Expansion Is Official: The ACC Invites Stanford, Cal And SMU

[royboy]

Cal, Stanford and SMU will come at a significant discount, which will help create a revenue pool to be shared among ACC members. SMU is expected to come in for nine years with no broadcast media revenue, sources told ESPN, and Cal and Stanford will each start out receiving just a 30% share of ACC payouts.

That money being withheld is expected to create an annual pot of revenue between $50 million and $60 million. Some of the revenue will be divided proportionally among the 14 full-time members and Notre Dame, and another portion will be put in a pool designated for success initiatives that rewards programs that win.

For Stanford and Cal, it will be 30% of a whole ACC share for the next seven years. That number will jump to 70% in Year 8, 75% in Year 9 and then full financial shares in the 10th year, per sources.

The move delivers a life preserver to the athletic departments at Stanford and Cal, which were left twisting amid the Pac-12's implosion. Stanford has an athletic department that is considered the gold standard in college athletics. Both will face increased travel costs, which will significantly impact a Cal athletic department that faces hundreds of millions in debt.

ACC adds Stanford, Cal, SMU beginning 2024-25

The ACC presidents and chancellors voted to add three schools -- Stanford, Cal and SMU -- beginning in the 2024-25 school year. It will bring the ACC to 18 members, with 17 playing football full time in the conference.

www.espn.com

 

[Thomas1945]

The can now rename the ACC “ The great transcontinental Atlantic and Pacific dual coast Conference”.

 

[LMTLION]

The can now rename the ACC “ The great transcontinental Atlantic and Pacific dual coast Conference”.

The American Coastal Conference

 

[royboy]

The American Coastal Conference

Still not sure how Louisville slid in there (and Notre Dame for most sports, also).

 

[LMTLION]

Still not sure how Louisville slid in there (and Notre Dame for most sports, also).

Notre Dame has a large amount of alumni and fan support in the Northeast and maintains rivalries with west coast universities. To me it is pretty coastal, despite the Midwest location. Some in the Midwest would say that the great lakes is one of our coasts as well, although that is obviously a stretch. Louisville is the odd duck though.

 

[HailToPitt725]

The can now rename the ACC “ The great transcontinental Atlantic and Pacific dual coast Conference”.

How about Oceans 18

 

[LeatherHelmets]

BIG should kick ND out of the hockey league, and I have no idea why the ACC puts up with being half pregnant and having them play hoops and Olympic sports.

 

[Roar More]

How many sports will Call and Stanford cut? The Stanford wrestling team bare escaped the chopping block a few years ago.

 

[ryoder1]

Cal, Stanford and SMU will come at a significant discount, which will help create a revenue pool to be shared among ACC members. SMU is expected to come in for nine years with no broadcast media revenue, sources told ESPN, and Cal and Stanford will each start out receiving just a 30% share of ACC payouts.

That money being withheld is expected to create an annual pot of revenue between $50 million and $60 million. Some of the revenue will be divided proportionally among the 14 full-time members and Notre Dame, and another portion will be put in a pool designated for success initiatives that rewards programs that win.

For Stanford and Cal, it will be 30% of a whole ACC share for the next seven years. That number will jump to 70% in Year 8, 75% in Year 9 and then full financial shares in the 10th year, per sources.

The move delivers a life preserver to the athletic departments at Stanford and Cal, which were left twisting amid the Pac-12's implosion. Stanford has an athletic department that is considered the gold standard in college athletics. Both will face increased travel costs, which will significantly impact a Cal athletic department that faces hundreds of millions in debt.

ACC adds Stanford, Cal, SMU beginning 2024-25

The ACC presidents and chancellors voted to add three schools -- Stanford, Cal and SMU -- beginning in the 2024-25 school year. It will bring the ACC to 18 members, with 17 playing football full time in the conference.

www.espn.com

Where does the additional revenue come from even at a 30% discount? Did they get more money from a media partner for this? I see 3 schools coming in and siphoning off some money from the core schools. What am I missing?

 

[doctornick]

Where does the additional revenue come from even at a 30% discount? Did they get more money from a media partner for this? I see 3 schools coming in and siphoning off some money from the core schools. What am I missing?

The contract with ESPN allows for a revenue increase of full shares with adding schools.

 

[ryoder1]

The contract with ESPN allows for a revenue increase of full shares with adding schools.

Okay thank you. Is this referenced in any of the articles or do they figure readers will not be geeky enough like me to care.

 

[HailToPitt725]

Where does the additional revenue come from even at a 30% discount? Did they get more money from a media partner for this? I see 3 schools coming in and siphoning off some money from the core schools. What am I missing?

So Cal, SMU, and Stanford all are coming in at a pro-rata share from ESPN. That’s about $40M according to the most recent available figures (21-22). Since SMU is returning their entire share and Cal/Stanford are returning 30-40% of their’s, the conference will get an additional $64-$72M collectively.

Between guaranteed distributions of the shares among existing members and performance incentives, ACC schools could get as much as $10M in additional revenue per year.

There’s also two other revenue streams that could add to those figrues:

1. It’s been reported that ESPN will provide existing members at least $1M to compensate for “increased traveling costs”
2. The ACC could receive extra (albeit minimal) revenue with the ACC Network getting into California and Texas via auto carriage access with cable companies

It’s not Big Ten or SEC money, but it will solidify the ACC as the third-highest-grossing conference in collegiate athletics.

 

[LMTLION]

So Cal, SMU, and Stanford all are coming in at a pro-rata share from ESPN. That’s about $40M according to the most recent available figures (21-22). Since SMU is returning their entire share and Cal/Stanford are returning 30-40% of their’s, the conference will get an additional $64-$72M collectively.

Between guaranteed distributions of the shares among existing members and performance incentives, ACC schools could get as much as $10M in additional revenue per year.

There’s also two other revenue streams that could add to those figrues:

1. It’s been reported that ESPN will provide existing members at least $1M to compensate for “increased traveling costs”
2. The ACC could receive extra (albeit minimal) revenue with the ACC Network getting into California and Texas via auto carriage access with cable companies

It’s not Big Ten or SEC money, but it will solidify the ACC as the third-highest-grossing conference in collegiate athletics.

It’s a smart play by the ACC to maximize their revenue. Wouldn’t it also make sense to recruit Oregon St and Washington St at partial revenue to distribute more dollars to the core ACC?

 

[HailToPitt725]

It’s a smart play by the ACC to maximize their revenue. Wouldn’t it also make sense to recruit Oregon St and Washington St at partial revenue to distribute more dollars to the core ACC?

In theory, yes. However, you have to remember that those partial shares will become full shares at some point. Edit: I also don’t think ESPN would agree to invite them pro-rata.

I think the ACC’s immediate concern was to solidify the conference’s future for when the “no” votes defect. Now, I think we remain pat until 2030 when the Big 12’s media deal comes up. What’s interesting about that timeframe is that there’s a lot of major sports entities up for negotiations then as well.

If there’s not enough money left for the Big 12 to increase their payouts, or even stay at the current rate, then I think the ACC makes a play for Arizona State, Colorado, and Utah. That would get us into all four time zones and expand ACCN coverage into the Phoenix, Denver, and SLC markets (if conference networks and cable are even a thing by then). Being patient has worked to this point; it’s a waiting game now.

 

[LMTLION]

In theory, yes. However, you have to remember that those partial shares will become full shares at some point. Edit: I also don’t think ESPN would agree to invite them pro-rata.

I think the ACC’s immediate concern was to solidify the conference’s future for when the “no” votes defect. Now, I think we remain pat until 2030 when the Big 12’s media deal comes up. What’s interesting about that timeframe is that there’s a lot of major sports entities up for negotiations then as well.

If there’s not enough money left for the Big 12 to increase their payouts, or even stay at the current rate, then I think the ACC makes a play for Arizona State, Colorado, and Utah. That would get us into all four time zones and expand ACCN coverage into the Phoenix, Denver, and SLC markets (if conference networks and cable are even a thing by then). Being patient has worked to this point; it’s a waiting game now.

The ACC did very well to protect the ‘yes vote’ schools. It is no longer feasible for the ‘no vote’ schools to challenge the GOR until at least 2030. At that point around 2030 you would have to assume the 3 ‘no vote’ schools split from ACC. When that occurs 50% of the tv value is gone and the conference is worth far less per capita than the Big 12. Currently Washington State currently produces more tv viewership than each of the ‘yes vote’ schools (with the exception of ND) and Oregon State is no slouch either. I think both OSU and WSU have value for the ACC now and in that inevitable future.

 

[HailToPitt725]

The ACC did very well to protect the ‘yes vote’ schools. It is no longer feasible for the ‘no vote’ schools to challenge the GOR until at least 2030. At that point around 2030 you would have to assume the 3 ‘no vote’ schools split from ACC. When that occurs 50% of the tv value is gone and the conference is worth far less per capita than the Big 12. Currently Washington State currently produces more tv viewership than each of the ‘yes vote’ schools (with the exception of ND) and Oregon State is no slouch either. I think both OSU and WSU have value for the ACC now and in that inevitable future.

If it means anything, I’d be all for it. I feel so bad for those fanbases. Oregon State is closer to Portland than UO and I’ve always liked Wazzu, especially when Mike Leach was there. It’s too bad they’ll likely be relegated to the Mountain West.

 

[LMTLION]

If it means anything, I’d be all for it. I feel so bad for those fanbases. Oregon State is closer to Portland than UO and I’ve always liked Wazzu, especially when Mike Leach was there. It’s too bad they’ll likely be relegated to the Mountain West.

Yeah, they are casualties of Pac 12 mismanagement, and PAC12 mismanagement will be a topic in future business textbooks. Considering all of this nonsense I feel fortunate to not be an alum of either school, but I do love cfb and it is sad to see those 2 casualties. At least Stanford and Cal were saved, though. I would love to see Pitt or Syracuse in the B1G to renew our old rivalries. Obviously that is not happening.

 

[ryoder1]

The ACC did very well to protect the ‘yes vote’ schools. It is no longer feasible for the ‘no vote’ schools to challenge the GOR until at least 2030. At that point around 2030 you would have to assume the 3 ‘no vote’ schools split from ACC. When that occurs 50% of the tv value is gone and the conference is worth far less per capita than the Big 12. Currently Washington State currently produces more tv viewership than each of the ‘yes vote’ schools (with the exception of ND) and Oregon State is no slouch either. I think both OSU and WSU have value for the ACC now and in that inevitable future.

My guess is Cal, Stanford and SMU got in due to academics playing a big role. Also giving up 70% of their revenue or in SMU's case all their revenue certainly helps. All three are brand name schools with national reputations. Washington State and Oregon State don't fit that bill and are not nearly strong enough in football to compensate.

 

[Ian]

Agree that anymore expansion is off till the Big 12 and ACC media come up again. Then the big dogs will grab who they want and expand to 24 teams each. ACC just delayed extinction hoping that the revenue landscape is much different in 6+ years from now. They are playing the waiting game but FSU, Clemson, and UNC have made their intentions very clear. The NFL model of two conferences with 4 divisions each still will prevail.

 

[RickinDayton]

Where does the additional revenue come from even at a 30% discount? Did they get more money from a media partner for this? I see 3 schools coming in and siphoning off some money from the core schools. What am I missing?

Actually SMU isn't receiving any $. Is that school awash in $ that they can afford to agree to joi a league for zero, nada, zilch?

 

[RickinDayton]

BIG should kick ND out of the hockey league, and I have no idea why the ACC puts up with being half pregnant and having them play hoops and Olympic sports.

The ACC & B1G are being played by ND. ND has that exclusive TV deal that they share with no one. Why are these leagues allowing them to continue to do this? B1G needs to refuse to schedule ND in any sports.

 

[Online Persona]

This move by the ACC wreaks of desperation IMO. They are trying to play the Big 10 and SEC's game with the scraps. It's pretty obvious that when they renegotiate in 2030 that all of the schools that can leave for real money, will.

When the dust settles, there will be the Big 10 and SEC that meet for the national championship. Then there will be the ACC and the Big 12 B league that meet for well, they'll probably make up something for which they meet.

 

[87 Penn St8]

Actually SMU isn't receiving any $. Is that school awash in $ that they can afford to agree to joi a league for zero, nada, zilch?

Highland Park is the Beverly Hills of Dallas...and they don't call it Southern Money University for nothing. A former student was on tgeir Cheer Team the last 5 football seasons. It is a small but powerful institution.

 

[LMTLION]

Agree that anymore expansion is off till the Big 12 and ACC media come up again. Then the big dogs will grab who they want and expand to 24 teams each. ACC just delayed extinction hoping that the revenue landscape is much different in 6+ years from now. They are playing the waiting game but FSU, Clemson, and UNC have made their intentions very clear. The NFL model of two conferences with 4 divisions each still will prevail.

It is fascinating that Colorado started this round of conference realignment jumping to the Big 12 and essentially SMU ended this round of realignment by taking no ACC revenue for nine years. Who would’ve thought two such schools would have such an impact on college football.

 

[royboy]

It is fascinating that Colorado started this round of conference realignment jumping to the Big 12 and essentially SMU ended this round of realignment by taking no ACC revenue for nine years. Who would’ve thought two such schools would have such an impact on college football.

True. Both schools have had glory days that they would like to re-capture, or at least be somewhere that best suited their ambitions. Took some bold steps -- we'll see how it works.

 

[HailToPitt725]

How many sports will Call and Stanford cut? The Stanford wrestling team bare escaped the chopping block a few years ago.

Likely none. This is a unique situation where all three schools will be financially covered despite giving up their media payouts:

- SMU and Stanford have DEEP pockets and will ensure the transition goes smoothly
- Cal is getting subsidized by UCLA and the UC Board of Regents following their move to the Big Ten, which is why a public school was able to make such a gamble

 

[ryoder1]

Actually SMU isn't receiving any $. Is that school awash in $ that they can afford to agree to joi a league for zero, nada, zilch?

Desperate and clearly looking long term. I guess they figure their payday in 9 years for say the next 10 after that will be more than they can earn where they currently are for the next 19.

Their current deal pays them about $7 million annually. So they are giving up 63 million but in nine years will probably make $40 million annually so they can make that up in about 4 years after that assuming the 63 million earns 10% per anum.

The big risk is once the GoR expires the conference big dogs bail and whatever deal the ACC can cut with media companies is not great and SMU is back to a secondary conference status in terms of TV money. So they just volunteered not to get any revenue for 9 years then not improve their situation 9 years later from where they were pre ACC. A risk they are obviously willing to take.

Not sure what they do in the next 9 years with no TV revenue. Maybe donations from rich alumni via fundraising can at least gin up some cash.

 

[HailToPitt725]

Desperate and clearly looking long term. I guess they figure their payday in 9 years for say the next 10 after that will be more than they can earn where they currently are for the next 19.

Their current deal pays them about $7 million annually. So they are giving up 63 million but in nine years will probably make $40 million annually so they can make that up in about 4 years after that assuming the 63 million earns 10% per anum.

Not sure what they do in the next 9 years with no TV revenue. Maybe donations from rich alumni via fundraising can at least gin up some cash.

The other thing to keep in mind is that they’re only losing out on the media payouts. They’ll still get CFP revenue distributions and other cash flows that will just about equal what they’re making in the American currently.

I think they realized that this was likely the last chance for G5’s to make it into a power conference. Might as well take the gamble; getting left behind in the ACC when schools defect will likely be a better landing spot than being in the AAC.

 

[LandoComando]

Sounds like SMU will be hosting a lot of the Olympic sporting events...so instead of Cal or Stanford going go Miami or Boston College both teams will go to Dallas.

 

[RickinDayton]

Highland Park is the Beverly Hills of Dallas...and they don't call it Southern Money University for nothing. A former student was on tgeir Cheer Team the last 5 football seasons. It is a small but powerful institution.

Thanks. I thought there had to be a reason for such an agreement.

 

[ryoder1]

The other thing to keep in mind is that they’re only losing out on the media payouts. They’ll still get CFP revenue distributions and other cash flows that will just about equal what they’re making in the American currently.

I think they realized that this was likely the last chance for G5’s to make it into a power conference. Might as well take the gamble; getting left behind in the ACC when schools defect will likely be a better landing spot than being in the AAC.

I didn't realize they had those other revenue streams so it certainly does make sense for them. Plus the schools in the ACC are as a whole are better academic schools (Duke, UNC, UVA, Wake, Stanford, Cal) than what they are leaving behind in the AAC.

 

[bdgan]

The American Coastal Conference

SMU?

 

[HailToPitt725]

I didn't realize they had those other revenue streams so it certainly does make sense for them. Plus the schools in the ACC are as a whole are better academic schools (Duke, UNC, UVA, Wake, Stanford, Cal) than what they are leaving behind in the AAC.

Oh yeah, those SMU boosters and alums are going to LOVE the idea of rubbing shoulders with Palo Alto and Tobacco Roads. From an outsider’s perspective, they’ve had sort of a “little brother complex” to TCU (football success) and Rice (academics). In their eyes, this move levels the playing field against those two.

 

[LMTLION]

SMU?

Texas is on the gulf coast, essentially meeting the requirements of both Atlantic and coastal.

 

[bdgan]

Texas is on the gulf coast, essentially meeting the requirements of both Atlantic and coastal.

Only 656 miles to the Gulf. It's almost like a beach town.

Columbus is closer to Ocean City.

 

[LMTLION]

Only 656 miles to the Gulf. It's almost like a beach town.

More coastal than Louisville!

 

[ryoder1]

Oh yeah, those SMU boosters and alums are going to LOVE the idea of rubbing shoulders with Palo Alto and Tobacco Roads. From an outsider’s perspective, they’ve had sort of a “little brother complex” to TCU (football success) and Rice (academics). In their eyes, this move levels the playing field against those two.

I think they may consider themselves equal to Vandy in academics, with a similar overall profile to Vandy and Vandy is in the SEC. They certainly have a similar student demo but they are not as strong academically as Vandy. They are a far cry from Rice. Nevertheless, this gets them in the Power 5 which they hope will help their football program find a pulse.

 

[SheldonJoe2215]

This move by the ACC wreaks of desperation IMO. They are trying to play the Big 10 and SEC's game with the scraps. It's pretty obvious that when they renegotiate in 2030 that all of the schools that can leave for real money, will.

When the dust settles, there will be the Big 10 and SEC that meet for the national championship. Then there will be the ACC and the Big 12 B league that meet for well, they'll probably make up something for which they meet.

That will be awful for CFB.

They are trying their hardest to kill the golden egg laying goose.

 

[doctornick]

That will be awful for CFB.

They are trying their hardest to kill the golden egg laying goose.

View embedded media

Don’t worry. Not stopping the clocks after first downs is all about player safety

 

[Obliviax]

So.....

the last remaining Pac 12 members are Oregon State and Washington State with all other schools announcing their intent to leave. Apparently, one of the by-laws is that if you inform the board of the PAC 12 that you intend to leave, you no longer have a voting seat. So, Oregon State and Washington State have filed a lawsuit in part to affirm that legal tenet. It is believed that if they get that, they are going to vote to pay themselves all the remaining PAC 12 money and cut everyone else out. The board will have voted unanimously!

Yikes!

OSU, Wazzu filing seeks control of Pac-12's future

Oregon State and Washington State have filed a legal complaint against the Pac-12 and commissioner George Kliavkoff, with the heart of the dispute being the distribution of the conference's remaining assets.

www.espn.com