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Interesting concept for getting out of ACC

MKOTiger

The Jack Dunlap Club
Gold Member
Jun 11, 2006
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I saw this potential scheme for getting out of the ACC, or at least readjusting revenue sharing. And before the poo pooers go after it, I have vetted it and it’s feasible.

Here it is. First, 3 concepts:

(1). Withdrawal fee is $120mil and GOR value is approximately $600mil for an individual school. GOR expires in 2036 and relative value decreases over time. $700mil+ and legal fees is just too expensive at this time for any school.

(2) Dissolution of ACC requires a simple majority (8 schools). Withdrawal fee and GOR breach of contract claims, at least from other schools, go away upon dissolution of the conference

(3) 4 schools (Clemson, FSU, Miami, and NC) with potential to join the Big 10 or sEC will lose significant $ over the life of the GOR (estimated at $600mil difference over the remaining life of the GOR). Given the option, and the significant loss of income, it’s assumed that these 4 teams would leave today given a feasible opportunity. Yes, maybe, UNC doesn’t really want to leave, but they definitely want revenue realignment.

Proposed scheme:

The idea is to dissolve the ACC, or at least threaten to dissolve the ACC. Easier said than done, correct? The idea is to induce 4 other teams to join Clemson, FSU, Miami and NC and form a coalition. First, the 4 join as a group and agree to recruit 4 other schools. The first invites to the coalition are NCSU, Virginia and, possibly, Pittsburgh. Invites would then go to specific schools (Louisville, Virginia Tech for example) and the first to sign up will be accepted. The rest is SOL.

The offer to these schools is that no school in the coalition after dissolution of the ACC will receive less revenue than another through 2036 and that every team will have an invite to another conference before dissolution of the ACC. Each team will independently negotiate with other conferences for admission. Any team can withdraw from the group prior to dissolution and the 4 (CU, Miami, FSU, UNC) can ask for any other team to leave the group prior to dissolution of the ACC if they believe it is in the coalitions best interest.

Revenue would be shared for the 8 teams as follows: each team would count revenue from their new conference annually. So, if Clemson and FSU go to the SEC and Virginia, Miami and UNC go to the Big 10 and the rest (Pitt, Vir Tech and NCSU for example) go to the Big 12 or a redefined PAC-12, revenue would be split accordingly. So, suppose Clemson, FSU, UNC, Miami and Virginia earned $60mil each in year 1 after ACC dissolution and the rest of the coalition earn $40mil, That’s 52.5mil each. For that year Clemson, FSU, Miami, UNC and Virginia would each have to contribute $7.5 to make sure Pittsburgh, Virginia Tech and NCSU received its $52.5million share. All this would go away in 2036.

It’s a win win for Clemson over the current system. The $ made at a new conference would be more than enough to make up the payments to other schools and is significantly less than withdrawal and or GOR costs. And even if it didn’t lead to the dissolution of the ACC, it would probably induce other schools to agree to a revised revenue sharing agreement.
 
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