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Expansion Talk 2021
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<blockquote data-quote="slugboy" data-source="post: 815560" data-attributes="member: 282"><p>Let’s look at the grant of rights with a little math. I’ll simplify by leaving off bowl games and neutral site games. The ACC Network pays $155 million a year, and that’s set, but it’s only a portion of the broadcast revenue. </p><p></p><p>Let’s say Clemson, FSU, and Miami all leave for the SEC (and the SEC takes them). The ACC owns the broadcast rights to half of their games, including through streaming. The ACC has at least as many games to broadcast in the new setup as they did before. In fact, the ACC has more games to broadcast—where they had the Clemson-GT game, now they’ll have GT vs Baylor (or whoever we substitute) and they’ll have Clemson-Tennessee (or whoever is at Death Valley). Yes, thanks to Grant of Rights, half the games played between two SEC teams belong to the ACC because one of them used to be in the ACC. This continues through 2036 </p><p>For that reason, you’d assume that the pot of revenue stays the same or increases. That pays out $33-34 million/year now, but with 1/3rd fewer teams. </p><p>Georgia Tech’s distribution would be $33 million/0.8 = ~$42 million per year. </p><p>That’s through 2036, for doing nothing but standing pat. </p><p>Let’s also assume that FSU, Clemson, and UM get by with paying half of their exit fees. That’s $150 million / 12 = $12.5 million per team. Nice—not huge, but nice. </p><p>Because they left, FSU, UM, and Clemson get no ACC distributions, but the ACC still holds the rights. By leaving, the departing schools failed to uphold their end of the deal, but the ACC revenue is for ACC schools. </p><p>The SEC’s pool would be the same as it is with TX and OU, but FSU, UM, and Clemson add (mostly) nothing to the pool (those dollars basically go to the ACC through 2036). Yes, the Clemson-Florida game at Florida is a boost for the SEC, but I’ll neglect that for the math here. </p><p>The SEC would go from 16 schools to 19 schools, but the revenue would stay the same. Let’s say it’s the first $80 mil/year neglecting the three new schools. </p><p>The SEC per-school payout would be $80mil*16/19 = $67 million per year per school. </p><p>That’s still a huge bump for Clemson, UM, and FSU, but Mississippi State is giving up $13 million per year to add FSU to the conference. The bigger the SEC rights, the more valuable it is for UM to jump, but the more it costs the existing SEC schools to add them **on a recurring, yearly basis, through 2036**.</p><p></p><p>This also neglects the value of the broadcast of FSU vs UT (either Tennessee or Texas) to the ACC. The ACC Network contract is fixed, but the ABC or ESPN rights will be worth more from those games. The ACC revenue might even increase.</p></blockquote><p></p>
[QUOTE="slugboy, post: 815560, member: 282"] Let’s look at the grant of rights with a little math. I’ll simplify by leaving off bowl games and neutral site games. The ACC Network pays $155 million a year, and that’s set, but it’s only a portion of the broadcast revenue. Let’s say Clemson, FSU, and Miami all leave for the SEC (and the SEC takes them). The ACC owns the broadcast rights to half of their games, including through streaming. The ACC has at least as many games to broadcast in the new setup as they did before. In fact, the ACC has more games to broadcast—where they had the Clemson-GT game, now they’ll have GT vs Baylor (or whoever we substitute) and they’ll have Clemson-Tennessee (or whoever is at Death Valley). Yes, thanks to Grant of Rights, half the games played between two SEC teams belong to the ACC because one of them used to be in the ACC. This continues through 2036 For that reason, you’d assume that the pot of revenue stays the same or increases. That pays out $33-34 million/year now, but with 1/3rd fewer teams. Georgia Tech’s distribution would be $33 million/0.8 = ~$42 million per year. That’s through 2036, for doing nothing but standing pat. Let’s also assume that FSU, Clemson, and UM get by with paying half of their exit fees. That’s $150 million / 12 = $12.5 million per team. Nice—not huge, but nice. Because they left, FSU, UM, and Clemson get no ACC distributions, but the ACC still holds the rights. By leaving, the departing schools failed to uphold their end of the deal, but the ACC revenue is for ACC schools. The SEC’s pool would be the same as it is with TX and OU, but FSU, UM, and Clemson add (mostly) nothing to the pool (those dollars basically go to the ACC through 2036). Yes, the Clemson-Florida game at Florida is a boost for the SEC, but I’ll neglect that for the math here. The SEC would go from 16 schools to 19 schools, but the revenue would stay the same. Let’s say it’s the first $80 mil/year neglecting the three new schools. The SEC per-school payout would be $80mil*16/19 = $67 million per year per school. That’s still a huge bump for Clemson, UM, and FSU, but Mississippi State is giving up $13 million per year to add FSU to the conference. The bigger the SEC rights, the more valuable it is for UM to jump, but the more it costs the existing SEC schools to add them **on a recurring, yearly basis, through 2036**. This also neglects the value of the broadcast of FSU vs UT (either Tennessee or Texas) to the ACC. The ACC Network contract is fixed, but the ABC or ESPN rights will be worth more from those games. The ACC revenue might even increase. [/QUOTE]
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