The ACC is touting the deal that ended litigation initiated by Clemson and Florida State, but left unsaid is that the deal gives us what feels like an official expiration date for the conference: June 30, 2031.
That’s when the exit fee for schools looking to leave would drop to $75 million.
And that would be it, in terms of the cost to leave.
The sound you hear in the background:
“Nearer, My God, to Thee …”
The settlement gets rid of the provision in the ACC membership agreement signed in 2016 that gave the conference control of the media rights of member schools through 2036, which increased the cost of leaving by a multiple of $40 million based on the number of years that would be left outstanding.
The impact: under the 2016 agreement, it would have still cost in the area of $300 million for a school to leave the ACC in 2031.
From $300 million, to $75 million.
Let the poaching begin.
As to the possible landing spots: well, the SEC is operating on a 10-year TV package signed last year, so, that’s out, at least until 2034.
The Big Ten’s current TV deal runs through 2030, as does the current TV deal for the Big 12.
The College Football Playoff TV package comes up for renewal in 2031.
I wouldn’t rule out some sort of restructuring of the membership of the ACC, or some sort of new arrangement with the Big East, which is on a TV deal that also comes up for renewal, you guessed it, in 2031.
The part of the settlement ending the litigation involving Clemson and FSU will give those schools access to more money from a new so-called revenue sharing model – Clemson is projecting that it will get in the area of $20 million more per year from its share of the ACC TV deal over the next six years, i.e., through 2031.
So, they get the best of both worlds – more money in the meantime, then, freedom.
This is all assuming, of course, that the US is still a stable nation-state in 2031.
If so, well, congratulations, Clemson, FSU. Well-played.
Support AFP
Share
Chris Graham
