Conference Expansion: Stanford, California and SMU Join the ACC

[deacdiggler]

one possibility that i haven't seen discussed too much is that TV revenue isn't sustainable - once ESPN decides they don't want to pay so much (or can't), there's a chance that the ACC's deal ends up being a pretty good deal by 2034.

 

[deacdixieboy]

one possibility that i haven't seen discussed too much is that TV revenue isn't sustainable - once ESPN decides they don't want to pay so much (or can't), there's a chance that the ACC's deal ends up being a pretty good deal by 2034.

Agreed. I’ve said several times that I would not be shocked if we had the highest deal after these other short ones end.

 

[Biff Tannen]

It's a possibility, but nothing draws engaged TV viewers more than live sports, especially football, and networks/platforms need content.

 

[Deaconblue]

What does the ACC GOR state about adding teams? Does the pot just get more diluted? Or does ESPN pony up more cash per team?

It's very surprising that ESPN is basically broke, but doesn't have an issue paying $120M more annually for the new Big12 teams.

ESPN isn't broke. They are making money. However, parent Disney spent a lot of money making movies nobody wants to watch, so they are losing money this year.

 

[KitchinDeac]

one possibility that i haven't seen discussed too much is that TV revenue isn't sustainable - once ESPN decides they don't want to pay so much (or can't), there's a chance that the ACC's deal ends up being a pretty good deal by 2034.

This is actually the best hope for Wake Forest to remain in big-time college athletics: The grant of rights is strong enough to weather the current storm and by the time it runs out the ACC financials are competitive.

 

[Deaconblue]

one possibility that i haven't seen discussed too much is that TV revenue isn't sustainable - once ESPN decides they don't want to pay so much (or can't), there's a chance that the ACC's deal ends up being a pretty good deal by 2034.

One could read that as saying the ACC might be looking at a pay cut for the follow on contract beginning in 2036.

If the payouts for other leagues diminish between now and 2034, that might encourage ACC members to stay together.

 

[york1313]

I know there is talk of an unequal revenue sharing. What would that look like? Would there be a chart where if you finish 1st in football you make X, 2nd makes Y, 3rd makes Z and so on? Otherwise, I'm not sure how you would determine it.

 

[Biff Tannen]

I know there is talk of an unequal revenue sharing. What would that look like? Would there be a chart where if you finish 1st in football you make X, 2nd makes Y, 3rd makes Z and so on? Otherwise, I'm not sure how you would determine it.

That's not what FSU wants. They just want $15 million more regardless of performance.

 

[Harpua]

I know there is talk of an unequal revenue sharing. What would that look like? Would there be a chart where if you finish 1st in football you make X, 2nd makes Y, 3rd makes Z and so on? Otherwise, I'm not sure how you would determine it.

Something along those lines, I can’t explain the joy it would bring me to see WF get a larger slice of the payout than FSU and watch their godawful fanbase lose their minds.

 

[morrison2951]

That's not what FSU wants. They just want $15 million more regardless of performance.

 

[BarcaDeac]

Something along those lines, I can’t explain the joy it would bring me to see WF get a larger slice of the payout than FSU and watch their godawful fanbase lose their minds.

especially if that happens after this season when THEY'RE BACK (again)

 

[Deacfreak07]

That's not what FSU wants. They just want $15 million more regardless of performance.

 

[LilburnDeac]

That's not what FSU wants. They just want $15 million more regardless of performance.

They think that they should get more because their "brand" is more valuable. And that argument might have had some merit up until the last 10 years. But now they are just a middle of the pack ACC team.

 

[ironwill24]

There's nothing that encapsulates FSU more than that scene from Parks and Rec. It's literally what they and their fanbase are acting like.

 

[BarcaDeac]

There's nothing that encapsulates FSU more than that scene from Parks and Rec. It's literally what they and their fanbase are acting like.

except they're not saying please

 

[buckets]

Maybe fsu shouldn't suck

 

[Deacfreak07]

Maybe fsu shouldn't suck

That's not fair. They were awesome when the World Trade Center was still standing.

 

[PhDeac]

ESPN isn't broke. They are making money. However, parent Disney spent a lot of money making movies nobody wants to watch, so they are losing money this year.

Two points. First, Disney's big problem is servicing the debt from buying 21st Century Fox for $71.3B about six years ago. Movies and parks took a huge hit during the pandemic. Streaming helped make up the gap, but that bubble is bursting now. Second, the movies still do well overall. Despite Barbie and Oppenheimer, they still have 4 of the top 10 movies this year. The issue is Ant-Man 3 and Elemental aren't making Avengers: Endgame and Incredibles 2 type money. Disney is looking to trim budgets and space out films to reduce costs, especially with cheaper animated films (Super Mario Bros, Spider-Verse, and TMNT) being profitable this year. Spending less across the board could have ramifications for the sports landscape. Yes, this is true:

It's a possibility, but nothing draws engaged TV viewers more than live sports, especially football, and networks/platforms need content.

But if spending on content goes down across the board, ESPN could be more selective about live sports and focus on growing lower cost college sports and pro sports. I don't think we can assume the next contracts will be a major bump over the contracts. That's especially true if the tech companies aren't throwing their hats into the ring.

Offering them what inventory? ESPN owns all the broadcast inventory other than the Bally's (now CW) third tier games that just became available.

I think ESPN owns that content and sells it to Raycom in a side deal.

 

[Pilchard]

The current NBA TV Contract expires after the 2024-5 season. The NBA is looking to increase TV rights fees from $2.6 billion (yes billion) annually to $7billion+. NBA's current TV partners are ESPN/ABC and TNT. NBC and Amazon (and maybe others) are expected to get involved. So, ESPN will either need to step up its outlay to the NBA or lose the rights to competitors. With that much money at stake, ESPN's NBA decision will have a major impact on what it can spend on other sports.

ESPN is committed to the NHL through 2028; so, maybe ESPN is preparing to either give up the NBA or at least not take as big of the programming share. If ESPN jacks up the amount owed to the NBA that means less money to spend on college sports; OTOH, if ESPN reduces its NBA commitment perhaps more money would be used for college sports.

 

[PhDeac]

ESPN paid $1.4B over 9 years for the NBA deal. TNT paid $1.2B.

NBA Announces 9-Year Extension With ESPN, Turner, Through 2025

In a television deal notable more for its financial heft than anything else, the NBA has agreed to keep the status quo going for an additional nine years.

www.sportsmediawatch.com

So I assume ESPN's current share would cost over $3.5B over 9 years which is more than their SEC contract. Good time for the NBA to shift from the Lebron era to the Wemby era.