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Wilcox projects significant revenue jump from ACC Network
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Lou_C Offline
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Wilcox projects significant revenue jump from ACC Network
http://floridastate.247sports.com/Bolt/W...k-51424858

Florida State athletics director Stan Wilcox said the ACC's revised television deal will deliver an increased payout of $3 million in the 2017-18 fiscal year.

Wilcox was asked about ACC television distributions at an FSU Board of Trustees meeting on Wednesday morning. A boost was expected with the July 2016 announcement of the ACC Network Extra by league commissioner John Swofford

Revenues will jump once the "linear" ACC Network launches in the fall of 2019. Wilcox said the ACC's projections have indicated that the distribution per school will increase by $8 million-$10 million in 2019-20, and then $10 million-$15 million in future years.

"These are all projections," Wilcox said. "It all depends on how well the network does. They are saying this network should have the same kind of return that the SEC Network has had in their first couple of years."

How much each ACC school receives annually is a critical part of the annual operating budget. Increased revenue helps to pay salaries for coaches, upgrade facilities and finance other long-term projects.

The B1G Ten and SEC have vaulted to the front of the pack in regard to revenue distributed to each school due to the creation of their own conference networks. And the ACC has long pursued a channel as part of its deal with ESPN, and a linear channel will launch in 2019 that will bring added revenue to the league's 15 schools (including Notre Dame).

"The way we close the gap is by creating the network, which we've done," Wilcox said.

One of the big questions with a linear ACC Network has been distribution and how much cable companies and satellite providers will be able to charge customers to carry a channel. That number remains up for debate, but the projections Wilcox delivered to the BOT assert that the ACC and ESPN are confident that they will be able to add the channel as either part of a basic package or on a sports tier in a large number of households across the ACC footprint.
02-22-2017 03:08 PM
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Dasville Offline
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RE: Wilcox projects significant revenue jump from ACC Network
Fantastic News! Thanks for posting it!

So by 2020 each ACC school will be getting in the $33-$40 million range.

Sweet!
02-22-2017 03:20 PM
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GTTiger Offline
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RE: Wilcox projects significant revenue jump from ACC Network
(02-22-2017 03:20 PM)Dasville Wrote:  Fantastic News! Thanks for posting it!

So by 2020 each ACC school will be getting in the $33-$40 million range.

Sweet!

Those projections seem on the high-end, but that is still very positive news.

I have no doubt the ACC Network will very successful.
02-23-2017 09:52 AM
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Hokie Mark Online
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RE: Wilcox projects significant revenue jump from ACC Network
(02-23-2017 09:52 AM)GTTiger Wrote:  
(02-22-2017 03:20 PM)Dasville Wrote:  Fantastic News! Thanks for posting it!

So by 2020 each ACC school will be getting in the $33-$40 million range.

Sweet!

Those projections seem on the high-end, but that is still very positive news.

I have no doubt the ACC Network will very successful.
I don't think $33 M is on the high end, but $40 M may be.

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02-23-2017 10:56 AM
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ecuacc4ever Offline
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RE: Wilcox projects significant revenue jump from ACC Network
Hmm... so I guess FSU is going to stay put, yes?
02-23-2017 11:39 AM
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orangefan Offline
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RE: Wilcox projects significant revenue jump from ACC Network
Took a shot at calculating ACC Network revenue from cable subscriptions using SEC network information (70 million subscribers, $1.30 in footprint, $.25 out of footprint) and market by market Nielsen TV HH info. Two scenarios, one with NYC and Chicago, one without. Range of subscriber revenue is $490 million/year to $600 million/year.

Projecting $10-15 million/year/school implies $150-$225 million in revenue to the conference, which is clearly reasonable given my estimates.


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.xls  ACC Network Projections.xls (Size: 54.5 KB / Downloads: 4)
(This post was last modified: 02-24-2017 04:33 PM by orangefan.)
02-23-2017 12:09 PM
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Villecard Offline
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RE: Wilcox projects significant revenue jump from ACC Network
Given how successful the ACC football and basketball seasons have been, the network will really take off.
02-23-2017 02:26 PM
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Dasville Offline
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RE: Wilcox projects significant revenue jump from ACC Network
Attendance figures should be adjusted for butts in seats + viewership. Is advertising $ based on that, ACC will be solid. As the best ALL Sports Conference, gotta believe we capture the eyeballs of many a highschool sport family. The best players watch the best teams. I think an argument can be made that the ACC has the most "Best Teams".

I argue this based on the UConn women's basketball success.
02-23-2017 02:39 PM
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Hallcity Offline
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RE: Wilcox projects significant revenue jump from ACC Network
(02-23-2017 02:26 PM)Villecard Wrote:  Given how successful the ACC football and basketball seasons have been, the network will really take off.

A lot depends upon the progression of cord-cutting. You can't count on ESPN cramming the ACC Network down the throats of the cable carriers. The cable carriers matter less and less each month. How many of those who cut the cord will pay for the ACC Network on an a la carte basis and how much can you wring out of them? The good thing is that this affects every conference in pretty much the same way.
02-23-2017 03:27 PM
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Dasville Offline
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RE: Wilcox projects significant revenue jump from ACC Network
(02-23-2017 03:27 PM)Hallcity Wrote:  
(02-23-2017 02:26 PM)Villecard Wrote:  Given how successful the ACC football and basketball seasons have been, the network will really take off.

A lot depends upon the progression of cord-cutting. You can't count on ESPN cramming the ACC Network down the throats of the cable carriers. The cable carriers matter less and less each month. How many of those who cut the cord will pay for the ACC Network on an a la carte basis and how much can you wring out of them? The good thing is that this affects every conference in pretty much the same way.

So wait, are you saying that cord cutting impacts the SecN and the B1GN?
The news out there only suggest an impact on the ACCN.
02-23-2017 05:57 PM
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Hokie Mark Online
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RE: Wilcox projects significant revenue jump from ACC Network
I ran some numbers over the weekend. It looks like without the ACCN, conference teams would be $10 to $15 million PER YEAR behind the Big Ten, and almost that far behind the SEC (this is all once the Big Ten's latest TV contract starts paying out). However, based on the projections being tossed out for the ACCN, teams should be withing $5 million or so - no big deal when you are way north of $100 million/year total budget.

Here are my latest numbers, with sources:

http://accfootballrx.blogspot.com/2017/0...22717.html
02-27-2017 03:46 PM
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Lou_C Offline
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RE: Wilcox projects significant revenue jump from ACC Network
(02-27-2017 03:46 PM)Hokie Mark Wrote:  I ran some numbers over the weekend. It looks like without the ACCN, conference teams would be $10 to $15 million PER YEAR behind the Big Ten, and almost that far behind the SEC (this is all once the Big Ten's latest TV contract starts paying out). However, based on the projections being tossed out for the ACCN, teams should be withing $5 million or so - no big deal when you are way north of $100 million/year total budget.

Here are my latest numbers, with sources:

http://accfootballrx.blogspot.com/2017/0...22717.html

I hope that's correct. A $5M deficit is almost "too good to have even imagined it" territory.

In fact, if you go back to 2010, we signed a deal for $13M per year, $5M short of the SEC's $18M deal.

If somehow we were $5M behind in 2020, but now it's $45M to $40M...that would actually represent a massive closing of the gap. From about 72% of the SEC payout to almost 90%.

Obviously, a lot hast to happen before we can count those chickens, but the idea the ACC could close the gap that much is almost unfathomable.
02-27-2017 04:14 PM
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Dasville Offline
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RE: Wilcox projects significant revenue jump from ACC Network
If the ACC splits profits with espn and makes $5-$15 million.....that ain't bad! Especially when there is no investment on the ACC members part.
02-27-2017 09:59 PM
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Hokie Mark Online
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RE: Wilcox projects significant revenue jump from ACC Network
(02-27-2017 09:59 PM)Dasville Wrote:  If the ACC splits profits with espn and makes $5-$15 million.....that ain't bad! Especially when there is no investment on the ACC members part.

Each school is investing millions in HDTV broadcasting equipment, studios, etc. - I certainly wouldn't call it "no investment". Plus, many ACC sporting events will be broadcast without much if any labor cost from ESPN. You might as well say ESPN has no investment! The truth, of course, lies in between.
02-27-2017 10:19 PM
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