ACC Conference Future Revenue Numbers

[sutomcat]

Not sure how many people read the daily articles but today there are a couple of links on future ACC revenue numbers worth discussing.

The last public ACC revenue distribution verified through tax returns was for 2014-15, where the average distribution was $26.2 million per school.

It has been verified each school will receive an additional $3M starting in 2017-18, presumably for the change to the conference basketball schedule, where they are going from 18 to 20 conference games. So that should, coupled with escalating revenue as the contract goes deeper, gets the average distribution in the $30 million range.

Then there are reports that the expected revenue per school for the first year of the ACC Network is $8-10 million per school, with the revenue then growing to $15-20 million per season.

That would give us the following numbers for future revenue distribution for ACC schools:

2017-18 $30 million per school
2018-19 $30 million per school
2019-20 $39 million per school
2020-21 $45 to $50 million per school
...

These are revenue estimates, and not set in stone, but if the numbers are anything close to this, you can see why the university needs to invest in building a new roof that is not subject to catastrophic failure.

 

[jr4750]

Not sure how many people read the daily articles but today there are a couple of links on future ACC revenue numbers worth discussing.

The last public ACC revenue distribution verified through tax returns was for 2014-15, where the average distribution was $26.2 million per school.

It has been verified each school will receive an additional $3 starting in 2017-18, presumably for the change to the conference basketball schedule, where they are going from 18 to 20 conference games. So that should, coupled with escalating revenue as the contract goes deeper, gets the average distribution in the $30 million range.

Then there are reports that the expected revenue per school for the first year of the ACC Network is $8-10 million per school, with the revenue then growing to $15-20 million per season.

That would give us the following numbers for future revenue distribution for ACC schools:

2017-18 $30 per school
2018-19 $39 million per school
2019-20 $45 to $50 million per school

These are revenue estimates, and not set in stone, but if the numbers are anything close to this, you can see why the university needs to invest in building a new roof that is not subject to catastrophic failure.

Agree Tom. Granted this was nearly 30 years ago, but I sure hope there is someone on that board that learned from the Shaw era. In essence, the lack of investment in the AD, is a losing proposition. Building infrastructure now will be huge for future revenue and success. Maybe having Tirico on the BOT will help.

 

[orangefog]

Not sure how many people read the daily articles but today there are a couple of links on future ACC revenue numbers worth discussing.

The last public ACC revenue distribution verified through tax returns was for 2014-15, where the average distribution was $26.2 million per school.

It has been verified each school will receive an additional $3 starting in 2017-18, presumably for the change to the conference basketball schedule, where they are going from 18 to 20 conference games. So that should, coupled with escalating revenue as the contract goes deeper, gets the average distribution in the $30 million range.

Then there are reports that the expected revenue per school for the first year of the ACC Network is $8-10 million per school, with the revenue then growing to $15-20 million per season.

That would give us the following numbers for future revenue distribution for ACC schools:

2017-18 $30 per school
2018-19 $39 million per school
2019-20 $45 to $50 million per school

These are revenue estimates, and not set in stone, but if the numbers are anything close to this, you can see why the university needs to invest in building a new roof that is not subject to catastrophic failure.

Those are some amazing numbers. The Dome renovations really has to happen. With Babers bringing exciting football back and Syracuse basketball, we have to have a first rate facility. It will help both programs as well as the women's basketball and both lacrosse programs to recruit and remain strong.

 

[SURU]

The one number I dont get is the ACC Network revenue. Its expected to pay out more than the SEC network does in year one? And then go up to more than the SEC and BIG networks combined? I dont see it. Thats about as much money just from the ACC network as the B12 and PAC get from their 1st tier TV rights

 

[texascpa]

The one number I dont get is the ACC Network revenue. Its expected to pay out more than the SEC network does in year one? And then go up to more than the SEC and BIG networks combined? I dont see it. Thats about as much money just from the ACC network as the B12 and PAC get from their 1st tier TV rights

Numbers are probably based on TV viewership. I believe the ACC has the most potential eyeballs of any conference.

 

[SURU]

Numbers are probably based on TV viewership. I believe the ACC has the most potential eyeballs of any conference.

But SECN is already part of basic sports packages all the way from Miami to NYC plus way more and they only pay out $7m per school.

 

[cpatrocks]

The one number I dont get is the ACC Network revenue. Its expected to pay out more than the SEC network does in year one? And then go up to more than the SEC and BIG networks combined? I dont see it. Thats about as much money just from the ACC network as the B12 and PAC get from their 1st tier TV rights

The women's softball broadcasts are gonna be HUGE

 

[SU68]

But SECN is already part of basic sports packages all the way from Miami to NYC plus way more and they only pay out $7m per school.

It depends on the timing of the contract. ACC is behind the other conferences right now due, in part, to the current contract being negotiated before the other P-5 contracts were put together.

 

[Hoo's That]

But SECN is already part of basic sports packages all the way from Miami to NYC plus way more and they only pay out $7m per school.

I could easily be wrong but, I think SECN is part of my premium package and not one of the basic sports channels. (Also, ESPNU is a premium channel for me)

 

[TheCusian]

Do we know when the SEC is re-negotiating? It might just be undervalued until the next contract.

 

[PhatOrange]

I could easily be wrong but, I think SECN is part of my premium package and not one of the basic sports channels. (Also, ESPNU is a premium channel for me)

Me to

 

[GHLF]

Agree Tom. Granted this was nearly 30 years ago, but I sure hope there is someone on that board that learned from the Shaw era. In essence, the lack of investment in the AD, is a losing proposition. Building infrastructure now will be huge for future revenue and success. Maybe having Tirico on the BOT will help.

I rarely post but you cannot be more correct. In my opinion Buzz Shaw was almost singlehandedly responsible for the demise of the football program. I could write so much. He certainly was not a global thinker, nor invested in the student athlete as much as his desired academic prestige which fell tremendouslly during his tenure as well.

 

[UnknownOrange]

Also something to note: the basketball schedule gains 1 more ACC game. A small bump in season ticket cost, another game for single games buyers, group buyers, concessions, parking increase (and single game) ... you'd have to think even if the "extra" home game was BC you're going to have 18-22k on the low end.

In the grand scheme of things it's not a big deal but an extra home basketball game would bring in about 1.5-2 million OTHER than the earnings from the ACC

 

[Moontan]

Also something to note: the basketball schedule gains 1 more ACC game. A small bump in season ticket cost, another game for single games buyers, group buyers, concessions, parking increase (and single game) ... you'd have to think even if the "extra" home game was BC you're going to have 18-22k on the low end.

In the grand scheme of things it's not a big deal but an extra home basketball game would bring in about 1.5-2 million OTHER than the earnings from the ACC

I don't quite understand your math.

The "extra" ACC home hoops game will simply replace one of the non-conference games. So, that's only an extra 5,000-10,000 tickets sold at a slightly higher price + some extra concessions sales. More like a $200,000-$300,000 increase in revenue.

 

[OrangeAl]

I don't quite understand your math.

The "extra" ACC home hoops game will simply replace one of the non-conference games. So, that's only an extra 5,000-10,000 tickets sold at a slightly higher price + some extra concessions sales. More like a $200,000-$300,000 increase in revenue.

The two additional league games result in one less home game per year.

 

[Chip]

At what revenue breaking point does it become the $ used for capital improvements, instead of relying on (or saying you're going to rely on) fund raising and donations.

A few years ago, we used to get $5M from our conference. Now we'll get $30M, and soon $45M. Quite a jump, can't just be to pay salaries and keep the lights on.

At some point you'd also think donations for many of these schools just drop off. Hey, the severely outdated pocket calendar is nice and all, but you're getting $45M not even including ticket sales, merchandise sales, beer sales. Do you REALLY need my $3k per year?

 

[UnknownOrange]

I don't quite understand your math.

The "extra" ACC home hoops game will simply replace one of the non-conference games. So, that's only an extra 5,000-10,000 tickets sold at a slightly higher price + some extra concessions sales. More like a $200,000-$300,000 increase in revenue.

AH. This is Dan not reading into it much. LOL. Didn't know it was replacing non-conf games. Now that I think about it I'm not sure why I thought they were just simply adding games. I suck

 

[UnknownOrange]

The two additional league games results in one less home game per year.

Don't expect pricing not to increase still though! Haha.

Just all around poor effort by me today

 

[Moontan]

The two additional league games results in one less home game per year.

Not necessarily. Some non-conference games are road games (Georgetown, Villanova, St. John's, etc.). And those (other than St. Johns which is a road game in name only [RGINO ?]) may become less frequent. I'll give you 1 fewer home game every other year.

 

[SUFan44]

At what revenue breaking point does it become the $ used for capital improvements, instead of relying on (or saying you're going to rely on) fund raising and donations.

A few years ago, we used to get $5M from our conference. Now we'll get $30M, and soon $45M. Quite a jump, can't just be to pay salaries and keep the lights on.

At some point you'd also think donations for many of these schools just drop off. Hey, the severely outdated pocket calendar is nice and all, but you're getting $45M not even including ticket sales, merchandise sales, beer sales. Do you REALLY need my $3k per year?

Exactly.

Where is the extra $20M+ going? I understand that Gross spent like a drunken sailor but there's no way the school isn't making money now.

Add all of the conference money to the tuition money of the non-revenue sports, then subtract expenditures and we should be using some of the excess to fund whatever it is we need to do - and #1 and #1A should be dome renovation, IMO.

 

[nzm136]

I don't quite understand your math.

The "extra" ACC home hoops game will simply replace one of the non-conference games. So, that's only an extra 5,000-10,000 tickets sold at a slightly higher price + some extra concessions sales. More like a $200,000-$300,000 increase in revenue.

It depends on what's replaced. It probably costs Syracuse money. We can schedule who we want in basketball, so, theoretically, the extra ACC game would only net out even (at best). Otherwise, the school would have just scheduled a H&H w/ a comparable team.

It helps schools like BC.

 

[HtownOrange]

Not necessarily. Some non-conference games are road games (Georgetown, Villanova, St. John's, etc.). And those (other than St. Johns which is a road game in name only [RGINO ?]) may become less frequent. I'll give you 1 fewer home game every other year.

Aren't all Syracuse "road" games in name only?

 

[atom58]

While I was looking at another site, I saw these two links which have some bearing on your discussion here. The first one is from the FSU AD (an ND grad and former Associate Commissioner of the Old Big East, btw):

FSU AD says ACC Network could bring up to additional $15 million in revenue to schools

You'll have to click on the link "Via Noles 24/7" near the middle of the page to get there however.

The other one has to do with the continuing troubles of the Pac 12's go-it-alone network:

Some ADs grumble about Pac-12 Networks’ payouts, distribution

The ACC will not have that problem with the backing of ESPN.

 

[CuseOnly]

Not sure how many people read the daily articles but today there are a couple of links on future ACC revenue numbers worth discussing.

The last public ACC revenue distribution verified through tax returns was for 2014-15, where the average distribution was $26.2 million per school.

It has been verified each school will receive an additional $3 starting in 2017-18, presumably for the change to the conference basketball schedule, where they are going from 18 to 20 conference games. So that should, coupled with escalating revenue as the contract goes deeper, gets the average distribution in the $30 million range.

Then there are reports that the expected revenue per school for the first year of the ACC Network is $8-10 million per school, with the revenue then growing to $15-20 million per season.

That would give us the following numbers for future revenue distribution for ACC schools:

2017-18 $30 per school
2018-19 $30 per school
2019-20 $39 million per school
2020-21 $45 to $50 million per school
...

These are revenue estimates, and not set in stone, but if the numbers are anything close to this, you can see why the university needs to invest in building a new roof that is not subject to catastrophic failure.

Gonna be awesome to get a whole extra $3 per school starting in 2017-18, we should invest it in chips and soda.

 

[atom58]

Gonna be awesome to get a whole extra $3 per school starting in 2017-18, we should invest it in chips and soda.

Right - since he meant $3M that would be enough for chips and soda - for all the fans at 7 home games!