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ACC network may stall over rights issues - Printable Version

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ACC Network could stall over rights issues - CommuterBob - 05-20-2013 12:18 PM

http://www.sportsbusinessdaily.com/Journal/Issues/2013/05/20/Media/ACC-net.aspx?app_data=%7B%22pi%22%3A%2235762_1369068703_166310064%22%2C%22pt%22%3A%22twitter%22%7D

Quote:Don’t expect an ACC-branded TV channel to be launched any time soon.

The biggest problem so far is a rights issue. ESPN needs to control the conference’s syndicated rights to launch a channel. But those rights are tied up until 2027 through deals with Raycom and Fox Sports Net.

“There’s no way an ACC network co-exists with a syndicated model,” said Chris Bevilacqua, a media consultant who worked with the Pac-12 to form a league network. “They’re going to have to get those rights back.”

Quote:ESPN and Raycom engaged in meetings at the Charlotte offices of ESPN Regional Television, but those talks centered on how to program new member Notre Dame, not how to work together on a channel.

Quote:But the only commitment ESPN has given the ACC is that it will discuss the benefits of launching a channel. Industry insiders say there is not a rush to put together an ACC channel, and that it likely would be 2016 or 2017 before one would launch, if then.

If, in three to four years, ESPN decides an ACC channel is not financially viable, sources say there will still be financial benefits to the ACC.

The league’s current media rights contract is valued at $260 million a year through 2027, or about $18 million per school on an average annual basis across 14 schools. Notre Dame’s cut is much smaller because the Irish have their own football deal with NBC.

ESPN, if it says no to a channel, would increase its compensation to the ACC, pushing the per-school average to close to $20 million.


And then there's this, which contradicts what some in the ACC have previously said about the ACC's digital rights:

Quote:When it signed its ACC deal in 2010, ESPN and Charlotte-based Raycom Sports cut a deal that grants Raycom the ACC’s digital and corporate sponsorship rights, plus a heavy dose of live football and basketball games.

So the ACC does not own their own digital rights. Plus, according to the article Raycom sublicensed a bunch of games to Fox's RSNs. So its not just Raycom that would have to be bought out to start an ACC Network.

That's not to say it can't be done, but the chances of it being done are slim for at least a few years.


ACC network may stall over rights issues - SeaBlue - 05-20-2013 12:30 PM

Twicky Wabbits!


RE: ACC network may stall over rights issues - Wedge - 05-20-2013 01:00 PM

It depends in part on how determined the ACC is to do this.

The Pac-12 also had to buy up various rights from several different rightsholders in order to get the Pac-12 network started in 2012. So it can be done, if the conference commits the time and effort needed to negotiate with everyone and pay the money necessary to get all the rights needed for a network.


RE: ACC network may stall over rights issues - 4x4hokies - 05-20-2013 01:02 PM

I have thought the easiest way is to purchase Raycom Sports. That way the rights issues go away, the infrastructure with personnel, property, and equipment in Charlotte are already there.


RE: ACC network may stall over rights issues - Attackcoog - 05-20-2013 01:03 PM

(05-20-2013 12:18 PM)CommuterBob Wrote:  http://www.sportsbusinessdaily.com/Journal/Issues/2013/05/20/Media/ACC-net.aspx?app_data=%7B%22pi%22%3A%2235762_1369068703_166310064%22%2C%22pt%22%3A%22twitter%22%7D

Quote:Don’t expect an ACC-branded TV channel to be launched any time soon.

The biggest problem so far is a rights issue. ESPN needs to control the conference’s syndicated rights to launch a channel. But those rights are tied up until 2027 through deals with Raycom and Fox Sports Net.

“There’s no way an ACC network co-exists with a syndicated model,” said Chris Bevilacqua, a media consultant who worked with the Pac-12 to form a league network. “They’re going to have to get those rights back.”

Quote:ESPN and Raycom engaged in meetings at the Charlotte offices of ESPN Regional Television, but those talks centered on how to program new member Notre Dame, not how to work together on a channel.

Quote:But the only commitment ESPN has given the ACC is that it will discuss the benefits of launching a channel. Industry insiders say there is not a rush to put together an ACC channel, and that it likely would be 2016 or 2017 before one would launch, if then.

If, in three to four years, ESPN decides an ACC channel is not financially viable, sources say there will still be financial benefits to the ACC.

The league’s current media rights contract is valued at $260 million a year through 2027, or about $18 million per school on an average annual basis across 14 schools. Notre Dame’s cut is much smaller because the Irish have their own football deal with NBC.

ESPN, if it says no to a channel, would increase its compensation to the ACC, pushing the per-school average to close to $20 million.


And then there's this, which contradicts what some in the ACC have previously said about the ACC's digital rights:

Quote:When it signed its ACC deal in 2010, ESPN and Charlotte-based Raycom Sports cut a deal that grants Raycom the ACC’s digital and corporate sponsorship rights, plus a heavy dose of live football and basketball games.

So the ACC does not own their own digital rights. Plus, according to the article Raycom sublicensed a bunch of games to Fox's RSNs. So its not just Raycom that would have to be bought out to start an ACC Network.

That's not to say it can't be done, but the chances of it being done are slim for at least a few years.

YUp. Sounds like ACC schools will probably end up with a straight 20 million a yeqar pay day from ESPN. There are worse fates for college programs. The ACC will be doing just fine.


RE: ACC network may stall over rights issues - jaminandjachin - 05-20-2013 01:14 PM

Something doesn't sound right with this.. One Smith was on Brando show a couple of weeks ago and didn't say a word about this. Second, Ourand is a Maryland graduate. Sounds like there's a little pot stirring going on. Finally, when ESPN reps have been asked about this every says it's moving along and in some cases, they said they didn't have the same issues and the SEC. No way Swofford, would stick his neck out there and have the schools sign a GOR with this time bomb out there.


RE: ACC network may stall over rights issues - 1845 Bear - 05-20-2013 01:17 PM

(05-20-2013 01:14 PM)jaminandjachin Wrote:  Something doesn't sound right with this.. One Smith was on Brando show a couple of weeks ago and didn't say a word about this. Second, Ourand is a Maryland graduate. Sounds like there's a little pot stirring going on. Finally, when ESPN reps have been asked about this every says it's moving along and in some cases, they said they didn't have the same issues and the SEC. No way Swofford, would stick his neck out there and have the schools sign a GOR with this time bomb out there.

Why wouldn't he? It would seem to make sense that he would get them to sign as it shuts down the noise that had been hovering around for a while.


RE: ACC network may stall over rights issues - CommuterBob - 05-20-2013 01:20 PM

(05-20-2013 01:14 PM)jaminandjachin Wrote:  Something doesn't sound right with this.. One Smith was on Brando show a couple of weeks ago and didn't say a word about this. Second, Ourand is a Maryland graduate. Sounds like there's a little pot stirring going on. Finally, when ESPN reps have been asked about this every says it's moving along and in some cases, they said they didn't have the same issues and the SEC. No way Swofford, would stick his neck out there and have the schools sign a GOR with this time bomb out there.

Most of this info seems to be coming from Bevilacqua, so don't blame Ourand - who's always been pretty fair IMHO. I don't know how much of a "time bomb" it is. The ACC either gets a network, or gets a $2M bump each in media revenue. I think that's pretty fair.


RE: ACC network may stall over rights issues - TerryD - 05-20-2013 01:32 PM

[quote='CommuterBob' pid='9341042' dateline='1369070299']
http://www.sportsbusinessdaily.com/Journal/Issues/2013/05/20/Media/ACC-net.aspx?app_data=%7B%22pi%22%3A%2235762_1369068703_166310064%22%2C%22pt%22%3A%22twitter%22%7D



Quote:ESPN and Raycom engaged in meetings at the Charlotte offices of ESPN Regional Television, but those talks centered on how to program new member Notre Dame, not how to work together on a channel.


What would prompt such a particular meeting between ESPN and Raycom about ND?

ND doesn't play the five game ACC schedule until 2014. They had to meet in early 2013 about that?


RE: ACC network may stall over rights issues - Pervis_Griffith - 05-20-2013 01:33 PM

(05-20-2013 01:00 PM)Wedge Wrote:  It depends in part on how determined the ACC is to do this.

The Pac-12 also had to buy up various rights from several different rightsholders in order to get the Pac-12 network started in 2012. So it can be done, if the conference commits the time and effort needed to negotiate with everyone and pay the money necessary to get all the rights needed for a network.



This gives the ACC a reason to get as much as possible from Maryland's defection ... that $52 million could help buy back rights needed to launch a network.


.


RE: ACC network may stall over rights issues - bitcruncher - 05-20-2013 01:52 PM

JOOC, when did this become the ACC forum?


RE: ACC network may stall over rights issues - jaminandjachin - 05-20-2013 01:54 PM

I'm sure these guys have done their homework and knew this already. In addition, it must not be a lot of money or the issue would be dead. We'll see what Swofford says when hit with this question.


RE: ACC network may stall over rights issues - westmc9th - 05-20-2013 02:01 PM

Check out this @3:30 maybe we will get some clarity he is supposed to ask about the "issue" this article brings up

99.9 The Fan ‏@999TheFan 22m
Adam Gold talks Notre Dame, Hoops Tourney in NY, & ACC Network w/ACC Commish John Swofford. Hear it today at 3:30 and 5:30 on 99.9 The Fan.
http://player.liquidcompass.net/WCMCFM


RE: ACC network may stall over rights issues - CommuterBob - 05-20-2013 02:09 PM

(05-20-2013 01:52 PM)bitcruncher Wrote:  JOOC, when did this become the ACC forum?

Seems a rather well-represented cross section of posters replied. I thought it was more of a topic about the obstacles of a conference network.

Besides, one thread does not make an entire forum.


RE: ACC network may stall over rights issues - b0ndsj0ns - 05-20-2013 02:14 PM

Is it just me or do WVU fans seem to have an unhealthy obsession with wishing for the failure of the ACC?


RE: ACC network may stall over rights issues - bitcruncher - 05-20-2013 02:19 PM

What does me asking when this became the ACC forum have to do with the prospect of the ACC failing?

b0ndsj0ns, me thinks you have an insecurity complex, or an insatiable need to aggravate things further than they already were...


RE: ACC network may stall over rights issues - Villecard - 05-20-2013 02:29 PM

This article is confusing. It was reported my multiple outlets that the ACC will be getting a little over $20 million per school once the GOR was signed IN ADDITION to the ACC Network.


RE: ACC network may stall over rights issues - TIGER-PAUL - 05-20-2013 02:37 PM

Pac12 and Sec had similiar obstacles.
I would think 2016.


RE: ACC network may stall over rights issues - AtlanticLeague - 05-20-2013 02:43 PM

(05-20-2013 01:02 PM)4x4hokies Wrote:  I have thought the easiest way is to purchase Raycom Sports. That way the rights issues go away, the infrastructure with personnel, property, and equipment in Charlotte are already there.

http://www.insideview.com/directory/raycom-media-inc

At 2x gross revenue, that's a big ($1.2B) lift.

"Welcome to the ACC! We need you to chip in $100M..."


RE: ACC network may stall over rights issues - bullet - 05-20-2013 02:47 PM

(05-20-2013 01:20 PM)CommuterBob Wrote:  
(05-20-2013 01:14 PM)jaminandjachin Wrote:  Something doesn't sound right with this.. One Smith was on Brando show a couple of weeks ago and didn't say a word about this. Second, Ourand is a Maryland graduate. Sounds like there's a little pot stirring going on. Finally, when ESPN reps have been asked about this every says it's moving along and in some cases, they said they didn't have the same issues and the SEC. No way Swofford, would stick his neck out there and have the schools sign a GOR with this time bomb out there.

Most of this info seems to be coming from Bevilacqua, so don't blame Ourand - who's always been pretty fair IMHO. I don't know how much of a "time bomb" it is. The ACC either gets a network, or gets a $2M bump each in media revenue. I think that's pretty fair.

That's actually pretty bizarre. ESPN PAYS not to do a network? And remember, they already bought those rights and sold them to Raycom.