probably a dumb question, but if Pitt, Ville and Cuse went to the ACC and said they wanted to go to teh BIG12, would they be able to leave with much of a fight or financial hardship? Assuming those 7 schools would say fine and the other 4 schools wouldnt have much power.
Uneven revenue distribution model picking up steam in the ACC? (The Clemson Insider)
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It would seem to be a reasonable play except FSU and Clemson are thinking B1Gger. And the lower half will hang onto the GOR with a kungfu grip.
I am curious, in theory, what the ACC value would be in a couple of scenarios. I know they won't happen because FSU wants out and no conference is going to approach the B1G and SEC money, but it seems more plausible than uneven revenue distribution:
- 12 schools vote to dissolve the ACC and it reforms excluding Duke & Wake
- 10 schools vote to dissolve the ACC and reforms excluding Duke, Wake, SU, BCU
- In either case, poach best of Big 12/PAC, and UConn
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Teel: Revenue sharing and generation prevailing topics as ACC opens spring meetings
Emerging from a meeting than ran an hour longer than scheduled Monday night, N.C. State athletic director Boo Corrigan visibly sighed
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It's not even a probably. 20 years ago the Big East payout was going to be $13m a year per football school before Syracuse and Pitt left.
I can only imagine that the value of schools like Georgia Tech, Duke and Pitt in a 10 team conference is AT LEAST double that.
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What some of the lawyers have been examining.
The ACC is a non profit incorporated in North Carolina.
The NC statute outlines the dissolution of a nonprofit.
....requires a simple majority of the directors (school presidents in this case)...8 to vote for dissolution.
....requires that a dissolution plan be submitted that outlines the assets and debts of the corporation and how they will be resolved.
If the ACC dissolves, there is no GOR since the grant of rights was to the ACC.
The ESPN-ACC contract would be defunct if there is no ACC.
Interesting questions...but schools could not take the risk without backdoor invites in hand...
The ACC is a non profit incorporated in North Carolina.
The NC statute outlines the dissolution of a nonprofit.
....requires a simple majority of the directors (school presidents in this case)...8 to vote for dissolution.
....requires that a dissolution plan be submitted that outlines the assets and debts of the corporation and how they will be resolved.
If the ACC dissolves, there is no GOR since the grant of rights was to the ACC.
The ESPN-ACC contract would be defunct if there is no ACC.
Interesting questions...but schools could not take the risk without backdoor invites in hand...
I've heard that a few times.. but who would be the 8th vote... similarly ESPN could, if they chose, sue the members of the ACC for the costs it incurred as a part of setting up the ACC Network due to the breach of the agreement... similar it could also find damages for the costs incurred to fill empty lineup slots.
While the SEC is reportedly guaranteed pro-rata for any additions, there is little incentive for ESPN to make it easy to have to pay more for content they already own... particularly in a time of corporate belt tightening at Disney. There is certainly no incentive for them to make it easier for Fox to poach potentially valuable content for the Big Ten.
While the SEC is reportedly guaranteed pro-rata for any additions, there is little incentive for ESPN to make it easy to have to pay more for content they already own... particularly in a time of corporate belt tightening at Disney. There is certainly no incentive for them to make it easier for Fox to poach potentially valuable content for the Big Ten.
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SpreadEagle66
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Scott posted..
I've heard that a few times.. but who would be the 8th vote... similarly ESPN could, if they chose, sue the members of the ACC for the costs it incurred as a part of setting up the ACC Network due to the breach of the agreement... similar it could also find damages for the costs incurred to fill empty lineup slots.
ESPN's contract was with the ACC...no contracts with individual programs...yeah, they could sue the ACC, but if the organization was defunct ?
I've heard that a few times.. but who would be the 8th vote... similarly ESPN could, if they chose, sue the members of the ACC for the costs it incurred as a part of setting up the ACC Network due to the breach of the agreement... similar it could also find damages for the costs incurred to fill empty lineup slots.
ESPN's contract was with the ACC...no contracts with individual programs...yeah, they could sue the ACC, but if the organization was defunct ?
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Only way you would get an agreement on uneven revenue share. Look at the European soccer leagues. They usually share 50% of tv revenue equally and then the rest based off that seasons results.
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Keep the pressure on Mike…
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WestHartHusk
$3M a Year With March Off
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All these schools assume they will come out ahead in uneven sharing. I really hope it blows up in their face.
Read the replies to that tweet for a laugh.
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I'd assume that the member institutions who voted to dissolve the ACC legal entity would still have liability for the impacts of that decision to ACC contractors and vendors.
ACC optimistic about reaching agreement on new revenue model
The ACC's annual spring meetings began Monday amid reports that seven schools had lawyers examine the league's grant of rights, which allocates each team's broadcast rights to the league through the year 2036, and had discussed potential exit strategies.
Those reports were met with intense frustration inside the AD's meeting room, with multiple members admitting to raised voices and a few profanities exchanged that Miami's Dan Radakovich chalked up as "an airing of grievances."
"People had to say where they were and why do you feel that way," Radakovich said.
In the end, however, those frustrations helped to clarify the serious concerns that Alford, Radakovich and others have over the league's future, given a massive revenue gap with the Big Ten and SEC that projects to be as much as $40 million annually in the coming years.
Alford said Tuesday's discussions were "as open and transparent" as he'd experienced, and he believed the progress could mollify the larger revenue concerns for the foreseeable future.
The discussion of potential departures was "probably overblown," Alford said, with a number of other athletic directors, including at schools rumored to be among those looking for an exit, saying the reports were not substantive.
www.espn.com
The ACC's annual spring meetings began Monday amid reports that seven schools had lawyers examine the league's grant of rights, which allocates each team's broadcast rights to the league through the year 2036, and had discussed potential exit strategies.
Those reports were met with intense frustration inside the AD's meeting room, with multiple members admitting to raised voices and a few profanities exchanged that Miami's Dan Radakovich chalked up as "an airing of grievances."
"People had to say where they were and why do you feel that way," Radakovich said.
In the end, however, those frustrations helped to clarify the serious concerns that Alford, Radakovich and others have over the league's future, given a massive revenue gap with the Big Ten and SEC that projects to be as much as $40 million annually in the coming years.
Alford said Tuesday's discussions were "as open and transparent" as he'd experienced, and he believed the progress could mollify the larger revenue concerns for the foreseeable future.
The discussion of potential departures was "probably overblown," Alford said, with a number of other athletic directors, including at schools rumored to be among those looking for an exit, saying the reports were not substantive.
ACC optimistic about reaching agreement on new revenue model
ACC athletic directors left Tuesday's meetings feeling optimistic that schools would coalesce around a plan that would afford a larger share of postseason revenue to the teams participating in those games rather than dividing it equally among all members.
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Imagine they go to uneven revenue sharing and then Wake wins the conference in year 1. FSU makes even less!
The agreement should be that the highest ranked teams get the extra juice, so in your scenario Wake would be rewarded.
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-> Babcock declined comment on whether Virginia Tech and/or the seven schools together have met with other conferences. Why the reticence?
“The tough thing about being an AD in times of conference realignment, real or perceived, is there’s nothing you can really say that’s the perfect answer,” he said. “If you are undyingly loyal to your conference, which the ACC’s been great to us, then your fan base thinks (you’re ignoring reality). If you come out and say you want to keep your options open, you’re not exactly making friends in the room and with the commissioner.” <-
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CL82
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Translation: "We haven't figured out a way out of the existing contract without paying exorbitant amounts of money, so we are going to bluff and see if we can get the conference to throw some more cash at us.
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Bingo. "We looked at the BS ways to get out of the GOR discussed on YouTube and Twitter and turns out, they're BS".
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hardcorehusky
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I hope FSU or Miami on their way to a CFP slip up at BC or Syracuse and get knocked out of the playoff for that year. Poetic justice if no one gets those extra dollars.
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Miami Herald Q&A w/ Miami AD Radakovich.
Some pertinent comments:
▪ Do you expect ACC schools to strike a new revenue distribution deal that would give a greater share of conference revenue to ACC schools that make the College Football Playoff and men’s NCAA Tournament? And are you in favor of that?
“The answer to both questions, I think, is yes. The presidents have a committee that they’re working through. I think there’s a lot of unanimity amongst the athletic directors that some type of success initiatives, success distribution should occur.”
But even if ACC presidents approve this new plan in the weeks ahead, Radavokich said implementation won’t happen this fall.
It’s “not going to happen for the ‘23 season,” he said. “It’s going to be the ‘24 season” because that’s the year the playoff expands from four to 12 teams.
▪ Regarding the issue of schools bolting for conferences where they can make more money, FSU AD Michael Alford reportedly told FSU trustees in February: “We have to do something because we’re a brand. We’re a very important brand, and we drive the media value in this conference.”
Do you believe, regardless of whether you make the College Football Playoff, the same holds true for Miami? In other words, let’s say it was this past year when Miami finished 5-7. Do you believe UM would be one of the schools that deserve more because it is a brand, even if you don’t make the playoff?
“Yeah, I think it’s been shown previously that there are three or four schools — Florida State, Clemson, North Carolina, Miami — who really kind of move the brand awareness of the ACC forward over time and for different reasons.
“You could throw Duke in there for basketball for whatever the basketball number is akin to these days.
“But I think there are two different questions. No. 1: the media deal is harder to affect right now, because we have the contract with ESPN that runs through 2036.
“The success initiatives have nothing to do with your brand. It’s just, ‘Hey, what did you do?’ [in football and basketball?]
“And if you won, if you go to the Final Four, or if you go to the College Football Playoff, we’re going to take a little bit more of the distribution that comes from those sources and give that to the teams that participate.”
▪ Alford said the Seminoles generate about 15 percent of the revenue that the ACC receives through media contracts, but receive only 7 percent of the distribution. How much of ACC revenue does UM generate? And do you believe that UM should receive that percentage?
“I don’t know how that metric was calculated. So I can’t, I wouldn’t even know how to begin to give you a number for the University of Miami. So, that was an interesting number.”
▪ It reportedly would be financially crushing for a school to try to leave the ACC because of a grant of rights contract that allows the ACC to keep TV revenue of all schools (even any that leave the conference) through 2036. Do you believe the ACC’s grant of rights agreement is airtight without loopholes?
“Well, all I can say is that same grant of rights has been in other conferences, and no one has really challenged it. So not being a lawyer, I don’t know the tenets of it. But just being a lay person, it must be pretty good if no one has tried to challenge it.”
▪ If the Big 10 or SEC calls you, would your interest be piqued?
“I’m not going to comment on that. We’re here to make the ACC as good as we can make it. That’s our charge. And that’s where we want to get to.”
Some pertinent comments:
▪ Do you expect ACC schools to strike a new revenue distribution deal that would give a greater share of conference revenue to ACC schools that make the College Football Playoff and men’s NCAA Tournament? And are you in favor of that?
“The answer to both questions, I think, is yes. The presidents have a committee that they’re working through. I think there’s a lot of unanimity amongst the athletic directors that some type of success initiatives, success distribution should occur.”
But even if ACC presidents approve this new plan in the weeks ahead, Radavokich said implementation won’t happen this fall.
It’s “not going to happen for the ‘23 season,” he said. “It’s going to be the ‘24 season” because that’s the year the playoff expands from four to 12 teams.
▪ Regarding the issue of schools bolting for conferences where they can make more money, FSU AD Michael Alford reportedly told FSU trustees in February: “We have to do something because we’re a brand. We’re a very important brand, and we drive the media value in this conference.”
Do you believe, regardless of whether you make the College Football Playoff, the same holds true for Miami? In other words, let’s say it was this past year when Miami finished 5-7. Do you believe UM would be one of the schools that deserve more because it is a brand, even if you don’t make the playoff?
“Yeah, I think it’s been shown previously that there are three or four schools — Florida State, Clemson, North Carolina, Miami — who really kind of move the brand awareness of the ACC forward over time and for different reasons.
“You could throw Duke in there for basketball for whatever the basketball number is akin to these days.
“But I think there are two different questions. No. 1: the media deal is harder to affect right now, because we have the contract with ESPN that runs through 2036.
“The success initiatives have nothing to do with your brand. It’s just, ‘Hey, what did you do?’ [in football and basketball?]
“And if you won, if you go to the Final Four, or if you go to the College Football Playoff, we’re going to take a little bit more of the distribution that comes from those sources and give that to the teams that participate.”
▪ Alford said the Seminoles generate about 15 percent of the revenue that the ACC receives through media contracts, but receive only 7 percent of the distribution. How much of ACC revenue does UM generate? And do you believe that UM should receive that percentage?
“I don’t know how that metric was calculated. So I can’t, I wouldn’t even know how to begin to give you a number for the University of Miami. So, that was an interesting number.”
▪ It reportedly would be financially crushing for a school to try to leave the ACC because of a grant of rights contract that allows the ACC to keep TV revenue of all schools (even any that leave the conference) through 2036. Do you believe the ACC’s grant of rights agreement is airtight without loopholes?
“Well, all I can say is that same grant of rights has been in other conferences, and no one has really challenged it. So not being a lawyer, I don’t know the tenets of it. But just being a lay person, it must be pretty good if no one has tried to challenge it.”
▪ If the Big 10 or SEC calls you, would your interest be piqued?
“I’m not going to comment on that. We’re here to make the ACC as good as we can make it. That’s our charge. And that’s where we want to get to.”
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