Confirmation that the ACC Schools Will Get At Least $1-2 Million Extra Per Year

[sutomcat]

by adding Syracuse and Pittsburgh.

Link

Anyone heard how the ACC revenue sharing phase in works for the new schools (if there is indeed a phase in?). I wonder if the ACC schools would be willing to chip in some of the extra money they will get from the expansion to the new schools to help offset the early withdrawal fees they would incur? That might make the difference between SU and Pitt staying or leaving.

 

[TexanMark]

VT ought to chip in about 50% of it

 

[Chip]

Hoping there isn't a phase in. As I recall, the ACC has always prided itself on being an equal revenue share league. Let's hope that continues, even to those who are just about to join.

 

[sufan]

by adding Syracuse and Pittsburgh.

Link

Anyone heard how the ACC revenue sharing phase in works for the new schools (if there is indeed a phase in?). I wonder if the ACC schools would be willing to chip in some of the extra money they will get from the expansion to the new schools to help offset the early withdrawal fees they would incur? That might make the difference between SU and Pitt staying or leaving.

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"industry sources said that in exchange for the financial increases, the ACC likely will give ESPN three more years on the contract, which would take the deal out to 2026."

$1-2 million extra doesn't seem like much of an increase compared to what the Big 12 gets, even after losing Nebraska, A&M, Missouri, Colorado and the huge payouts of the Big 10 and PAC12, where the SEC and Big 10 and Big 12 go back into the market within a few years.

Does this include the extra conference football and BB games a year?

Correction: actually there are 14 teams playing 9 games against each other: =126 divided in half = 63 games vs. 12 teams playing 8 games against each other: =96 games divided in half = 48 games:
63 vs. 48 football games

for BB: 14 teams playing 18 games against each other: = 252 divided in half = 126 games vs. 12 teams playing 16 games against each other: = 192 games divided in half = 96 games
126 vs. 96 BB games

Are there secondary rights that are additional?

Seems like very little value is being attached to the ACC adding SU and Pitt, thereby consolidating the northeast footprint between Maryland and BC.

The ACC contract is locked in till 2026: which is going to put the ACC schools well behind other conferences.

 

[javadoc]

The ACC contract is locked in till 2026: which is going to put the ACC schools well behind other conferences.

I doubt it lasts that long. SEC will pick off a couple schools, and the contract will be renegotiated long before that lifetime.

 

[sufan]

I doubt it lasts that long. SEC will pick off a couple schools, and the contract will be renegotiated long before that lifetime.

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This contract as reported seems like a recipe for ACC instability.


Are there are other TV rights that increase the payout?

Has the ACC also signed away their rights to a conference channel?

 

[rrlbees]

by adding Syracuse and Pittsburgh.

Link

Anyone heard how the ACC revenue sharing phase in works for the new schools (if there is indeed a phase in?). I wonder if the ACC schools would be willing to chip in some of the extra money they will get from the expansion to the new schools to help offset the early withdrawal fees they would incur? That might make the difference between SU and Pitt staying or leaving.

Key number in there is $14-15M. What does SU get from the BE per year?

 

[IthacaBarrel]

Key number in there is $14-15M. What does SU get from the BE per year?

I thought it was 4-5 mil

 

[sutomcat]

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"industry sources said that in exchange for the financial increases, the ACC likely will give ESPN three more years on the contract, which would take the deal out to 2026."

$1-2 million extra doesn't seem like much of an increase compared to what the Big 12 gets, even after losing Nebraska, A&M, Missouri, Colorado and the huge payouts of the Big 10 and PAC12, where the SEC and Big 10 and Big 12 go back into the market within a few years.

Does this include the extra 9 conference football games a year and extra BB games?

Are there secondary rights that are additional?

Seems like very little value is being attached to the ACC adding SU and Pitt, thereby consolidating the northeast footprint between Maryland and BC.

The ACC contract is locked in till 2026: which is going to put the ACC schools well behind other conferences.

As a point of reference, I believe the contract the Big East turned down last summer would have given the football schools close to $11 million per season. I believe BE football schools get sometihng in the range of $6.5 million for TV today.

The increase in ACC TV revenue is right in line with what media experts had expected.

If you assume the ACC contract pays $13 million per school today for 12 schools, that is $156 per year. If you assume the new contract will pay $15 million per school for 14 schools, that comes to $210 million per year. That is close to a 25% bump in payments.

 

[oldpinepoint]

I doubt it lasts that long. SEC will pick off a couple schools, and the contract will be renegotiated long before that lifetime.

Or if the ACC expands again say with ND, UConn, Butgers, Lemoyne or whoever they freaking choose.

 

[PhatOrange]

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"industry sources said that in exchange for the financial increases, the ACC likely will give ESPN three more years on the contract, which would take the deal out to 2026."

$1-2 million extra doesn't seem like much of an increase compared to what the Big 12 gets, even after losing Nebraska, A&M, Missouri, Colorado and the huge payouts of the Big 10 and PAC12, where the SEC and Big 10 and Big 12 go back into the market within a few years.

Does this include the extra 9 conference football games a year and extra BB games?

Are there secondary rights that are additional?

Seems like very little value is being attached to the ACC adding SU and Pitt, thereby consolidating the northeast footprint between Maryland and BC.

The ACC contract is locked in till 2026: which is going to put the ACC schools well behind other conferences.

An extra $1-2 million is $15 million per team. That means $210 million for the conference. That is huge.

What's the big east get - $4/5 mill per team?

 

[IthacaBarrel]

Or if the ACC expands again say with ND, UConn, Butgers, Lemoyne or whoever they freaking choose.

What schools would the SEC want? I don't think they are enamored with any of the ACC schools. Doesn't get them anything

 

[oldpinepoint]

What schools would the SEC want? I don't think they are enamored with any of the ACC schools. Doesn't get them anything

Beats me, I think SEC is done anybody they choose just waters down the product. Maybe FSU, VT or Clemson??

 

[sufan]

As a point of reference, I believe the contract the Big East turned down last summer would have given the football schools close to $11 million per season. I believe BE football schools get sometihng in the range of $6.5 million for TV today.

The increase in ACC TV revenue is right in line with what media experts had expected.

If you assume the ACC contract pays $13 million per school today for 12 schools, that is $156 per year. If you assume the new contract will pay $15 million per school for 14 schools, that comes to $210 million per year. That is close to a 25% bump in payments.

-----------

Except the article states the ACC may have increased the contract for 3 more years to 2026.

Long time to lock in a contract at even 15 million a year. The "25% bump" in total payments is divided by 2 additional schools.

Still wondering:

1) Does this include the extra conference football and BB games?

12 teams x 8 games = 96 football games
14 teams x 9 games = 126 football games
12 teams x 16 games = 192 BB games
14 teams x 18 games = 252 BB games

Correction: actually there are 14 teams playing 9 games against each other: =126 divided in half = 63 games vs. 12 teams playing 8 games against each other: =96 games divided in half = 48 games:
63 vs. 48 football games

for BB: 14 teams playing 18 games against each other: = 252 divided in half = 126 games vs. 12 teams playing 16 games against each other: = 192 games divided in half = 96 games
126 vs. 96 BB games


2) Does the ACC have an additional payout for their secondary rights?

3) Does the ACC have an option for its own channel?

 

[SU2NASA]

An extra $1-2 million is $15 million per team. That means $210 million for the conference. That is huge.

What's the big east get - $4/5 mill per team?

We'll get about $10M/$11M more per year in the ACC. Pay the $24M and you'll make it back in two years or so, and that doesn't count things like increased ticket sales, etc.

Let's Adios.

 

[sufan]

An extra $1-2 million is $15 million per team. That means $210 million for the conference. That is huge.

What's the big east get - $4/5 mill per team?

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The ACC payout is far better than the Big East contract signed in 2003 at the worst possible time after the Big East lost Miami, VT, BC.

However, what is $15 million a year going to look like in 2026 relative to the Big 10, Pac 12, SEC and the Big 12?

 

[sutomcat]

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Except the article states the ACC may have increased the contract for 3 more years to 2026.

Long time to lock in a contract at even 15 million a year. The "25% bump" in total payments is divided by 2 additional schools.

It isn't locked in at $15 million per year. There will be adjustments made for inflation, as usual for these types of contracts.

If the ACC expands again, it can be renegotiated again. I stated in the first sentence of my post that the increase comes as a result of adding 2 schools. Appreciate you reposting this information for others with memory or reading issues.

Lastly, to clarify something discussed in this thread, I found this article that indicates BE football schools currently get somewhere in the neighborhood of $3.5 - $4.5 million per year in TV revenues. So moving to the ACC will increase TV revenue for SU by about $10 million. Perhaps a bit more. Again, the BE turned down a contract last summer that would have paid the football schools about $11 million per year, so more money was coming regardless. It remains to be seen if the Big East can match or exceed that number for football schools with its new configuration.

 

[javadoc]

Again, the BE turned down a contract last summer that would have paid the football schools about $11 million per year, so more money was coming regardless. It remains to be seen if the Big East can match or exceed that number for football schools with its new configuration.

It seems foregone that Louisville is going to land in the Big-12 in the next couple years, so the Big East is going to have to bank on selling interest in Boise State and Houston. How would you like to be the Realtor showing that house?

 

[texascpa]

Key number in there is $14-15M. What does SU get from the BE per year?

Exactly. $1 to $2M per team from the old ACC contract, but for SU it will be a $10 to $11M increase per year.

 

[MaxwellCuse]

Well, according to many of the posters on the Marquette and Providence boards the BE was all set to cash in for $17 -- 18 million per team until Pitt and Syracuse threw the Big East under the bus.

 

[Moontan]

1) Does this include the extra conference football and BB games?

12 teams x 8 games = 96 football games
14 teams x 9 games = 126 football games
12 teams x 16 games = 192 BB games
14 teams x 18 games = 252 BB games

You need divide those numbers by 2 since each contest involves two conference teams.

 

[NKR1978]

What schools would the SEC want? I don't think they are enamored with any of the ACC schools. Doesn't get them anything

I agree, and I also question whether the schools themselves would leave. Clemson's and FSU's internet fan base may want to leave, but I'm not that convinced that their administrations really want to leave. I think they like the association with Duke, UNC, UVA, etc.

 

[sufan]

It isn't locked in at $15 million per year. There will be adjustments made for inflation, as usual for these types of contracts.

If the ACC expands again, it can be renegotiated again. I stated in the first sentence of my post that the increase comes as a result of adding 2 schools. Appreciate you reposting this information for others with memory or reading issues.

Lastly, to clarify something discussed in this thread, I found this article that indicates BE football schools currently get somewhere in the neighborhood of $3.5 - $4.5 million per year in TV revenues. So moving to the ACC will increase TV revenue for SU by about $10 million. Perhaps a bit more. Again, the BE turned down a contract last summer that would have paid the football schools about $11 million per year, so more money was coming regardless. It remains to be seen if the Big East can match or exceed that number for football schools with its new configuration.

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1) Thanks. I was not aware of the inflation clause.

However, does inflation refer to CPI or the incredible inflation being set by media rights: for example the recent PAC 12 contract; the fact that the Big 10 and PAC 12 have/will have major conference channel payouts, the recent Texas channel deal worth 15 million dollars a year for 3d tier rights alone.


2) My concern is that the current renegotiation does not seem to have provided the ACC with the kind of leverage the other conferences will have when their current contracts expire in a few years. The ACC contract is now tied up till 2026, except for "inflation" or in unlikely event of adding 2 more teams.


3) My concern is not with the present or future Big East payout. The Big East is history.
It has to do with the relative position of the ACC now and in the year 2026:
compared with the Big 10 (with their conference network) and re-entry into the open market in 4 years, the PAC 12 with their huge recent deal and plan to create their own conference channel, the SEC: do they have a conference channel option and when do they re-bid their current TV deal and the Big 12 now at 10 schools.

 

[sufan]

You need divide those numbers by 2 since each contest involves two conference teams.

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Yes: my mistake: corrected above posts.

Correction: actually there are 14 teams playing 9 games against each other: =126 divided in half = 63 games vs. 12 teams playing 8 games against each other: =96 games divided in half = 48 games:
63 vs. 48 football games

for BB: 14 teams playing 18 games against each other: = 252 divided in half = 126 games vs. 12 teams playing 16 games against each other: = 192 games divided in half = 96 games
126 vs. 96 BB games

 

[Chip]

Well, according to many of the posters on the Marquette and Providence boards the BE was all set to cash in for $17 -- 18 million per team until Pitt and Syracuse threw the Big East under the bus.

I would tend to believe the former Iraqi Foreign Minister before I'd believe one human on those boards about this subject.