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ACC Network and conference revenue

fsujd

All-ACC
Mar 29, 2002
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Atlanta, GA
There was recently a lot of screaming and gnashing of teeth over some comments from the BOT about the ACC Network and then others about the bowl revenue payouts.

First as to the BOT. The below link is to a radio interview Ira did and expounded on the article about the BOT. The summary is not mine but made by another poster but it is a fair summary of Ira's comments.

http://www.979espnradio.com/page.php?page_id=101)
Look for 4-20-15 hour 2.

"to get a better understanding of what really happened listen to this interview straight from the horses mouth.

Ira flat out stated that the BOT expressed concerns, but he doesn't feel they are the concerns that were around 3 years ago.

1) He stated that everything he has heard on and off the record from presidents and AD and ACC officials is that a network is going to happen, and it should happen during the timeframe they presented, which is 2017.

2) The reason the BOT are concerned is because not much info is given to them. The ACC, the presidents and the ADs do not want info getting out that would hurt negotiations. This is also why there is more of a calm with the ADs and presidents, because they have more info. That is why Thrashers view is different than the BOT.

3) Talking to people, Ira stated that the reason the ACC is fully in with ESPN is because if cable would ever unbundle, or there would be a change in model, ESPN is prepared to adapt to that change. And their products will most likely be the strongest in a digital/unbundled world. They are not putting all of their eggs into the cable model like the BTN or PacN. Hence why this is taking some time. They (the ACC and ESPN) and working on not only today, but the future as well.

4) He did throw out some kook stuff saying the BOT hear the Pac 12 is pulling in like $300M in revenue from the Pac 12, but what they don't hear is that $0 is being distributed to the schools because of the expense.

His interview was very good, and actually painted a good light to what is going on. And that he believes the ACC is following through on their promise, and that they are looking at the long term.

Completely different than what people are saying about the article"


Add to this Wes Durham's comments in the past that ESPN cannot go out and immediately push its distributors for another conference network after just doing that with the SEC. Some time was needed to absorb that cost. Everyone here seems to think this decision is solely the ACC's and it is doing nothing when ESPN is just as big or bigger factor since the ACC, like the SEC did, gave away the right to a network without ESPN. And has been noted the ACC isn't going to negotiate in public or give you constant updates. Have they done that with any big decision? The presidents and ADs know what is going on.

I watched the BOT meeting. It should also be noted one BOT member said every major conference but the ACC had a network. Hello? The Big 12 not only doesn't but isn't working on one and can't because of the LHN. I wish some of our BOT members would do a little homework if they want to speak out on this stuff. They might also note the Pac 12 hasn't made a profit yet as it continues paying expenses. It remains to be seen what the SEC Network pumps out this year.

As for the bowl payout numbers, Gene threw some cold water on that based on 2013 numbers but the TC whizzed right past that. The article gave no source for those numbers and how they were compiled. But beyond any of that only one number in all this matters. Conference payouts. What is the amount that is being paid out and put in each school's pocket at the end of the day. These raw numbers on TV payouts, bowls, etc. are not the bottom line by any means. Expenses have to be taken into consideration (ask the Pac 12 when it comes to their Pac 12 Network revenue).

The latest numbers as to what was paid out last summer by each conference:

Pac 12 $19 million (it should be noted Utah gets a lesser amount so that has been averaged in.)
ACC $20.8 million
SEC $20.9 million
Big 12 $21.2 million (Big 12 likes to throw around 23 million number ignoring that TCU and WVU get 14 million. This is average for all)
Big Ten $25.7 million (this is 2013 number as could not find 2014 but it was expected to be a small bump. Even this number is inflated because Nebraska was not getting a full share).

As you can see the ACC is not dead last as so often quoted. The Pac 12, ACC, SEC and Big12 are all right there together. Of course these numbers will all change this year when the playoff money is added in so it remains to be seen where everybody lands then but the only verifiable, money in your pocket numbers show the ACC is not some sad sack outfit being left way behind.
 
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