Wetzel on ACC deal/FSU

[DeepThrowIt]

http://sports.yahoo.com/news/ncaaf-...rks-firestorm-with-desire-to-join-big-12.html

Sounds like some unhappy ACC folk...

 

[Ozcuse]

Just read through that and it looks like there has been some smoke and mirrors with the new ESPN deal. The following is troubling.

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The first shock to the system hit Wednesday, when the ACC came to terms with ESPN on a 15-year, $3.6 billion agreement that sure sounded good in the press release. Each school was supposedly getting an additional $4 million a year. The average would be $17.1 million annually. Not bad, it seemed.​

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The reality was bad, however. The initial bump in television revenue is actually just over $1 million a year, sources said, and a total in the $12 million range next season. The deal is back loaded so the bigger money comes in escalator provisions that, considering how broadcast rights keep growing, probably will be below market by the time any sizable gains are realized.​

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That additional $4 million per school, per year? That won't come until 2021, nine years in, sources said.​

Privately, almost everyone was troubled by the deal.​

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Furthermore, there was consternation over the length of the deal, which could favor ESPN. Some wondered if it wasn't agreed upon just to save face, the later money making it look like the ACC landed a windfall in today's dollar.​

The deal is done though. The only option is to further expand to 16 teams and force renegotiations. Unless that means adding Notre Dame (highly unlikely) there is no one available that would improve the value of the league.​

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[kcsu]

Why is my primary question?

 

[Fjoinkay]

I wish there was a way to take the money out of the equation and let the NCAA distribute it equally to all schools. Get back to football, tradition and a less hypocritical system where the schools set a good example for the student athletes.

I learned from someone on here that the Supreme Court dropped the ball on that issue back in the 80s unfortunately in my opinion. All of this money chasing is a big turnoff for me.

 

[Toga]

If true, not liking the sound of it in terms of the market and comparability. If true.

 

[Scooch]

I wish there was a way to take the money out of the equation and let the NCAA distribute it equally to all schools. Get back to football, tradition and a less hypocritical system where the schools set a good example for the student athletes.

I learned from someone on here that the Supreme Court dropped the ball on that issue back in the 80s unfortunately in my opinion. All of this money chasing is a big turnoff for me.

Supreme Court ruled for the free market over a cartel. Isn't that what everyone wants?

 

[SURules]

"Sources say the ACC has not distributed the contract with ESPN to member schools. It rarely, if ever, does. Many in the league are wondering how much Haggard himself came up with the third-tier conspiracy, what he thinks is in the deal or why he believes it even matters so much."

This is concerning to me. How can the contract NOT be distributed to the member schools so they can "vote" on it. Something doesn't seem right. Does the ACC member schools have no say at all?

 

[longtimefan]

Supreme Court ruled for the free market over a cartel. Isn't that what everyone wants?

There are now 2 different cartel arrangements--one for football (BCS), and one for hoops (NCAA). I would think if any of the big BB schools decided to challenge the NCAA the same way Georgia and Oklahoma did in the '80's, the top 125-150 basketball programs could run their own post-season.

 

[HOFCeluck]

I'm ing sick of realignment.

 

[Brunco]

Would it have made more sense for the ACC schools to just disolve before taking SU and Pitt, then form under a new conference even taking UCONN & Rutgers with the ability to start a new TV contract from scratch?
I assume if the ACC contract was up this year, they'd be in a good spot to renegitate with all the good markets they cover. Seems like the timing of the ACC TV contract is the only reason schools would switch conferences they've been in for decades.

 

[tipphill]

what surprises me is that fsu is talking about a 2mil. deficit? why do we hear about the big powerful state schools(fsu,ru)having such large deficits.could it be that the smaller privates like su,vandy,n'western,wake etc etc are much better managed,because they do not have state money to squander?privates must operate on more of true business model? just curious

 

[OrangeXtreme]

FSU needs to tell Deion Sanders to open up his checkbook.

 

[MaxwellCuse]

what surprises me is that fsu is talking about a 2mil. deficit? why do we hear about the big powerful state schools(fsu,ru)having such large deficits.could it be that the smaller privates like su,vandy,n'western,wake etc etc are much better managed,because they do not have state money to squander?privates must operate on more of true business model? just curious

Those deficits at Rutgers and FSU could have something to do with overpaying certain football coaches for underperforming.

 

[cusenole9]

what surprises me is that fsu is talking about a 2mil. deficit? why do we hear about the big powerful state schools(fsu,ru)having such large deficits.could it be that the smaller privates like su,vandy,n'western,wake etc etc are much better managed,because they do not have state money to squander?privates must operate on more of true business model? just curious

I think it is this AND the fact that these schools don't have to invest much and get to go for a bit of a free ride when it comes to profits.

 

[IthacaMatt]

Would it have made more sense for the ACC schools to just disolve before taking SU and Pitt, then form under a new conference even taking UCONN & Rutgers with the ability to start a new TV contract from scratch?
I assume if the ACC contract was up this year, they'd be in a good spot to renegitate with all the good markets they cover. Seems like the timing of the ACC TV contract is the only reason schools would switch conferences they've been in for decades.

You know what ? The bottom line for SU is that we went from $3.6M a year to at least $12M, escalating up into the low-$20M's by the end of the contract. Even if Fla State leaves, essentially, "so what"?

On the Boneyard board, you have some people claiming it will be armageddon and 10 teams from the ACC will leave, leaving only us, Wake Forest, BC, Pitt and Duke left over. I highly doubt that founding members of the ACC would be fleeing for Texas' league (which is what the Big 12 - 2 is) or for the Big 10.

Even though there is unrest, we are still in good financial position, even if the ACC becomes the New-Old Big East - a basketball conference that happens to play football, and is just at the cusp of the power conferences.

 

[Guinness]

. I highly doubt that founding members of the ACC would be fleeing for Texas' league (which is what the Big 12 - 2 is) or for the Big 10.

Not to nit pick but we left the BE as a founding member to join a league run by Tobacco Road. Yes I understand the BE is a mess but it is not out of the realm of possibility that the ACC could turn into a mess as well. Then what?

 

[44PRIDE]

Not to nit pick but we left the BE as a founding member to join a league run by Tobacco Road. Yes I understand the BE is a mess but it is not out of the realm of possibility that the ACC could turn into a mess as well. Then what?

The ACC is light years away from where the Big East was even in 1992.

 

[javadoc]

I think it is this AND the fact that these schools don't have to invest much and get to go for a bit of a free ride when it comes to profits.

I have still not had time to look into it but I would immediately ask how many sports FSU fields, and what the associated costs might be. We have been shedding programs to save $, and maybe FSU has a bigger budget due to having more sports.

But I share the bafflement at how FSU (and any other factory) can be running a deficit.

 

[Guinness]

I think it is this AND the fact that these schools don't have to invest much and get to go for a bit of a free ride when it comes to profits.

The only two conferences that are not carrying bottom feeders are the PAC 10 and Big10. The SEC, ACC, Big 12 and BE all have teams that are getting carried so to speak. Some more than others but each of those conferences have basketball schools that don't make much of an attempt at football. So if that is the main FSU argument it seems to be a pretty week one imo.

 

[TexanMark]

"Sources say the ACC has not distributed the contract with ESPN to member schools. It rarely, if ever, does. Many in the league are wondering how much Haggard himself came up with the third-tier conspiracy, what he thinks is in the deal or why he believes it even matters so much."

This is concerning to me. How can the contract NOT be distributed to the member schools so they can "vote" on it. Something doesn't seem right. Does the ACC member schools have no say at all?

An ACC fan posted Swofford's son works for Raycom...that smells like a huge conflict of interest.

 

[CuseLegacy]

An ACC fan posted Swofford's son works for Raycom...that smells like a huge conflict of interest.

Oh heck no. That's just nepotism.
http://www.linkedin.com/pub/chad-swofford/a/578/8b4

 

[cusenole9]

The only two conferences that are not carrying bottom feeders are the PAC 10 and Big10. The SEC, ACC, Big 12 and BE all have teams that are getting carried so to speak. Some more than others but each of those conferences have basketball schools that don't make much of an attempt at football. So if that is the main FSU argument it seems to be a pretty week one imo.

Completely agree. I was just responding to these bottom feeding schools being used as an example for exemplary fiscal management. Of course their athletic departments turn a nice profit!

 

[SmilinBob]

Clemson is not happy with the lack of punishment for NC and what they did was far worse than Clemson who got hit hard by Swofford. This guy has too many conflicts of interest and for the sake of the ACC I think it's time a change was made because we are getting into something that is far more powerful than the Providence mafia and way more established. I'm very worried that Swofford is going to drive Clemson and VT to the SEC and FSU to the Big 12 w/Louisville (I know that they aren't ACC but a logical choice) and then the Big 10 goes after a combo of Maryland/Virginia/Pitt. If the ACC does lose some schools the ones that seem content may start looking and it may be a power play for the super conference thing...SEC/Big 10/12/ PAC 12. The ACC may be the outside 5th member with little or no power at all.

I would not be surprised to see some go to 20 and that way they could have the original 10's and the new 10"s but under the SEC/Big 10/12/PAC brand. If this happens don't be surprised to see NC/Duke bolt for the SEC and that would be the ultimate prize for the SEC. Greed has a funny way of screwing tradition.

 

[Townie72]

Clemson is not happy with the lack of punishment for NC and what they did was far worse than Clemson who got hit hard by Swofford. This guy has too many conflicts of interest and for the sake of the ACC I think it's time a change was made because we are getting into something that is far more powerful than the Providence mafia and way more established. I'm very worried that Swofford is going to drive Clemson and VT to the SEC and FSU to the Big 12 w/Louisville (I know that they aren't ACC but a logical choice) and then the Big 10 goes after a combo of Maryland/Virginia/Pitt. If the ACC does lose some schools the ones that seem content may start looking and it may be a power play for the super conference thing...SEC/Big 10/12/ PAC 12. The ACC may be the outside 5th member with little or no power at all.

I would not be surprised to see some go to 20 and that way they could have the original 10's and the new 10"s but under the SEC/Big 10/12/PAC brand. If this happens don't be surprised to see NC/Duke bolt for the SEC and that would be the ultimate prize for the SEC. Greed has a funny way of screwing tradition.

Duke to the SEC? UNC to the SEC?

Maryland and Virginia to the Big 10?

Well, at least there's no lack of imagination in these predictions.

 

[SmilinBob]

Duke to the SEC? UNC to the SEC?

Maryland and Virginia to the Big 10?

Well, at least there's no lack of imagination in these predictions.

If there is a run at the bank you'll see a lot of surprising things happen. Swofford reminds me of Modell. I'm not saying this will go on but once you start to see the last chairs being filled you tend to be a bit more aggressive. The best way to stabilize the ACC is having ND join and I don't think that will happen.

The SEC does not want the Big 12 in Florida. The SEC went to Texas and now it's possible the Big 12 is countering with FSU. I don't know what so ever what is going on behind the scenes but schools are going to be looking out for #1 and when push comes to shove, we'll see what their true intentions are. Academically the most stable conference is the Big 10 and athletically it's the SEC out of the power conferences.