Texas, Oklahoma reach out to the SEC

[sutomcat]

I'm guessing in this case the cost of legal efforts (and damaged relationships with media partners) to exit the B12 one year early weren't worth just waiting it out. Maybe that calculus changes if we're talking about 5-to-7 years, but who knows.

If that happens with the ACC in say 2030 or 2031, I think it is because hundreds of millions of dollars has become a reasonable business expense.

As we get reasonably close to the ACC GOR expiration, it will be interesting to see if ESPN proactively tries to extend the ACC contract and how competitive their offer(s) will be to what the B1G and SEC are getting.

I think a world with 65-72 schools playing football in major conference is best for the sport.

Maybe ESPN (and Fox) do not agree?

 

[Scooch]

If that happens with the ACC in say 2030 or 2031, I think it is because hundreds of millions of dollars has become a reasonable business expense.

As we get reasonably close to the ACC GOR expiration, it will be interesting to see if ESPN proactively tries to extend the ACC contract and how competitive their offer(s) will be to what the B1G and SEC are getting.

I think a world with 65-72 schools playing football in major conference is best for the sport.

Maybe ESPN (and Fox) do not agree?

It may be more about what Apple, Amazon and Google think in 2031.

 

[HtownOrange]

Points to ponder:

1) the GOR locks the TV rights of UT ad OU to the Big 12 and Fox. What incentive is there for the Big 12 and Fox to relinquish those rights?

2) Likewise, the GOR locks in the TV rights of each ACC team to the ACC and to ESPN. If ESPN rolled the ACC into the SEC, there would be no major issue as ESPN owns the rights to both conferences and the ACC would get more money. However, if the B1G wanted some teams, the deal would have to equate to each team breaking even or getting ahead. In a third alternative, any team not being absorbed into either the SEC or B1G, those teams would seem to hold sway as rights holders of the leaving teams' TV rights. It remains to be seen if enough teams can dissolve the conference and the deal, but that would raise legal issues and would get costly, from a legal standpoint. A seriously generous negotiated settlement may be the only way out in event of the third alternative.

3) The ACC could hold its own and remain a viable conference with minimal territory on the east coast and possibly some middle-American territory. I am not sure a viable conference can be patched together with both coasts and nothing in the middle. It seems weird , no natural rivalries east-west weise) and no on will stay up past midnight to watch the late games between Utah and Washington State.

 

[Hoo's That]

There are Mexican soccer teams that are owned by universities there (the Pumas in Mexico City and the Tigres in Nuevo Laredo are the best known), just like the Mara family owns the NY Giants. The players aren't students. This is the model. I've long believed that the ultimate goal for Clemson, Florida State, and possibly Miami; the SEC minus Vanderbilt; at the very least Ohio State and Michigan from the B1G; the Big XII with the possible exception of TCU; and Southern Cal is to have a setup in which their players do not have to attend class. If (and getting closer with each new development like NIL to "when" IMO) that happens, they will claim that they no longer play NCAA football and that GORs don't apply to them. Under some conference by-laws, schools that don't play football are expelled. The GORs could very well go away when conferences vote to disband. ESPN and Fox will be more than happy to let the conferences do that and terminate the contracts in order to pursue the rights of the new league. ND gets only $10 million instead of $30 million per year from the ACC TV contract, which gives a general idea the non-football part of the contracts are worth about a third.

Oh, and sorry, Duke. It will be all or nothing with football, both basketballs, and baseball/softball. You won't be allowed to pick and choose sports.

 

[All4SU]

There are Mexican soccer teams that are owned by universities there (the Pumas in Mexico City and the Tigres in Nuevo Laredo are the best known), just like the Mara family owns the NY Giants. The players aren't students. This is the model. I've long believed that the ultimate goal for Clemson, Florida State, and possibly Miami; the SEC minus Vanderbilt; at the very least Ohio State and Michigan from the B1G; the Big XII with the possible exception of TCU; and Southern Cal is to have a setup in which their players do not have to attend class. If (and getting closer with each new development like NIL to "when" IMO) that happens, they will claim that they no longer play NCAA football and that GORs don't apply to them. Under some conference by-laws, schools that don't play football are expelled. The GORs could very well go away when conferences vote to disband. ESPN and Fox will be more than happy to let the conferences do that and terminate the contracts in order to pursue the rights of the new league. ND gets only $10 million instead of $30 million per year from the ACC TV contract, which gives a general idea the non-football part of the contracts are worth about a third.

Oh, and sorry, Duke. It will be all or nothing with football, both basketballs, and baseball/softball. You won't be allowed to pick and choose sports.

How could state schools justify owning professional teams?

 

[HtownOrange]

How could state schools justify owning professional teams?

Non-profits may own profit oriented enterprises. The tax laws must be followed closely and properly, it is done and usually done well, when honest people run the show. Special care is taken to ensure monies are never co-mingled between the two organizations, donations are clearly identified as such. Taxes are properly paid on the for -profit organization and the IRS ensures Uncle Sam is not shorted any funds. Like everything else, it's when corrupt people run the show that corruption ruins the process and gives the organization a bad name.

It is more common to see the reverse where a for-profit runs a non-profit.

 

[Hoo's That]

How could state schools justify owning professional teams?

Allow the athletic department to license the use of their name to a private entity and then disband the team within their athletic department. They don't own it; they just let the team call themselves Texas, Michigan, etc. and use the colors. Two biggest benefits, the huge naming rights, and facility usage, etc., checks and near-instantaneous full compliance with Title IX as 85 scholarships for males disappear.

 

[Hoo's That]

Non-profits may own profit oriented enterprises. The tax laws must be followed closely and properly, it is done and usually done well, when honest people run the show. Special care is taken to ensure monies are never co-mingled between the two organizations, donations are clearly identified as such. Taxes are properly paid on the for -profit organization and the IRS ensures Uncle Sam is not shorted any funds. Like everything else, it's when corrupt people run the show that corruption ruins the process and gives the organization a bad name.

It is more common to see the reverse where a for-profit runs a non-profit.

Many universities have research entities operating along these lines to license the use of STEM research breakthroughs.

 

[HtownOrange]

Allow the athletic department to license the use of their name to a private entity and then disband the team within their athletic department. They don't own it; they just let the team call themselves Texas, Michigan, etc. and use the colors. Two biggest benefits, the huge naming rights, and facility usage, etc., checks and near-instantaneous full compliance with Title IX as 85 scholarships for males disappear.

That works, too.

 

[HtownOrange]

Many universities have research entities operating along these lines to license the use of STEM research breakthroughs.

Exactly. And they should monetize it when they are able to do so. Regardless of what many people think, competition is good and success breeds success. The people are the net winners in the long run.

Plus, Georgetown will always suck. (Not necessarily germane to the discussion but it can never be stated too much)

 

[All4SU]

Allow the athletic department to license the use of their name to a private entity and then disband the team within their athletic department. They don't own it; they just let the team call themselves Texas, Michigan, etc. and use the colors. Two biggest benefits, the huge naming rights, and facility usage, etc., checks and near-instantaneous full compliance with Title IX as 85 scholarships for males disappear.

How would that work for other men’s sports like soccer? Lacrosse? Crew? Women’s sports? Would they be owned outside of the university too? Would that put an end to athletic scholarships?

 

[Hoo's That]

How would that work for other men’s sports like soccer? Lacrosse? Crew? Women’s sports? Would they be owned outside of the university too? Would that put an end to athletic scholarships?

The Olympic sports would stay as they are now because they don't make money like football and basketball do. There's really no incentive to change them, plus the SEC and B1G don't care as much about them as they do football and basketball.

Ending scholarships would move everyone to the D-3/Ivy model of giving only need-based aid. I really don't know one way or the other if they would also want to do that.

 

[FRANKIEFAN]

If that happens with the ACC in say 2030 or 2031, I think it is because hundreds of millions of dollars has become a reasonable business expense.

As we get reasonably close to the ACC GOR expiration, it will be interesting to see if ESPN proactively tries to extend the ACC contract and how competitive their offer(s) will be to what the B1G and SEC are getting.

I think a world with 65-72 schools playing football in major conference is best for the sport.

Maybe ESPN (and Fox) do not agree?

I don't really see a scenario where any conference separates from the pack more than the SEC currently has. There is plenty of talent out there and will be more good teams just look at TCU. I can't see the Big Ten joining them and separating themselves from the next group at all regardless of their TV deal or getting UCLA and USC.

James Madison doesn't seem to be struggling jumping up from 1AA if the numbers make sense I could see entire conferences going to FBS and FCS being Ivys and small schools.

I just wish they only went to an 8 team playoff. I don't want to see a team that played in a CCG and then the round of 12 be road kill up against someone off a bye those games will be no different than UGA-TCU.

 

[NJCuse97]

Many universities have research entities operating along these lines to license the use of STEM research breakthroughs.

Usually referred to as the tech transfer group. Ivys have fattened their endowments this way, as well as improved “graduate job placement” numbers. They also use real estate management arms to set themselves up with long term ground leases for industry development. It’s the foundation of business models and alternative industry trends that help make Cambridge Mass the biotech hub of the world (MIT has MITIMCo You are being redirected... ) Cooper Union in NYC used to offer free tuition from the profits of the ground lease the Chrysler Building sits on. Cost of tuition has recently surpassed lease income. Not sure the real estate side works as easily for state schools, but NYCEDC offers ground lease deals on CUNY holdings all the time.

 

[OrangeXtreme]

 

[OrangeXtreme]

The Big 12 announces that the Conference has agreed in principle to terms with the University of Oklahoma and The University of Texas at Austin to leave the Conference following the 2023-24 athletic year, one year earlier than originally announced, subject to final approval from the OU and UT governing Boards. Compensation to the Conference for the early withdrawals of the two schools totals $100 million in foregone distributable revenues, which OU and UT will be able to partially offset with future revenues.

 

[OrangeXtreme]

 

[rrlbees]

“Welcoming the conferences new members and moving into our future as a 16 team league”

4x16

 

[HtownOrange]

The Big 12 announces that the Conference has agreed in principle to terms with the University of Oklahoma and The University of Texas at Austin to leave the Conference following the 2023-24 athletic year, one year earlier than originally announced, subject to final approval from the OU and UT governing Boards. Compensation to the Conference for the early withdrawals of the two schools totals $100 million in foregone distributable revenues, which OU and UT will be able to partially offset with future revenues.

The schools each pay $50MM to leave one year early, more than double one year's revenue under the Big 12 deal.

Using that as a guide to get an ACC school out of the GOR, it would be very costly to get a team away from the ACC at this point in time.

 

[orange79]

4x16

Where have I heard that before?

 

[Hoo's That]

An oldie from our board worth re-posting.

 

[Orangefizz]

I want Notre Dame and Vandy in the ACC for all sports with uneven payments based on performance: top 5 teams 100% SEC money, 6-11 75% SEC, 12-16 60% SEC.

ESPN owns both conferences so they could make this happen if they wanted to.

 

[Orangefan1]

ACC needs to act

 

[qdawgg]

ACC needs to act

How? There are no plays.

 

[Toga]

How? There are no plays.