ACC Network question marks (Updated)

Great points by HokieMark.

The settle culture of the ACC should not apply to the ACC Network and lower revenue because the ACC took YEARS to 'get it right' when it came to getting the network going.

By that logic, it should not take as long for revenue to ramp up as it did for the SEC Network.  If it does, the delay was somewhat under false pretenses, IMHO.


https://csnbbs.com/thread-846704-page-7.html

OrangeDude Wrote:  

(Today 07:17 AM)Hokie Mark Wrote:  

(Today 06:38 AM)OrangeDude Wrote:  I hope the projections of $8-10 million come to fruition but right now I am expecting a $5-7 million for the first two years or so which is still great considering many thought the ACCN would never get off the ground. At this point, any less than $5 million will be a disappointment.

Those are my thoughts.

Cheers,
Neil

Anything less than $8 million would be a major disappointment in my mind. I'm expecting over $10 million per year per team. No reason the ACCN shouldn't pay the same as the SECN, the way they say they are bundling them together.

I hope you are proven correct. But simply because we are being bundled together with the SEC doesn't guarantee anything.

In its first year the SEC network each institution received only an additional $6 million despite the network making over $450 million that year. We simply don't know yet what factors exist (cord-cutting, negotiated subscriber fees, start-up costs on ESPN's part that might need to be reimbursed) that might impact the revenue the ACCN produces in its first two years.

Hoping for the $8-10 million projected but I definitely will not be disappointed with $5-7 million either.

Cheers,
Neil

The SECN startup was way different - they were literally still building infrastructure during the inaugural season! OTOH, the ACC will have spent 2 years and it's own money preparing for the launch of the ACCN - totally different situation. Now, I suppose ESPN might want something in the way of equity buy-in, so for that reason the ACC might not get a 50/50 split in year one, but I don't think it will be for the same reason as the SECN.

Just my 2 cents.

https://fansided.com/2018/03/27/acc-network-looking-like-sinking-ship-rising-tide/amp/

The soon-to-launch ACC Network is already over budget, and the return on the investment might not improve the outlook much.

For collegiate conferences, the name of the money game in the current era is the revenue created by their own television networks. Salivating over the impressive advertising and rights returns posted by the Big Ten Network and SEC Network, the ACC Network is the rising tide that the ACC hopes will raise all of its ships.

So far, that’s not looking good.

According to Chris Coleman of Virginia Tech Sports War, the studio that ACC member Virginia Tech has pledged to build for the ACC Network is already over budget, by nearly double the original projected cost.

On top of the fact that the Hokies’ athletic department is already cash-strapped, having posted a net loss for the past two fiscal years, there is no guarantee that the revenue produced by the network will produce the returns necessary for the ACC to continue to compete with other conferences.

For fiscal year 2015, for example, the Big Ten Network produced a $22.6 million dividend for the conference. In its first season, without full distribution to the total number of potential viewers it now reaches, the SEC Network contributed $5.5 million to each school’s coffers.

The ACC Network faces more challenges than simply the cost of the studios. To meet a condition placed upon the conference by ESPN in order to be carried, the conference will have to prove to ESPN that it is operational by this August, a year ahead of the projected launch date of August 2019. If ESPN isn’t convinced, the reach of the network upon launch which is crucial to the success of the network will be impaired. Deals with ESPN and Fox are a big part of what has made the Big Ten and SEC networks so successful.

That’s all a matter of speculation at this point, however. The speculations about the cost of the studios ended up being far too optimistic, and if that becomes a trend, the rising tide of the ACC Network might end up being a sinking ship.

https://floridastate.forums.rivals.com/threads/so-about-that-acc-network.216864/

This goes into very specific detail of the situation VT and others are dealing with.

"As you can see from the following graphic, athletic department revenues increased from $83.9 million to $87.4 million. However, expenditures increased by over $6 million and are now over $90 million for the first time in Virginia Tech history"

https://virginiatech.sportswar.com/...nia-tech-spend-10-million-acc-network-studio/