ACC Network, ESPN Contract, Payouts.

[Gunga_Galunga]

Has anyone seen any projections to what adding Comcast is worth to the ACC Network and payouts? We see a lot of info on conference payouts with the ACC last, but most of those were from 2019-2020 when the ACC Network was in it's infancy.

I guess I'm wondering what this all might look like in another year or two. Did Swofford cut a bad deal, or do we need to let this play out first?

 

[pittdan77]

Has anyone seen any projections to what adding Comcast is worth to the ACC Network and payouts? We see a lot of info on conference payouts with the ACC last, but most of those were from 2019-2020 when the ACC Network was in it's infancy.

I guess I'm wondering what this all might look like in another year or two. Did Swofford cut a bad deal, or do we need to let this play out first?

I think it has to play out. Keep hearing "a deal is close" so I think the actual value will depend on the deal that Phillips cuts.

 

[ThePanthers]

It's more the deal ESPN/Disney cuts. They will be buddling the ACCN in with their entire package (SECN, ESPN channels, Disney, ABC, etc) as their overall Disney contract is up at the end of the year. The ACC/Disney split any profits off the network 50/50, just like the SECN.

 

[Sean Miller Fan]

Has anyone seen any projections to what adding Comcast is worth to the ACC Network and payouts? We see a lot of info on conference payouts with the ACC last, but most of those were from 2019-2020 when the ACC Network was in it's infancy.

I guess I'm wondering what this all might look like in another year or two. Did Swofford cut a bad deal, or do we need to let this play out first?

Comcast has 20 million subscribers. Lets say 10 million are in ACC markets (probably more). The going rate is $1/subscriber per month. So that's $120 million/year that Comcast will pay ESPN. How much of that will ESPN funnel to the ACC? Half? 60 million? Roughly $5 million/team?

 

[Gunga_Galunga]

Comcast has 20 million subscribers. Lets say 10 million are in ACC markets (probably more). The going rate is $1/subscriber per month. So that's $120 million/year that Comcast will pay ESPN. How much of that will ESPN funnel to the ACC? Half? 60 million? Roughly $5 million/team?

They split profits after ESPN's expenses, and there's also an advertising component. Struggling to find any concrete details other than the payout delta last year was about +$45m from the year before. Network launched in August so late Aug 2019 - June 2020. If that was all ACC network just over $3.2m per team.

Thought I saw numbers estimating $10m per team a while back.

 

[ThePanthers]

They split profits after ESPN's expenses, and there's also an advertising component. Struggling to find any concrete details other than the payout delta last year was about +$45m from the year before. Network launched in August so late Aug 2019 - June 2020. If that was all ACC network just over $3.2m per team.

Thought I saw numbers estimating $10m per team a while back.

I think before the network launched, the FSU AD mentioned in a meeting with the Board that once full distribution occurred and the network matured, the estimated payout per team was supposed to be around $10M per school.

But those are all estimates. I don't think anyone will ever know the full amount. We'll just see what it increases in the tax return in like 2 years.

 

[pittdan77]

When you look at your satellite provider packages, the ACCN and the SECN are tied at the hip if you want ESPN. I'm guessing that ESPN factors in these negotiations.

 

[pitt90seven]

Comcast has 20 million subscribers. Lets say 10 million are in ACC markets (probably more). The going rate is $1/subscriber per month. So that's $120 million/year that Comcast will pay ESPN. How much of that will ESPN funnel to the ACC? Half? 60 million? Roughly $5 million/team?

why would the ACCN hand-over any additional money to the ACC? they already have a negotiated contract.

 

[Gunga_Galunga]

why would the ACCN hand-over any additional money to the ACC? they already have a negotiated contract.

I think you're confusing two separate contracts. The ACC gets $240m per year from ESPN for rights to the games. ESPN can take any game they want and put it on ABC or ESPN channels. This has nothing to do with the ACCN, other than the best games will be taken for ABC/ESPN.

The ACCN (run by ESPN) gets the remaining inventory and ESPN splits the profit 50/50 with the ACC. So whatever is left after production costs is split.

The $240m yearly is set and isn't changing unless they renegotiate the contract. The ACCN money is variable based on how the network does.

 

[ThePanthers]

When you look at your satellite provider packages, the ACCN and the SECN are tied at the hip if you want ESPN. I'm guessing that ESPN factors in these negotiations.

Yes. In fact the entire Disney package is up for negotiation, so that is why it was always projected to be picked up by Comcast now. It will be tied to all the ESPN channels, Disney channels, ABC, and any other Disney property.

The ACC always has said 2021 would be the year.

Comcast doesn't pick up new channels unless it is part of the overall package. It happened to the BTN and Fox. The only reason the SECN was picked up right away was that they went to launch during the last Disney negotiations. The SEC wanted to launch the channel in 2010 per a Mike Slive interview a few years ago, but ESPN said wait until 2012 when everything was being negotiated.

 

[ThePanthers]

why would the ACCN hand-over any additional money to the ACC? they already have a negotiated contract.

The ACCN is the property of both ESPN and the ACC where they are 50/50 partners and split the profits that way. So larger distribution means more money for both.

You are probably thinking of the overall ESPN contract. That contract was signed for X amount through 2036. The amounts will escalate over time, but won't change unless they open up the contract for renegotiation for any reason. There are also periodic look ins and adjustments can be made if the ACC is meeting certain metrics, but that won't be game changing money.