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ACC AD Meetings - New Revenue Distribution Model?
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<blockquote data-quote="CEB" data-source="post: 947625" data-attributes="member: 4905"><p>Good point. They don’t have to. They have a contract and we’re all locked in... that said;</p><p>1. the contract allows for bonus and incentive payments as well as annual escalations. If we put ourselves out there and grab ratings, it can pay off even in the current structure. I haven’t researched the bonus and escalation provisions, but they are there, as indicated by increasing annual revenues. </p><p></p><p>2. I’m also of the mindset that it may be cheaper and at the same time better for ESPN to come up with more cash for the ACC to stay whole as we draw closer to the end of the deal. It still doesn’t make sense to me to pay bigger money to the FSUs and Clemsons of the world if they move to the SEC; ESPN already has FSU and Clemson programming. If those guys go to BIG instead, ESPN loses that programming. Either way, ESPN is losing something. Why not give the ACC a bump that levels the field? It’s cheaper and guarantees a product. If the ACC sweetens the deal by drawing more eyeballs, it just makes even more sense. </p><p></p><p>I honestly thought the end game for FSU and Clem was to show that the GOR COULD get blown up and try to force ESPN to come to the table. I’m not totally convinced that’s not the play ultimately because the little bit of unequal revenue doesn’t seem to move the needle much.</p></blockquote><p></p>
[QUOTE="CEB, post: 947625, member: 4905"] Good point. They don’t have to. They have a contract and we’re all locked in... that said; 1. the contract allows for bonus and incentive payments as well as annual escalations. If we put ourselves out there and grab ratings, it can pay off even in the current structure. I haven’t researched the bonus and escalation provisions, but they are there, as indicated by increasing annual revenues. 2. I’m also of the mindset that it may be cheaper and at the same time better for ESPN to come up with more cash for the ACC to stay whole as we draw closer to the end of the deal. It still doesn’t make sense to me to pay bigger money to the FSUs and Clemsons of the world if they move to the SEC; ESPN already has FSU and Clemson programming. If those guys go to BIG instead, ESPN loses that programming. Either way, ESPN is losing something. Why not give the ACC a bump that levels the field? It’s cheaper and guarantees a product. If the ACC sweetens the deal by drawing more eyeballs, it just makes even more sense. I honestly thought the end game for FSU and Clem was to show that the GOR COULD get blown up and try to force ESPN to come to the table. I’m not totally convinced that’s not the play ultimately because the little bit of unequal revenue doesn’t seem to move the needle much. [/QUOTE]
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