Richmond Times Dispatch’s David Teel: Primer to realignment and its impact on the ACC.

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Good review w/ a few key concepts on the ACC Conference Realignment challenges for those such inclined…


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->In its most recent federal tax filing, for the 2019-20 academic year, the ACC reported $496.7 million in revenue, two-thirds of which ($332.8 million) came from television. The league collected another $125 million in bowl income, a lion’s share from the College Football Playoff. In short, football accounts for 75-80% of conference revenue.

Similar to its peers, the ACC distributes about 90% of total revenue to member schools in virtually equal shares. The average 2019-20 share for the league’s 14 full-time members was $32.4 million, and each of these amounts was an all-time high for the conference. <-

-> Record numbers aside, the league’s average distribution ranked last among the Power Five conferences. Moreover, it lagged far behind the Big Ten’s $54.3 million and SEC’s $45.5 million, gaps that soon will widen.

While the ACC’s exclusive TV deal with ESPN runs through 2035-36, the Big Ten is negotiating new contracts that will start in 2023 and were projected, pre-COVID, to boost distributions to $70 million by 2025. The SEC already has announced a new arrangement that, starting in 2024, gives ESPN exclusive rights to its football and men’s basketball. <-

-> Any new ACC member would need to generate approximately $32.4 million annually, the conference’s average share, just to keep everyone’s piece of the pie static. To bump that per-school distribution by $1 million in what would then be a 15-team league, add $15 million to that $32.4 million, or $47.4 million.

To increase distributions by $3 million, we’re talking $77.4 million in additional revenue from one school, the original $32.4 million plus three multiples of $15 million, or $45 million. <-
 
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CL82

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Good review w/ a few key concepts on the ACC Conference Realignment challenges for those such inclined…


(on mobile devices just x through any blockers for article access).

->In its most recent federal tax filing, for the 2019-20 academic year, the ACC reported $496.7 million in revenue, two-thirds of which ($332.8 million) came from television. The league collected another $125 million in bowl income, a lion’s share from the College Football Playoff. In short, football accounts for 75-80% of conference revenue.

Similar to its peers, the ACC distributes about 90% of total revenue to member schools in virtually equal shares. The average 2019-20 share for the league’s 14 full-time members was $32.4 million, and each of these amounts was an all-time high for the conference. <-

-> Record numbers aside, the league’s average distribution ranked last among the Power Five conferences. Moreover, it lagged far behind the Big Ten’s $54.3 million and SEC’s $45.5 million, gaps that soon will widen.

While the ACC’s exclusive TV deal with ESPN runs through 2035-36, the Big Ten is negotiating new contracts that will start in 2023 and were projected, pre-COVID, to boost distributions to $70 million by 2025. The SEC already has announced a new arrangement that, starting in 2024, gives ESPN exclusive rights to its football and men’s basketball. <-

-> Any new ACC member would need to generate approximately $32.4 million annually, the conference’s average share, just to keep everyone’s piece of the pie static. To bump that per-school distribution by $1 million in what would then be a 15-team league, add $15 million to that $32.4 million, or $47.4 million.

To increase distributions by $3 million, we’re talking $77.4 million in additional revenue from one school, the original $32.4 million plus three multiples of $15 million, or $45 million. <-
This is an outstanding article for those interested in conference realignment. There are a lot of good piece of information and interesting nuggets.

The full shares ranged from Clemson’s $37 million to Georgia Tech’s $30.9 million. Notre Dame, an ACC member for sports other than football, received $10.8 million.

This highlights the principal that members don’t necessarily have to receive an identical amount. It also shows the relatively small amount that Notre Dame makes via ACC membership. That also gives a sense of the value of basketball. Notre Dame makes less than $.33 on the dollar for its basketball rights plus a GOR that runs through 2035. That’s a good indication of how much “football drives the bus.”

One other thing that leaps off the page to me and all these realignment articles is that the university of Connecticut is nowhere to be found in the vast majority of them. If you look at the figures that @huskymedic posted you can see why, but I also think being in the Big East takes us off the board as a choice in many peoples minds. If we end up making a success out of independence, that could change, but it’s tough to see how the math would work.
 
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We all want to think that Clemson and FSU will be heading to the SEC, and I think they are itching to do so. However, ESPN has zero reason to want them to switch. They need their FB to keep their ACC product afloat. Moving them from the ACC, that they have on the cheap for a long time, to the SEC, doesn't do anything for them financially. I can't see it happening anytime soon.

Note that since ESPN has been called out officially and was sloppy, and we all knew this was happening behind the scenes, I'm just going to refer to all future realignment as how it best helps ESPN because that's what this is all about.
 

CL82

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We all want to think that Clemson and FSU will be heading to the SEC, and I think they are itching to do so. However, ESPN has zero reason to want them to switch. They need their FB to keep their ACC product afloat. Moving them from the ACC, that they have on the cheap for a long time, to the SEC, doesn't do anything for them financially. I can't see it happening anytime soon.

Note that since ESPN has been called out officially and was sloppy, and we all knew this was happening behind the scenes, I'm just going to refer to all future realignment as how it best helps ESPN because that's what this is all about.
ESPN’s incentive to move out FSU and Clemson is that paying them SEC dollars would be subsidized by paying everyone else less. What has BCU or Pitt done to justify $32 million a year? It’s pretty much the same method justified moving OU and Texas to the SEC.
 
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ESPN’s incentive to move out FSU and Clemson is that paying them SEC dollars would be subsidized by paying everyone else less. What has BCU or Pitt done to justify $32 million a year? It’s pretty much the same method justified moving oh you in Texas to the SEC.
Eh that's not the same. Texas and OU were half owned by fox. That was the real motiviation.
 

CL82

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Eh that's not the same. Texas and OU were half owned by fox. That was the real motiviation.
Agree somewhat. I still think it makes sense as a business plan to move your high value properties to one conference, which can be paid a premium. When you can market price, or even sub market price the leftovers.
 
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The ACC should merge with the PAC 12 and add TCU, Baylor, Ok St, Kansas, Cincinnati & ND. It would be a 32 team with a national footprint. 4 divisions of 8 teams. This would leave the SEC and B1G with no brand product to expand. Those two conferences would probably merge.
If the ACC and the B1G do nothing, it will only be a matter of time before their best teams get poached
 
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Sorry, that If the ACC & PAC 12 do nothing, it’s only a matter of time before their best teams get taken by the SEC & the B1G
 
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This is an outstanding article for those interested in conference realignment. There are a lot of good piece of information and interesting nuggets.

The full shares ranged from Clemson’s $37 million to Georgia Tech’s $30.9 million. Notre Dame, an ACC member for sports other than football, received $10.8 million.

This highlights the principal that members don’t necessarily have to receive an identical amount. It also shows the relatively small amount that Notre Dame makes via ACC membership. That also gives a sense of the value of basketball. Notre Dame makes less than $.33 on the dollar for its basketball rights plus a GOR that runs through 2035. That’s a good indication of how much “football drives the bus.”

One other thing that leaps off the page to me and all these realignment articles is that the university of Connecticut is nowhere to be found in the vast majority of them. If you look at the figures that @huskymedic posted you can see why, but I also think being in the Big East takes us off the board as a choice in many peoples minds. If we end up making a success out of independence, that could change, but it’s tough to see how the math would work.
One thing these numbers clearly show is that, as my friend Pudge said, UConn decided to go to the NEWBIE to “protect its crown jewel” what it elected to protect was an amathyst. Valuable, but not that big a deal in the world of college athletics.

The other thing it demonstrates, I think is that those who think the next NEWBIE media contract is going to be in the 10-15 million range are just wishing and hoping.

Finally, competing with these schools, even in basketball, will be near impossible over time. A program getting $20 million (1/3 of $75 million payout)will have too many advantages over one getting even $10, never mind a more realistic $7-8. How long does Dan Hurley stick around if South Carolina decides they really want him?

The impact on other conferences is even greater. I suspect at the end of the day we are seeing the beginning of the end of college sports as we have known it. There will likely be a fairly significant reshuffling coming with P2-3 becoming a whole new entity. Then the rest in some reconstituted NCAA.
 

CL82

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One thing these numbers clearly show is that, as my friend Pudge said, UConn decided to go to the NEWBIE to “protect its crown jewel” what it elected to protect was an amathyst. Valuable, but not that big a deal in the world of college athletics.
Lol, say what now, Scooter? How do the per school media distribution figures for conferences that we don't, and have never, belonged to show anything about our decision to move to the Big East?
The other thing it demonstrates, I think is that those who think the next NEWBIE media contract is going to be in the 10-15 million range are just wishing and hoping.
Um... has anyone actually said that? I mean other than the voices in your head.
Finally, competing with these schools, even in basketball, will be near impossible over time.
Fully agree. I don't see a way out of that. The game plan appears to be that we compete as long as we can and hope for a paradigm shift that makes us an attractive entity. It's not much of plan but it's all we've got.
 

ConnHuskBask

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Fully agree. I don't see a way out of that. The game plan appears to be that we compete as long as we can and hope for a paradigm shift that makes us an attractive entity. It's not much of plan but it's all we've got.

As far as I'm concerned, moving to the Big East bought us some years of national relevancy that was quickly waning from the mid major association with the AAC. If things stay as they are, it's going to to be exceedingly difficult to compete with coaching salaries down the line.

Our hoop facilities are new and I have to imagine unless some school makes Hurley an offer he can't refuse, we'll do anything possible to retain him though.

Perhaps NIL gives a boost to basketball centric schools in the northeast? Who knows.
 
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The Comcast agreement comes up in October....ESPN said earlier that the ACCN would not be negotiated until the the whole Disney/Comcast contract is up and that is coming.

On David Teels podcast they discussed the Comcast situation and he expects that deal to be done by October. He said the numbers will work out to an additional 15 million dollars per member per year. That will put the ACC closer to the 50 million mark. It won’t be enough to create parity with the SEC. I know others have mentioned the Comcast deal will greatly increase the revenue but I did not appreciate that it would be this much.
 
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The Comcast agreement comes up in October....ESPN said earlier that the ACCN would not be negotiated until the the whole Disney/Comcast contract is up and that is coming.

On David Teels podcast they discussed the Comcast situation and he expects that deal to be done by October. He said the numbers will work out to an additional 15 million dollars per member per year. That will put the ACC closer to the 50 million mark. It won’t be enough to create parity with the SEC. I know others have mentioned the Comcast deal will greatly increase the revenue but I did not appreciate that it would be this much.
$15MM per school per year? That's a $200MM/year bump for the conference.

That doesn't seem realistic at all
 
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$15MM per school per year? That's a $200MM/year bump for the conference.

That doesn't seem realistic at all

What I thought...but David Teel is an ACC beat writer and sort of insider. I thought that ESPN paying $300 million for the one SEC game was a lot as well.

Disney will negotiate...and if Comcast wants all the ESPN/ABC/Disney...they will be paying more. And the ACCN is bundled.
 
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One thing these numbers clearly show is that, as my friend Pudge said, UConn decided to go to the NEWBIE to “protect its crown jewel” what it elected to protect was an amathyst. Valuable, but not that big a deal in the world of college athletics.

The other thing it demonstrates, I think is that those who think the next NEWBIE media contract is going to be in the 10-15 million range are just wishing and hoping.

Finally, competing with these schools, even in basketball, will be near impossible over time. A program getting $20 million (1/3 of $75 million payout)will have too many advantages over one getting even $10, never mind a more realistic $7-8. How long does Dan Hurley stick around if South Carolina decides they really want him?

The impact on other conferences is even greater. I suspect at the end of the day we are seeing the beginning of the end of college sports as we have known it. There will likely be a fairly significant reshuffling coming with P2-3 becoming a whole new entity. Then the rest in some reconstituted NCAA.
No sense crying over something UConn has no control over. If the big boys in college athletics break away and do their own thing so be it. Just enjoy what we have now. Nothing lasts forever.
 
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Now, don't hang on
Nothin' lasts forever but the earth and sky
It slips away
And all your money won't another minute buy
 
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