ESPN contract with ACC only guaranteed until 2027

[TheCatsLair]

It was in the ACC's contract with ESPN to pay for expansion. And, the ACC needs 15 schools to keep their ESPN contract in good standing which was one of the motivators to expand now instead of waiting for a possible conference move by one or more of their current schools.

ESPN can extend the ACC contract at any time, yet they haven't. If the ACC media deal is a great bargain for ESPN, why haven't they extended the contract?

Because it would make sense to exercise the option 3 to 5 years out and have it on the books. It is the same reason why a team doesn't exercise a player's options 4 or 5 years ahead.

 

[NE Football]

It was in the ACC's contract with ESPN to pay for expansion. And, the ACC needs 15 schools to keep their ESPN contract in good standing which was one of the motivators to expand now instead of waiting for a possible conference move by one or more of their current schools.

ESPN can extend the ACC contract at any time, yet they haven't. If the ACC media deal is a great bargain for ESPN, why haven't they extended the contract?

The answer is simple, ESPN has another year to exercise their termination rights. With FSU making noise for a year and now filing a lawsuit challenging the GOR’s, it creates uncertainty as to what teams will be in the conference a year from now. ESPN will be a key witness in the lawsuit. They don’t want to lose FSU to Fox & the B1G.

 

[UConnJim]

The answer is simple, ESPN has another year to exercise their termination rights. With FSU making noise for a year and now filing a lawsuit challenging the GOR’s, it creates uncertainty as to what teams will be in the conference a year from now. ESPN will be a key witness in the lawsuit. They don’t want to lose FSU to Fox & the B1G.

If ESPN is worried about losing FSU to the Big 10/FOX, they can push them to the SEC as ESPN owns the SEC media rights.

 

[Rufus]

If ESPN is worried about losing FSU to the Big 10/FOX, they can push them to the SEC as ESPN owns the SEC media rights.

FSU gave a big F* U* to both the ACC and ESPN. I don't see this happening.

The ACC and FSU will likely settle out of court. FSU can claim victory because they got out and made it to the B1G (most likely destination). The ACC can claim victory because it will say FSU paid a huge exit fee, but was unable to break the grant of rights, but rather paid a penalty to get out of the GOR. The only way the ACC saves face is by making it seem like the GOR is iron clad and by making the final exit fee high enough that most other schools can't bolt like FSU is about to do. Still, it's inevitable that the other top brands leave too. Once they know the exact amount FSU paid to leave, they will be raising funds ASAP to do the same.

 

[CL82]

FSU gave a big F* U* to both the ACC and ESPN. I don't see this happening.

The ACC and FSU will likely settle out of court. FSU can claim victory because they got out and made it to the B1G (most likely destination). The ACC can claim victory because it will say FSU paid a huge exit fee, but was unable to break the grant of rights, but rather paid a penalty to get out of the GOR. The only way the ACC saves face is by making it seem like the GOR is iron clad and by making the final exit fee high enough that most other schools can't bolt like FSU is about to do. Still, it's inevitable that the other top brands leave too. Once they know the exact amount FSU paid to leave, they will be raising funds ASAP to do the same.

That's a great point. A known exit fee, even if significant is probably less daunting than an unquantified exit fee. Part of the strength of a GOR is that they are hard to value and thus nobody is quite sure what it would cost to break one.

 

[UConnJim]

A twitter rumor I saw theorized that FSU is threatening to leave now so that ESPN does not extend the ACC media contract with the uncertainty that FSU might leave. That could reduce the potential exit fee.

 

[TheCatsLair]

A twitter rumor I saw theorized that FSU is threatening to leave now so that ESPN does not extend the ACC media contract with the uncertainty that FSU might leave. That could reduce the potential exit fee.

The issue is that the grant of rights itself extends to 2036, unless somehow it is tied to the TV deal. That would explain why the ACC is trying to hide it.

 

[TheCatsLair]

FSU gave a big F* U* to both the ACC and ESPN. I don't see this happening.

The ACC and FSU will likely settle out of court. FSU can claim victory because they got out and made it to the B1G (most likely destination). The ACC can claim victory because it will say FSU paid a huge exit fee, but was unable to break the grant of rights, but rather paid a penalty to get out of the GOR. The only way the ACC saves face is by making it seem like the GOR is iron clad and by making the final exit fee high enough that most other schools can't bolt like FSU is about to do. Still, it's inevitable that the other top brands leave too. Once they know the exact amount FSU paid to leave, they will be raising funds ASAP to do the same.

Exactly, and even before that ESPN and the SEC did the same thing by screwing FSU out of a CFP berth bid. I'm guessing that FSU wants nothing to do with either entity.

 

[nelsonmuntz]

A twitter rumor I saw theorized that FSU is threatening to leave now so that ESPN does not extend the ACC media contract with the uncertainty that FSU might leave. That could reduce the potential exit fee.

The issue is that the grant of rights itself extends to 2036, unless somehow it is tied to the TV deal. That would explain why the ACC is trying to hide it.

Interesting theory Jim. If there is no media contract, then there are no damages for breaking the nonexistent contract. The would significantly reduce any potential exit fee. CatsLair may be right that the GOR is tied to the extension somehow, and that is why the contract is kept under lock and key (which is still the most ridiculous part of this situation).

 

[billybud]

The GOR reads that the programs assign the media rights to the conference as necessary for the conference to meet the ESPN contract requirements... The GOR and the ESPN Agreement are intrinsically intertwined.

L Grant of Rights. Each of the Member Institutions hereby (a) irrevocably and exclusively grants to the Conference during the Term (as defined below) all rights (the "Rights") necessary for the Conference to perform the contractual obligations of the Conference expressly set forth in the ESPN Agreement, regardless of whether such Member Institution remains a member of the Conference during the entirety of the Term and (b) agrees to satisfy and perform all contractual obligations of a Member Institution during the Term that-are expressly set forth in the ESPN Agreement.

 

[Patman]

The issue is that the grant of rights itself extends to 2036, unless somehow it is tied to the TV deal. That would explain why the ACC is trying to hide it.

They can go see it. The point is to hide it from the public

 

[billybud]

The GOR is accessible...the ESPN contract has been a guarded nuclear secret....The conference members did not get to review nor vote on the ESPN contract...that was between the ACC office and ESPN.

 

[NE Football]

If ESPN is worried about losing FSU to the Big 10/FOX, they can push them to the SEC as ESPN owns the SEC media rights.

They can’t force the SEC to take them and they own FSU’s media rights for a lot less in the ACC. It takes a 75% vote to get into the SEC.

 

[billybud]

They can’t force the SEC to take them and they own FSU’s media rights for a lot less in the ACC. It takes a 75% vote to get into the SEC.

FSU's value to ESPN may be a lot more if not playing Wake, Duke, BC, Cuse, etc al...And that is the reason behind the B1G/SEC consolidations into a P2. The media likes more "brand" match ups.

 

[Rufus]

FSU's value to ESPN may be a lot more if not playing Wake, Duke, BC, Cuse, etc al...And that is the reason behind the B1G/SEC consolidations into a P2. The media likes more "brand" match ups.

I think FSU is putting the screw to ESPN. They have a wink, wink agreement with the B1G through third party channels or they wouldn't be doing this.

 

[huskymedic]

Teel: Takeaways from the ACC's first 17-team football schedule

Travel mitigation, television strategy and creative marketing are evident in the ACC football schedule revealed Wednesday, the conference’s first as a 17-team, coast-to-coast entity.

richmond.com

-> TV tactics: Appearing on 24 of ABC’s Saturday national telecasts translated to ratings victories for ACC football last season, with 11 of those games attracting more than 3.0 million viewers, including Virginia Tech-Florida State. Only six Saturday ACC games in 2022 drew such audiences.

But many of those windows, created when the Big Ten excluded ABC/ESPN from its latest media deals, figure to vanish this season as ABC/ESPN becomes the exclusive home of college football’s strongest conference — the SEC.

This new dynamic furthered the need for the ACC to schedule strategically in 2024. For example, with relatively light SEC fare the first week of October — the SEC announced its schedule last month — what better day to stage the ACC’s premier rivalry? Sure enough, Florida State hosts Clemson on Oct. 5. <-

 

[billybud]

I kind of like FSU’s schedule…Notre Dame, Cal, and Smu.

 

[billybud]

Miami, Clemson, Florida as rivals…Cal and SMU as a new interest.

 

[PackTheRent]

If the ACC really wanted us they would have made the move last summer. Instead, they went to Texas and California. Even if FSU somehow wins their lawsuit and the ACC is in turmoil I doubt they pick us. We are stuck as an independent and will have to deal with it.

 

[whalerfan]

If the ACC really wanted us they would have made the move last summer. Instead, they went to Texas and California. Even if FSU somehow wins their lawsuit and the ACC is in turmoil I doubt they pick us. We are stuck as an independent and will have to deal with it.

I both agree and disagree with you on this. I think those that don't want us are about to leave the ACC. Those that do would welcome us with open arms given the recent successes on the court. Football when in a conference (that people want to see UConn play) will flourish. Only time will tell. It is nice to see the OBE destroyer get destroyed itself.

 

[billybud]

The ACC doesn’t like FSU and it is mutual. In two BB games with UNC, the fouls called are 55-19. The officiating may be brutal this year.

 

[visitingcock]

Are you even reading these posts? Others have discussed it as well. Literally Google it. Watch the FSU Trustees meeting video. It’s everywhere. Lord.

“Illegal” means a law has been broken. You get charged in criminal court when you do something illegal.

He may very will have committed the conference to something without authorization. That’s a matter of civil contract law - not criminal law.

 

[NE Football]

FSU's value to ESPN may be a lot more if not playing Wake, Duke, BC, Cuse, etc al...And that is the reason behind the B1G/SEC consolidations into a P2. The media likes more "brand" match ups.

They would get better matchups, but it’s not up to ESPN. If you’re in the bottom half of the SEC why would you want FSU? Why would Florida, UGA or South Carolina want FSU. The SEC really doesn’t need any additions. If they do expand it will not be just one addition. Same with the B1G, both need a lot more TV money to expand.

 

[billybud]

Maybe it will be the media making decisions, not the conferences. As DeFillippo famously said..."We always keep our television partners close to us".

Maybe not all orf the teams in the present Big 10 and SEC are in the final P2 of some 40 programs.

How many times in corporate America did one company acquire another and the phrasing was.."no one will lose their jobs" ?...then "oops'.

 

[billybud]

I wonder about the football TV value of UNC and Virginia...