Tuesday, June 5, 2018

ACC & other conference TV Deal Timelines

These don't bode well for the ACC.

Luckily, it has a GOR, but no way FSU signs any extension in the future.

https://accfootballrx.blogspot.com/2018/06/tv-contract-timelines-6618.html

I've added a few dates and other details (mostly the Orange Bowl contract) and put them into this table. Hopefully this helps put things into perspective...


MonthAmountDescription
Jul 2010$12.9MACC signs w/ ESPN for $1.86B for 12 teams over 12 yrs
per teamincludes provision to sub-license games to Raycom
May 2011$20.8MPac-12 splits contract between ESPN/Fox
Sep 2011ACC invites Pitt, Syracuse, triggers renegotiation clause
May 2012$17.1MACC extends ESPN for $3.6B for 14 teams over 15 yrs
Jul 2012$4.0MBig XII signs Sugar Bowl deal for $40M/game for 12 years
$2.9MSEC signs Sugar Bowl deal for $40M/game for 12 years
$3.3MPac-12 signs Rose Bowl deal for $40M/game for 12 years
$2.9MBig Ten signs Rose Bowl deal for $40M/game for 12 years
Jul 2012$2.0MACC signs Orange Bowl deal for $27.5M/game for 12 years
Sep 2012Notre Dame joins ACC except football
with 5-game scheduling agreement
increases exit fee from $20M to $52M
Nov 2012Maryland announces it's leaving the ACC
ACC votes to add Louisville
Apr 2013ACC teams sign Grant of Rights
May 2013ESPN says no ACC Network until Raycom rights repurchased.
Nov 2013ESPN and SEC agree to launch SEC Network
Aug 2014SEC Network launches
Jun 2016$31.4MB1G splits tv rights between ESPN/Fox/CBS for $440M/yr, 6 yrs
Jul 2016ACC + ESPN announce ACC Network will launch in 2019
ACC extends ESPN through 2036-37 ($$$ not disclosed)
May 2017Conference Network estimated payouts for 2017:
$11.0MSEC Network $11M / school
$8.0MB1G Network $8M / school
$2.5MPac-12 Network $2.5M / school
$3.0MACC reportedly to receive $3M / school penalty for no network
Aug 2019ACC Network scheduled to launch
Aug 2021ACC/ESPN "look-in"
Aug 2024Orange Bowl contract expires
Aug 2026ACC/ESPN "look-in"

BOTTOM LINE: The best things the ACC can do in the near future to increase conference payouts are (1) rally the alumni to demand the ACC Network, and (2) renegotiate the Orange Bowl contract to be more favorable.

https://floridastate.forums.rivals.com/threads/harper-florida-state-coach-mike-martin-should-be-fired.219540/

Here's another timeline on the ACC TV deals:
July, 2010 - 12 member ACC reaches $1.86 billion deal with ESPN with sublicense to Raycom for 12 years (2022-23). $155 million per year total. $12.9 million per year per school.
- Swofford insists that Raycom be included. FOX was also NOT afforded an opportunity to beat ESPN’s final offer, as "ESPN’s multiple platforms were just too valuable to risk passing up."
-The ACC’s contract with ESPN essentially was outdated before it went into effect. “Shortly after the ACC agreed to its initial deal with ESPN for $155 million a year in 2010, the Pac-12 shocked the collegiate world with a 12-year deal with ESPN and Fox for $250 million a year that reset the market.”
September, 2011 - ACC invitates Pittsburgh and Syracuse to join.
May, 2012 –14 member ACC reaches $3.6 billion deal with ESPN with sublicense to Raycom for 15 years (2026-27). $240 million per year total. Approximately $16 million per year, per school. Provides "look-ins" in 2017 and 2022. The deal is described by some as a dud and a “rip off” for the ACC
- The ACC’s deal ranks behind several other BCS conference television contracts signed in recent years. The Pacific-12 agreed to a television contract with Fox and ESPN last year that will pay each member school about $21 million a year. Just this week, meanwhile, it was reported that the Big 12 had orally agreed to a 13-year contract with ESPN and Fox that will pay each of its member schools approximately $20 million a year.”
- The ACC expanded last year with Syracuse and Pittsburgh


, giving it the ability to immediately renegotiate its terms with ESPN. A clause in the old deal permitted the conference to go back to the table if its number of teams changed by two or more.
- ESPN also came away with more game inventory, including three Friday night or afternoon games. Two of them will be hosted by Boston College and Syracuse, while the third will be a Thanksgiving Friday game. With the ACC expanding its conference regular-season basketball schedule to 18 games and adding Syracuse and Pitt, ESPN will broadcast 30 more men’s basketball games a year and two more conference tournament games. In football, 14 more conference-controlled games will be televised each year.
- This deal is for all of its TV rights, so the individual schools can't sell their tier 3 rights (as SEC and Big 12 members can) or pool them together for an in-house TV network (as the Big Ten and Pac-12 do).
- The ACC only had so much leverage because it was already locked into a long term deal with ESPN.
- “All of the rest of the conferences also can widen the gap either by having individual members sell their tier 3 rights or thanks to conference TV network money.”
- “In any event, the ACC is now at least 20% behind the other four major conferences in TV money even after negotiating this new deal. That has to be a disappointment for the league no matter how happy a face John Swofford is wearing today.”

September, 2012 – Notre Dame joins ACC in all sports except football. As part of the partnership with the ACC, Notre Dame has agreed to annually play five ACC opponents in football and each conference member at least once every three years.

September, 2012 - ACC increases its exit fee from $20 million to three times its annual operating budget -- about $52 million -- Maryland and Florida State voted against the increase.

November, 2012 – Maryland announces it is leaving the ACC.

November, 2012 –ACC votes to add Louisville.

April, 2013 – The 14.5 Atlantic Coast Conference presidents approved a grant of media rights for the league through 2026-27, effectively halting the exodus of any schools to other conferences, becoming the fourth league with a grant of rights, along with the Big Ten, Pac-12 and Big 12.

May 20, 2013 –Reports that the ACC-branded TV channel not to be launched any time soon because ESPN needs to control the conference’s syndicated rights to launch a channel, but those rights are tied up until 2027 through sublicense with Raycom and it sub-sublicense with Fox Sports Net. “They’re going to have to get those rights back.” “The main roadblock is rights. When it signed its ACC deal in 2010, ESPN and Charlotte-based Raycom Sports cut a deal that grants Raycom the ACC’s digital and corporate sponsorship rights, plus a heavy dose of live football and basketball games. Through a sublicensing agreement, Raycom owns the rights to 31 live football games and 60 live men’s basketball games.”

November, 2013 – SEC, ESPN reach 20-year partnership to launch new network in August 2014.

2014 - The Big Ten, Pac-12 and SEC all have channels dedicated to their leagues.

July, 2016 – ESPN and the ACC announce that the ACC Network will launch by August 2019, but 14.5 member ACC is required to enter into a new 20 year deal now ending in 2036-37 and extension of grant of rights with ESPN through 2036-37. The contract reportedly contains "look-ins" in 2021 and 2026.
- While the linear network will launch by 2019, the ACC Network's digital channel will start this fall and carry 600 live events. The linear network will broadcast more than 1,300 live events per year when it starts.
- Swofford said the league will move to a 20-game league schedule in men's basketball by 2019, part of an effort to boost the amount of available content.
- ESPN reacquired the long-term rights to lower-tier football and basketball games that had been awarded to Raycom Sports. That was part of the delay, too, in announcing the network.

As of 2017 – Fiscal year 2017 conference revenues per school: SEC ($42 to $39.9 million per school), Big Ten ($37.2 to $37M), Big 12 (Around $34.3M, outside of Baylor) and Pac-12 ($30.9M), ACC $26.6M

SEC - CBS and ESPN pay the SEC $380 million per year for their TV rights. The SEC network currently generates money for the SEC.

Big 10 - Reportedly, ESPN, Fox and CBS are now paying the Big 10 around $440 million per year for their TV rights. Fox just paid $240 million per year for just half of the Big Ten's 1st tier media rights package, which is about 25 football games and 50 men's basketball games. ESPN pay $190 million per year. CBS is paying $10 million per year on average for some basketball rights. The Big 10 retains some third tier rights that go to the Big 10 Network by virtue of its partial ownership of the Big 10 network. The Big 10 network currently generates revenues for its members.

Big 12 - ESPN and Fox pay the Big 12 $200 million per year for their TV rights. For their third tier rights, Texas receive an additional $15 million from its individual deal, OU gets an additional $8-$9 million, and schools like Baylor, TCU, West Virginia and Oklahoma State, get an additional $6-$8 million.

Pac 12 - ESPN and Fox pay the Pac 12 $250 million per year for their TV rights. The PAC-12 has retained third tier rights for the PAC Network. The Pac-12 Network currently generates money for the conference.

ACC - ESPN pays the ACC $240 million per year for all TV rights, but in 2019 the ACC Network starts and could be a future source of additional revenue per member.



https://floridastate.forums.rivals.com/threads/fsu-receives-27-2-million-distribution-from-the-acc-for-2016-17.219033/page-10


Thanks. I think it tells the ACC part of the story of how we got where we are.

Note: Based on what I can tell, it looks like the conference networks generated about this much per school in '17:
Big 10: $8M per member
SEC: $11M per member
Big 12: $0
Pac 12: $2.5M per member
ACC: $0 (but $3 million per year penalty paid by ESPN?)

The Future?

Note the projected conference revenues per school for '18:
Big Ten: $50+ million ($38.5m '17)
SEC: $43 million ($41m '17)
Big 12: $36.5 million ($28.7m '17)
Pac-12: $32 million ($28.7m '17)
ACC: $28 million ($26m '17)

I am assuming that the SEC contract with ESPN has look-in periods every 5 years like the ACC contract. Based on my very limited knowledge, and making the big assumption of no major changes in general (like ESPN files for bankruptcy, some new technology, football becomes illegal, major school conference movement, etc.), and understanding that so many things can happen in the future (these seems are constantly renegotiated), here are some thoughts on revenues per conference member for the future:

Here's what will happen in '18:
Big 10 - They pull away from the pack somewhat because their ESPN, Fox and CBS for Tier 1 and Tier 2 TV money goes up considerably.
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same.
Big 12 - They will remain relatively steady because their Tier 1 and Tier 2 TV deals remain the same and revenues are distributed between fewer members. However, individual programs like Texas and OU will match or exceed Big 10 numbers and SEC numbers because of their individual Tier 3 deals.
Pac 12 - They remain relatively steady because the Pac 12 Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same.
ACC - They remain relatively steady because the ACC Network has not launched and their Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '19:
Big 10 - They will remain ahead because the ESPN, Fox and CBS for Tier 1 and Tier 2 TV rights went up considerably in '18.
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - They will remain relatively steady because their Tier 1 and Tier 2 TV deals remain the same and revenues are distributed between fewer members. However, individual programs like Texas and OU will match or exceed Big 10 numbers and SEC numbers because of their individual Tier 3 deals.
Pac 12 - They remain relatively steady because the Pac 12 Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same.
ACC - They have the potential for increased revenue per school if the ACC Network launches successfully and its revenues exceed the $3 million per school penalty that ESPN currently pays the ACC for no linear network. Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '20:
Big 10 - They will remain ahead because the ESPN, Fox and CBS for Tier 1 and Tier 2 TV rights went up considerably in '18.
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - They will remain relatively steady because their Tier 1 and Tier 2 TV deals remain the same and revenues are distributed between fewer members. However, individual programs like Texas and OU will match or exceed Big 10 numbers and SEC numbers because of their individual Tier 3 deals.
Pac 12 - They remain relatively steady because the Pac 12 Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same.
ACC - They have the potential for increased revenue per school if the ACC Network launches successfully and its revenues continue to climb in excess of the $3 million per school penalty that ESPN currently pays the ACC for no linear network. Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '21:
Big 10 - They will remain ahead because the ESPN, Fox and CBS for Tier 1 and Tier 2 TV rights went up considerably in '18.
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - They will remain relatively steady because their Tier 1 and Tier 2 TV deals remain the same and revenues are distributed between fewer members. However, individual programs like Texas and OU will match or exceed Big 10 numbers and SEC numbers because of their individual Tier 3 deals.
Pac 12 - They remain relatively steady because the Pac 12 Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same.
ACC - They have the potential for increased revenue per school if the ACC Network launches successfully and its revenues continue to climb in excess of the $3 million per school penalty that ESPN currently pays the ACC for no linear network. Also, the Tier 1 and Tier 2 TV deal has its first "look-in" period.

Here's what will happen in '22:
Big 10 - They will remain ahead because the ESPN, Fox and CBS for Tier 1 and Tier 2 TV rights went up considerably in '18.
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - They will remain relatively steady because their Tier 1 and Tier 2 TV deals remain the same and revenues are distributed between fewer members. However, individual programs like Texas and OU will match or exceed Big 10 numbers and SEC numbers because of their individual Tier 3 deals.
Pac 12 - They remain relatively steady because the Pac 12 Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same.
ACC - They remain relatively steady because the ACC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '23:
Big 10 - Big changes because their Tier 1 and Tier 2 TV can be bid out. And grant of rights?
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - They will remain relatively steady because their Tier 1 and Tier 2 TV deals remain the same and revenues are distributed between fewer members. However, individual programs like Texas and OU will match or exceed Big 10 numbers and SEC numbers because of their individual Tier 3 deals.
Pac 12 - Big changes because their Tier 1 and Tier 2 TV can be bid out. And grant of rights?
ACC - They remain relatively steady because the ACC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '24:
Big 10 - ???
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - They will remain relatively steady because their Tier 1 and Tier 2 TV deals remain the same and revenues are distributed between fewer members. However, individual programs like Texas and OU will match or exceed Big 10 numbers and SEC numbers because of their individual Tier 3 deals.
Pac 12 - ???
ACC - They remain relatively steady because the ACC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '25:
Big 10 - ???
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - Big changes because their Tier 1 and Tier 2 TV can be bid out. And grant of rights runs out too.
Pac 12 - ???
ACC - They remain relatively steady because the ACC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '26:
Big 10 - ???
SEC - They remain relatively steady because the SEC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. (Unless a contract "look-in" is triggered that will substantially increase revenue.)
Big 12 - Big changes because their Tier 1 and Tier 2 TV can be bid out. And grant of rights runs out too.
Pac 12 - ???
ACC - They remain relatively steady because the ACC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. Tier 1 and Tier 2 TV deals remain the same, but the second "look-in" figure is triggered..

'26...
'27...
'28...
'29...
'30...
'31...
'32...
'33...

Here's what will happen in '34:
Big 10 - ???
SEC - Big changes because their Tier 1 and Tier 2 TV can be bid out. And grant of rights runs out too.
Big 12 - ???
Pac 12 - ???
ACC - They remain relatively steady because the ACC Network revenues have leveled out and their Tier 1 and Tier 2 TV deals remain the same. Tier 1 and Tier 2 TV deals remain the same.

Here's what will happen in '35:
Big 10 - ???
SEC - ???
Big 12 - ???
Pac 12 - ???
ACC - Big changes because their Tier 1 and Tier 2 TV can be bid out. And grant of rights runs out too.

No pride in authorship.



1 comment:

  1. This is good having everything in one place. It really highlights how that first ACC contract in 2010 put the conference WAY behind ($155M/12 teams vs. Pac-12 at $250M/12 teams in 2011), a hole which the ACC is still trying to dig itself out of... and they won't be able to get completely out of the hole until 2035 (though they can make up significant ground by 2026, which is not only a "look-in" but also the year the Orange Bowl contract expires). Better hope the ACC Network takes off!!!

    ReplyDelete