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Expansion Talk 2021
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<blockquote data-quote="slugboy" data-source="post: 815557" data-attributes="member: 282"><p>That $52 million was the exit fee for Maryland years ago. Maryland did not pay the full amount.</p><p>The last version I found was that the exit fee is “three years of conference distributions”. For 2021, that’s about $100 million.</p><p>Until the last two years, the exit fee doesn’t decline unless the payout does.</p><p>However, if the gap grows between payouts, that $100 million becomes more reasonable to pay off. The SEC and B1G pay about 1/3rd more to each school than the ACC. The SEC paid out $45 mil per school last year, and the last payment I saw for the ACC was $33 mil (but that wasn’t 2021). It’s a huge anchor, though.</p><p></p><p>[USER=4724]@ugacdawg[/USER] is correct about the Grant of Rights. If Clemson (or anyone else) leaves, all their home broadcasts are owned by the ACC for 15 years. For example, if they moved, Clemson’s home game against Alabama would be on the ACC network (or through the contract) and the money for the game would go to the remaining ACC schools. </p><p>That’s a massive cut to the income a departing ACC team would bring to their new conference.</p></blockquote><p></p>
[QUOTE="slugboy, post: 815557, member: 282"] That $52 million was the exit fee for Maryland years ago. Maryland did not pay the full amount. The last version I found was that the exit fee is “three years of conference distributions”. For 2021, that’s about $100 million. Until the last two years, the exit fee doesn’t decline unless the payout does. However, if the gap grows between payouts, that $100 million becomes more reasonable to pay off. The SEC and B1G pay about 1/3rd more to each school than the ACC. The SEC paid out $45 mil per school last year, and the last payment I saw for the ACC was $33 mil (but that wasn’t 2021). It’s a huge anchor, though. [USER=4724]@ugacdawg[/USER] is correct about the Grant of Rights. If Clemson (or anyone else) leaves, all their home broadcasts are owned by the ACC for 15 years. For example, if they moved, Clemson’s home game against Alabama would be on the ACC network (or through the contract) and the money for the game would go to the remaining ACC schools. That’s a massive cut to the income a departing ACC team would bring to their new conference. [/QUOTE]
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