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There is no economic case for ACC expansion

Pitt0912

Assistant Coach
Gold Member
Jun 7, 2015
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I’ve read a few articles / listened to a few podcasts specifically discussing conversations with sports media executives who have said Oregon and Washington are each worth about $30M in additional annual TV revenue.

Here’s one example: “My conversations in recent days with Bob Thompson, the former president of Fox Sports Networks, have been enlightening. He’s a wealth of knowledge and expertise. Thompson set Oregon’s potential value in the media rights world at $30 million a year.” https://www.johncanzano.com/p/canzano-pac-12-eyeing-loose-partnership?sd=pf

If that’s even remotely close, then the rest of the existing Pac12 teams must be worth considerably less on an individual basis.

I’d imagine that everyone would agree that Oregon and Washington are the two biggest college football brands in the Pac12 and those two schools are apparently only worth $30M a piece. That makes it pretty clear why the B1G declined their request to join. The B1G would lose money.

After Oregon and Washington, who’s the next biggest brand in the Pac12 and Big 12 - OK State? Baylor? ASU? Even if Oregon and Washington are worth $45M a piece in additional annual TV revenue as stand alone properties, that should be a very clear signal that there is nothing to be gained by expanding the ACC.

Similarly, I think it’s pretty clear that the ACC already has the most valuable brands outside of the B1G and SEC in Clemson, FSU and Miami, excluding ND.

With Comcast finally carrying the ACCN, ACC revenue is going to continue to increase organically beyond what can reasonably be gained by expansion - unless those Oregon and Washington numbers are way, way off.

As a result, there does not appear to be any move that the ACC can make in the near term that will close the revenue gap with the B1G and SEC. The only realistic path is revenue growth earned by significantly improved on field performance from our existing members, specifically FSU and Miami.

Based on everything I’ve read and heard, when the new Pac12 and new Big 12 media deals are finalized (whatever their membership), they’ll payout less than the ACC’s current payout even before Comcast boosts our revenue.
 
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