New ESPN ACC deal

[BBNBE]

ESPN is about to sit down with the ACC and renegotiate their TV deal, something ESPN is not happy about. If the ACC was going to expand to 16 teams, do you think they would have done it now? That might be the best way to maximize impact. The ACC expanded only after finding out what two more football school would add to the new potential contract. Unless nd comes knocking(and they aint) i see zero reason for the ACC to add anyone. As the ACC told Slimmy Gene,"its all about football." The ACC adding any two schools not named PSU and/or nd would not be worth the incremental cost to each university.

 

[TheRogers]

Why wouldn't ESPN be happy? They asked for it.

 

[HartbeatHusky]

ACC is not happening anytime soon for us. All we need to do right now is focus on winning and rebuilding the BE in my opinion. I also think ESPN is pretty happy about what they have done though. They feel like they will still sign the Big East to a low deal which will be cheaper for them than having both the ACC and the BE with big boy deals. I really don't care about going to the ACC at all if we can in some way keep the BE as a BCS league and I think that is still possible so all I really want to see is some action from the BE at this point.

 

[BBNBE]

Why wouldn't ESPN be happy? They asked for it.

Theres a clause in the contract that gives them the right to renegotiate.

Possible arbitration!

 

[epperson]

I'm not banking on this but I think there's a clause in the new proposal which stipulates that GDF must not be within a 500 mile radius of any ACC School or news outlet.

 

[SubbaBub]

Define soon. The SEC needs one team and I suspect it isn't Missouri. They go at most one season at 13 as they also need to renegotiate TV contracts.

Now that the Big 12 appears safe, I think everyone settles down until the spring to allow commitments to be signed, due diligence to be done, and everyone will begin to declare their intentions before July 1st. The BE and the ACC will have to wait.

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[TheRogers]

ACC is not happening anytime soon for us. All we need to do right now is focus on winning and rebuilding the BE in my opinion. I also think ESPN is pretty happy about what they have done though. They feel like they will still sign the Big East to a low deal which will be cheaper for them than having both the ACC and the BE with big boy deals. I really don't care about going to the ACC at all if we can in some way keep the BE as a BCS league and I think that is still possible so all I really want to see is some action from the BE at this point.

+1

 

[RS9999X]

Define soon. The SEC needs one team and I suspect it isn't Missouri. They go at most one season at 13 as they also need to renegotiate TV contracts.

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Gotta love Texas and the Okies. No sooner than the Neinas announcement comes out and the fans start with the "SEC really wants Texas, Oklahoma and either Texas Tech or OSU. Misery ever!"

Once the thread gets completely obnoxious ("Texas is still negotiating and will be in the SEC before Misery") they send someone over to the Missouri threads to make a link.

Brotherly Love in that Conference!

 

[WestCoastHusky]

ACC's new TV deal will get them at max $1M to $2M more per school. It will still be far less than other BCS conferences and it will still leave them vulnerable for poaching $20M exit fee or not.

If ESPN does offer ACC more than that, it could open ESPN up for huge lawsuits if BE does not get a nice TV deal due to Flipper's comments.

ACC's leverage is severely limited in that they can only negotiate with ESPN and no one else. In the most likely case, ACC will have to commit to even longer years than the 13 years they just signed in order to get the $1M to $2M increase per team.

 

[nelsonmuntz]

ACC's new TV deal will get them at max $1M to $2M more per school. It will still be far less than other BCS conferences and it will still leave them vulnerable for poaching $20M exit fee or not.

If ESPN does offer ACC more than that, it could open ESPN up for huge lawsuits if BE does not get a nice TV deal due to Flipper's comments.

ACC's leverage is severely limited in that they can only negotiate with ESPN and no one else. In the most likely case, ACC will have to commit to even longer years than the 13 years they just signed in order to get the $1M to $2M increase per team.

There are rumors that ESPN agreed to an extra $5MM/year/school before the ACC/ESPN even invited Pitt and Syracuse. It sounds like the ACC demanded a cool $100MM a year for taking on Pitt and Syracuse, and got it. TCU will cost ESPN another $20MM/year in the Big 12, so all in, ESPN is out of pocket $120MM for smashing the Big East just for those 3 teams. Figure the Big East will still get over $100MM/year in this market. So ESPN must have figured the Big East would have cost more than $220MM to sign, and that is why they did what they did.

 

[WestCoastHusky]

There are rumors that ESPN agreed to an extra $5MM/year/school before the ACC/ESPN even invited Pitt and Syracuse. It sounds like the ACC demanded a cool $100MM a year for taking on Pitt and Syracuse, and got it. TCU will cost ESPN another $20MM/year in the Big 12, so all in, ESPN is out of pocket $120MM for smashing the Big East just for those 3 teams. Figure the Big East will still get over $100MM/year in this market. So ESPN must have figured the Big East would have cost more than $220MM to sign, and that is why they did what they did.

That was an extensive article about ACC getting up to $2M per team per year. I can't find the link now but it was posted here on this site. They did extensive analysis of ACC's TV deal.

I have a real hard time seeing ESPN will hand ACC a large increase just adding CUSE and PITT when they got ACC locked up for 13 years at $12.9M. ESPN is ruthless but they are not stupid.

 

[BBNBE]

ACC's new TV deal will get them at max $1M to $2M more per school. It will still be far less than other BCS conferences and it will still leave them vulnerable for poaching $20M exit fee or not.

If ESPN does offer ACC more than that, it could open ESPN up for huge lawsuits if BE does not get a nice TV deal due to Flipper's comments.

ACC's leverage is severely limited in that they can only negotiate with ESPN and no one else. In the most likely case, ACC will have to commit to even longer years than the 13 years they just signed in order to get the $1M to $2M increase per team.

Highly doubtful. Old ACC deal was $13MM p/university. PAC-12 $21MM, SEC $17MM and B-12 $15MM.
The new deal will be someplace in the $17-18MM per/university. The PAC-12, SEC and B-12 all signed new deals after the ACC did.

 

[SAMCRO]

Would laugh my ass off if the new deal was just to bring SyraPitt in at $13MM/University, nothing more for the rest of the league.

 

[BBNBE]

In a statement sent to SportsBusiness Journal, ESPN said: “Conversations continue with our conference partners regarding conference composition clauses in our existing contracts. We are looking forward to discussions with the ACC.”

Officials representing ACC schools wouldn’t say exactly how much more money they expect, but industry executives suggest that the ACC’s new contract could increase in value by as much as $2 million per school per year, which would make the overall conference deal worth nearly $210 million a year.

The conference, of course, expects to do better, and it will use other conference deals as a gauge. The Pac-12 and Big Ten are at the top of the list, with media deals that average close to $21 million for each school annually. The SEC’s deal averages out to $17.1 million per school per year.

Even the beleaguered Big 12, which is trying to weather its latest round of defections, receives more per school than the ACC on average. The Big 12’s $150 million a year from separate deals with Fox and ESPN averages out to $15 million a school when divided by the 10 schools.

This is where arbitration might enter the picture.

 

[WestCoastHusky]

In a statement sent to SportsBusiness Journal, ESPN said: “Conversations continue with our conference partners regarding conference composition clauses in our existing contracts. We are looking forward to discussions with the ACC.”

Officials representing ACC schools wouldn’t say exactly how much more money they expect, but industry executives suggest that the ACC’s new contract could increase in value by as much as $2 million per school per year, which would make the overall conference deal worth nearly $210 million a year.

The conference, of course, expects to do better, and it will use other conference deals as a gauge. The Pac-12 and Big Ten are at the top of the list, with media deals that average close to $21 million for each school annually. The SEC’s deal averages out to $17.1 million per school per year.

Even the beleaguered Big 12, which is trying to weather its latest round of defections, receives more per school than the ACC on average. The Big 12’s $150 million a year from separate deals with Fox and ESPN averages out to $15 million a school when divided by the 10 schools.

This is where arbitration might enter the picture.

Yep. That was the article. ESPN might have a problem on its hand if it decides to offer the ACC much more money just because of Pitt and SU. Both were taken to screw the BE. I am pretty sure that was objective #1 for the ACC and the ESPN. ESPN already made an offer to the BE. If the BE gets much less than what ESPN offered with its first offer, there could be a massive lawsuit on the horizon against ESPN. One single corporation can't just help a conference to destroy another without some consequences.

 

[HartbeatHusky]

In a statement sent to SportsBusiness Journal, ESPN said: “Conversations continue with our conference partners regarding conference composition clauses in our existing contracts. We are looking forward to discussions with the ACC.”

Officials representing ACC schools wouldn’t say exactly how much more money they expect, but industry executives suggest that the ACC’s new contract could increase in value by as much as $2 million per school per year, which would make the overall conference deal worth nearly $210 million a year.

The conference, of course, expects to do better, and it will use other conference deals as a gauge. The Pac-12 and Big Ten are at the top of the list, with media deals that average close to $21 million for each school annually. The SEC’s deal averages out to $17.1 million per school per year.

Even the beleaguered Big 12, which is trying to weather its latest round of defections, receives more per school than the ACC on average. The Big 12’s $150 million a year from separate deals with Fox and ESPN averages out to $15 million a school when divided by the 10 schools.

This is where arbitration might enter the picture.

I think ESPN will win if the ACC tries to play hardball with them. They knew what they were doing. They are still going to be paying a bargain rate for the ACC. If the ACC is only going to get $14 or $15 M per team per year they'd still be pulling up the rear. That would be the part where the BE holds SU and Pitt to the 27 months and negotiates a new higher deal with NBC next year which makes it clear that Pitt and SU would make more money by staying in the BE. Then who knows what happens.

It's definitely a longshot but it's obviously part of the reason for the 27 month period. SU and Pitt will both still be in the BE next year when the BE goes to open market. Marrinatto better not be so stupid as to let them out for next season when if he makes them stay they will still be conference members when the next round of bidding starts.

 

[BBNBE]

Yep. That was the article. ESPN might have a problem on its hand if it decides to offer the ACC much more money just because of Pitt and SU. Both were taken to screw the BE. I am pretty sure that was objective #1 for the ACC and the ESPN. ESPN already made an offer to the BE. If the BE gets much less than what ESPN offered with its first offer, there could be a massive lawsuit on the horizon against ESPN. One single corporation can't just help a conference to destroy another without some consequences.

Love em or hate em ESPN makes the rules. Furthermore the dopes in Providence will not sue ESPN, that might jeopardize hoops and free pasta at Al Forno.
Good luck proving ESPN wanted to screw the BE, it might be reality but with all the movement happening in college football not easy to prove.

 

[HartbeatHusky]

Anyone have any thoughts about the ACC TV deal and the 27 month thing for Pitt and SU? I don't know if I understand how everything works correctly or not but to my knowledge if they are forced to stay until 2014 are still Big East members when we go into negotions in 2012 the networks would have to let the BE know what it would be worth if Pitt and SU don't leave. Does anyone understand it differently or see why this would not be the case?

 

[businesslawyer]

Love em or hate em ESPN makes the rules. Furthermore the dopes in Providence will not sue ESPN, that might jeopardize hoops and free pasta at Al Forno.
Good luck proving ESPN wanted to screw the BE, it might be reality but with all the movement happening in college football not easy to prove.

Seriously? What we don't know is whether they set out to do it. But hard to prove it? We have Flipper's comments. He can deny them all he wants. Is a judge more likely to believe the first statement, against his interest, or the latter denial which was, truthful or not, totally self serving?

 

[RS9999X]

The up to $2 mil figure was a Sports Business Daily article with Swofford
.
Other qualifiers: Cede more media rights and extending the ESPN contract on the backend in return for the $2 mil per team up front.

That's still $20 mil over 10 years. Pure bottom line profit. It pays for a practice facility when donors kick on and the state kicks in 25% and bonds it. And what's the cost? Changing their schedule to accomodate SU and Pitt? Losing their 'Southern' identity? well BFD. Take the $20 mil as an AD and list it as a reason your contract is getting renewed..

 

[RS9999X]

$20 mil to lose their Southern Virtue and play Northerners. Yeah......right.

I can hear the argument now. We aren't cheap whores Waylon. It would cost at least $50 mil for us to lose our Southern Virtue and play Northerners. .

 

[flyonthewall]

ESPN has decided that the new BE is not worth much so they will pay the ACC more and see where the chips fall

 

[nelsonmuntz]

$20 mil to lose their Southern Virtue and play Northerners. Yeah......right.

I can hear the argument now. We aren't cheap whores Waylon. It would cost at least $50 mil for us to lose our Southern Virtue and play Northerners. .

The number is $60MM (not counting Pitt and Cuse). The ACC will not give up their virtue for a penny less.

 

[RS9999X]

The number is $60MM (not counting Pitt and Cuse). The ACC will not give up their virtue for a penny less.

Now that we've established you are a whore, Mr ACC, all we need to do is set a lower price on your Southern Virtue.

$20MM. And not a penny more