(05-13-2016 06:11 AM)HtownOrange Wrote: This is probably more of the ACC schools pushing ESPN for ownership. Having observed the BTC, SECN and LHN, the ACC has probably determined that true partnership where both parties have a financial stake will be the most rewarding over the decades.
The risk for ESPN is that they have a proof of concept from a competitor, Fox, which has proven to be the most stable and most prosperous model. Should they lose the ACC to Fox, or another broadcaster willing to follow the same model, ESPN will lose out on profit.
Profit maximization is a goal of all parties. However, ESPN cannot be so fixated on their desire to maximize their profit that they lose all profit and to a competitor. ESPN is contractually bound to work towards a network, failing to do so in a timely manner is a breach of contract and would allow the ACC to go to Fox, NBC, or CBS.
That we do not know the minute details is really not an issue as the ACC is well within the timeline of developing a network (h/t to Lou). The ACC has been the stealthiest of conferences in many areas, this is not an exception.
I think you may really be on to something here with this ownership issue. Fox owns about half of theirs, PAC owns all of theirs, and the SEC and Texas don't own either of theirs, they are just paid for content.
This is especially interesting to think about if you're talking about multiple distribution channels...I expect there to be a standard cable network, but I also have suspicions that there will be an online channel for non-subscribers (think HBO Now), which ESPN has not previously had.
There could well be considerations of some ACC ownership, perhaps of the digital-only platform. This would especially make some sense given the Raycom relationship, the ACC is probably better positioned than any other conference to take content creation and delivery responsibilities for a digital offering.
So let's just say, ESPN licenses ACC content for the cable channel, just like the LHN or SECN. But let's just say for example, the ACC Now offering, to non-cable subscribers, was jointly owned by ESPN, the ACC and Raycom in some capacity. Now something like that would check a lot of boxes of what Swofford is talking about here, between technology and business partnering.
That could be a bit of a slick move if the ACC was somehow able to retain a stake in their streaming rights going forward like that, which might conceivably put the ACC in a position to make great gains on other conferences depending on how distribution models change/develop.
That kind of arrangement might lower production investment for ESPN (with Raycom absorbing some) and therefore lower some barriers at ESPN. Interesting to think about, and something like that might be the hail mary required to keep the ACC competitive.
That said, as for this statement:
ESPN is contractually bound to work towards a network, failing to do so in a timely manner is a breach of contract and would allow the ACC to go to Fox, NBC, or CBS.
I don't see any universe in which this is remotely true, that the ACC will be able to cut loose over ESPN's decision making. No way. We already know ESPN has an alternative compensation in place for not having a network, there's no way that there's any clause which will cut the ACC out of their contract altogether.