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Conference Expansion: Stanford, California and SMU Join the ACC

Haros said:
Is it 30% of Tier 1 Media money or 30% of the total?

I read somewhere it’s the former, which is around $30M per school - putting their payout at $9M. ($21M*2 + $30M*1 = $72M extra for everyone else to divide up, near the $74M I’ve seen quoted).

Then they get full shares of the rest (Bowl game payouts, NCAA tournament, etc), which is another $10M, which goes towards travel costs, etc.

So $19M each for Stanford and Cal, which os below the old PAC-12, but well above what they’d be getting in the MWC - with more aligned schools in the ACC.
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Thanks, that is probably right. However, by signing the GOR, they are locking themselves out of the opportunity to join the B1G until 2036. $19 million for the next 7 years is less than $6 million for 3 and a 50% share of B1G revenue for the next 4 years. And then of course they'd be in the B1G into perpetuity (until we stop playing football)

Regardless - good negotiating from Phillips.
 
Guys Stanford and Cal had zero chance to join the B10 anytime in the near future.

That isn't even worth thinking about
 
deacon14 said:
Guys Stanford and Cal had zero chance to join the B10 anytime in the near future.

That isn't even worth thinking about
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yes, right, that's why they just locked themselves into the ACC for 12 years at a reduced share
 
I'm just glad he won't have to worry about missing his connection when flying to Oakland or SFO (assume GSO already had flights to DFW)
 
Can someone remind me how SMU got added to the mix? We needed a third school to make it an even number at 18 and they were the most desirable G5 school? Or was there something else in play?
 
OldGoldBeard said:
I'm still pumped about this. Despite the numbers posted by RR above, public perception of late seemed to be that the Big XII was a better conference, or at least in a better spot, than the ACC. The Big XII isn't a good conference. The Big XII sucks. The only reason they seemed superior was because they assembled a bunch of C+/B- schools that neither the Big Ten nor SEC would ever want, and all its members seem to have enough self-awareness to realize that fact, whereas the ACC has a couple of higher-tier schools that are publicly bellyaching. This is a power play that adds stability, neuters the malcontents, and serves as a backstop if they ever do leave.

Do I hate that this is what the collegiate sports landscape has become? Yes. Do I wish we could go back to a 9-team ACC? In a heartbeat. But that's not the reality we live in, and that means this is a great move and a great day. Go Deacs.
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I agree with all of this.
B12 has always been behind ACC in terms of money payouts and this only makes that gap larger.

B12 has a new commissioner who has done a great job of getting all their members on the same page. They understand that they are basically a league that has no one that the Big 2 are interested in and are always going to get less money than the Big 2, but they have bought into that and accepted that and are presenting a happy, united front (good for PR).

ACC has a number of schools (and fans) that think they are more important than they probably are and are horrible at PR (including alot of the reporters that cover the league)

B1G had no interest in Stanford and Cal. They straight up passed on them when they took WA and OR. They were not willing to even offer them the half share.

Also, while i've seen comments attacking ACC for having members at less than full shares - they seem to ignore that WA and OR were added at 1/2 shares (with no travel allowance) and the B12 has 4 G5 schools that are all getting less than full shares.

I also am somewhat unsure exactly what Stanford and Cal are being paid, but here is the basic breakout based on recent financials and reports.
Last Year ACC schools received $39.4M each from the ACC.
We also know that according to reporting ESPN was contracted to provide an additional tier 1 share for each new member and that was $72M per year (so $24M per share). We also know from reporting that Tier 1 represents approximately 70% of Tier 1-3 rights. So that means the total payment from ESPN is roughly $34M per share. So that suggests that non media right accounted for roughly another $5.5M per team.
So as of Fiscal year 2022
Tier 1 - $24M
Tier 2-3 - $10M
non-media revenue - $5.5M

Those values will continue to increase through 2036 as all contracts are built to pay more later than earlier. (For instance, the new B12 contract gives a $31.&M number, that is the avg over the life of the contract. So right now the B12 full share will be something in the 20's and it will increase over the next 7 years to be above $31.7M probably in the last 3 years).

Also, the addition of schools in CA and TX will allow ESPN to increase its carriage rate for the ACC Network in those 2 states which should help raise some of the Tier 2-3 money.

I also believe that schools (and fans) just assuming that there is a full-share Big 2 offer waiting for them might be surprised, especially in the current media environment. Linear programmers have been losing viewers for years and both ESPN and FOX rely on significant carriage fees from those programmers to provide revenue to them to pay these contracts. As advertisers continue to move their ad spends away from linear programmers (which would include programmers like YouTube TV, Dish, and Hulu Live - who all have sort of a linear setup) and move to ad spending on streamers (this year is projected to be the first year advertisers will spend more on streaming than linear) that is going to impact the money available for future deals.
SEC Commish basically said that they would only expand with a school that provides a full share and don't have any expansion plans right now (sort of throwing it in FSU's face that they would probably not be worthy of a full share).
More importantly, the market has sort of spoken. The SEC and B1G contracts are probably inflated from being agreed to during a money bubble, whether that sort of money will be available in future deals is not a guarantee. The P5 schools moving have all taken $30M or less per year. The money simply does not exist anymore to pay out Big 2 type shares.

Reports have stated that neither FSU or Clemson has been vetted by the B1G, while at least 5 other ACC Schools have, so they may not fit into B1G's long terms expansion plans.
 
Pilchard said:
So, are we walking back from the previous prevailing notion that Jim Phillips was an ineffective eunuch who sat on the sidelines sucking his thumb as the ACC was imploding?
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Jim Phillips may have been like a duck. Serenely, smoothly gliding on the surface of the water. At the same time, paddling furiously out of sight underneath the surface.
 
The more I think about it the more I'm in the camp of where are FSU and Clemson going exactly?

I do think the SEC MAY be inclined to take them but at the current juncture that's no guarantee. Neither is going to the Big 10 IMO and I don't see Florida/Georgia/South Carolina breaking from their stonewall against adding their traditional rivals to the conference.

For all the moaning FSU has done, I think Clemson has a better shot at an SEC invite than FSU if they were picking a "next team up" today.
 
I grew up watching Dickerson and James. The death penalty they got was devastating. Now they said screw it, we are buying our way into a power 5 conference. Freaking amazing and possibly one of the biggest boss moves of all time. I think this part is not being shown enough attention. All of the teams that want to be in a power 5 conference were elbowed out of the way by sone wealthy Methodist.
 
SC DEAC said:
So we all know now...we have 3 traitors in the ACC who are actively trying to destroy the conference. Fuck Clemson, Fuck FSU, Fuck UNC. I hope they lose at every sport forever and I hope that all their students get herpes.
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You missed the boat on the herpes curse for FSU. The herp is already rampant in Tallahassee
 
Wakeforest22890 said:
The more I think about it the more I'm in the camp of where are FSU and Clemson going exactly?

I do think the SEC MAY be inclined to take them but at the current juncture that's no guarantee. Neither is going to the Big 10 IMO and I don't see Florida/Georgia/South Carolina breaking from their stonewall against adding their traditional rivals to the conference.

For all the moaning FSU has done, I think Clemson has a better shot at an SEC invite than FSU if they were picking a "next team up" today.
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This. FSU and Clemson certainly wouldn't decrease the school per payout in a negotiated new media rights deal but I hardly see them pulling over 70 million in value so the SEC or Big has little to no incentive to add schools that don't significantly increase the pot
 
Granted, I don’t know the ins and outs of carriage rates, but it seems that ESPN being able to raise the rates in Texas simply because they now have a few SMU fans to appease there doesn’t totally make sense. Adding University of Texas is one thing, but SMU? I would think the majority of cable subscribers in Texas have no desire to pay more now just to get the ACC network. I guess they don’t have a choice.
 
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