FSU Suing ACC over withdrawal Fee

I used to work at a SC school—Clemson is the top academic school in the state—SC east is way below

 

Yep, they got a nice dose of STFU

 

I agree notre dames the best prize out there but I think part of their agreement or whatever they have with the acc where they’re kinda in, is if they join a conference it has to be the acc. I don’t know what that buyout looks like and god only knows what happens with the acc but don’t think they’re much of free agent right now.

 

Something tells me that this whole FSU lawsuit is just going to quietly disappear ...

 

Oregon and Washington got 1/2 shares for B1G money, about $30million, plus all travel costs covered, which adds about $10 million. Oregon and UW are worth $40million to the B1G, which is why they made the deal. It also gives the LA schools some closer travel partners.

The big prize out there is Notre Dame. They add to the SEC and B1G's bottom line. Not other school, including Clemson or FSU, does. May come close to the $60 million number, but definitely not over. This is why the B1G and SEC have no interest right now.

There is some smoke that the BIG12 is looking at Clemson, FSU, Miami, and VTech. These programs would certainly add to the BIG12, which right now, is a bunch of good basketball schools, but mostly also-rans in football. The rumor is there are corporate partners willing to shell out the money to negotiate an ACC buy out, plus increase per school payouts for all BIG12 schools to get an additional $10 to $15million a year. Not quite what the B1G or SEC schools are getting, but an improvement over the ACC.

But this is a lot of coin, and not sure if the numbers will work out. If BIG12 Commissioner can pull it off, he's a wizard. But my guess is this is just rumor, and the numbers won't work out.

 

Count on it

 

Rumor: Brett Yormark may be opposed to adding FSU headaches to the Big 12

 

I've heard similar rumors, but I'm not sure this makes sense. Maybe you can shed some light on it.

So with the current TV deal, I believe the current 16 Big-12 teams will be making $24M per year. Is that correct? I'm seeing $32M figure thrown out but I don't see where that additional money is coming from, unless they're including ticket sales, concessions, merchandising and any other revenue.

I don't understand how the corporate sponsors or investors would work. I'm seeing that the plan for the Big-12 is to get $800M-$1B up front for a 15-20% ownership stake in the Big-12. This sounds more like a short term loan to me.

Other than giving the Big-12 schools a raise and possibly buying a few ACC schools for what's likely to be just until the SEC or Big-10 call.

I'm seeing the "projections" that this will double the total value of the league and double their TV deal next go around, but I don't see that happening. I actually think the media rights for all the conferences will probably level off or drop next go around. To me, the fundamentals of the Big-12 really won't change much, unless they take all the top half of the ACC. Even then, I don't see it doubling where it is this coming season. But they will be a second tier conference.

I mean with the private equity "loan/investment" they may be able to increase revenues to the schools short term, but long term, they'll be giving up 15-20% of all the their revenues.

 

B12 would be smarter to take Miami over FSU. Better recruiting grounds. They also already have UCF which basically gives them the entire state.

 

The current BIG12 tv deal is $31.7 million per school. With expanded playoffs, plus other payouts such as per school NCAA basketball games, the expected full payout is estimated to be just north of $40 million.

I've also seen the $800 million to $1 billion for about a 15% stake in the BIG12 number floating around. And here's where the math gets fuzzy if this money is going to be used to buyout ACC schools. I've seen the number floating around for FSU to break the GOR to be north of $500 million. The ACC would likely cut a deal to lower the number, but even if the number is $100 million, just for FSU and Clemson, that's $200 million. Add in Miami and VTech, and that's up to half of what Yormack would get from the corporate sponsor. And this assumes the ACC agrees to lower the buyout down this far. If the ACC agrees to $200 million per school, then all the corp deal does is buy the ACC schools.

When the BIG12 signed their agreement, there was a clause that adding 4 more P5 schools would keep the $31.7 million number there. The Four Corner PAC schools were the ones that were added under this Elevator Clause. There is no more clause like this for any more schools.

So if the corporate sponsor only pays to get the ACC schools released, then any additional per school money would have to come from a TV contract. And I don't see this happening. Clemson and FSU are worth more than $30 million, but watered down among the then 20 school BIG12? Probably doesn't move the needle an extra $10 to $15 million per school.

 

How are they calculating that? If I take the $380M per year starting next season (as noted in the article I'm looking at, which is 1/6 of the total payout) and divide that by 16 members, I get just under $24M per school. $31.7 is the number if you divide it by just 12 members. I know some members are only getting a partial payment, but even then, those numbers don't seem to add up.

If you add ACC members, there would still have to be more TV slots added to increase the TV revenues.

I just don't see how the numbers add up long term.

The ACC is unlikely to negotiate ANYTHING! They know letting any schools out will probably set off an implosion of their conference. The only realistic hope I see of the Big-12 getting ACC schools is if they take enough ACC schools to completely implode the conference, which would probably require the Big-12 to be willing to take at least UNC, UVA, NCSU and VT on top of FSU and Clemson. If they did that, they may get teams without a buyout. I think that's what FSU and Clemson are hoping for.

But on the plus side, what that might do is free up the ACC TV slots for the Big-12, which would increase their revenue.

But to your point I'm not sure that this will increase the per school revenue in the long run.

 

The BIG12 had an Elevator Clause in their contract. Add four P5 schools, and the contract increases to $507million, keeping the per school payment the same. The Four Corner PAC schools were the P5 schools that jumped ship to the BIG12 when the PAC started to sink completely.

The ACC might decide to negotiate if it keeps them afloat. It's the sports free agency dilemma when you have star. Either you trade them when their are under contract and at least get something for them. Or, if you wait the contract out, you get nothing when the contract is up. Meanwhile, you know you have a disgruntled player/school, who has no chance of signing with you again.

 

Anyone been to Warchant lately? I hope they are suffering but more likely delusionole, right?

 

It is very quiet. Much talking going on behind the scenes, I would imagine.

I am also guessing that the Holes are desperate to cut a deal before their case in Tallycrappy gets transferred to North Carolina. That is not where they want to be.

 

This. I just don't see a scenario where FSU and other ACC schools are that much better off in the Big 12, not do they elevate the Big 12 that much given its size.

 

I can see Clemson being worth it since the big12 doesn't have a foot hold in SC. But the big 12 already has UCF in Florida.

 

But it would be perfect for tgem. Another weak conference where they can win most years.

 

I really want them in the Big 12. It will really hurt what they can sell recruits when it comes to their schedule and their fans will hate it. Ultimately they will have less butts in the seats and lose game day revenue. Please make this happen!!!

 

Miami might have an actual shot at the big10 now that they are an AAU school, also they would go along great with all the other northern schools they have.