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Looks like it is just a matter of time until we have some ACC members in the SEC

Posted on 7/18/22 at 9:43 am
Posted by BreakawayZou83
Kansas City, Missouri
Member since Oct 2011
9462 posts
Posted on 7/18/22 at 9:43 am
Sankey says:

quote:

SEC Commissioner Greg Sankey on expansion to the Network: Some schools have grant-of-rights "and we're not going to get in the middle of those."


Translation: sort out your GoR problems, Clemson and FSU. We'll be here once you do.
Posted by StopRobot
Mobile, AL
Member since May 2013
15391 posts
Posted on 7/18/22 at 9:44 am to
Kinda think its a foregone conclusion that Clemson and FSU will one day be members
Posted by KCM0Tiger
Kansas City, MISSOURI
Member since Nov 2011
15512 posts
Posted on 7/18/22 at 9:45 am to
I want a VA school and a NC school…that’s all we’re missing from the SE
Posted by TomRollTideRitter
Member since Aug 2016
12618 posts
Posted on 7/18/22 at 9:45 am to
Alternate translation: Daddy ESPN told me they won’t give us more money to add schools ESPN already has under contract.
Posted by Gator Fever
Member since Sep 2021
1534 posts
Posted on 7/18/22 at 9:46 am to
Translation: Its too expensive for you to come to the SEC it appears as we certainly aren't covering that big of an exit fee. FSU and Clemson are stuck along with the rest of the ACC.
Posted by BreakawayZou83
Kansas City, Missouri
Member since Oct 2011
9462 posts
Posted on 7/18/22 at 9:51 am to
quote:

Translation: Its too expensive for you to come to the SEC it appears as we certainly aren't covering that big of an exit fee. FSU and Clemson are stuck along with the rest of the ACC.


100%. But Sankey could have easily said "we're not interested in further expansion", and he did basically the exact opposite. Makes me think at the latest, we have FSU and Clemson by 2036 when the ACC GoR expires, and probably sooner.

If ESPN doesn't give the ACC a massive payout increase, it would still make more sense at some point prior to 2036 to pay an exit fee and come to the SEC. ACC schools are getting about $13 million from the ESPN deal. The SEC will be making north of $60 million per school just from ESPN here in a few years. It would cost about $52 million to bail on the ACC, these schools would capture that difference in just a few seasons in the SEC, at most.
Posted by TomRollTideRitter
Member since Aug 2016
12618 posts
Posted on 7/18/22 at 9:56 am to
quote:

But Sankey could have easily said "we're not interested in further expansion", and he did basically the exact opposite.


His quote was phrased that way to reiterate his commitment to ESPN.

ESPN doesn’t want us to add ACC teams. They already have those teams. Why would they want to pay way more for them?

It makes no sense for ESPN to increase the SEC’s payout to add ACC teams that ESPN already has under contract. It makes no sense for the SEC to add teams that won’t increase the payout.
Posted by ClemTig
Ohio
Member since Jan 2019
312 posts
Posted on 7/18/22 at 9:59 am to
quote:

ESPN doesn’t want us to add ACC teams. They already have those teams. Why would they want to pay way more for them?


Because this contract is not sustainable. ACC teams will leave for greener pastures- and if not SEC then other places. You just can’t pay that much under the going rate.
Posted by BreakawayZou83
Kansas City, Missouri
Member since Oct 2011
9462 posts
Posted on 7/18/22 at 10:03 am to
quote:

His quote was phrased that way to reiterate his commitment to ESPN.

ESPN doesn’t want us to add ACC teams. They already have those teams. Why would they want to pay way more for them?

It makes no sense for ESPN to increase the SEC’s payout to add ACC teams that ESPN already has under contract. It makes no sense for the SEC to add teams that won’t increase the payout.


You have to think bigger than this. Just because ESPN has contracts with both, doesn't mean they wouldn't cannibalize one for the other if it made them more money. One thing has been crystal clear since this all started: ESPN and FOX don't give a shite about who they destroy on their path for more money.

ESPN knows it can make more money from a 20-team SEC with the best bits of the ACC than it can from a 16-team SEC and the current dead-in-the-water ACC. Plus, Fox is clearly making the first move toward this by adding PAC teams to the B1G and doing everything in their power to lure ND to the B1G. So it's also a matter of keeping up with the giant broadcaster Joneses.
Posted by ReversePiggie
In non-Arkansas US
Member since Sep 2021
3587 posts
Posted on 7/18/22 at 10:14 am to
quote:

. You just can’t pay that much under the going rate.


Going rate? ACC teams signed a contract specifically designed to deter teams from looking elsewhere. Now y’all want to look elsewhere and don't want to live up to your side.

I hope they hold each school to the $100M. Maybe in 2036 the ACC will remain relevant.
Posted by BreakawayZou83
Kansas City, Missouri
Member since Oct 2011
9462 posts
Posted on 7/18/22 at 10:16 am to
quote:

Maybe in 2036 the ACC will remain relevant.


This is like me wishing the Big 8 would reform and be financially viable and competitive. Ain't happening.
Posted by twk
Wichita Falls, Texas
Member since Jul 2011
2122 posts
Posted on 7/18/22 at 10:44 am to
quote:

If ESPN doesn't give the ACC a massive payout increase, it would still make more sense at some point prior to 2036 to pay an exit fee and come to the SEC.
There isn't an "exit fee" that will get you out of the grant of rights. That was the whole point behind them, because liquidated damage clauses were unenforceable against some state schools with sovereign immunity. An assignment of intellectual property rights is enforceable in equity and thus, not really subject to the sovereign immunity problem.

So, if you think there is some sum of money that an ACC school could pay to get out of the GOR as a matter of right, you are incorrect. The only way out would be to negotiate a deal with the conference, or to coordinate a max exodus by getting a sufficient majority to vote for dissolution of the conference.
Posted by Cheese Grits
Wherever I lay my hat is my home
Member since Apr 2012
54630 posts
Posted on 7/18/22 at 10:55 am to
quote:

SEC Commissioner Greg Sankey on expansion to the Network: Some schools have grant-of-rights "and we're not going to get in the middle of those."


More like ACC is ESPN and SEC is ESPN, unless some jump to the B1G / FOX we are leaving the ACC alone
Posted by ClemTig
Ohio
Member since Jan 2019
312 posts
Posted on 7/18/22 at 10:58 am to
Now imagine a scenario where I take the 8 best media options from the ACC, leave the ACC to create a new conference and move to Fox network.

ACC GOR goes *poof*
ESPN great contract goes *poof*

Problem solved.
Posted by Cheese Grits
Wherever I lay my hat is my home
Member since Apr 2012
54630 posts
Posted on 7/18/22 at 11:00 am to
quote:

ESPN and FOX don't give a shite about who they destroy on their path for more money.


They are the conduits, not the ignition point. If the B1G did not want Notre Dame in the 90's we never expand, nordo the other conferences. Same thing happened again in 2009 with the Blair Report. That report was"for your eyes-only" for B1G member schools astray were the funding source for said report.
Posted by Cheese Grits
Wherever I lay my hat is my home
Member since Apr 2012
54630 posts
Posted on 7/18/22 at 11:04 am to
quote:

This is like me wishing the Big 8 would reform and be financially viable and competitive. Ain't happening.


They said the same thing when the super conference's formed the first time 100 years ago, yet a decade later 13 schools split off to make a smaller conference and schools east of the mountains broke off to form the ACC. The 2 TX schools broke of to form the SWC.
Posted by BreakawayZou83
Kansas City, Missouri
Member since Oct 2011
9462 posts
Posted on 7/18/22 at 11:20 am to
quote:

There isn't an "exit fee" that will get you out of the grant of rights. That was the whole point behind them, because liquidated damage clauses were unenforceable against some state schools with sovereign immunity. An assignment of intellectual property rights is enforceable in equity and thus, not really subject to the sovereign immunity problem.

So, if you think there is some sum of money that an ACC school could pay to get out of the GOR as a matter of right, you are incorrect. The only way out would be to negotiate a deal with the conference, or to coordinate a max exodus by getting a sufficient majority to vote for dissolution of the conference.


That is how a grant of rights functions. The ACC desperately entered into the current GoR in the wake of Maryland exiting the conference for a cool $31 million under its prior exit penalty structure. It has supposedly since amended that GoR, and I am not privy to a copy of it.

That does not mean that the parties would be unable to negotiate a deal - colloquially (even if technically incorrect), an exit fee, if certain members notify the ACC of their intent to leave the conference upon expiration of the GoR. I believe under those conditions, the exiting schools would owe the conference nothing once the grant of rights expires. Previously, as we saw with Maryland - when there was an exit fee in place - that $50 million figure was challenged in court and eventually settled for substantially less. As you noted, there were challenges to those exit fees - amongst those sovereign immunity.

However, if FSU, Clemson (and likely two others) notify the ACC of their intent to leave for the SEC in 2036, I am certain that the ACC would prefer to get some amount of money in the form of a negotiated deal, above and beyond what it would make by simply holding them in the conference until 2036.

Based on the revenue growth projections that we are seeing for the SEC and stagnation for the ACC, it is plainly reasonable to me that new ACC additions to the SEC could pay a negotiated sum to the ACC, above and beyond what those schools currently add to the ACC's total revenue, and still make more money in the SEC while paying such amounts to the ACC.

This does not even begin to address potential legal challenges to the grant of rights, that at the very least would be costly to the ACC to defend (or to enforce, for that matter). Not a great option, but one that would be painful for all involved.

And before you use OU and Texas as a comparator: that GoR expires in just a couple years, so for OU (which is a financial mess and has no money to offer anyone), it makes more sense to just wait it out. I don't think FSU and Clemson are going to be willing to do the same for another 14 years while the SEC and B1G schools double and then triple their annual revenue.
This post was edited on 7/18/22 at 11:26 am
Posted by ouflak
Manchester, England
Member since Jul 2021
350 posts
Posted on 7/18/22 at 11:21 am to
quote:

It makes no sense for ESPN to increase the SEC’s payout to add ACC teams that ESPN already has under contract. It makes no sense for the SEC to add teams that won’t increase the payout.


You're absoluty right, except for the fact that the ACC deal, as previously mentioned, simply cannot be maintained over the next 5 years or so. ESPN might be able crack the leather whip of that contract over the backs of the top ACC teams for a few years of that 40 - 50 million per annum disparity. But at some point, as those NIL deals get sweeter, facilities get improved, coaches and admins get paid higher and higher salaries, someone in the ACC is going to grab that whip and wrap it around ESPN's throat.

It's just a matter of time.

And I rather think ESPN is more than smart enough to know this is going to happen, so they already will be planning the most profitable transition through all of that.
Posted by RoyalAir
Detroit
Member since Dec 2012
5884 posts
Posted on 7/18/22 at 12:06 pm to
quote:

want a VA school and a NC school…that’s all we’re missing from the SE


VA Tech, NC State.

Then ride and leave it alone.
Posted by jumpstart
Member since Jun 2018
919 posts
Posted on 7/18/22 at 1:02 pm to
quote:

ACC GOR goes *poof*
ESPN great contract goes *poof*

Problem solved.
ESPN has a money making contract with the ACC....a dream deal through 2036. Then people think they are going to throw that contract away so they can pay those same teams "more" for moving to another conference....lol....you've lost your mind ! It's always about the money. They are not going to lose money...it is not going to happen. You're stuck until 2036.....ESPN will sue the individual schools and win if they try to dissolve the conference while under contract....geez....
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