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Conference Expansion: Stanford, California and SMU Join the ACC

guitardeac said:
Apparently its a $200 million fine to leave the ACC. My UNC friends tell me that will not stop them from leaving as that's about 2 years of revenue from the new "conference". Is that fine info correct? The ACC wouldn't also have a legal right to all or a portion of their revenue from the new league?
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I think I saw the SEC payout is about $75m/year. Clemson got maybe $35m last year.
 
ipitytheblue said:
I may have missed something but if, say, four schools leave and we add four more, would the remaining members split that pot? Would it be an extra ~$50-70 million windfall for WFU?
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That’s my question too. Wouldn’t that be extremely beneficial to the remaining teams? It seems like they’d be cashing in on a historic basis if that was in fact the case. I can’t see these schools writing $200mil checks to hand them over to the ACC remaining teams who now have an extra $800mil if four teams leave. That would seem to make the difference in revenue for the contract deals in itself moot. Which would defeat the whole purpose.
 
guitardeac said:
Apparently its a $200 million fine to leave the ACC. My UNC friends tell me that will not stop them from leaving as that's about 2 years of revenue from the new "conference". Is that fine info correct? The ACC wouldn't also have a legal right to all or a portion of their revenue from the new league?
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The reports seem to suggest SEC is close to $100MM in revenue and ACC is closer to $50MM. The delta is around $50MM per year, so it would be 4 years assuming they come right in as a full member.

Obviously, there are a ton of assumptions baked in there so who knows. Your post is the first I have heard of a fine to leave.
 
deacondamo said:
The reports seem to suggest SEC is close to $100MM in revenue and ACC is closer to $50MM. The delta is around $50MM per year, so it would be 4 years assuming they come right in as a full member.

Obviously, there are a ton of assumptions baked in there so who knows. Your post is the first I have heard of a fine to leave.
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In addition to all media money that school makes until 2036.
 
Yeah, even aside from the GOR, which would be a huge deal if it holds, the breakeven after paying that rumored fine would be on the order of 3-5 years. How long are these new deals set to last? You'd have to have confidence that you can predict what the future of CFB looks like to gamble on that.
 
I thought there was a one time exit fee of like 50 million. Then the teams that left would have to hand over their tv money from the new conference until the GOR expires in 2036. If the teams announced they were leaving in 2 years and the new conference paid 50 million per year in tv money, wouldn't that be 650 million dollars? Only 50 would be out of pocket. The other 600 would be lost revenue over time.

Again, why in the holy hell would ESPN want to pay more money to schools that they are already paying?

Do any of you go to the store and see something that is on sale, then walk up to the counter and ask if you can pay full price?
 
I wouldn't put stock in SwimSwam's anonymous source story until there is some corroboration. Telling that no one has followed up to corroborate. Tons of pressure for every wannabe insider to break expansion stories. Yet, no one has stepped up to provide even minimal confirming evidence. Also, the story has conflicting information. Allegedly, UNC, UVA, Clemson and FSU are seeking SEC invites, but then says that KY wants to keep out L'ville and FL wants to keep out Miami. The more logical story would be that 6 ACC schools seek SEC invites, as Miami and L'ville would need to seek entry before current SEC schools would act to reject the request.
 
skinnydeac said:
I thought there was a one time exit fee of like 50 million. Then the teams that left would have to hand over their tv money from the new conference until the GOR expires in 2036. If the teams announced they were leaving in 2 years and the new conference paid 50 million per year in tv money, wouldn't that be 650 million dollars? Only 50 would be out of pocket. The other 600 would be lost revenue over time.

Again, why in the holy hell would ESPN want to pay more money to schools that they are already paying?

Do any of you go to the store and see something that is on sale, then walk up to the counter and ask if you can pay full price?
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The exit fee was for Maryland was $52.2 Million(which was negotiated down to about $31 Million in what was withheld from Maryland by the ACC)

That number was approved by the member schools as three times the conference's annual operating budget. One would think that budget number has skyrocketed by now. Anyone trying to leave would be in court immediately trying to negotiate it down. There's only a select few schools that are willing AND able to pay out a fine even over a couple of years. Oklahoma still hasn't figured out how they're financing paying $80 Million to the Big 12
 
What I'd like to know is whether the SEC or the B1G can boot schools out. Like no one gives a crap about Vandy or Rutgers or Northwestern. They're a zero add from the standpoint of negotiating TV deals.

Also where the hell do Wake and BC land if the ACC implodes when all the dust settles.
 
The SEC is a better football conference than the ACC, but that is not what drives this.

SEC has alot more fans watching their games - as does the B10 (see the article that someone posted a couple of pages back) - that is what matters. Whether teams are good or not is somewhat irrelevant, what is important is how many people watch your games.
The ACC is filled with programs with low to mid viewership numbers, that is why it gets less money. It's simple economics.
 
skinnydeac said:
Again, why in the holy hell would ESPN want to pay more money to schools that they are already paying?

Do any of you go to the store and see something that is on sale, then walk up to the counter and ask if you can pay full price?
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ESPN might be inclined to do this because if they don't, Fox might. I haven't ever offered to pay more at the counter, but I have given an employee a raise out of sequence because I wanted to keep them from going to work for someone else.
 
DeacMan said:
What I'd like to know is whether the SEC or the B1G can boot schools out. Like no one gives a crap about Vandy or Rutgers or Northwestern. They're a zero add from the standpoint of negotiating TV deals.

Also where the hell do Wake and BC land if the ACC implodes when all the dust settles.
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If there was mass college conference free agency and every school was on its own to find conference partners. The small private schools would be in big trouble.

That said, NW has weird value to the Big 10. While the Wildcats bring in zero market share, they are in Chicago (Evanston), and every Big 10 school has more alumni in Chicago than anywhere, but their home state. So playing at NW is essentially a home football and basketball game for alums in Chicago, and Big 10 schools are always up to road trip to Chicago (Wisconsin descends on Chicago whenever they have the opportunity). Also, it's good to have schools in your conference that you typically beat. Bama doesn't want to be in an 8 team conference with UGA, Clemson, tOSU, Florida, LSU, Auburn, FSU (when they were good) and Texas. Much more fun to be guaranteed to go 11-1 or better. Lastly, while this is becoming less important, conferences want to cling to the ideal that the players are true student athletes, NW and Vandy allow the conferences to cling to that notion.

Rutgers is only in the Big 10 because it allows the Big 10 conference to sell subscriptions in NY and NJ.
 
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If this has already been linked, I missed it. In any event, you have to give credit to Matt Hayes for what he wrote 5 months ago about the future of college football:

https://www.saturdaydownsouth.com/s...lege-football-the-sec-vs-b1g-and-nobody-else/

"Let me put it in less tactful and more realistic terms: The SEC and Big Ten are betting with a full house of aces over kings. The best hand at the rest of the table is a pair of twos.

All that’s left now is to win the hand, split the pot and walk away from the table.

And for some reason, no one other than the SEC and Big Ten thinks they’ll do it...

This is institutionally and purposefully reckless behavior from every president of the ACC who voted to shelve Playoff expansion for 4 more years until the end of the current deal – and to come back in a couple of years with a temperature check.

Too bad the patient – college sports as we know it — could be dead.

They tried to warn the ACC and everyone else among the FBS 10 conferences hung up on procedural issues of Playoff expansion that this would happen. No one took heed.

Now SEC commissioner Greg Sankey suddenly isn’t eliminating the idea of further expansion. Now the Big Ten is quickly walking back from the Alliance.

The fuse has been lit, everyone. Stand back and take cover..."
 
Sco Deac said:
ESPN might be inclined to do this because if they don't, Fox might. I haven't ever offered to pay more at the counter, but I have given an employee a raise out of sequence because I wanted to keep them from going to work for someone else.
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So it would benefit ESPN to give the ACC a bump in revenue and/or request that conferences with ESPN media deals start scheduling each other only and block out Fox's media access to those teams.
 
skinnydeac said:
So it would benefit ESPN to give the ACC a bump in revenue and/or request that conferences with ESPN media deals start scheduling each other only and block out Fox's media access to those teams.
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It would.
 
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