Wednesday, December 10, 2014

ACC Football RX - What if the ACC split bowl money the SEC way?

ACC Football RX nails it.  Great article, well researched.


What if the ACC split bowl money the SEC way?


"The ACC splits all net bowl revenues equally, meaning that Virginia, Wake Forest and Syracuse - teams which are not bowl-eligible this season - receive the same amount of bowl money as the teams which play in the CFP bowls - Florida State and Georgia Tech. Some have understandably cried out that this is unfair.

The SEC doesn't split its bowl revenue equally - it uses a formulaic procedure:
[The SEC] distribution model: For bowl games with receipts of $4,000,000 - $5,999,999, the participating team retains $1.475 million (Ole Miss), plus a travel allowance determined by SEC. For bowl games with receipts of $6 million or more, the participating team receives $2 million (Alabama and Mississippi State), plus a travel allowance determined by the SEC. If an SEC team makes it to the championship game, it receives another $2.1 million, plus travel allowance. The remainder of the revenue from these bowls is divided 15 ways – one share for each of the 14 SEC teams and one share for the conference office. There’s also a distribution method for bowls with lower payouts, but I’m not covering that here. 
- source: The Business of College Sports: College Football Playoff Conference Payouts by Kristi Dosh.

It isn't a full "eat what you kill" approach, but it does incentivize excellence in the sport.

What would the payouts look like per team if the ACC used that same model? Since the lower-tier bowls are not explained, we're going to make an assumption that teams participating in bowls which pay less than $4 million get 40% off the top and share the rest with the league.

Bowl Game$M/teamACC TeamTeam keepsSharedTotal
Rose$6,000,000Florida St$2,000,000$4,000,000$4,319,500
Orange$27,500,000Ga Tech$2,000,000$25,500,000$4,319,500
Music City$2,750,000Notre Dame$1,100,000$1,650,000$3,419,500
Russell Athletic$2,275,000Clemson$910,000$1,365,000$3,229,500
Sun$2,150,000Duke$860,000$1,290,000$3,179,500
Pinstripe$2,000,000Boston College$800,000$1,200,000$3,119,500
Belk$1,700,000Louisville$680,000$1,020,000$2,999,500
Independence$1,200,000Miami$480,000$720,000$2,799,500
Quick Lane Bowl$1,200,000UNC$480,000$720,000$2,799,500
Military$1,000,000Va Tech$400,000$600,000$2,719,500
Armed Forces$675,000Pittsburgh$270,000$405,000$2,589,500
St. Petersburg$537,500NC State$215,000$322,500$2,534,500
noneSyracuse$2,319,500
noneVirginia$2,319,500
noneWake Forest$2,319,500
Total Bowl Payout$42,987,500$8,195,000$34,792,500
Average per team$2,319,500

Incentive? Yes, but not a windfall. Under the SEC system, FSU and GT would take home $2 million more than Syracuse, UVa and Wake Forest. Given what it takes to reach that level of play (better coaches, facilities, upgrades, etc.) it's a case of rewarding teams which make the necessary investments. Personally, I'm all for it.

BOTTOM LINE: If the ACC really wants to enjoy football glory, one thing the league should do is adopt the SEC model for bowl payout distribution."

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