The Confidential

The ACC Sports Blog

Update on ACC Revenue

CBS is reporting that the future addition of Notre Dame will have an immediate impact on revenue.  Even with just a 5-game football schedule and basketball games, Notre Dame will contribute in excess of $1M additional to the television revenue for each school.  While this is not “catching up to the Big 10” money, the gap between the conferences is not as wide as reported.  This may be why there are lots of rumors regarding schools leaving, but few actually doing so.

That same article also reports as follows regarding an ACC Network:

The ACC is currently considering a 24-hour sports channel with ESPN, which is gathering information and will return to the league with an assessment. If ESPN makes an offer the ACC likes, plans for a channel might commence. The league is evaluating whether a channel makes the most business sense.

Look, who knows if an ACC Network would be successful?  What is clear, however, is that the Big 10 Network is successful. This is where things are headed.  If there is not going to be an ACC Network, then ACC teams might very well end up on the Big 10 Network, to ESPN’s loss.

Perhaps ESPN would benefit from some sort of joint network between the SEC and the ACC, where both channels are a package that is available from the Northeast down to Florida and West to Texas.  That’s a lot of territory to bundle the packages together.  The price could be determined by media market.  The SEC channel could be 90 cents a month in Texas, while the ACC channel could be 10 cents a month there.  But in North Carolina, it could be the inverse.  The extra revenue provided by the bundling would help get both channels more market saturation.

Then again, the Confidential is hardly a financial or television tycoon.  Perhaps ESPN is moving towards jai alai, as that will be the sport of the 22nd century.

What do you think?  ACC Network have ANY potential?

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11 thoughts on “Update on ACC Revenue

  1. LenVILLE on said:

    I love the idea, alone or merged with another conference like the SEC. Merging the network would supply ample programming and vast/broad footprint.

  2. LenVILLE on said:

    Question, if ND is making $15 million a year off of their current TV contract & ACC schools will be making $18+ million, wouldn’t ND make more by joining in football as well? What would the ACC share be with ND? Seems to me that it would easily be $20+ and at least put the ACC on par with the Big 12. Through in network $$$ as well and maybe get close to $30.

    • Vinnie Saltine on said:

      ND will get over $30M between their current football deal and future ACC sports ($15M from football, $18M from ACC). If they went all-in with the ACC, in order to keep that amount of revenue then the ACC would either have to agree to pay Notre Dame more than everyone else, or ESPN would have to pony-up an extra $15M to every school.. neither scenario is likely to happen.

      If added ND in all-sports and 5 games in football is only worth an extra $15M/year to ESPN, then there is no way that adding the other 7 games will be worth enough to give everyone equal revenue. Add in a network and shared revenue from the Orange Bowl, then maybe you can get up to $25M.

      But, even if it was worth $25M/school…that is still less than ND is going to be making under their current structure.

      In fairness to ND, if it was all about the money they would have joined the B1G a few years ago.

      More importantly for ND would be to keep the prestige of being an independent (and the special access for the playoffs), and the freedom to schedule 60% of their football games as they choose. This keeps historic rivalries and provides coast-to-coast access for ND football.

      The only way ND joins the ACC completely is if a new football playoff structure required that participating schools be conference champions.

      • Jae In on said:

        ND will not receive a full share of ACC revenue. ND will get 1/15 of the ACC basketball money since they will be a full member for basketball, but for football, the ACC revenue will not be shared. Only if ND takes a bowl spot away from an ACC team does the conference and ND share in the bowl payout.

      • jae1837 on said:

        Here is a link describing the financial details of the ACC & ND deal:

        http://acc.blogs.starnewsonline.com/31880/answering-some-faqs-about-accs-addition-of-notre-dame/

        Q: How much of the ACC’s total revenue will Notre Dame be entitled?

        A: The Irish will keep all the money it makes from its independent television deal with NBC while the ACC will keep all football-related money generated by its contract with ESPN/ABC. That comes to about 80 percent of the league’s total television revenue. As an equal partner in all other sports, Notre Dame will get the same split of the rest of the money as everyone else in the league – or 1/15th of 20 percent.

  3. Vinnie Saltine on said:

    At the rate they’re going, Louisville could be worth an extra $1M/school as well.

    I’m curious if Maryland will/does regret going to the B1G. I realize that that gap is still very large between ACC and B1G but considering that Maryland won’t be getting a full slice for a few more years (and could start out $50M in the hole) but if the ACC can pull off a bigger deal & get a network done, then you really have to wonder is MD made the right move.

  4. It is interesting that Notre Dame for 5 games increases the ACC per team take ONLY $1,000,000 +/year……this begs the question of either why did the Big 12 make out so well with 10 teams vs. the ACC with 15 (ND associates) or why has the ACC done what still appears to be substantially less than the Big 12. Afterall, the ACC footprint is substantially larger than the Big 12 and from what has been reported the ACC generates the 3rd largest # of eyeballs for football and 2nd largest # of eyeballs for bball….and that is before ‘Cuse, Pitt, and Louisville enter (and of course ND):

    The above leads to the following:
    1. ACC is markedly underpaid by ESPN even without Notre Dame and with Notre Dame
    2. The 5 year look-in will eventually have the TV dollars soaring if the ACC can hold together
    3. Will ESPN INCREASE TV payout to ACC before the 5 yr payout regardless of Notre Dame but because of eyeballs the ACC delivers in line with a cost per eyeball delivered by the Big 12
    3. If Notre Dame for 5 games can add $15,000,000+/yr to ACC TV contract how does any team other than Notre Dame add $15,000,000 more to another conference and if that is all it adds, why would a team leave the ACC and why would any conference except for B1G and its BTN want to expand….

    What these points appear to suggest is that ACC needs to expand to additional markets in order to generate more TV dollars…bring Notre Dame in fully and geographically and eyeball wise this is accomplished as long as ESPN is TV partner with Notre Dame and the ACC; find another team that would provide a sizeable rumble among fans as well as deliver a new large geographic area: Texas, Vandy, PSU….or DEVELOP Either A NETWORK WITH SEMI-INDEPENDENT NOTRE DAME (to be called the Notre Dame-ACC Network) and Notre Dame would need to do this because of content needs; or as an alternative tie into the SEC or a Big 12 Network that would spin off the Texas Network–note both the SEC and Texas network are partnered with ESPN.

    If none of the above takes place, I fear for our beloved ACC…question is what is the possibility of any of the above favorable scenarios happening?

  5. Sorry, but realize most of us are forgetting one thing about these five games…these are NOT 5 HOME GAMES FOR ACC TEAMS…IN FACT IT ALTERNATES AT 3-2 HOME AND AWAY EACH SUCCESSIVE YEAR….and ESPN is not paying the extra $1,000,000+ each ACC team a year for 5 game ACC home games owned by ESPN–it is for ONLY 3 GAMES OR 2 GAMES IN ANY ONE YEAR…..this is quite a substantial money hit upward…..just think what it would be if Notre Dame played 4-5 games a year at ACC stadiums or considered ACC home teams…….suddenly the $1,000,000 + seems very large indeed.

  6. LenVILLE on said:

    Considering the Big 12 relatively low TV ratings, it seems they are greatly overpaid. Fox did that to create programming to compete with ESPN. Before a program leaves for the seemingly greener pastures of another conference they need to ask and study to see what the next round of TV contracts look like. IMO,Fox won’t be willing to pay out the extra $ to the B12 if the ratings aren’t there, they won’t need to any longer, & how will the networks be distributed? The B1G model can nose dive in value in their predictions if the model changes. There is great potential in the ACC.

  7. It seems that according to the link above that ND isn’t making that much off of the ACC TV contract. Doesn’t it state that they are only making about 20% since 80% of it is football revenue? It seems to me that ND is making $19 ($15 from NBC and about $4 from ACC) instead of the $30+. It still seems to me that they would make more from TV revenue from being a full member of the ACC.

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