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

[Orangezoo]

I wish we lived in a world where white collar criminals were brought to justice regularly, but we don't. This type of stuff happens all the time in all sorts of areas with stricter laws and regulations than whatever university presidents are supposed to abide by. The vast majority of people taking bribes and kickbacks don't get caught, and most of the ones who do suffer such small penalties that they still make a tidy profit on the bribe or kickback anyway.

We are getting into story time and conspiracy here and off topic. University presidents are not doing this en masse. We can debate white collar crimes in another setting. I've seen it a few times and they didn't get away with it- on much smaller matters.

Just a reminder you've got a lot of people who post here with years of business and life experience that are not naive about this stuff and aren't shooting from the hip in response.

 

[Orangezoo]

On another note that ESPN partnership with theaters(other thread) is very interesting even if questionable ( pending details) I wonder how their revenue model projects out and if it will have game by game perks ( like access to replays) and no subscription...

 

[qdawgg]

 

[qdawgg]

On a lighter note…… I somehow opened this thread up, ended up on page 1 (which is happening a lot now on threads I’m active in) and thought the first post was from today……. It sort of came true, in a way.

 

[Orangezoo]

View attachment 230653On a lighter note…… I somehow opened this thread up, ended up on page 1 (which is happening a lot now on threads I’m active in) and thought the first post was from today……. It sort of came true, in a way.

In a very Dwight and Jim kinda way...

 

[SURules]

Who are also subject to laws, regulations and university policies. This isn't a college recruit getting a bag under the NCAAs nose. When it comes to that part of this I think you are a bit out of your depth.

It’s spreading FUD

 

[Ozcuse]

You do realize that conference TV money is chump change compared to the academic money? And that the presidents are academics who aren’t that into sports? Some who even dislike it? They aren’t making decisions that can impact the academic side for a measly $25M.

USC and UCLA led the demise of an over 100 year old conference over money, yes that’s exactly what happened. That caused CU, Utah, ASU, and UA to also “make a run on the bank” and now we have 4 schools left wondering What just happened.

 

[Ozcuse]

The addition of Rutgers increased the rate that NY market cable operators paid for the BTN.

Prior to Rutgers joining they were likely paying 10-15 cents per subscriber per month, and the network was most often offered on a sports tier.

After adding them those operators paid well over $1 per subscriber per month, and the BTN was moved to a basic tier.

You are right that Penn State delivers much bigger ratings in the NY market than Rutgers. But that’s not what the addition of Rutgers was about.

It’s insane to me that adding a school not in NYS and not cared about by those in NYC was allowed to bamboozle cable payers into being required to pay for the channel.

If it was as easy as this why doesn’t the B1G add a FL sunbelt school and tell them you get 1% of a full share for 100 years and we now all get an additional $15M a year from the idiot money printing machine. At some point you would think the cable provider would say NO.

 

[Cuse181]

The addition of Rutgers increased the rate that NY market cable operators paid for the BTN.

Prior to Rutgers joining they were likely paying 10-15 cents per subscriber per month, and the network was most often offered on a sports tier.

After adding them those operators paid well over $1 per subscriber per month, and the BTN was moved to a basic tier.

You are right that Penn State delivers much bigger ratings in the NY market than Rutgers. But that’s not what the addition of Rutgers was about.

But why would they bring anymore value than Penn? Rutgers is Jersey? They’re still out of state

 

[pokercuse08]

But why would they bring anymore value than Penn? Rutgers is Jersey? They’re still out of state

It had to do with media markets and how they're defined. Northern NJ is the NYC media market.

 

[Ozcuse]

Let’s add the University of Chicago while we’re at it. Chicago’s a huge market and I bet they would come to the ACC for 1% of an ACC share since they currently get $0 tv dollars!

Go Phoenix’s!

 

[kcsu]

Let’s add the University of Chicago while we’re at it. Chicago’s a huge market and I bet they would come to the ACC for 1% of an ACC share since they currently get $0 tv dollars!

Go Phoenix’s!

sleeping giant

 

[Cuse181]

It had to do with media markets and how they're defined. Northern NJ is the NYC media market.

Ah, didn’t realize that’s how the map was drawn figured Philly gets their own, why wouldnt jersey

 

[Hoo's That]

So in theory, if the SEC takes FSU and Clemson... ESPN still holds those schools' media rights at the current value (which would become a huge bargain in the SEC), but it gets to demand a look-in at the ACC and lower those contract payouts. This could be a huge savings for ESPN. So then you start to wonder, would ESPN be so interested in doing something like this with a handful of schools the SEC would take, that it might cut a deal with FOX on those media rights to let them take enough schools to the B1G to dissolve the ACC?

Having ESPN "collude" with Fox over something like that is almost begging the Feds for antitrust investigations. This whole thing is treading on thin ice as it is. While there may not be anything wrong, do they really want the scrutiny?

 

[HRE Otto IV]

I think it's naïve to think that deals worth $30-50M a year are being cut, with major input/control from university presidents, and none of them are getting a little piece for themselves. I wish we lived in a world where people were beyond reproach and didn't do stuff like that, but I've had that innocence ripped away from me as I've gotten older.

I wouldn't be surprised if they're literally getting bags of money, but it's probably a little less overt. It's probably promises of future no-show jobs, board seats, etc, that wouldn't look all that out of the ordinary.

So who is paying these bribes?

 

[Hoo's That]

Doesn't the PAC still technically exist with 4 (soon to be two?) teams?

That would seem to imply that dissolving would require a unanimous vote, even in their situation which isn't mucked up by a media contract. Someone posted earlier in the thread that ESPN would still have a claim to something even if everyone left.

So, as long as someone wants/has to stick it out, the conference identity would remain and the GOR should apply. Once an exodus begins, the holdouts can divvy up the buyouts but will also be subject to look-ins and reductions in ESPN money.

Their GoR is expiring at the same time as the media contract does. Everyone gets to walk away for free just by announcingthey're leaving.

 

[Sherman20]

Part of the idiocy of all of this is if FSU can make the playoff every year through the ACC, they will probably net more in proceeds and alumni $ than they would make by finishing in the middle of the pack in the SEC.

This is what none of these schools understand. It’s all driven by fear that they won’t be able to recruit against teams in the SEC and Big 10, which is garbage.

 

[Hoo's That]

What’s amazing to me is someone hasn’t said, hey all you P5 leagues, come here and combine. Negotiate as one group similar to the NFL. NFL gets $12.5 billion annually, cut that in half and divide by 60 and you get $100 mill each. I think there is where we are heading eventually. Just going to take some real leadership

The NFL can do that because they have an exemption from the antitrust laws, IIRC which specifically mentions the TV contract and the draft. Colege FB woulf have to get the same exemption.

 

[HRE Otto IV]

Their GoR is expiring at the same time as the media contract does. Everyone gets to walk away for free just by announcingthey're leaving.

I am sure they still have exit fees.

Edit

What? Just read they didn’t even have a nominal exit fee, Even G5s have that. So either schools wanted an easy out, or they were naive to think the B1G would never raid them.

 

[Hoo's That]

I am sure they still have exit fees.

Edit

What? Just read they didn’t even have a nominal exit fee, Even G5s have that. So either schools wanted an easy out, or they were naive to think the B1G would never raid them.

IIRC, exit fees only apply to leaving the TV contract early.

 

[Hoo's That]

From our board. The money involved in realignment represented graphically.

 

[Scooch]

But why would they bring anymore value than Penn? Rutgers is Jersey? They’re still out of state

Rutgers is located in a town that is part of the New York City “designated market area”. That extends from Fairfield County, CT to Central NJ.

There are 212 DMAs in the U.S., and that is the geography of television. DMAs determine TV deals, blackouts, regional sports network availability, etc.

Penn State is obviously not located within the NY DMA.

 

[Scooch]

Ah, didn’t realize that’s how the map was drawn figured Philly gets their own, why wouldnt jersey

NJ is essentially split in half. Top half is NY, bottom half is Philly.

 

[qdawgg]

From our board. The money involved in realignment represented graphically.

Based on the charts we should just add Wash and Oregon state too (click on the link and view all the charts)

 

[Scooch]

From our board. The money involved in realignment represented graphically.

There’s simply no way FSU and Clemson can compete. Might as well fold the universities and sell the land.