Florida State Clemson ACC settlement

[Pazhoosier85]

Looks like FSU and Clemson are going to settle their lawsuit. The interesting part to me is a majority of the payout will be split based a formula including tv ratings, etc over 5 years . I could see the BIG doing this in the next deal so the big schools like OSU and Michigan get bigger payouts. FSU and Clemson can also leave the ACC in 2030.

 

[YOTHN]

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Looks like FSU and Clemson are going to settle their lawsuit. The interesting part to me is a majority of the payout will be split based a formula including tv ratings, etc over 5 years . I could see the BIG doing this in the next deal so the big schools like OSU and Michigan get bigger payouts. FSU and Clemson can also leave the ACC in 2030.

I don't believe the SEC and B1G have the ability to do this type of levelized compensation. The issue is you need to have a league of competitors. The ACC realizes that Clemson and FSU could go to a new conference because they would earn more money and if they left, it would delegitimize their entire conference. There is nowhere for OSU and MI to go and there is no value for smaller teams to remain if the money is less. They might as well go to the Big 12 and compete for conf and national titles and earn the same amount of $.

For the B1G, all of the teams have high value and only a few have more value worth separating, but that value those other teams have is off the backs of the rest of the conference. It's a mutually beneficial arrangement, unlike the ACC at the moment. By trying to position yourself as vastly more valuable and giving advantages to the larger programs would result in most of the league splitting. It won't happen. Leagues will always have 2 sides of the spectrum. Not everyone can win and certainly no one can win when they're in a league alone.

 

[Sonap]

Problem with ratings is that only certain teams get the best time slots.

 

[Sonap]

I don't believe the SEC and B1G have the ability to do this type of levelized compensation. The issue is you need to have a league of competitors. The ACC realizes that Clemson and FSU would go to a new conference and that would delegitimize their entire conference. For the B1G, all of the teams have high value and only a few have more value, but that value those other teams have is off the backs of the rest of the conference. It’s a mutually beneficial arrangement, unlike the ACC at the moment. By trying to position yourself as vastly more valuable and giving advantages to the larger programs would result in most of the league splitting. It won't happen.

Great point. If a super league is formed someone has to be the bottom. Will they be happy at the bottom every year?