Monday, July 2, 2018

Why does ACC makes less?

How is it no ACC media, people paid to do this, have written an article this timely, this insightful, this spot on?

Forgive the full copy Mark, but this article is too good not to share with as many as possible.

This article is another ACC Football RX homerun.


https://accfootballrx.blogspot.com/2018/07/why-did-acc-schools-make-less-money-in.html

Last week USA Today published total revenue and expense numbers for all FBS schools for the 2016-17 fiscal year. On Friday we showed you the details behind those numbers: how much revenue came from ticket sales, how much from donations, rights and licensing, etc.

The question is, why are ACC schools trailing so much in total revenue?

Is it in the ticket sales? Let's see...
RKSchoolTicket Sales
1Texas$72,457,216
2Ohio State$61,560,351
3Michigan$55,327,816
4Texas A&M$47,458,538
5Oklahoma$42,142,811
6LSU$41,855,036
7Arkansas$40,766,509
8Alabama$37,642,667
9Nebraska$37,258,695
10Tennessee$36,781,724
11Penn State$35,500,704
12Auburn$32,991,096
13Kentucky$32,597,109
14Louisville$29,477,742
15Wisconsin$28,773,188
16Georgia$28,728,491
17Iowa$28,253,233
18South Carolina$28,018,240
19Michigan State$26,802,465
20Oregon$26,492,333
21Washington$26,480,596
22Clemson$25,960,272
23Florida State$25,046,047
24Florida$24,506,525
25North Carolina$23,806,771
26Mississippi$23,738,310
27UCLA$21,744,254
28N C State$21,219,458
29Minnesota$20,500,383
30West Virginia$20,222,242
31Oklahoma State$19,679,074
32Kansas$18,957,247
33Indiana$18,089,310
34Missouri$17,993,862
35Virginia Tech$17,312,067
36Utah$17,097,290
37Mississippi State$15,782,114
38Arizona$15,490,786
39Maryland$15,291,690
40Kansas State$15,274,064
41Iowa State$14,260,192
42Colorado$13,815,396
43California$13,483,996
44Oregon State$13,346,970
45Illinois$12,825,263
46Rutgers$12,824,201
47Virginia$12,339,296
48Texas Tech$11,970,439
49Georgia Tech$11,756,425
50Arizona State$10,033,481
51Connecticut$9,843,615
52Purdue$9,222,191
53Memphis$8,804,547
54Washington State$7,656,362
55Cincinnati$7,420,821
56Houston$6,551,591
57South Florida$6,071,874
58San Diego State$5,809,058
59Central Florida$4,458,254
60Air Force$3,542,723

ACC teams aren't among the top in ticket sales, but many of them can hang with the likes of Georgia, Wisconsin, Michigan State and Florida.

The average ticket sales for the top 60 teams is $22.8M; the ACC average (for the public schools) is $20.8M -- a difference of only $2M.

Is it in the donations? Let's see...
RKSchoolContributions
1Texas A&M$93,134,590
2Oregon$55,713,539
3Georgia$54,804,606
4Texas$46,019,194
5Oklahoma$45,504,839
6Florida$45,134,633
7Florida State$41,504,734
8Louisville$39,268,342
9Michigan$38,879,908
10South Carolina$38,810,243
11Ohio State$37,612,937
12LSU$36,973,785
13Tennessee$35,428,068
14Auburn$35,411,244
15Washington$35,367,278
16West Virginia$34,599,908
17Clemson$33,782,757
18Alabama$33,011,723
19Michigan State$32,363,526
20Mississippi$32,355,158
21Iowa$31,999,038
22Penn State$30,779,975
23Nebraska$26,599,584
24Virginia$26,127,871
25Texas Tech$25,692,336
26Mississippi State$25,035,952
27Arkansas$24,907,874
28Illinois$24,521,958
29Wisconsin$24,110,895
30Missouri$23,581,545
31Indiana$23,103,658
32Kansas$23,042,524
33Kansas State$22,154,333
34Purdue$21,679,168
35North Carolina$21,388,432
36California$20,539,482
37Arizona State$19,802,494
38Kentucky$18,716,315
39UCLA$18,680,427
40Arizona$18,169,527
41Iowa State$17,551,225
42Colorado$15,973,080
43Virginia Tech$15,766,272
44Oklahoma State$15,573,414
45N C State$15,078,662
46Minnesota$14,018,855
47Maryland$12,281,532
48Georgia Tech$11,187,993
49Central Florida$10,303,140
50Houston$9,923,994
51Oregon State$9,785,111
52Memphis$9,279,348
53Utah$9,031,413
54San Diego State$8,826,053
55Air Force$8,705,370
56Washington State$8,212,785
57Rutgers$8,125,201
58Connecticut$5,666,522
59Cincinnati$4,019,074
60South Florida$2,566,098

There are a couple of top 10 teams in the donations category, and several ACC schools do well here.

The average donations for the top 60 teams is $25.5M; the ACC average (for the public schools) is $25.5M -- ACC teams are slightly ahead of the average, in fact.

No, it's the rights and licensing!
RKSchoolRights and
Licensing
1Texas$86,180,263
2Wisconsin$72,881,272
3Kentucky$72,699,939
4Michigan$72,426,033
5Alabama$68,798,600
6Ohio State$67,221,825
7Tennessee$64,551,741
8Auburn$64,172,670
9Florida$63,925,413
10LSU$62,210,369
11Georgia$61,580,759
12Texas A&M$61,308,222
13Arkansas$60,511,806
14Minnesota$58,336,123
15Penn State$57,847,205
16Michigan State$57,429,487
17South Carolina$56,169,427
18Mississippi State$54,843,236
19Oklahoma$54,785,533
20Indiana$54,628,351
21Oregon$54,172,744
22Washington$53,221,324
23UCLA$53,104,179
24Mississippi$52,989,194
25Iowa$52,916,024
26Nebraska$52,022,217
27Illinois$51,106,796
28Arizona State$50,682,502
29Missouri$50,138,134
30Purdue$48,635,900
31Maryland$48,250,773
32Kansas$45,958,547
33Oklahoma State$45,333,722
34California$44,608,242
35Iowa State$44,522,437
36Kansas State$44,149,409
37Arizona$44,010,303
38Oregon State$43,615,846
39Texas Tech$42,883,884
40West Virginia$42,509,496
41Louisville$41,700,556
42Utah$40,955,439
43Clemson$40,625,022
44Colorado$39,736,432
45N C State$38,408,049
46Washington State$38,045,924
47Florida State$36,709,768
48Virginia Tech$36,617,659
49North Carolina$36,499,371
50Virginia$35,595,956
51Georgia Tech$35,089,773
52Rutgers$25,440,105
53Connecticut$24,501,727
54Cincinnati$17,824,578
55South Florida$16,352,125
56San Diego State$11,682,122
57Memphis$11,068,591
58Air Force$11,039,416
59Central Florida$10,733,983
60Houston$9,721,767

The average rights and licensing revenue for the top 60 teams is $46.6M; the ACC average (for the public schools) is $37.7M -- an $8.9M gap!

Auburn gets about $24 million more than Clemson.
Kentucky gets $31 million more than Louisville.
That's CRAZY!

Keep in mind that a big chunk of this is TV revenue, though there is some radio, apparel, etc. mixed in as well. The ACC Network should make up most of that average gap; individual schools will need to negotiate better-paying apparel deals, etc. on their own.

5 comments:

  1. You're forgiven. BTW, a boost of $9M per team (e.g. ACCN projected revenue) only gets you to about 30th out of 60 -- Missouri/Purdue type money, but not Ohio State / Alabama money (and certainly not Texas / Texas A&M money!). I don't think FSU needs to make Texas money, but they need to at least make more than Missouri!!!

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  2. Hey, question for you, Z: OK, I know the ACC could do better on TV revenue, but how much impact do you think better divisions would have on ticket revenue? Do you think FSU could get significantly more if it played GT, VT and UNC more (and Wake, BC and Syracuse less)?

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    Replies
    1. Cheapest ticket for VT is $65. Cheapest for Wake is $25. Ditto for BC. Does that $40 have an impact?

      55,000 tickets * $40 * 3 games / 2-year home/away cycle = $3.3 million/season

      Over the long-term, the VT/GT/UNC trio would almost certainly average higher attendance than the Wake/BC/Cuse trio, ie more ticket revenue.

      It won't fix the ACC. It won't allow for schools to be competitive with their inter-conference peers. But it is needed and important. And besides, playing ACC opponents MORE frequently benefits EVERYONE in the ACC. A big f you to the coastal schools that are too afraid to change.

      -------------

      Something of note: FSU has a higher-paying apparel deal than UF and still falls $27 million short of them in rights/licensing... Thanks, ACC.

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    2. Ironically, FSU already makes $1M more from ticket sales than UF - while playing the current schedule. Donations aren't quite as good, but I assume that's due to UF having more living alumni - especially male alumni.

      For sure as a VT fan I'd like to see the Hokies play FSU, Clemson, Louisville, even Syracuse more often.

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    3. Mark,
      I don't believe so. People I respect are big on that, but I think it would be minimal variation. Especially compared to the many millions with bowl contracts and TV contracts. But I do believe it is an area the ACC needs to wake up on.

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