Conference Realignment

[CEB]

The ACC tv deal and grant of rights gets worse by the day. Now the big 12 (which has not had a CFB title winning team since Texas in 2005) will pull in $10 million more per school than the average ACC school. https://www.espn.com/college-footba...ears-six-year-228b-tv-extension-deal-espn-fox

This was true before the Big12 deal. It’s just getting sensationalized now.

ACC is hamstrung by a long term deal. At the time, it seemed like a good one. For a brief moment, the ACC was pulling slightly more than other conferences. The problem is that it greatly undervalued FUTURE media and we weren’t getting enough escalation to keep up with the increasing market.... the long and short is that ESPN owns us for the next decade at a price that is ALREADY way under market. So, quite literally, our deal gets worse by the day, regardless of what other conferences do.
Short of an expansion, i don’t see a way to renegotiate with ESPN. I obviously haven’t seen the deal but I think there needs to be a change in membership to reopen contract talks. Subtraction of teams is prevented by GOR, so it has to be by addition.
Espn has no interest in coming to the table to pay more for the same programming. I don’t buy the notion that poor on field performance would prompt them to try anything that would reopen negotiation. If the B12 without Tx and Ok is worth that much, why would ESPN shoot themselves in the foot to pay more for ACC programming or maybe lose the programming completely on the open market?
Dissolving GOR is a non-starter for multiple reasons, not the least of which is the contract issue with ESPN.
No individual program is leaving without paying huge penalties. The notion of leaving in order to get an incremental annual increase which won’t be realized for over a decade is nuts.

I have to believe the ACC is evaluating options. Much to the dismay of FSU fans and a few others, it will be with current ACC members intact for the foreseeable future. I just hope there is a path to increasing revenue sooner than later.

 

[WreckinGT]

We need to play hardball here. Someone needs to lead a coalition of 8 teams within the ACC that band together and threaten to dissolve the conference if ESPN doesn't renegotiate. The top 8 teams in the ACC will likely have other P5 options, and it would be in their best financial interest anyways to bolt for greener pastures. ESPN can refuse, but then lose all of their ACC content, and their investments in the ACC network. They will also have to renegotiate their contracts with multiple other conferences who will be adding new members. Staying in the contract we have for 14 more years is a non viable option.

 

[orientalnc]

We need to play hardball here. Someone needs to lead a coalition of 8 teams within the ACC that band together and threaten to dissolve the conference if ESPN doesn't renegotiate. The top 8 teams in the ACC will likely have other P5 options, and it would be in their best financial interest anyways to bolt for greener pastures. ESPN can refuse, but then lose all of their ACC content, and their investments in the ACC network. They will also have to renegotiate their contracts with multiple other conferences who will be adding new members. Staying in the contract we have for 14 more years is a non viable option.

I think ESPN has some "hardball" options as well. I doubt the ACC self-immolating would work to our advantage.

 

[WreckinGT]

I think ESPN has some "hardball" options as well. I doubt the ACC self-immolating would work to our advantage.

Do you think waiting until 2036 in the current contract is the best way forward for every program in the ACC?

 

[Techster]

Do you think waiting until 2036 in the current contract is the best way forward for every program in the ACC?

LOL...GT somehow always gets involved in bad contracts.

 

[Augusta_Jacket]

Do you think waiting until 2036 in the current contract is the best only available way forward for every program in the ACC?

FIFY. The answer is yes.

 

[WreckinGT]

FIFY. The answer is yes.

Why would continuing the current contract for 14 more years be a better option for the top 8 ACC programs than dissolving the conference and taking their chances elsewhere?

 

[Augusta_Jacket]

Why would continuing the current contract for 14 more years be a better option for the top 8 ACC programs than dissolving the conference and taking their chances elsewhere?

Because one is reality and the other is a pipe dream.

 

[cpf2001]

Why would that long a term ever be agreed to by anyone aware of trends in these things over the past few decades?

Was this paranoid by ACC management to prioritize term to try to prevent certain teams from being poached more than trying to maximize long term revenue opportunity? That’s the only way that makes sense from where I’m sitting.

Problem for ESPN might become that in 14 years the ACC schools will be so broke then it’s not even a good deal for them either. The pyhrric victory scenario. But probably it doesn’t actually become THAT extreme.

That’s such a long time period, though, that “burn the world to save it” doesn’t seem as unrealistic to me as to some people here…

 

[WreckinGT]

Because one is reality and the other is a pipe dream.

Im not sure it's a pipe dream. Personally I think the idea that all of the ACC programs will accept the current contract for 14 more years while other conference renegotiate multiple times to build even larger revenue disparities is more of a pipe dream. Something will have to give.

 

[RonJohn]

Why would continuing the current contract for 14 more years be a better option for the top 8 ACC programs than dissolving the conference and taking their chances elsewhere?

What makes you believe 8 teams can dissolve the conference?

The GOR language says that the GOR can only be modified or dissolved if every current member agrees to dissolve it. Use GT just as an example. If every school but GT were to leave the ACC, Gt could invite 7 G5, or even 7 FCS schools to join the conference. Negotiate a limited payout to those schools ($20-30 million) and GT could make $400 million per year on the broadcast rights of the schools that left the ACC. Why would the remaining school(s) in the ACC agree to give up $600 million to $1 billion per year? There would not be enough incentive to appease the schools leaving to do that.

It would take a lot more than 8 schools deciding to leave to get rid of the GOR.

 

[Augusta_Jacket]

Im not sure it's a pipe dream. Personally I think the idea that all of the ACC programs will accept the current contract for 14 more years while other conference renegotiate multiple times to build even larger revenue disparities is more of a pipe dream. Something will have to give.

It's a pipe dream. Go read the grant of rights.

 

[WreckinGT]

What makes you believe 8 teams can dissolve the conference?

The GOR language says that the GOR can only be modified or dissolved if every current member agrees to dissolve it. Use GT just as an example. If every school but GT were to leave the ACC, Gt could invite 7 G5, or even 7 FCS schools to join the conference. Negotiate a limited payout to those schools ($20-30 million) and GT could make $400 million per year on the broadcast rights of the schools that left the ACC. Why would the remaining school(s) in the ACC agree to give up $600 million to $1 billion per year? There would not be enough incentive to appease the schools leaving to do that.

It would take a lot more than 8 schools deciding to leave to get rid of the GOR.

The GOR has no bearing on dissolution of the conference. That is governed by ACC member bylaws. If members of the ACC vote to dissolve the conference, then the GOR doesn't exist anymore. Everything I have read is that this vote would require a simple majority to pass. AKA 8 teams. If that is incorrect please provide a source for it. Now, can they get 8 teams onboard for it? Who knows. Maybe everyone is content dying a slow death.

 

[RonJohn]

The GOR has no bearing on dissolution of the conference. That is governed by ACC member bylaws. If members of the ACC vote to dissolve the conference, then the GOR doesn't exist anymore. Everything I have read is that this vote would require a simple majority to pass. AKA 8 teams. If that is incorrect please provide a source for it. Now, can they get 8 teams onboard for it? Who knows. Maybe everyone is content dying a slow death.

Everything you have read? Have you read the conference bylaws, or only what other internet posters say about conference bylaws?

 

[CEB]

What makes you believe 8 teams can dissolve the conference?

The GOR language says that the GOR can only be modified or dissolved if every current member agrees to dissolve it. Use GT just as an example. If every school but GT were to leave the ACC, Gt could invite 7 G5, or even 7 FCS schools to join the conference. Negotiate a limited payout to those schools ($20-30 million) and GT could make $400 million per year on the broadcast rights of the schools that left the ACC. Why would the remaining school(s) in the ACC agree to give up $600 million to $1 billion per year? There would not be enough incentive to appease the schools leaving to do that.

It would take a lot more than 8 schools deciding to leave to get rid of the GOR.

I think you’re on to something here. Maybe we can convince 7 or 8 schools to leave with us... we’ll be on board right up until the time to sign the dotted line... then we welch, stay ACC, collect $770m-$880m in exit fees from them, plus the additional annual revenue and just point and laugh at everyone else
GT, BC, WF, VT, Cuse and NCST making about $100m annually... in addition to $150m cash injection for exit fees!
Our money troubles are over!

 

[CEB]

The GOR has no bearing on dissolution of the conference. That is governed by ACC member bylaws. If members of the ACC vote to dissolve the conference, then the GOR doesn't exist anymore. Everything I have read is that this vote would require a simple majority to pass. AKA 8 teams. If that is incorrect please provide a source for it. Now, can they get 8 teams onboard for it? Who knows. Maybe everyone is content dying a slow death.

Simple majority to dissolve the conference? Where have you read that?
The other issue here is that contracts tend to protect more than one party... if the ACC voted to dissolve the conference, then we would be defaulting on our contractual obligation to give ESPN programming. I doubt ESPN shrugs their shoulders and walks away empty handed. The amount of money lost in this scenario would never justify the incremental increase in year over year revenue, even if it were possible

 

[Augusta_Jacket]

Simple majority to dissolve the conference? Where have you read that?
The other issue here is that contracts tend to protect more than one party... if the ACC voted to dissolve the conference, then we would be defaulting on our contractual obligation to give ESPN programming. I doubt ESPN shrugs their shoulders and walks away empty handed. The amount of money lost in this scenario would never justify the incremental increase in year over year revenue, even if it were possible

He isn't reading it anywhere. It takes an absolute majority of 3/4 of the directors to suspend or expel a program but a simple majority to dissolve? ok...

 

[RonJohn]

The GOR has no bearing on dissolution of the conference. That is governed by ACC member bylaws. If members of the ACC vote to dissolve the conference, then the GOR doesn't exist anymore. Everything I have read is that this vote would require a simple majority to pass. AKA 8 teams. If that is incorrect please provide a source for it. Now, can they get 8 teams onboard for it? Who knows. Maybe everyone is content dying a slow death.

OK, how about a source that proves you wrong?

https://virginiatech.sportswar.com/wp-content/uploads/sites/15/2022/08/2020-21-ACC-Manual-2020-9-17-2.pdf

The Absolute Three-Fourths Matters are as follows: (i) the admission of new Members to the Conference pursuant to Section 1.4.3, (ii) the expulsion, suspension or probation of a Member pursuant to Section 1.4.4, (iii) any amendment of this Constitution, (iv) any amendment of the Bylaws (except amendments to Article 2.5), and (v) waiver of notice or other required process for a Board meeting pursuant to Section 1.5.1.5.2.

The ACC bylaws require a 3/4 majority to make any changes to the bylaws. The bylaws have nothing in them about dissolving the conference.

 

[Augusta_Jacket]

OK, how about a source that proves you wrong?

https://virginiatech.sportswar.com/wp-content/uploads/sites/15/2022/08/2020-21-ACC-Manual-2020-9-17-2.pdf

The ACC bylaws require a 3/4 majority to make any changes to the bylaws. The bylaws have nothing in them about dissolving the conference.

Why throw facts into the mix?

 

[WreckinGT]

OK, how about a source that proves you wrong?

https://virginiatech.sportswar.com/wp-content/uploads/sites/15/2022/08/2020-21-ACC-Manual-2020-9-17-2.pdf

The ACC bylaws require a 3/4 majority to make any changes to the bylaws. The bylaws have nothing in them about dissolving the conference.

This assumes that the absence of language in the bylaws guiding dissolution requires a revote and doesn't follow normal North Carolina state law on dissolution of non profits. There are plenty of legal discussions on this matter out there.