DawgNBama
the Rush Limbaugh of CSNBBS
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RE: ESPN and the ACC media rights extension for 2027-2036
(04-25-2024 12:56 PM)Fighting Muskie Wrote: (04-24-2024 05:44 PM)Hokie Mark Wrote: (04-24-2024 04:16 PM)Fighting Muskie Wrote: (04-24-2024 03:45 PM)XLance Wrote: (04-24-2024 03:09 PM)Fighting Muskie Wrote: The ACCN makes money—wouldn’t call it a boatload. It can continue to make ESPN money too but ESPN can maximize their profits by “refinancing” while the market is in their favor.
Again, you’re fixating on the fact that ESPN is getting a good deal and ignoring the fact that they could get a better one.
I estimate that the ACCN is making ESPN about $200 Million per year.
And since ACCN profits are based on subscriber fees, they can lose Clemson and Florida St, add USF and UConn, and still earn $200M/yr will drastically reducing expenditures for T1 and T2 rights for the league.
I’m not obtuse. I understand the accounting here.
Fallacy #1: assuming that the ACC T1 contract is worth less than what ESPN is paying now. That contract was negotiated in 2010, and has been extended twice, with the option to extend it again -- all for a mere 4.5% increase per year. True, there were a few years in there when inflation was below 4.5%, but media rights, by-and-large, have grown a lot faster than that. So a reasonable person would conclude that the ACC T1 rights are undervalued - perhaps by a lot.
Fallacy #2: confusing the impact of schools vs. tv networks when it comes to tv ratings. Yes, FSU and Clemson got the best ratings last year. They were also in the best tv slots. How much were they helped - and Miami, VT, Pitt, etc. were hurt - by that simple fact? Some of FSU's and Clemson's appeal was being on ABC, winning the ACC. When/if they leave, some other team will be on ABC, winning the ACC, maybe even going undefeated.
On the contrary—Florida St and Clemson are effectively the ACC’s T1 rights.
Of 13 regular season ACC Home games aired on ABC:
8 involved Florida St or Clemson
2 were ACC schools hosting ND
2 were ACC schools hosting SEC schools
and the other one was NC St vs UNC on Black Friday filling a time slot
If ESPN kills the current deal and then renegotiates with an ACC that lacks those 2 programs, they will get that contract at a much lower rate than they are paying currently. The ACC’s T1 tv value would primarily rest in OOC games w/ ND and the SEC. The ACC programs are not the big draw. Clemson and Florida St are getting those slots because ESPN judges them to be the programs that will outperform the rest in the ratings. If Pitt, or VT, or Louisville were going to be big draws, they’d be in those slots. As it stands now, ESPN looks at even the best games for the other ACC schools as T2
Louisville has got good timeslots before. I believe they are a team to watch.
VT is suffering what FSU went through post-Bobby Bowden, IMO. Frank Beamer, a coaching legend, completely revolutionized VT. However, one bad hire, and VT hit the skids, IMO. VT needs to tap back into the Tidewater region of Virginia once again, and that would help out a lot, IMHO.
As for Pitt, I'm honestly not sure what could be done for them in football. It would seem, though not a certainty, that Pitt's best years in football are behind them, IMO. I really don't know why that is. Notre Dame has a natural affinity for Pitt though.
You didn't mention Miami, but I will. Miami has been racking its brain on how to return to greatness. To their credit, they have not given up, although they have went through several misfires. Mario Cristobal could be part of the answer, but I believe the other part of the equation is getting a stadium much closer to campus!!! Hard to believe that my former market manager's son is one of the team's best qb prospects, but he is.
UNC is a mystery to me, but I will give them credit for going back to Mack Brown. I think mqybe UNC wants to try to figure out what went wrong in Mack Brown I, by bringing back Mack Brown for Mack Brown 2. FWIW, NC State is also a mystery.
(This post was last modified: 04-25-2024 11:10 PM by DawgNBama.)
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