sutomcat
No recent Cali or Iggy awards; Mr Irrelevant
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That makes some sense.Regarding the ACCN, that would be something that within the deal I could see be subject to revocation, as in if ESPN didn’t hit certain numbers they could revoke their obligation to have a dedicated network. They might want to do that without terminating the entire agreement.
That said, I have never heard of any conference-network contract where the network has a chance to terminate it early. If it is a 10 year contract, it expires in 10 years. Period. And I think this was the case with the original contract the ACC signed with ESPN.
The clause was clearly tied to the ACCN and I assume it was added when ESPN made the commitment to make the ACCN happen. But in order to get ACCN, ESPN made the ACC extend their contract to 2036.
At that time, I think most industry experts knew this was a good deal for ESPN but no one knew just how great it was. I am thinking they asked for an out in case the industry collapsed, so they would not have to be on the hook for hundreds of millions of dollars in payments for 15-20 years no matter what? They knew the ACC was desperate and would agree to pretty much anything they wanted.
Kind of surprised ESPN has not announced they are waiving their right to revoke the contract already but I assume they are using it as leverage to get the conference to do what they want it to do.