(08-03-2023 04:21 PM)Hokie Mark Wrote: Let's say 4 schools leave early. What would the windfall look like for the rest?
1. exit fees: 4 X $120M = $480M
2. GoR buyout (let's assume $300M settlement): 4 X $300M = $1.2B
3. If they all go to the SEC, ESPN would keep ACC payout the same to avoid damages.
$480M + $1,200M = $1,680M divided by 10 teams = $168M each.
Spread that over the remaining 13 years: $168M/13 yrs = $12.9M/year per school.
Since Forbes projects ACC payouts to be $36M/year (average) over the next 13 years, that brings the total per year to $36M + $13M = $49M each, and that's NOT including CFP money, bowls, NCAA units, etc. (typically another $5M to $10M, but we'll call it $5M). So the Grand Total payouts would be around $54M each.
Now, that may not be SEC/B1G money, but dadgum, it's not bad!
__________
By contrast, the 4 who left would be getting SEC money MINUS the exit fees and buyouts. If we assume SEC payouts to be $75M to $80M, and the total cost to leave is $120M exit fee + $300M GoR settlement = $420M, then the annualized cost is approximately $420M/13 years = $32M/year. So the next revenue for the four would be $75M - $32M = $43M each (If we assume $80M in the SEC, the net is $48M).
Well, whad'ya know... the ones that stay stand to make more than those who leave! (at least over the next 13 years). Long-term, it's better to be in the SEC of course, but not at first.
Forbes magazine's sports folks are known to take short cuts putting their numbers together.
Let's just use the ACC's IRS 990 forms to estimate revenue:
ACC TV Revenue and Overall Revenue
Year TV Contract Average Total Average ACC Distribution
14 $13.6 M $19.8 M
15 $15 M $26 M
16 $15.6 M $23.5 M
17 $16 M $26.5 M
18 $19 M $29 M
19 $22 M $29 M
20 $24.4 M $32.5 M
21 $28 M $36.5 M
22 $31 M $40 M
As you can clearly see the ACC’s TV money has increased an average of 10% per year since 2014. Some years as little as 4% and 12-15% per year with the ACC network online.
Since 2014 ACC TV money has increased on a per school basis by 143%.
The internal ratchet of the ACC TV contract without added markets or an outside bump is about 4-5% per year. That’s 4-5% per year through 2036. Lets take the TV money forward without any outside bump, added ACCN states or schools:
23 $32.3
24 $34
25 $35.3
26 $37
27 $39
28 $41
29 $43
30 $45
31 $47
32 $49
33 $51.5
34 $54
35 $56.5
36 $59
This should give a deeper perspective into those complaining about future revenue from other conferences. Those future revenues are compared to the ACC’s 2013/14 distribution with all ratchets and escalators and ACCN ignored. So when FSU spouts this stuff you have to wonder do they believe their own horse ****?
Also remember that the extra money made from the football playoff will also go to ACC schools. Keep in mind that going forward there will be no contracts with Rose, Orange, and Sugar bowls and the B10, SEC, and B12 each lose $40 a year from that. (made up bigger playoff shares)
But the poor ole ACC only made $27.5 m off the Orange Bowl so we only lose $27.5 m to get our equal share of the playoff bonanza.
Let's take those restrained TV numbers and going forward add the current level of NCAA payments which is $6-7 M and let's whip up a playoff number all can share. Lets estimate that all P-4 schools pay out about $9 M per year for the football playoff to each school. This does not include a bonus for those playing in the playoff. For the ACC let's make this $15 M a year.
So here is your realistic total ACC distribution going forward:
23 $42 m
24 $49 m
25 $51 m
26 $53 m
27 $55 m
28 $57 m
29 $58 m
30 $60 m
31 $62 m
32 $64 m
33 $66 m
34 $68 m
35 $71 m
36 $74 m