Good article explaining the finances behind conference realignment.

[CL82]

ACC finances

It explains it in considerable detail and has a ton of useful nuggets of information.

The first is that in order to justify expansion any school would have to generate a minimum of about $33 million of revenue at an absolute minimum. That’s tough to do unless a network like ESPN white knights you. That’s the biggest reason why I don’t think UConn will leave the Big East in the foreseeable future, if at all.

The second interesting piece is that Notre Dame’s share of the Big East revenue is just a little over $10 million per year. keep in mind that they had to sign a GOR through 2035 as a part of that. That’s not a lot of money. It is certainly possible that the Big East I could come up with something comparable in 2036, if Notre Dame is looking for a home and doesn’t want to be in a conference for football. I think that’s unlikely, but it isn’t out of reach financially.

The last piece of information that I thought was interesting is the relative per school earnings of the major conferences. The Big Ten is at approximately $50 million, the SEC is at $40 million and the ACC is at roughly $32 million for school. That is a staggering amount of money. The gap between the ACC and the other major conferences is likely to get larger.

 

[SPK145]

The second interesting piece is that Notre Dame’s share of the Big East (sic) revenue is just a little over $10 million per year. keep in mind that they had to sign a GOR through 2035 as a part of that. That’s not a lot of money. It is certainly possible that the Big East I could come up with something comparable in 2036, if Notre Dame is looking for a home and doesn’t want to be in a conference for football. I think that’s unlikely, but it isn’t out of reach financially.

Highly doubtful, no Big East team currently gets even half that much per year from the conference.

 

[TheHall87]

The second interesting piece is that Notre Dame’s share of the Big East revenue is just a little over $10 million per year. keep in mind that they had to sign a GOR through 2035 as a part of that. That’s not a lot of money. It is certainly possible that the Big East I could come up with something comparable in 2036, if Notre Dame is looking for a home and doesn’t want to be in a conference for football. I think that’s unlikely, but it isn’t out of reach financially.

It's not that interesting given ND isn't a member for football. If anything it's interesting that the number is as high as it is (I've read ND's cut is about 1/5 of a full share which would put it's number closer to seven million).

2036 is a long time from now. By then it's possible that Big East team's will be pulling in $10 million per in revenue. I'd still gather that ND could still make well more than that for a partial share from whatever football conference it would opt to partner with.

 

[SOBO1]

It’s my understanding that the ACC revenue share will jump significantly now that the ACC network is up and running. That was the thought process in launching it. To close the gap between the BigTen/SEC

 

[CL82]

(I've read ND's cut is about 1/5 of a full share which would put it's number closer to seven million).

I had heard that as well. This article, which seems pretty detailed, says $10M.

 

[SPK145]

I had heard that as well. This article, which seems pretty detailed, says $10M.

It was $10.8 million (a 1/3 cut), up from $6.8 million (a 1/4 cut) the year before, a huge jump while the rest of the ACC got a small bump up.

 

[radecicco]

It’s my understanding that the ACC revenue share will jump significantly now that the ACC network is up and running. That was the thought process in launching it. To close the gap between the BigTen/SEC

But they will always be 3rd wheel behind the B1G and SEC and rather than closing the gap will be falling farther behind In the coming years.

 

[SOBO1]

Correct. It’s not realistic (and no one expects) to reach sec or BigTen numbers, but the belief is that they will see an uptick in revenue from ACC network.

 

[JoePeppitone2012]

How does cable cutting effect this?

I no longer have cable like most of my friends so we don't pay for these networks?

Any impact?

 

[hallstorm]

Outside of Clemson, ACC football is a joke.

 

[TheHall87]

It was $10.8 million (a 1/3 cut), up from $6.8 million (a 1/4 cut) the year before, a huge jump while the rest of the ACC got a small bump up.

My understanding is for 2020-21, they will get a full share of ACC revenue because they played in the conference for the 2020 season. As part of that arrangement they will contribute the revenue they earn from NBC to the pot.

 

[Hall91]

Outside of Clemson, ACC football is a joke.

Not sure how complicated the ACC out clauses are, but I could see Clemson and Florida St being the next 2 to head to SEC.

 

[SPK145]

My understanding is for 2020-21, they will get a full share of ACC revenue because they played in the conference for the 2020 season. As part of that arrangement they will contribute the revenue they earn from NBC to the pot.

Yup

 

[dehere23]

Outside of Clemson, ACC football is a joke.

I think FSU will be back sooner than later, but overall it’s not a great league or even a good football league.

 

[TheHall87]

Not sure how complicated the ACC out clauses are, but I could see Clemson and Florida St being the next 2 to head to SEC.

All ACC members (including ND) have given up their media rights to the conference until 2036. Plus there's reportedly a $52 million exit fee.

That's in the range of $500 million in revenue you're giving up.

 

[CL82]

My understanding is for 2020-21, they will get a full share of ACC revenue because they played in the conference for the 2020 season. As part of that arrangement they will contribute the revenue they earn from NBC to the pot.

I didn’t realize that. Here’s a link with the math.

 

[TheHall87]

My understanding is for 2020-21, they will get a full share of ACC revenue because they played in the conference for the 2020 season. As part of that arrangement they will contribute the revenue they earn from NBC to the pot.

I didn’t realize that. Here’s a link with the math.

One time only because of the circumstances of the 2020 football season. The link explains well how it was a win-win for ND and the ACC both on and off the field.