https://www.courier-journal.com/sto...out-revenue-gap-with-big-ten-sec/70196664007/
"More with less.
That’s a phrase that probably won’t be mentioned much as the Atlantic Coast Conference spring meetings take place Monday through Wednesday. But it’s a phrase commissioner Jim Phillips should have member schools’ athletic directors start wrapping their collective minds around.
The sooner the league accepts it's not going to come close to Big Ten and Southeastern Conference money, the better off it'll be.
Big Ten members will each reportedly make about $75 million in revenue from the league's newly negotiated media rights deals that start July 1 and includes partnerships with NBC, CBS and FOX. The SEC’s new deal with ESPN won’t start until 2024, as new members Texas and Oklahoma make it a 16-team conference, and will also distribute shares upwards of $70 million per member.
The ACC won’t touch that stratosphere. But how much is enough to compete at the highest level?
The University of Louisville hasn't had a problem outperforming other schools with bigger budgets given the Cardinals' ascension from the Metro Conference to Conference USA to the Big East, before finally reaching Power Five pay dirt.
The winter updated standings from the Learfield Director's Cup, which measure athletic departments across every sport, are confirmation it's still not a problem. U of L ranked 21st nationally — in a year where men's basketball didn't register any points to help bolster its standing. (Kentucky, with its SEC revenue, ranked 16th.)
The ACC had two schools ranked in the top 10 (No. 6 North Carolina, No. 8 N.C. State) and six in the top 25. Notre Dame, which was No. 18, is counted as an ACC participant since all of its sports except football compete in the league. The ACC's six top 25 schools tied the Big Ten and trailed just the SEC, which led all conferences with seven.
That is with the revenue gap "only" being around $15-18 million.
The ACC distributed a record $36.1 million to full-time members after the 2020-21 season. But that still leaves the ACC’s revenue share per member way below its counterparts in the Big Ten and Southeastern Conference.
And in the coming years, ACC schools will make $30-40 million less per year than those from the other two conferences.
ACC schools, for the most part, seem to have their needs covered by the money they’re generating. Added revenue affords athletic departments to dip into the "wants" category.
The ACC isn’t expected to have any major legislation on the table towards that end during spring meetings this week. But there’s a small contingent that’s becoming more and more vocal about exploring uneven revenue distribution within the league.
The tipping point was in February when Florida State athletic director Michael Alford told the school’s board of trustees — in a public meeting that was being livestreamed — the Seminoles deserved a larger cut because of their brand. He did it knowing it would make news and stir up some heat in the league office.
Alford’s not alone. North Carolina athletic director Bubba Cunningham has spoken openly about it as has Clemson’s Graham Neff.
With uneven revenue distribution, the biggest brands — schools like FSU, UNC and Clemson — could receive a larger share while schools like Wake Forest and Boston College accept a smaller one. U of L would be somewhere in the middle.
Miami athletic director Dan Radakovich has suggested a "success metric," rewarding more revenue to the teams that are winning the most.
Either way it's dressed, it would still be a band-aid approach.
The league's broadcast extension with ESPN — which was signed in 2016 and created the ACC Network — already has below-market value. And currently, there’s no incentive, barring unforeseen member expansion, for the World Wide Leader to re-negotiate terms.
The media rights deal runs through 2036. Since the ACC's 14 full-time member schools signed over their grant of rights to bring stability to the league during an iteration of realignment, they’re pretty much stuck with it for now.
Every ACC school has had its legal counsel review the league’s grant of rights. Either to figure out a way to break it or to make sure it’s iron clad enough to keep the league together.
Count U of L in the latter group. There's no soft landing spot waiting for the Cards in the Big Ten or SEC if the ACC began to fold. Even if they received a lifeline from the Big 12, the revenue gap would be similar.
If a school were to leave the ACC, it would pay an exit fee equal to three times annual revenue. On top of that, it would forfeit its media rights for the next 13 years, which could be worth a total of about a half-a-billion dollars.
Needless to say, no one can afford that.
If a legal loophole really existed that would allow a school to get out before the agreement ends and salvage its media rights in doing so, we would have seen a lawsuit by now. Best believe that.
Instead, there’s been crickets. And backdoor pivots to trying to find creative ways to generate more revenue and placate member schools in the process.
The league entered a partnership with FishBait Solutions in an attempt to find some innovative ways to grow revenue. Don’t be surprised if advertising on ACC team uniforms comes into play in the near future.
The league can make all kinds of moves to maximize revenue, but unless those moves include a new TV deal, the ACC can still only be, at best, the third most lucrative conference.
Texas football not too long ago (and maybe it still does) had ostrich leather seats that cost about $1,300 a pop for its team meeting room. That is a luxury that comes from a budget never starving for revenue.
The Longhorn Network was created in 2011 and was feared to give Texas so much of an advantage that Texas A&M bolted for the SEC. The network will sign off when the Longhorns officially join the SEC, and Texas still has never made the College Football Playoff.
Having more money doesn’t equal success. The ACC would be wise to remember that.
"More with less.
That’s a phrase that probably won’t be mentioned much as the Atlantic Coast Conference spring meetings take place Monday through Wednesday. But it’s a phrase commissioner Jim Phillips should have member schools’ athletic directors start wrapping their collective minds around.
The sooner the league accepts it's not going to come close to Big Ten and Southeastern Conference money, the better off it'll be.
Big Ten members will each reportedly make about $75 million in revenue from the league's newly negotiated media rights deals that start July 1 and includes partnerships with NBC, CBS and FOX. The SEC’s new deal with ESPN won’t start until 2024, as new members Texas and Oklahoma make it a 16-team conference, and will also distribute shares upwards of $70 million per member.
The ACC won’t touch that stratosphere. But how much is enough to compete at the highest level?
The University of Louisville hasn't had a problem outperforming other schools with bigger budgets given the Cardinals' ascension from the Metro Conference to Conference USA to the Big East, before finally reaching Power Five pay dirt.
The winter updated standings from the Learfield Director's Cup, which measure athletic departments across every sport, are confirmation it's still not a problem. U of L ranked 21st nationally — in a year where men's basketball didn't register any points to help bolster its standing. (Kentucky, with its SEC revenue, ranked 16th.)
The ACC had two schools ranked in the top 10 (No. 6 North Carolina, No. 8 N.C. State) and six in the top 25. Notre Dame, which was No. 18, is counted as an ACC participant since all of its sports except football compete in the league. The ACC's six top 25 schools tied the Big Ten and trailed just the SEC, which led all conferences with seven.
That is with the revenue gap "only" being around $15-18 million.
The ACC distributed a record $36.1 million to full-time members after the 2020-21 season. But that still leaves the ACC’s revenue share per member way below its counterparts in the Big Ten and Southeastern Conference.
And in the coming years, ACC schools will make $30-40 million less per year than those from the other two conferences.
ACC schools, for the most part, seem to have their needs covered by the money they’re generating. Added revenue affords athletic departments to dip into the "wants" category.
The ACC isn’t expected to have any major legislation on the table towards that end during spring meetings this week. But there’s a small contingent that’s becoming more and more vocal about exploring uneven revenue distribution within the league.
The tipping point was in February when Florida State athletic director Michael Alford told the school’s board of trustees — in a public meeting that was being livestreamed — the Seminoles deserved a larger cut because of their brand. He did it knowing it would make news and stir up some heat in the league office.
Alford’s not alone. North Carolina athletic director Bubba Cunningham has spoken openly about it as has Clemson’s Graham Neff.
With uneven revenue distribution, the biggest brands — schools like FSU, UNC and Clemson — could receive a larger share while schools like Wake Forest and Boston College accept a smaller one. U of L would be somewhere in the middle.
Miami athletic director Dan Radakovich has suggested a "success metric," rewarding more revenue to the teams that are winning the most.
Either way it's dressed, it would still be a band-aid approach.
The league's broadcast extension with ESPN — which was signed in 2016 and created the ACC Network — already has below-market value. And currently, there’s no incentive, barring unforeseen member expansion, for the World Wide Leader to re-negotiate terms.
The media rights deal runs through 2036. Since the ACC's 14 full-time member schools signed over their grant of rights to bring stability to the league during an iteration of realignment, they’re pretty much stuck with it for now.
Every ACC school has had its legal counsel review the league’s grant of rights. Either to figure out a way to break it or to make sure it’s iron clad enough to keep the league together.
Count U of L in the latter group. There's no soft landing spot waiting for the Cards in the Big Ten or SEC if the ACC began to fold. Even if they received a lifeline from the Big 12, the revenue gap would be similar.
If a school were to leave the ACC, it would pay an exit fee equal to three times annual revenue. On top of that, it would forfeit its media rights for the next 13 years, which could be worth a total of about a half-a-billion dollars.
Needless to say, no one can afford that.
If a legal loophole really existed that would allow a school to get out before the agreement ends and salvage its media rights in doing so, we would have seen a lawsuit by now. Best believe that.
Instead, there’s been crickets. And backdoor pivots to trying to find creative ways to generate more revenue and placate member schools in the process.
The league entered a partnership with FishBait Solutions in an attempt to find some innovative ways to grow revenue. Don’t be surprised if advertising on ACC team uniforms comes into play in the near future.
The league can make all kinds of moves to maximize revenue, but unless those moves include a new TV deal, the ACC can still only be, at best, the third most lucrative conference.
Texas football not too long ago (and maybe it still does) had ostrich leather seats that cost about $1,300 a pop for its team meeting room. That is a luxury that comes from a budget never starving for revenue.
The Longhorn Network was created in 2011 and was feared to give Texas so much of an advantage that Texas A&M bolted for the SEC. The network will sign off when the Longhorns officially join the SEC, and Texas still has never made the College Football Playoff.
Having more money doesn’t equal success. The ACC would be wise to remember that.
