The clearest indicator that I know a realignment observer doesn’t know what they are talking about is if they say the ACC Network doesn’t make money. Everything they say after that is totally disregarded as nonsense by me. Many people say it too, so you can eliminate them all as accurate sources of information.
How can I be so sure about this?
The numbers are there for everyone to see.
Don’t get me wrong base media deal is a mess. We know this, and it’s the primary motivation behind the FSU and Clemson lawsuit. You now have the issue of the issue CFP payout too, where I think the ACC got fleeced.
From ESPN’s article on the subject.
The financial distribution for the expected 14-team playoff will look radically different. On an annual basis, for example, Big Ten and SEC schools will each be making more than $21 million — a drastic increase from the nearly $5.5 million that schools in Power 5 conferences are currently being paid.
In the ACC, the schools will get more than $13 million annually and Big 12 schools will get more than $12 million each. Notre Dame is expected to get more than $12 million as well
That said we want to talk about the ACC Network and its success in a vacuum.
It’s the wildcard to the ACC’s future almost nobody ever brings up.
From the CBSSports.com article on the ACC, Big12, Big 10, and PAc 12’s Tax Return for FY 2023.
Though its $707 million figure was third among the power conferences, the ACC did report a $90 million revenue increase that paced Power Five schools. According to USA Today, around $38 million of that increase came from TV revenue through its deal with Comcast. Each ACC school received an average of $44.8 million, while Notre Dame, a full-time ACC member in most sports, was granted $22.1 million due to its independent status in football.
So we know from last year’s tax return the ACC distributed nearly $444 Million in Television Revenue. A $38 Million increase brings that to about $482 Million in Television Revenue. So that’s an increase of $2.5 – $3 Million per ACC school, figuring the ACC’s base deal at $20 Million had a 4% increase, and we can safely say ACC Network reaching full distribution added $1.5 – $2.5 Million to per team.
If you read the blog you knew this already, because we correctly predicted, and posted this last year.
Georgia Tech in their recent financial statement reported they made $9 Million off the ACC Network.
It’s right there in print on page 12.
For the Fiscal year ending 2021-2022, that’s not the entire year of COMCAST distribution which started in December of 2021. It’s only half. The ACC can expect another $1-3 Million for a full year. From the math above – that’s $150 Million to $180 Million going to ESPN.
If 15 ACC teams are “conservatively” making $10 maybe even $11 Million from the ACC Network, and it’s a 50/50 venture with ESPN, that’s $150 Million to $165 Million for the 4 Letter Network.
The ACC Network is an unmitigated success for the ACC and ESPN. The numbers bear that out, and while I’ll admit ESPN treats the ACC as a second-class citizen it doesn’t mean they don’t want a future relationship with the conference. Some have speculated that ESPN would would not re-up the ACC deal after 2025. There seems to be debate whether this language is even correct as Jim Philips told ESPN via MSN.com.
He described the provision for February 2025 as a “look-in” for ESPN.
“The partnership’s not going away or being affected in a negative way at all,” Phillips said, according to ESPN’s David Hale. “It’s a look in and we’re handling some of what that states.”
With the profitability of the ACC Network even if a re-up is true, it’s hard to fathom the ESPN simply cutting ties with a network that is clearly highly profitable. The ACC Network has now picked up schools in California and Texas, and even if Cal, Stanford, and SMU aren’t the biggest brands in those states, ESPN is a master at distribution and bundling. The ACC Network may see another increase in revenue with expansion into those states.
Now the ACC Network won’t keep FSU and Clemson in the fold in the long term, but losing them doesn’t totally cripple the ACC Network either. It affects the base media deal ceiling more than anything. That’s one reason I think South Florida will one day be a prime candidate for the ACC if and when Florida State leaves.
When considering the ACC’s future, you must always consider the role the ACC Network may play. If you aren’t, then you are assessing the situation with a massive gap in understanding what factors may play a role in the conference’s future.
