Teel's take on FSU and ACC/ESPN deal

[CuseLegacy]

http://www.dailypress.com/sports/teel-blog/dp-teel-time-florida-state-big12,0,6777000.story?page=1

Haggard’s primary complaint, that the ACC relinquished third-tier rights to ESPN for football but not men’s basketball – he said this was “mind-boggling and shocking” – is patently false. ESPN has controlled such rights since 2010, when the ACC went “all-in” with the worldwide leader on a combined football/basketball deal valued at $1.86 billion over 12 years – last fall’s additions of Pittsburgh and Syracuse prompted the renegotiation.

 

[MaxwellCuse]

I find it shocking and mind-boggling that Andy Haggard had no idea what the tier 3 provisions in the old ESPN contract were. Yes, shocking and mind-boggling.

 

[oldpinepoint]

Guy should have kept his mouth shut until he new what the **K he was talking about

 

[Guinness]

Clearly they have some long held grudges. And who lets facts get in the way of a good grudge?

 

[Orangemen]

FSU may leave because they apparently have a $2M shortfall in athletics.

Does this sound like the type of school that is ready to fork over a $20M exit fee?

Even if they get an average of $3M per year more in the Big 12, which is probably optimistic (and ignores travel), it would take them 7 years to break even on that deal. Even longer if you consider the time value of money.

Very few moves have surprised me in this reshuffle, this move would definitely surprise me.

 

[OrangePA]

Maturity is knowing when to keep your mouth shut.

 

[Faegan]

Maturity is knowing when to keep your mouth shut.

Maturity is hard to come by in football... on the field and off.

 

[CuseLegacy]

I find it shocking and mind-boggling that Andy Haggard had no idea what the tier 3 provisions in the old ESPN contract were. Yes, shocking and mind-boggling.

Must be because he didn't get his law degree from Syracuse.

Seriously, who in their right mind would use an attorney who isn't aware of what has been negotiated in a contract.

 

[Toga]

Isn't Teal the go-to guy on ACC stuff? Wasn't he the one who pretty much called the SU & Pitt to the ACC about a week before it happened?

 

[Madbiker]

I feel a lot better after reading Teel's article. Glad someone has the facts straight. And yes, Teel is the ACC sportswriter who first reported hearing about the ACC expanding like a week before the story broke.

 

[PhatOrange]

FSU may leave because they apparently have a $2M shortfall in athletics.

Does this sound like the type of school that is ready to fork over a $20M exit fee?

Even if they get an average of $3M per year more in the Big 12, which is probably optimistic (and ignores travel), it would take them 7 years to break even on that deal. Even longer if you consider the time value of money.

Very few moves have surprised me in this reshuffle, this move would definitely surprise me.

Exactly.

However, when I mentioned the same thing the other day, an extra 3 mil per year, a 20 million dollar exit fee and travel expenses, I was assured by other posters here that the Big12 would pay half the exit fee, FSU would pay half and recoup it within 2 years. 2 years.

 

[Toga]

So does anyone have knowledge that "every deal is back end loaded? Do ACC teams make More than $17M during the 2020s - (thought I read that)? If every deal is back end loaded then the B12 is also back end loaded.

 

[Chip]

FSU may leave because they apparently have a $2M shortfall in athletics.

Does this sound like the type of school that is ready to fork over a $20M exit fee?

Even if they get an average of $3M per year more in the Big 12, which is probably optimistic (and ignores travel), it would take them 7 years to break even on that deal. Even longer if you consider the time value of money.

Very few moves have surprised me in this reshuffle, this move would definitely surprise me.

They'll make up the difference with the savings on non-revenue sport travel to high traffic airports such as Lubbock, Ames and Manhattan (not that one). Plus the 14 hour bus trips to Morgantown and Austin.

They'll probably give Jimbo Fisher another raise too for getting them into a preseason Top 10 in Athlon.

So the numbers should all work out.

 

[Orangemen]

So does anyone have knowledge that "every deal is back end loaded? Do ACC teams make More than $17M during the 2020s - (thought I read that)? If every deal is back end loaded then the B12 is also back end loaded.

Sounds like the last year is$24M per team.

Sounds like an escalator of about $750k per year or so, just guessing. Some year in the middle of the contract, the teams will get paid $17M, every year after that, they will get more.

 

[cusenole9]

I get what you guys are saying...but anyone that thinks this move will generate only a 3 mil/year pay increase is crazy. Right now it's 16 vs. 20 mil (no tier 3 if that means anything) but this is before renegotiation of the Big 12 contract. Not comparing apples to apples here guys.

 

[Toga]

I get what you guys are saying...but anyone that thinks this move will generate only a 3 mil/year pay increase is crazy. Right now it's 16 vs. 20 mil (no tier 3 if that means anything) but this is before renegotiation of the Big 12 contract. Not comparing apples to apples here guys.

I suppose it is possible that the ACC deal has established the current market and that the B12 won't see a $ jump per team. I doubt it but it is possible.

 

[cusenole9]

I suppose it is possible that the ACC deal has established the current market and that the B12 won't see a $ jump per team. I doubt it but it is possible.

Yep. Lots of things are possible. These days it seems anything can happen. I was just saying a lot of people's arguments on here seem to include very unlikely speculation as facts.

 

[PhatOrange]

I get what you guys are saying...but anyone that thinks this move will generate only a 3 mil/year pay increase is crazy. Right now it's 16 vs. 20 mil (no tier 3 if that means anything) but this is before renegotiation of the Big 12 contract. Not comparing apples to apples here guys.

And all you're doing is guessing as to the terms of a new contract, what they'd make, what the difference would be, tier 3 rights etc.

Besides the 20 million dollar exit fee, how much do you think FSU would spend on travel for all sports to the great plains conference?

 

[cusenole9]

And all you're doing is guessing as to the terms of a new contract, what they'd make, what the difference would be, tier 3 rights etc.

Besides the 20 million dollar exit fee, how much do you think FSU would spend on travel for all sports to the great plains conference?

I suppose I'm guessing that it will be more than 3 mil...but that seems pretty likely. If travel costs were THAT big of an issue, don't you think the ACC would have split into geographical divisions rather than put FSU in the same division as BC and a different division than GT? I think travel costs are overvalued here which is pretty consistent with all of the conference hopping that has been going on so far. Also don't think FSU would be making the move by itself.

 

[PhatOrange]

I suppose I'm guessing that it will be more than 3 mil...but that seems pretty likely. If travel costs were THAT big of an issue, don't you think the ACC would have split into geographical divisions rather than put FSU in the same division as BC and a different division than GT? I think travel costs are overvalued here which is pretty consistent with all of the conference hopping that has been going on so far. Also don't think FSU would be making the move by itself.

I'm talking all sports here. Do all sports have the same division breakdowns as football? What Big 12 school is the closest road game for the soccer team or volleyball team?

FSU lists 18 sports on it's athletics web site.

 

[PhatOrange]

Per the Florida State President:

"The Big 12 contract (which actually isn't signed yet) is rumored to be 2.9 M more per year than the ACC contract."

"Barron further reasoned, "It will cost between $20M and $25M to leave the ACC and we have no idea where that money would come from."

 

[cusenole9]

Phat Orange, maybe it is a major concern when considering all sports. I really don't The know. All I'm saying is that the recent conference realignment across the country hasn't pointed to increased travel costs being a major concern. The President's recent criticism of a move to the big12 is pretty interesting. Whether to take his concerns as genuine or allowing for better position in negotiation with the big12 is the major question. I have little doubt that if FSU really wanted to bolt for the big12 it would be a poor move to just go ahead and announce this before any contracts have been signed. I assume FSU would prefer the big12 tries to entice them to join rather than the other way around. Anyway, your arguments make sense and I enjoy (for some strange reason) wasting my time on a dialogue with this stuff.

 

[IthacaMatt]

Per the Florida State President:

"The Big 12 contract (which actually isn't signed yet) is rumored to be 2.9 M more per year than the ACC contract."

"Barron further reasoned, "It will cost between $20M and $25M to leave the ACC and we have no idea where that money would come from."

I think the game that FSU (or some of its people) are playing is that they want into the SEC, and by threatening to look at the Big 12, they're really hoping that the SEC wants to avoid that, and offers them an invitation.

 

[HtownOrange]

I think the game that FSU (or some of its people) are playing is that they want into the SEC, and by threatening to look at the Big 12, they're really hoping that the SEC wants to avoid that, and offers them an invitation.

I agree, the SEC is a better fit for FSU; FSU hates the Carolina Four, why jump to the Bevo 12; Does anyone believe that Iowa State, KState and Kansas will pack in the FSU fans if they can't get the fans there for schools that fans already hate (ACC); Travel in the ACC is less extensive than the Bevo 12, it would be comparable to the SEC, though.

Also, FSU may be signalling to a potential suitor that the need assistance with the buyout (no idea where teh $20MM-$25MM buyout money would come from).

 

[PhatOrange]

I think the game that FSU (or some of its people) are playing is that they want into the SEC, and by threatening to look at the Big 12, they're really hoping that the SEC wants to avoid that, and offers them an invitation.

I would agree with that. They're really begging the SEC "pretty please". However, I don't know how much support they'd have from the Gators or even Georgia and South Carolina to allow them to join. And I don't necessarily believe FSU increases the SEC revenue because they already own the market. It might actually dilute the SEC take.

This is likely why the SEC expanded west to begin with; two new markets.