(09-28-2015 03:04 PM)NBPirate Wrote: [ -> ]So ESPN is paying the ACC 20 million more per team for ~700k more viewers
1) Conference TV contracts are based on aggregate TV ratings, not single game ratings. Aggregate ratings gives you a much better picture of how many eyeballs a conference can be expected across all games. To illustrate this point, let's compare the average TV viewer numbers for conference games in the ACC and AAC last year (
link). I've included the ACC championship in the total given below (it's part of the conference TV package), but left out games against out-of-conference opponents, Notre Dame, and Navy (since they weren't in the AAC last year).
Average ACC conference game: 2.62M (35 rated games)
Average AAC conference game: 371K (30 rated games)
ACC games that drew over 1.0M viewers: 20 out of 35
AAC games that drew over 1.0M viewers: 3 out of 30
Now there are some obvious problems with this analysis for sure (e.g. no adjustment for which network the game was on, when it was played, etc.). It also only uses data from last year. With that said, I think it is still useful in illustrating why the ACC is valued more than the American and why only looking at single game comparisons can be deceiving.
2) Why do people pay $120+ bucks for a Nike shoe when they could buy a sneaker that is every bit as good for $40-60 bucks? Brand value. The ACC is a Power 5 conference with an access bowl slot. The American is not. The ACC has several schools with brand recognition in football (FSU, Clemson, Miami, VT) and basketball (UNC, Duke, UofL, Cuse). The American has some solid basketball brands (UConn, UC, Memphis, Temple), but no one has a national level brand for football. Those facts help drive up the price for the ACC TV contract.
3) Competition drives prices. When ESPN bid for the ACC's TV rights, it had to compete with Fox Sports. When ESPN bid for the American's TV rights, its only competition was NBC Sports. There was nothing forcing ESPN to raise the value of the American contract because it didn't have any serious competition competing against it.