably a bigger brand than Wake Forest. Wake has actually been pretty good on the field though. Anyway, it seems like after FSU, Clemson and maybe UNC, it would be tough to establish who is worth what.

I'm morbidly curious as to how and why anyone would think BCU is a bigger brand than Wake Forest.

 

[Kolumbo]

The big boys can sue the ACC for incompetence or dereliction of duty. The B1G and SEC are able to make bank for their members, the ACC should be able to do the same. A contract it is a two way street. I'm sure there are numerous ways to blow it all up and I don't think there is really a similar precedent to this situation. Let's just sit back and watch the implosion.

 

[Rufus]

Thinking more on this, I bet SEC and B1G schools are watching how this plays out too. They may be bathing in money but there's no way OSU or a PSU is ok with making the same as Rutgers or Maryland. Same in the SEC. You gotta bet that Bama, LSU, Georgia aren't ok with making the same as Vandy or Mizzou. Maybe saying "being ok with" is the wrong term, it's more that they feel they should be getting more than those schools.
They won't say it out loud but if they see this sliding scale play out favorably in the ACC, I bet there will be some wheels starting to move in some bigger programs.

Unequal revenue sharing kills conferences. The lesser teams contribute in other ways….they pad the win totals for the top programs so they maintain a constant cycle of being top programs. Not to mention, for the B1G, having the Rutgers and Maryland markets to showcase Ohio State and Michigan increases the revenue of all, including Ohio State and Michigan.

 

[Slasher]

My guess is for ACC value:

Florida State
UNC
Clemson
Virginia
Miami
---- gap -----
NC State
Louisville
Virginia Tech
Duke
Pitt
---- gap ----
Syracuse
Georgia Tech
Wake
BC