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ACC, PAC-12, and BIG alliance / conference realignment
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[QUOTE="HtownOrange, post: 4747375, member: 622"] I have not changed my argument. I have consistently stated that the exit fee is significant and most schools cannot or will not pay it outright, let alone buy back their rights. I have consistently opined that the ACC buyback is too long for a simple calculation, as you argue $250MM, or roughly 5 years when they have another 12 years following this season, or roughly $500-$600MM. When you use the OU and UT multiplier of 2.1, you end up at $1.050-$1.26BB. Your estimate does not even cover the rights the ACC will gain by not agreeing to the offer. Negotiations don't work that way unless you have no leverage. In this scenario, FSU and Clemson have no leverage as they are under contract (as is every ACC school). As to the carriage fees, they will not increase significantly as people cut the cord, sure some streaming will be available, but that is too difficult at this time to assume it will be cover the cord cutting losses. Yes, the ACC may get a nice bump with CA and TX, but that is not revenue FSU and Clemson get to use to negotiate down their buy back. To your final comments, there is no way ESPN can simply move the FSU and Clemson rights to the SEC, that is bargaining in bad faith. Unless the ACC is heavily compensated, there is no incentive for the remaining ACC teams to agree to a buy back by FSU and Clemson. All the ACC has to do is file a case in court and keep it there so long as it is not frivolous, the ACC wins by default. I am not sure why you want to let FSU and Clemson out on the cheap. If they are leaving in 2036, then they are leaving in 2036. What incentive is there to let them out early and on the cheap? There is no benefit. Keep them locked down and continue to build up the remaining teams. The option to buy back their rights is always on the table, but as UT and OU proved, the price is steep. From FSU and Clemson's perspective, the money is not as bad as the FSU AD cried about. The have an easy path to the playoffs. If ESPN fails the ACC and does not make a sweet offer in 2036 then all ACC teams need to see what is out there and in their best interest. I personally believe that ESPN will not allow Fox more "territory". If ESPN kills off the ACC, then ESPN will be no better than Jefferson Pilot for the SEC, a regional carrier. If that happens, ESPN can write off college sports as a whole because Fox, NBC, CBS, and the streamers know the boon that is CFB and Hoops. They are not likely to give up control again for a long time. Please note, too many mouths on the web are only looking at this from a conference perspective. See Paul Finebaum. Are highly biased. Finebaum, the Dude, Frank the Tank, et al. All of them ignore the networks and the streamers who need content - and have the bucks!, ignore hoops as a revenue source, even though they freely admit that hoops is at least 25% of the contract but offers much more upside on revenue, and cannot keep their biases from ruling their "opinions". I wish we had access to the full matrix the decision makers get to see. [/QUOTE]
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