Wednesday, May 24, 2017

ACC Revenue Projections

Great job by HokieMark.  Let's hope his projections are correct.

My hope is to see the ACC at 85% of the SEC/B1G.  No less.





http://accfootballrx.blogspot.com/2017/05/acc-tax-return-2015-16.html#!/2017/05/acc-tax-return-2015-16.html


ow much has ACC revenue grown in the last 9 years? How much is it expected to grow in the next 5? Here are your answers courtesy of David Teel and yours truly...

Recent ACC Revenue Growth (by David Teel)
fiscal yrTotalTVBowlNCAAAvg. share
2007-08$162.80 $75.30 $29.20 $15.10 $11.80
2008-09$172.70 $76.90 $30.70 $15.90 $13.60
2009-10$158.20 $77.60 $31.60 $18.20 $11.70
2010-11$167.20 $79.30 $36.70 $18.20 $12.30
2011-12$223.60 $130.50 $43.80 $17.70 $16.90
2012-13$232.40 $146.60 $36.70 $18.20 $17.60
2013-14$302.30 $197.20 $48.80 $17.50 $19.30
2014-15$403.10 $217.90 $94.20 $18.40 $26.20
2015-16$337.40 $226.10 $85.80 $20.60 $23.80
* Average full share, not including partial ACC member Notre Dame.
http://www.dailypress.com/sports/teel-blog/dp-teel-time-acc-tax-1516-post.html

Projected ACC Revenue Growth (by me)
fiscal yrTotalTVBowlNCAAAvg. share
2016-17$366.80 $234.30 $94.20 $33.30 $24.13
2017-18$420.00 $287.50 $94.20 $33.30 $27.63
2018-19$419.80 $295.70 $85.80 $33.30 $27.62
2019-20$498.70 $378.90 $94.20 $20.60 $32.81
2020-21$581.90 $462.10 $94.20 $20.60 $38.28

Assumptions:
Tier 1 TV revenue grows at the recent, lower rate of $8.2 million per year.
The "no network" payments kick in for 2017-18 and again for 2018-19
ACC Network revenue begins to trickle in ($5M per team) in 2019-20
ACC Network revenue begins to flow by 2020-21 ($10M per team or more)
NCAA basketball tournament revenue peaks around $33.3 million
Bowl money fluctuates depending on Orange Bowl contract bowl or semi-final.

BOTTOM LINE: ACC average share payouts have more than doubled in the last 9 years, and I expect them to almost double again in the next 5, thanks to the ACC Network launch in 2019. While this won't match the revenues enjoyed by teams in the Big Ten or the SEC, it will put ACC teams in the same ballpark (I'd estimate it will ultimately settle in at about 85% of what those teams will be making).

1 comment:

  1. Mark does good work.

    And yet, that's still pretty unsatisfying.

    If the acc receives $38m in a few years, and it's roughly 85% of what our eastern p5 competitors are receiving, that means they would be outpacing us by $7m/year ($45m*.85=$38.25m). That isn't insignificant money; a $70m deficit over the course of a decade.

    That simply isn't good enough.

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