by TexCane
On Wednesday, ESPN reported the ACC, Florida State and Clemson have reopened talks pertain to conference revenue distribution based on brand valuation, television ratings and shortening of the length go the grant of rights agreement. The report also mentioned the ACC and ESPN are in talks about the network’s option to extend the current media rights deal through 2036.
That got me thinking. (Oh no!)
First, let’s suppose all the parties could come to a mutually beneficial agreement that includes a new revenue sharing model, the shortening of the grant of rights agreement and the shortening of ESPN media rights deal from 2036 to 2030. In exchange, the schools drop all their law suits. Everyone gets something and has to give up something.
I would like to present a scenario that would be a win-win-win for all parties. Ninety percent of you reading this scenario will say it’s crazy, it will never happen, what is Tex smoking? You may be right, but this week’s development may open the door to conference peace.
For discussion purposes only. No inside information, just a fan wanting the wars over.
What if… peace terms include…
Base Revenue Distribution:
Currently, all member ACC schools currently get roughly $44.7 million each year. With the new model, all full member schools would receive a base distribution of revenue. Let’s say it’s $36 million each per year.
Conference Performance Bonuses:
Based on season records in football, basketball (men & women), baseball, softball and conference playoff performance, a school could earn an additional $10 million in performance bonuses, depending on the sport.
National Playoff Bonuses:
A national playoff invitation in football and/or basketball would add another $1 million each. A final four appearance would add another $3 million each and a national championship would add another $5 million each. A school could earn as much as $18 million on top of the base revenue distribution. Currently, that would be a total of roughly $64 million. The revenue gap would be eliminated.
Grant-of-Rights Agreement:
Reduced the agreement to $100 million as an exist fee. Painful but not to the tune of the $500 million often mentioned today.
Expansion:
If the ACC can retain all of its current football member schools (17), it would give the conference the option to selectively expand to make their media rights deal more attractive. Targets? Let say three of Notre Dame, Memphis, UConn, UTSA ,UNLV, Tulane, TCU or San Diego State.
Notre Dame:
Notre Dame is key. The Irish have steadfastly held onto their independence. However, their path to a national football championship just got much more difficult with the 12-team playoff. They are now ineligible for a first round bye since those byes will go to the Power-4 champions. Could the Irish have second thoughts now?
Everyone has a price, including Notre Dame. Offer them a one-time incentive to become a full member of the ACC. Let’s say $20 million. If they still want their independence, give it to them. Drop them from conference membership completely if they do not become full members. It’s time to fish or cut bait for the Irish! We would love to have them in the conference, but enough is enough.
Media Rights Deal:
Immediately begin renegotiations with a ESPN for a mew media rights contract, beginning with the 2027 season through 2032. With a 20-school conference and national football brands such as Notre Dame, Florida State, Clemson, Miami, UNC, Duke, the ACC would be back in business as a powerful and respect super conference
BOTTOM LINE:
The above scenario move would…
End the court battles, thus retaining those national brands.
Close the revenue gap. A new media new rights deal will be signed starting 2027. The ACC would pull even with the SEC and Big10 in revenue distribution to member schools.
Grant-of-Rights agreement would be considerably modified and acceptable to all member schools.
Solidify the ACC as a power conference.
Just a thought…
GO CANES!
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