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Blog Entry

Report: ACC expansion to net bump in TV deal

Posted on: February 7, 2012 2:34 pm
 

Posted by Jerry Hinnen



The ACC's decision to expand with Pitt and Syracuse has reportedly paid off with a substantial addition to their television contract's bottom line--though if the addition was substantial enough to justify the drawbacks of that expansion may be debatable.

The Sports Business Journal reported Monday that in the wake of the addition of the Panthers and Orangethe ACC has been able to "reopen" its recently signed contract with ESPN and negotiate a $1 million to $2 million annual increase for each of its now 14 member schools. Under the revised contract, each ACC member "can expect at least $14 million to $15 million a year," an increase from the current $13 million. The overall value of the contract is expected to increase from $155 million per season to north of $200 million.

The increase would bring the ACC nearly on par in annual distribution revenue with the Big 12, which the SBJ estimates currently averages $15 million per school, with the SEC at $17 million and the Big Ten and Pac-12 at $21 million.

But those figures illustrate why the ACC's expansion may not have provided enough buck for its bang. All four of those leagues should see their TV revenues increase in the near future, the Big 12 and SEC through their own expansion-induced negotiations and the Big Ten and Pac-12 through growing profits from their in-house networks. When the dust from the current round of expansion settles, the ACC is likely to still trail four of the five other BCS conferences (though they may have pulled closer to the Big 12, depending on how that league's negotiations go).

There's other downsides to the expansion, too. For one, the revised contract reportedly won't kick in until Syracuse and Pitt become active members of the league, which may not take place until 2014-2015 and certainly won't be in 2012-2013. In exchange for the boost to the contract, ESPN is also expected to exact a not-insignificant price: a three-year extension of what was already a 12-year deal, meaning the ACC won't be able to enter a full contract negotiation until 2026. (If the Big Ten and Pac-12 networks continue at their expected rates of growth, how wide will the gap be between those conferences and the ACC 14 years from now?) 

And though a potential $2 million per season is certainly nothing to sneeze at, shuttling not just the football team but volleyball, baseball, tennis (etc.) teams to West Pennsylvania and upstate New York on an annual basis will add to the travel budget. Then there's the fewer games between traditional ACC rivals in both football and basketball (though the nine-game gridiron schedule will help) and increased difficulty for any individual team to earn a championship ... all for a financial windfall that at Clemson equals not much more than a single assistant coach.

Is it worth it? Given that the ACC couldn't really stand pat as those other four BCS leagues pushed the financial gap even wider, John Swofford and Co. probably didn't have any choice. But the first time we watch Georgia Tech play at Heinz Field instead of Death Valley or the Orange disrupt what would have been a Duke-North Carolina ACC Tournament final, we're going to wonder.

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Comments

Since: Feb 16, 2011
Posted on: February 8, 2012 6:15 pm
 

Report: ACC expansion to net bump in TV deal

Why do people think that Miami's football program is hindered because its home games are played off-campus?  For 86 seasons, and counting, the 'Canes have NEVER played a football game on its campus.  Some might view UM's current home, Sun Life Stadium, as a plus:  recruits at Miami -- arguably the greatest producer of NFL talent over the past 25 years -- get to play in a world-class facility that's hosted five Super Bowls.  If you go to games at small to medium-sized FBS universities, you'll see that their stadiums are usually 50 to 75 years of age, with limited concessions, not nearly enough restrooms, and inadeqaute parking.  Anyway, it's good to see the ACC schools getting some more cash from the conference's TV contract



Since: Jul 9, 2010
Posted on: February 8, 2012 4:50 pm
 

Report: ACC expansion to net bump in TV deal

Cutty 240........My friends, Cuddy240 is a bunch of sauage that has been ground up so many times it's not even funny.  Cutty240 and his WVU co-hords are so jealous of the ACC, FLORIDA, VIRGINIA TECH and CLEMSON that they can't stand it.  They can't face reality that the ACC did not offer WVU an invitation to join.  In a recent WALL STREET JOURNAL REPORT written by Darren Everson he reported the following; this report placed a current PRICE TAG on what Major Conference football teams are worth !  So below are the facts of what these schools are worth with football ONLY

Florida State  - $ 267 Million

Virginia Tech  - $ 213 Million

Clemson    &nbs
p;   - $ 180 Million

West VA U.    - $ 133 Million 


Maybe this bunch of WVU ridge-runners will come to their senses, and not act like a bunch of inbreads when they go to the BIGXLL. Wishing you good luck and happy trails.   


      
;     &nbs
p;



Since: Aug 17, 2006
Posted on: February 8, 2012 9:23 am
 

Report: ACC expansion to net bump in TV deal

I dont know why this cutty240 dude is so jealous of the ACC?! He's talkin about KY tho. So I assume hes SEC. Listen, dont even try to compare to the ACC in BBall. I wont work for you. (except maybe Big East) We all know the SEC has been ruling Football. (lately) But after seeing these recruiting classes the ACC just signed. There could be a change comin in the next couple seasons!  



Since: Oct 26, 2011
Posted on: February 8, 2012 7:18 am
 

Report: ACC expansion to net bump in TV deal

First place in Basketball,really.Your 2 Bell Cows Duke and NC  have been taking it on the chin latley.The Dukies losing at Home twice.WHATS THE WORLD COMING TO,THE OFFICALS CAN'T HELP YOU EVERY NIGHT.IF either one of you to to Ky they will beat you 30 points.Then what will THE WHITE BLUE BLOODS IN CHAPEL HILL DO,I CAN'T WAIT.MAYBE COACH K,CAN USE SOME MORE HAIR DYE.




Since: Feb 5, 2012
Posted on: February 8, 2012 6:28 am
 

Report: ACC expansion to net bump in TV deal

Big Least?? We've been better in football all along. & significantly better in Bballl. You have 2 consistently good teams & No carolina has had bumps in the road lately. All the ACC can do is look good & do the dirty business in the dark stealing other conferences teams no matter what it does to rivalries, travel consequences & your integrity. Get over yourself.



Since: Dec 2, 2007
Posted on: February 8, 2012 2:49 am
 

Report: ACC expansion to net bump in TV deal

Looks like the ACC will still be fighting with the Big Least for last place in college football while fighting for first in basketball.....looks like business as usual.  At least by making the Big Least shop around they prevented the MWC from joining in the race to avoid last and becoming an AQ conference.



Since: Dec 3, 2009
Posted on: February 7, 2012 11:07 pm
 

Report: ACC expansion to net bump in TV deal

The fact that UM doesn't have an on-campus stadium isn't killing us.  What's killed us the last 6-7 seasons have been the coaching regimes that thought they didn't have to coach talent.  Now Golden has to start over and did a good job last year and with this upcoming recruiting class.  Miami has never had an on-campus stadium as we did just fine with the old Orange Bowl.  We still get kids to come to the U because at the end of the day, the U is still a marketable name just like USC, OSU, FSU, UF, etc....



Since: Oct 26, 2011
Posted on: February 7, 2012 10:25 pm
 

Report: ACC expansion to net bump in TV deal

You know how long I've been hearing that about Fla.State theyre going to win a NC.When was the last time they did that,a long time ago.This year there were over 200 D-1 kids that signed from Fla Schools.Forget about the U too.WVU got 13 kids from Fla.the most ever for them.Whats killing The U is no on campus stadium.Face it the SEC gets who they want hands down.I watched from the sidelines the LSU vs WVU game. LSU has 15 to 18 NFL guys playing for them Right now.I have never seen so much talent on one team in my life.That just proves what a Choke Job Les Miles Did in the NC Game.A 80 year old lady could of Coached that Team.



Since: Dec 5, 2011
Posted on: February 7, 2012 10:07 pm
 

Report: ACC expansion to net bump in TV deal

Nice cherry pick, Smokey. Notice I didn't mention Clemson and Virginia Tech because I don't put them in the same category as Miami and Florida State. Clemson's not that far behind FSU/Miami, and Virginia Tech just doesn't recruit enough elite talent to truly compete for national championships. Clemson and Va Tech are about the same as Oregon, which puts them about a notch below say, Southern Cal. What's my measuring stick? Well, when USC lines against ANYONE, including everyone in the SEC not named Alabama or LSU, they actually, deep down, expect to win...and the players on the other side, deep down, expect to lose. A lot of these games are won or lost in the warms-up when players/coaches look across the field as say, d*mn, one of these is not like the other. The elite powers have and stockpile elite talent. There's only a handful of elite programs, and everybody knows who they are.  

Mark my words, FSU's gonna win another national championship in the next five years. They already have more talent than most SEC rosters...just have to put it all together. I'd say the same about Miami if it weren't for the NCAA situation. Miami's got a coach now who'll take them back to the top. There's a ton of talent in South Florida, and they're still flocking to the U--despite the NCAA situation.



Since: Oct 26, 2011
Posted on: February 7, 2012 9:06 pm
 

Report: ACC expansion to net bump in TV deal

This is like a Bad Stock buy.All the ACC did was take on more overhead.Good Basketball pickups,which they really didn't need.If just makes there already weak Football,more weak,and thats hard to do.They got 2 more NC States.They Started all this Conference Busting back in 2005,now its coming back around to BITE THEM IN THERE ASS.HEY SWINE SWOFORD,YOU CAN FOOL SOME OF THE PEOPLE SOME OF THE TIME,BUT YOU CAN'T FOOL ALL THE PEOPLE ALL THE TIME.


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