ACC, PAC-12, and BIG alliance / conference realignment

[OrangeFoo]

I talked about this the other day, ESPN is looking for a partner to help them launch a linear like DTC service. They see cable is dying, they want to be able to leverage their brand via a streaming service that carries their live content. The search for a strategic partner is key because Disney is getting crushed by the debt they took on after the fox acquisition. They are working on spinning/selling ABC and then taking on a partner for ESPN. They are not going broke because of their media deals, quite the contrary actually: those sports deals are the only reason they are viable. They are struggling because their lower cost content that usually drove a majority of the margin (sportscenter for instance) is obsolete in the age of social media. They want a partner to help reduce the cost of launch of course, but also defend against the inevitable impact to cable revenue (what’s left of it) when the cable guys complain that they’re no longer paying for an “exclusive” service so their rates should drop. It’s a prudent move, but their hand was moreso forced by ABC, and broadcast TV in general, struggles. Frankly, if they can get 40-50M subs to a 20/month ESPN service they probably come out ahead of where they were with cable agreements.

The problem is as long as the traditional networks are around there is no way ESPN is going to get anywhere near 50m people to pay $20 per month. The only way that happens is if the big games aren’t on air. But if that happens ESPN has already lost because they will only have ACC and SEC content as alluded to. Not to compare to soccer again, but NBC is putting more and more of the biggest teams and matchups only on Peacock streaming only which is $5/month or something.

 

[Stern]

ESPN is gonna be fine. Disney may be selling them off to Comcast/NBC, which would solve all of ESPN's problems. If that doesn't happen then APPLE appears ready to jump in bed with them and be a partner and it may not be as smooth as being sold to Comcast/NBC but it would solve their long-term problem.

ESPN is going to be fine. They are cutting costs now to make themselves "more attractive" to whoever their new partner is. Which is standard in business for a company that is about to be in bed with someone new.

 

[djorange1989]

Im going to try and enjoy these next 10 years or so of college football because once our GoR expires i just don’t see a place for us.

Why don’t you think the Big 12 would want us? Yormark would love a NY team and he cares a lot about the basketball part of things. No guarantees of course since none of us have a clue what 2033 or so will look like, but I think we would have a home there

 

[Sbucketball]

Maybe ESPN will throw a curve ball and, in prep for a Power 2, lobby for a SEC/ACC merger, rename it the Eastern Conference, and tee things up to look like an East/West conference split among elite HMs (like the NBA). Then focus on continuing to push the boundary line westward. The Eastern half of the country would have more elite programs.

 

[phsyra]

Just wondering. If ACC decided to make deletions/additions to its membership would that change GOR agreement such that teams could call it disolved and leave freely?

 

[Chris02M]

Just wondering. If ACC decided to make deletions/additions to its membership would that change GOR agreement such that teams could call it disolved and leave freely?

nobody ever gets kicked out of real conferences. Any additions have to agree to existing GOR as a condition of joining the league

 

[Cuse181]

The problem is as long as the traditional networks are around there is no way ESPN is going to get anywhere near 50m people to pay $20 per month. The only way that happens is if the big games aren’t on air. But if that happens ESPN has already lost because they will only have ACC and SEC content as alluded to. Not to compare to soccer again, but NBC is putting more and more of the biggest teams and matchups only on Peacock streaming only which is $5/month or somethin

Oh I agree. What I am saying is that they can augment in the meantime. Like they will get more ARPU from a DTC offering then they get from cable deals

 

[Cuse181]

ESPN is gonna be fine. Disney may be selling them off to Comcast/NBC, which would solve all of ESPN's problems. If that doesn't happen then APPLE appears ready to jump in bed with them and be a partner and it may not be as smooth as being sold to Comcast/NBC but it would solve their long-term problem.

ESPN is going to be fine. They are cutting costs now to make themselves "more attractive" to whoever their new partner is. Which is standard in business for a company that is about to be in bed with someone new.

I don’t think Comcast has any interest in increasing their reliance on the linear market. They are an actively moving away from a cable-first deal right now to instead add it as a “sweetener” to their internet. If they’re interested in anything from Disney, it’s Hulu. One BoA analyst had brought up the Comcast partnership as an ESPN outlet but the Comcast pres. Came out and said there is no interest in ESPN but they didn’t rule out any other potential deals with Disney (Hulu)

 

[CuseLegacy]

Just wondering. If ACC decided to make deletions/additions to its membership would that change GOR agreement such that teams could call it disolved and leave freely?

There's a link to a copy of the GOR in the story if you want to read through it.

What does the ACC's Grant of Rights agreement say? Here's a copy

Conference realignment is shaking college athletics once again. The key to ACC stability appears to be its grant of rights agreement. Read it here.

www.wralsportsfan.com

 

[blust2i3d4]

The dust is starting to settle, the Big 12 was left for dead years ago. And then again when the Texas and Oklahoma left. Now they are seen in a position of strength.

These things change all the time. The ACC is locked unless something drastic happens. When the Big 12’s contract comes due next, I believe 2030, if necessary, the ACC could most definitely steal some teams that fit geographically.

ESPN lost this series of conference realignment. If they settle down and get everything in order, they may be in a better position in 7 years where they want to take back some teams.

Ultimately, what’s best for the athletes and the fans? A system similar to the NFL. 80 teams under one umbrella. Small pods of “divisions” based on geography within a larger subset of conferences also based on geography. You get rid of the 1aa games and the non p5 puff schools and every week is a must watch game. At the end of the year, 12 teams or 16 teams make the playoffs.

This allows football to make absurds amount of money and the Olympic sports play local games with lower travel costs.

The biggest problem with this? The confrence affiliates will lose their lunch money. This is in the best interest of all the schools but all the conference employees and all the conference commissioners would be jetsoned aside and lose jobs and income. Instead of 15 commissioners that line their pockets and the NCAA, only 1 commissioner would line his pockets. For this reason, the Big10, SEC, etc will never advocate for this model. They will do whatever they can to keep status qou and keep growing to save there jobs and income.

ESPN's parent company Disney is in financial trouble. Almost every business they own are not making money. Their stock share price keeps making new 52 week low. Do not expect ESPN can bid up price for ACC against other media. Basically we are linked to a loser (Disney). There is also a possibility that Disney will go bankrupted before 2036. Then ACC got no money or Disney sells ACC cheap to Fox, Amazon or Apple TV.

 

[Toga]

Great find

 

[OrangeXtreme]

I guess Notre Dame is relegated to the "and the rest..." section of Gilligan's Island.

 

[EnviroSciGuy]

I think people trying to poach B1G and B12 are dreaming.

The idea of an expanded P12/ACC up until last night is not.

Yes, they are dreaming. Yes, the PAC/ACC up until last night was also dreaming, but the ACC had to at least float something and they did. The ACC may have been able to offer more $ than what they took from the B1G initially, but the sense of longterm financial security was always going to win out. Even if the B1G didn't go into a bidding war.

The ACC tried and engaged in talks prior to and during all of us throwing expansions ideas. I mean this is a forum, right, where we can exchange ideas and hypotheticals? Is that like okay still? There we're plenty of interesting ideas I've read here. Some really fun.

Sorry to be the bearer of bad news/reality. So because it's a message board, nobody can express dissenting opinions, no matter how ridiculous some statements are? Huh? Odd comments.

Those Pac-4 teams plus whatever combo to get to 6 western schools out of Boise St, Air Force, SDSU won't move it. Would adding 4 more of the remaining G5 schools left like Memphis, Tulane, USF, Temple, Uconn, App St, ECU move it? Will going to 9 games may move the needle with more content?

I certainly think this would be fun, but it's not going to move the needle in terms of being financially competitive except with other G5-type groups.

 

[Jake]

nobody ever gets kicked out of real conferences. Any additions have to agree to existing GOR as a condition of joining the league

I thought the same thing until this week. The BIG threw UW and O a lifeline. Then a rubber raft and a rope to be pulled behind the mothership for 7 years.

The idea of Rutgers and Indiana being kicked to the curb is more real than I think we all acknowledge.

 

[NYCCuse826]

ASU with a random shot at Syracuse confirms that they were talking to the ACC albeit too late. This conversation should have taken place last year.

 

[longtimefan]

I keep returning to the thread title--"ACC, PAC-12, B1G alliance. . ."

The Big Ten has shown itself to be the worst sort of "partner". Their first move against the PAC is understandable. Getting into the LA market and claiming the crown jewel that is USC is basic good business. But this UO/UW raid seems more like a move to destroy the PAC than to strengthen the B1G.

We should be thankful for the GOR, because taking UNC, etal. would have been a higher priority than expanding into the Pacific Northwest.

 

[Jake]

ASU with a random shot at Syracuse confirms that they were talking to the ACC albeit too late. This conversation should have taken place last year.

So clearly, the ACC and maybe ESPN did have an offer for certain PAC members.

 

[Cuse'91]

Seems clear that being in the middle of the country is highly advantageous, when expanding as a Conference. Pretty hard to grow out from one extreme side, whether it's East or West. Big 12 is our last hope - Help us Obi-Wan Kenobi.

 

[Orangezoo]

ASU with a random shot at Syracuse confirms that they were talking to the ACC albeit too late. This conversation should have taken place last year.

Let them have their pot shots. ASU hasn't done jack squat historically as an athletics program in major sports unless you count baseball as major. Albeit they did have some point shaving back in the day going on in hoops.

 

[Scotch]

Seems clear that being in the middle of the country is highly advantageous, when expanding as a Conference. Pretty hard to grow out from one extreme side, whether it's East or West. Big 12 is our last hope - Help us Obi-Wan Kenobi.

Which is really weird given where the largest markets are.

 

[NJneer12]

Yes, they are dreaming. Yes, the PAC/ACC up until last night was also dreaming, but the ACC had to at least float something and they did. The ACC may have been able to offer more $ than what they took from the B1G initially, but the sense of longterm financial security was always going to win out. Even if the B1G didn't go into a bidding war.


Sorry to be the bearer of bad news/reality. So because it's a message board, nobody can express dissenting opinions, no matter how ridiculous some statements are? Huh? Odd comments.


I certainly think this would be fun, but it's not going to move the needle in terms of being financially competitive except with other G5-type groups.

So I'm having a hard time grasping whether you agreed that the ACC and Pac12 should have engaged and if it's cool for people here to discuss those scenarios. You're saying they had to talk and they'd be fun but the comments about those scenarios were odd? I mean the fact they talked means it was a possibility. Why was it such a dream/is it so ridiculous after reading tweets from journalists saying they were talking about merging?

As I said they had to explore that opportunity. Everyone here throwing out these expansion talks want their old rivalries back, their regionally back, and good travel spots. It's fun to imagine.

 

[oldpinepoint]

ASU with a random shot at Syracuse confirms that they were talking to the ACC albeit too late. This conversation should have taken place last year.

What was said

 

[syrBossHogg]

I guess Notre Dame is relegated to the "and the rest..." section of Gilligan's Island.

Imagine showing someone this graphic in 1998

 

[kcsu]

Seems clear that being in the middle of the country is highly advantageous, when expanding as a Conference. Pretty hard to grow out from one extreme side, whether it's East or West. Big 12 is our last hope - Help us Obi-Wan Kenobi.

No its not.

 

[EnviroSciGuy]

What was said

Nothing really, their AD made a comment about not wanting to send their women's soccer team to Syracuse late in the season. Their President, who is a Cuse alum, chided him for being afraid of the cold.

That was the extent of it. The poster you are responding to completely misrepresented things.