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?

 

[IUgradman]

Cigs is making IU must see TV.

 

[Tammany Hall]

This ACC deal is a temporary thing to get through the next five years, it looks pretty likely that when the new media rights deals start in 2031 the big ACC schools will leave the conference for the B1G and SEC. Ugh.

Those are some good points as to why the smaller B1G and SEC teams have more leverage than smaller schools the ACC. Totally agree with them.

That said, I expect OSU, UM, and some larger schools B1G schools will *try* to grab a little more money in the next TV deal in 2031. The rev share is putting them under pressure, and frankly some schools are just spending like mad to win, for example the OSU AD just announced a $38M loss. They will not be able to resist grabbing at the giant pool of media rights money.

I think the smaller B1G schools will be able to fend off any money grabs, but it will be easier for us the better we are at football. I know we're aiming higher, but if we could become a midpack FB school, we should have much more leverage to tell the big schools grabbing for money to go pound sand. Basketball is much less important, but getting to the top quarter of the conference again in that would also help a bit.

Anyways, it's nice we have a path to really improve the standing of our athletic dept in the conference. In my opinion, a lot of credit goes to Scott, he has been great and no one has done this before at IU. But while we have a path to do it, we still need to execute over the next five years.