Jon Joseph Moderator No. 1 Share Posted May 30 (edited) ESPN to have ‘unilateral’ option to end media rights deal with ACC, per report SATURDAYROAD.COM ESPN's media deal with the ACC includes an interesting twist. Dean Wormer: "There is a little-known codicil in the Faber College Constitution which gives the Dean unlimited power ..." It's ESPN, and not litigants Clemson and FSU, that holds the future of the Atlantic Coast Conference (ACC) in its Dean Wormer-like hands. ESPN's ACC media rights deal gives ESPN the option in February of 2025, to opt out of the existing Mickey Mouse media deal in 2027, before the current deal expires in 2036. [Note, it is a different set of circumstances with Texas joining the SEC but the Longhorn Network will go off-air in July 2024 and be folded into the SEC Network.] Why would ESPN with a favorable ACC media deal, one priced well below what ESPN is paying for the SEC sports inventory and on par with the deal for B12 inventory, want to terminate a deal in its favor? 1. The Worldwide Leader, Fox Sports, and Warner Bros. recently announced the creation of the streaming service, 'Venu.' The formation of Venu comes amid cable TV cord-cutting which has materially lowered ESPN's subscription base and is in recognition of the move to pay-for-view streamed sporting events. Venu arrives as part of the Cold War-like thaw between the Murdochs and the Disneys. The model of buying sports inventory and selling game and event inventory to advertisers at a markup is no longer ipso facto profitable. Businesses have cut back advertising budgets. Pac-12 fans are well aware of this; the timing of the Conference of Champions' new media negotiations coming up for bid and the conference's refusal, unlike the B12, to go to the market sooner was the final Conference of Champions bite into a bushel of rotten Apples. So, today's favorable deal with the ACC may not be all that favorable down the road. Yes, the existing deal with the ACC is more than reasonable, but as profitable as showing Clemson vs. Florida State on pay-to-watch Venu? More profitable than closing down the ACC Network and eliminating the obligation to cover all of the ACC's sports? Why not do independent broadcast deals with Clemson and FSU without having to drag along Boston College and Wake Forest? 2. What if ESPN does not exercise the option and Clemson and FSU split? Without these two playing football in the ACC, will the operation of the ACC Network yield a profit as it does today? Why would Clemson and FSU fans and casual ACC fans continue to subscribe to the ACC Network without its two biggest football brands? Would Disney and its parent, Walt Disney, want to be left holding this kind of bag? 3. Is there any assurance that Clemson, FSU, and other ACC programs will be welcomed by the B1G or by the SEC? Clemson and FSU may find homes but if the remaining ACC teams do not, this again leaves the World Wide Leader holding the bag. 46 of the 47 most-watched college football games featured at least one B1G or SEC team. Ergo, what incentive is there for the B1G or the SEC to expand? FSU drew on average 4.16M viewers, 9th in the nation according to Nielson, and Clemson came in at 19th with 2.90M viewers. FSU and Clemson are not members of the American Association of Universities (AAU). To date, no program without AAU membership has been invited to join the B1G. Is the B1G in play for these two? The SEC is in the Florida and South Carolina marketplaces. The rivalry games, Clemson vs. South Carolina and FSU vs. Florida are broadcast by ESPN. Excluding, 'We're Only Here for the APR,' Vandy, the second least-watched SEC team, Mississippi State, was the 32nd most-watched SEC team in 2023, drawing over 2M viewers a game. As brand-worthy as Clemson and FSU may be, neither program would bring to the SEC the brand value brought by Texas. In 2023 Texas finished 8th in the number of viewers (one spot behind Oregon at 4.43M!) with 4.26M viewers. Adding Florida, Georgia, and Texas A+M to the Texas schedule will boost the Longhorns viewership. With its viewer numbers already at the top, why would SEC member teams want to add any teams to the spreadsheet? Unless ESPN was willing to pay for more inventory with the SEC moving from eight to nine conference games. North Carolina was on average, the 46th most-watched college football team in 2023. The Tarheels drew an average audience of 966K. However, UNC is in a media cat-bird seat. North Carolina is a marketplace not served by the B1G/Fox or the SEC/ESPN. UNC is an AAU member institution and in the B1G's academic wheelhouse. North Carolina is projected to be the nation's 7th most populous state come the 2030s. And North Carolina brings with it basketball prestige. Both of the Power 2 conferences would be after UNC, hot, heavy, and with a bushel of dough. The ACC implodes and B1G/Fox and SEC/ESPN will both be after UNC and Notre Dame. Notre Dame finished tenth in viewership numbers in 2023 with 4.15M viewers. The B1G and Notre Dame have a rancorous history; however, Notre Dame is a member of the B1G in Men's and Women's ice hockey and a better academic fit in the B1G than in the SEC. Both North Carolina and Notre Dame would likely come on board the B1G or the SEC as full revenue members. Again, with the ACC media deal it has in hand, I see ESPN doing nothing to hasten the demise of the ACC. I'm happy that I am not the executive(s) at Walt Disney having to decide in the middle of an all-time turbulent college sports world whether or not to put the ACC on Double Public Probation. Edited May 30 by Jon Joseph 2 1 Link to post Share on other sites More sharing options...
Charles Fischer Administrator No. 2 Share Posted May 31 Wow Jon, so much to ponder with your post. Meanwhile I am completely distracted by your Dean Wormer comparison.... (And I love it!) 1 Mr. FishDuck Link to post Share on other sites More sharing options...
2002duck No. 3 Share Posted May 31 The ACC isn't going to settle on buyouts. If FSU wants out then they have to pay $572M. ESPN is going to keep FSU and Clemson, because they can't force the SEC to take them. ESPN isn't going to let FSU go to the Big 10 if they can hold them hostage. Link to post Share on other sites More sharing options...
Jon Joseph Author Moderator No. 4 Share Posted May 31 2002 - I understand your POV. Yet not so long ago Maryland left for the B1G. It was a different media deal then but via suit over the then ACC exit fee, Maryland saved $20M. FSU and Clemson are the lead litigators, but six or more ACC programs join in, and goodbye to ACC as it is today. But as my post asked above, how much value will any ACC team bring to the Power 2 conferences' bottom line? Ditto, B12 teams showing the money. Looking at the viewership statistics, do the Power 2 conferences need more programs? Would the NFL benefit by adding teams in Salt Lake City or Stillwater Oklahoma? My friend Jabba and I have debated this question. With all due respect to you and Jabba, size goes to size, and existing media deals will not stop value-added programs from coalescing into 40 or fewer programs into a Super League. I'll watch, but Arizona at Utah in 2024 will draw fewer viewers than any SEC game that does not have Vanderbilt in the mix. Does my POV make me happy? NO. But five decades ago the NCAA had its broadcast monopoly and the media became the overseer of college athletics. It was not over when the Germans bombed Pearl Harbor, but it is financially over for programs that cannot find their way into the Power 2. Link to post Share on other sites More sharing options...
Jon Joseph Author Moderator No. 5 Share Posted May 31 On 5/30/2024 at 9:00 PM, Charles Fischer said: Wow Jon, so much to ponder with your post. Meanwhile I am completely distracted by your Dean Wormer comparison.... (And I love it!) Find me a way to revoke the ACC charter. And then, please pick me up from the Dexter Lake Club floor. Link to post Share on other sites More sharing options...
Charles Fischer Administrator No. 6 Share Posted May 31 On 5/30/2024 at 11:09 PM, Jon Joseph said: it is financially over for programs that cannot find their way into the Power 2. Wow. Powerful words, and a painfully true observation. So glad we are now in the B1G... 1 Mr. FishDuck Link to post Share on other sites More sharing options...
