Saturday, January 16, 2016

Post Season Revenue




Post Season Revenue







Lastly, we have the ACC. The numbers are significantly lower than the other conferences, even with Clemson in the playoffs. This is the opposite of what you’d expect, especially from our recent discussion of the Pac 12. However, this is the ACC’s lowest payout year because the Orange Bowl, which pays the ACC around $27.5 million on average, is used as a Playoff Bowl.







In those years, no conference receives revenue from their contract bowl, which was the case last year when the Sugar and Rose were playoff bowls. What is very noticeable, when looking at the difference between last year and this year above, is that the ACC is significantly behind the other four Power Five conferences in terms of revenue from the Playoff system, due to two factors:
  • – The Orange Bowl, while better than nothing, is 31% less valuable than the Rose/Sugar. The decision for the SEC to partner with the Big 12 instead of the ACC will amount to more than $100 million that the Big 12 will earn, as a conference, over the ACC within the next decade.
  • – They simply have too many teams. Last year was the lowest payout year the Big 12 would have had throughout the entire contract with no team represented in the playoff and no Sugar Bowl. Even with that it matched the ACC’s per team payout when the ACC had all of its revenue streams paying out with a team in the Playoff and the contract game with the Orange.
Less value divided by more people has the ACC at a disadvantage.

You can also see from this list the value the Orange truly has, keeping the Big Ten and SEC fairly even financially. The SEC played in the Orange last year with the contract between them, the Big Ten and the ACC. In a year without the Sugar, and with three teams in the New Year’s Six, they only made $10 million less than this year, with the Sugar and two teams represented.

We say Power Five a lot, but when you look at the numbers, it is actually the Power Four, plus one.

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