A question about the ACC contract with ESPN

[Mr. Wonderful]

Are there still clauses in the contract for periodic renegotiation windows? If so, when is the next window and what circumstances will trigger it?

 

[btstimpy]

Are there still clauses in the contract for periodic renegotiation windows? If so, when is the next window and what circumstances will trigger it?

Yes. Every 5 years. So 2017 and 2022 without any change in membership. It can be interrupted early with the addition of 2 or more or the subtraction of 2 or more.

 

[Mr. Wonderful]

Yes. Every 5 years. So 2017 and 2022 without any change in membership. It can be interrupted early with the addition of 2 or more or the subtraction of 2 or more.

If I'm not mistaken, the ACC used change in membership as an excuse to squeeze more money out of ESPN last time it thought its contract was undervalued. I wonder if rumbling from the football schools about a lack of an ACC Network may cause them to add more teams, just so they can renegotiate earlier.

 

[btstimpy]

If I'm not mistaken, the ACC used change in membership as an excuse to squeeze more money out of ESPN last time it thought its contract was undervalued. I wonder if rumbling from the football schools about a lack of an ACC Network may cause them to add more teams, just so they can renegotiate earlier.

It was part of the calculation when adding Syracuse and Pittsburgh. It could possibly be used again in a similar situation. This would be why the ACC would only add 2 at a time rather than add 4 at once. Adding 2 triggers the renegotiation clause. I think we'll need to figure out what the deal is going to be with the new Division 4 that is being considered within the NCAA before another decision to add is made. It will also impact what Notre Dame will do.

 

[Mr. Wonderful]

This scenario seems a lot more likely than any other being bandied about.

 

[woomba]

Are you sure about those look-in windows and expansion clauses? I don't recall that ever being mentioned elsewhere. Link?

 

[billybud]

Are you sure about those look-in windows and expansion clauses? I don't recall that ever being mentioned elsewhere. Link?

The deal includes look-in clauses every five years where the ACC can reexamine and potentially renegotiate the contract.

http://www.orangeandwhite.com/news/2012/may/15/espn-says-backloaded-college-tv-deals-common/?print=1

The deal includes look-in clauses every five years where the ACC can reexamine and potentially renegotiate the contract.
“This clause is designed to allow for both partners to address the value of the conference taking into account the change in membership,” Magnus wrote. “There was no specific valuation formula based on total number of schools or on a per school basis. It is not an “out clause” nor does it trigger a complete renegotiation of the entire agreement. Again, conference composition clauses are standard in our industry and are part of every ESPN college rights agreement.”

 

[Mr. Wonderful]

OK, what are the chances the ACC passes up a chance to renegotiate? And what if ESPN and the ACC both knew this all along?

Anybody see where I'm going with this?

 

[woomba]

The deal includes look-in clauses every five years where the ACC can reexamine and potentially renegotiate the contract.

http://www.orangeandwhite.com/news/2012/may/15/espn-says-backloaded-college-tv-deals-common/?print=1

The deal includes look-in clauses every five years where the ACC can reexamine and potentially renegotiate the contract.
“This clause is designed to allow for both partners to address the value of the conference taking into account the change in membership,” Magnus wrote. “There was no specific valuation formula based on total number of schools or on a per school basis. It is not an “out clause” nor does it trigger a complete renegotiation of the entire agreement. Again, conference composition clauses are standard in our industry and are part of every ESPN college rights agreement.”

Interesting - thanks for the link. That one doesn't mention the expansion clause though, although that will be considered during the look-in periods.

 

[nelsonmuntz]

ESPN probably has a clause that forbids the ACC from ever inviting UConn.