ESPN contract with ACC only guaranteed until 2027

[Rufus]

Through the FSU Board Meeting today, it was revealed that ESPN only has a guaranteed contract with the ACC until 2027. They have the option to extend that contract through 2036.

This is FSU's out in a court of law. A GOR cannot be extended until the ESPN contract is extended. It is not extended today, the day FSU goes to Court. This will be the out for all the top brands in the ACC.

Additionally, once the top brands leave, ESPN will not extend that contract for the final 9 years because the ACC will not be worth it without the big brands.

In the words of Greg Flugaur, "HOLY SMOKES!"

 

[Rufus]

Florida State Board of Trustees votes unanimously to take legal action against the Atlantic Coast Conference

Florida State took the first step of leaving the ACC today,

www.tomahawknation.com

The ACC is not guaranteed any television revenue after 2027 — something that was unable to be known unless members took the time to fly to Charlotte and review the locked-down contract. ESPN has a unilateral right to extend the ACC’s media deal after 2027 but hasn’t exercised that option yet. The ACC also extended the window for ESPN to pick up that option until 2025 without a vote of the schools or conference directors as was required by the conference bylaws.

 

[LoyalFanCT]

Florida State Board of Trustees votes unanimously to take legal action against the Atlantic Coast Conference

Florida State took the first step of leaving the ACC today,

www.tomahawknation.com

The ACC is not guaranteed any television revenue after 2027 — something that was unable to be known unless members took the time to fly to Charlotte and review the locked-down contract. ESPN has a unilateral right to extend the ACC’s media deal after 2027 but hasn’t exercised that option yet. The ACC also extended the window for ESPN to pick up that option until 2025 without a vote of the schools or conference directors as was required by the conference bylaws.

Thanks for pointing this out, Rufus, it's important to UConn's athletic future

 

[CashewCrew]

This couldn’t happen to a better conference. You just love to see it.

 

[Fishy]

Thanks for pointing this out, Rufus, it's important to UConn's athletic future

It’s literally not important at all.

The odds on ESPN not renewing this incredibly favorable contract are zero.

 

[ZooCougar]

The whole ACC is up shgt creek.

Everyone but SMU will take a tv revenue hit. Even if the conference isn’t blown to smithereens.

 

[ZooCougar]

It’s literally not important at all.

The odds on ESPN not renewing this incredibly favorable contract are zero.

What will be left of an ACC sans FSU and some other key pieces isn’t worth the favorable contract.

 

[How Sway?!]

It’s literally not important at all.

The odds on ESPN not renewing this incredibly favorable contract are zero.

Yeah it's a minor point, ESPN could exercise the right tomorrow if it did.

 

[JMick]

It’s literally not important at all.

The odds on ESPN not renewing this incredibly favorable contract are zero.

Unless there's no one left in the conference.

 

[TheCatsLair]

It’s literally not important at all.

The odds on ESPN not renewing this incredibly favorable contract are zero.

It's very important because the legal doesn't view it as ESPN being guaranteed to renew a deal, they look at it as schools being locked into an agreement beyond what they are guaranteed financially. That's why the ACC's grant of rights is in danger of being voided.

 

[champs99and04]

It's very important because the legal doesn't view it as ESPN being guaranteed to renew a deal, they look at it as schools being locked into an agreement beyond what they are guaranteed financially. That's why the ACC's grant of rights is in danger of being voided.

Not saying you're wrong, but that all sounds a bit too convenient. We've all been led to believe FSU's obligation to the ACC ran through 2036 - so either everyone's been misrepresenting this contract for years, or FSU's going to walk nine years early on a technicality. Neither scenario seems likely to me.

 

[WestCoastHusky]

Yeah it's a minor point, ESPN could exercise the right tomorrow.

It will depend on how the contract is worded. Basically, the ACC GOR ends in 2027. While ESPN can extend it to 2036, but they haven't exercised yet.

Since FSU filed today, it simply means they only care about the GOR until 2027 from legal point of view.

Maybe a lawyer can add some input into this. If 2027 date is true, then the ACC is farked.

 

[ConnHuskBask]

It’s literally not important at all.

The odds on ESPN not renewing this incredibly favorable contract are zero.

I agree that this has really no bearing on UConn. I'm pretty convinced they'd take UMass, Delaware or Alaska Anchorage over us.

With that said, at some point is it really that favorable distributing what $210M a year for the rights to Syracuse, Wake, Cal, SMU, Stanford, BC and Pitt?

 

[UConnJim]

It’s literally not important at all.

The odds on ESPN not renewing this incredibly favorable contract are zero.

Disagree. Why can't the top 4 ACC brands go the SEC which is ESPN's major brand? Pay them 3x more than they make in the ACC and not extend the ACC contract. It's a big cost savings for ESPN and they get the best ACC brands into the SEC. Or, 4 to the SEC and 4 to the Big 12, another ESPN brand, and it's still saving ESPN money and improving football matchups which improves ratings.

 

[dayooper]

Disagree. Why can't the top 4 ACC brands go the SEC which is ESPN's major brand? Pay them 3x more than they make in the ACC and not extend the ACC contract. It's a big cost savings for ESPN and they get the best ACC brands into the SEC. Or, 4 to the SEC and 4 to the Big 12, another ESPN brand, and it's still saving ESPN money and improving football matchups which improves ratings.

I’m not sure there’s 4 brands in the ACC that improve the football matchups in both the SEC or the Big 10. FSU is most definitely one and Clemson is two. Who are the other two? Besides schools that have a good season here and there, I don’t see any that would substantially raise the brand level of either conference. Basketball is a different situation but the Big10 and SEC have shown that they don’t bring in enough money.

If FSU is fighting to get out of the ACC and win their lawsuit, they will have complete control over where they go. What if they want to go to the Big10?

 

[freescooter]

Not saying you're wrong, but that all sounds a bit too convenient. We've all been led to believe FSU's obligation to the ACC ran through 2036 - so either everyone's been misrepresenting this contract for years, or FSU's going to walk nine years early on a technicality. Neither scenario seems likely to me.

Neither scenario is. This is the opening of negotiations for a Florida State exit from the ACC. I imagine they will ultimately settle for a heftier fee that Florida State want but far less than the half a billion being thrown around.

The first challenge will be the venue. This is filed in Florida. That is typically what schools do, but most likely the league contract says challenges need to be filed in the state where the conference offices are located. That’s North Carolina.

Then the ACC will likely argue that they are renegotiating terms with ESPN which is why the deadline was extended. And that all the members were aware of that situation.

In any case FSU is gone. The real question is if anyone else follows.

 

[freescooter]

I agree that this has really no bearing on UConn. I'm pretty convinced they'd take UMass, Delaware or Alaska Anchorage over us.

With that said, at some point is it really that favorable distributing what $210M a year for the rights to Syracuse, Wake, Cal, SMU, Stanford, BC and Pitt?

I think the end will be something close to the Big 12. In a sane world, Cal, SMU and Stanford would be “traded” to the 12 for Cinci and West Virginia and we would take the 3rd slot. Then you’d have an eastern conference and a western conference that could play some inter league games every year.

 

[History Geek]

I think the end will be something close to the Big 12. In a sane world, Cal, SMU and Stanford would be “traded” to the 12 for Cinci and West Virginia and we would take the 3rd slot. Then you’d have an eastern conference and a western conference that could play some inter league games every year.

Interesting. I think the non-P2 would have a greater chance of success if organized more regionally

 

[How Sway?!]

Disagree. Why can't the top 4 ACC brands go the SEC which is ESPN's major brand? Pay them 3x more than they make in the ACC and not extend the ACC contract. It's a big cost savings for ESPN and they get the best ACC brands into the SEC. Or, 4 to the SEC and 4 to the Big 12, another ESPN brand, and it's still saving ESPN money and improving football matchups which improves ratings.

I think adding 4 acc schools has a marginal effect on ratings for SEC games. It's not like all those people watching FSU, Clemson or UNC don't watch SEC football. You also have to consider the conference networks. Right now ESPN can charge cable companies twice for the SEC and ACC in a bunch of southern states. If you remove the big brands ACC schools then ESPN will only really be able to charge big bucks for the SEC network

 

[Fishy]

What will be left of an ACC sans FSU and some other key pieces isn’t worth the favorable contract.

You’re making the wild assumption that FSU will be successful.

And even if they are, the remains of the ACC will make some multiple of whatever it is we will be making.

 

[UConnJim]

I think adding 4 acc schools has a marginal effect on ratings for SEC games. It's not like all those people watching FSU, Clemson or UNC don't watch SEC football. You also have to consider the conference networks. Right now ESPN can charge cable companies twice for the SEC and ACC in a bunch of southern states. If you remove the big brands ACC schools then ESPN will only really be able to charge big bucks for the SEC network

LT, the cable bundle model for conference networks will go away and they will be sold direct to consumers. ACC Network is probably at peak revenues right now and cable cord cutting will continue the revenue decline. I think the SEC and BTN can survive the transition to direct to consumer, but I'm not sure if the ACCN will.

Moving 4 schools to the SEC from the ACC would improve matchups for TV ratings overall as there are many ACC matchups that aren't that attractive to TV. Clemson/Wake? Duke/Miami? FSU/Pitt? Replace them with Clemson/Missouri, Miami/Auburn, FSU/Ole Miss and I didn't even match them up with the biggest SEC brands.

 

[ZooCougar]

You’re making the wild assumption that FSU will be successful.

And even if they are, the remains of the ACC will make some multiple of whatever it is we will be making.

FSU being gone is not a wild assumption. It’s a virtual certainty.

 

[LoyalFanCT]

I agree that this has really no bearing on UConn. I'm pretty convinced they'd take UMass, Delaware or Alaska Anchorage over us.

With that said, at some point is it really that favorable distributing what $210M a year for the rights to Syracuse, Wake, Cal, SMU, Stanford, BC and Pitt?

I can't wait until we leave the so called Big East.

 

[John]

I can't wait until we leave the so called Big East.

It's a nice waiting room.

 

[ZooCougar]

It's a nice waiting room.

The Big East is a total slugfest. Big East play makes you tournament ready. The other major power conferences play a pretty boy brand of basketball.

We’re never going to be in a P2 situation. But if we can figure out a good G6 arrangement (Not Indy) then we could be set.

This is why we have to continue to push hard in football. The hoop fans are energized by the Big East so if we can keep it there and find a nice home for football elsewhere that might be the ideal situation.