XLance
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RE: So, What Exactly Would It Take To Make The ACC Competitive In Revenue?
(05-18-2021 08:54 PM)JRsec Wrote: (05-18-2021 08:43 PM)XLance Wrote: (05-18-2021 08:22 PM)JRsec Wrote: (05-18-2021 08:03 PM)XLance Wrote: (05-16-2021 07:51 PM)JRsec Wrote: Let's begin with an interesting correlation. I know they are only estimates of intrinsic worth based on support, regional merchandise sales, and the impacts made upon hotels, restaurants, and other aspects of schools economic impact upon their regions but the Wall Street Journal Valuations have an interesting rough but not quite exact correlation to media revenue. Roughly 1 billion in WSJ valuation translates to 10 million in media revenue.
The SEC's Value was 7.5 billion their new contract will translate in 2024-5 into roughly 70 million.
The Big 10's Value is at 5.4 billion and their most recently reported media distribution was in the 55 million range.
The PAC 12's Value was 3.0 billion and they last earned right at 32 million.
The ACC's Value was 2.2 billion but roughly half of Notre Dame's is 460 million so that translates into 27 million for the last reported income which will be highe after this year and likely more in the 32 million range. Anyway you get the point in this inexact but interesting correlation.
First there aren't enough potential valuable targets for the ACC to catch the SEC, but hypothetically they could catch the Big 10, but it would take some kind of super deal with moving parts all nursed by ESPN to make it happen.
How do you raise the 2.2 billion dollar conference value to levels equal to or exceeding the Big 10?
The answer is you have to attract Texas, Oklahoma, and Notre Dame all in.
Texas alone has a value of 1.1 billion.
Notre Dame's value is .913 billion.
Oklahoma's is .885 billion.
Together that's roughly 2.9 billion.
Add all 3 in full to the ACC and you have a 5.1 billion dollar value.
Drop your lowest 3 valued schools and you only lose combined 225 million. (Duke, B.C., Wake Forest).
Now add Oklahoma State and Texas Tech 515 million. You now have a valuation of 5.39 billion which is a virtual tie with the Big 10. And you are at 16 members. And nobody leaves. If Texas refuses to move without more Texas schools you take Baylor and Kansas State (another 382 million) and stop at 18 in 3 divisions of 6.
Now keep in mind that even in the 16 team iteration of this plan the payout would be right at 54 million per school. Texas made 55 last year.
Notre Dame wants independence.
Oklahoma wants a solid football conference with good academics.
So the least valuable of the 3 is the only one you have a chance to land and they wouldn't come alone.
But this should put things into perspective.
It doesn't come as a surprise but the task before Phillips is monumental, though theoretically possible, and I'd say a bit more possible at 18 than 16, and without asking Duke, Wake Forest and B.C. to leave the task is a lot tougher. I think to attract Texas you would need to add a Big 12 division of 6 schools. To accomplish this you need to place 3 schools elsewhere in the ESPN family. But who has more value elsewhere than in the ACC? Basketball schools from North Carolina and Virginia would have market and hoops value to the SEC.
That might solve any internal power struggles for the ACC as well. Your new leaders would be Notre Dame, Texas, Oklahoma, Clemson, and Florida State.
Perhaps an ACC that looks like this could best rival both the Big 10 and SEC?
OBE Division: Boston College, Louisville, Miami, Notre Dame, Pittsburgh, Syracuse
OB12 Division: Baylor, Kansas State, Oklahoma, Oklahoma State, Texas, Texas Tech
OACC Division: Clemson, Florida State, Georgia Tech, N.C. State, Virginia Tech, Wake Forest
The SEC picks up Duke, North Carolina, Virginia and Kansas.
East: Duke, Florida, Georgia, North Carolina, South Carolina, Virginia
Central: Alabama, Auburn, Mississippi, Mississippi State, Tennessee, Vanderbilt
West: Arkansas, Louisiana State, Kansas, Kentucky, Missouri, Texas A&M
The SEC gets pro rata for the 4 additions.
The ACC gets 62 million per school.
Why? North Carolina, Duke, Virginia and Kansas need solid football revenue to remain at the top of the heap in recruiting nationwide in hoops. The SEC has plenty of football value. They get their money and the SEC accepts this face value.
The ACC finally becomes a premier football conference and is paid accordingly.
It all stays under ESPN.
JR, what is the total value of the Big 12?
It would seem the most logical thing to do would be to try to increase the value of the ACC and the PAC to equal standing to about 4 to 4.5 each.
In order to get equality, major shifting and conference engineering would have to take place....I don't think the SEC and the B1G are ready for that.
The Conferences are valued as follows:
SEC: 7.5 billion
B1G: 5.4 billion
B12: 3.5 billion
PAC: 3.0 billion
ACC: 2.4 billion (Notre Dame at 910 million not included)
To do what you suggest Oklahoma, Oklahoma State, Kansas, and Kansas State to the PAC would raise their total value to 4.65 billion.
Texas, Texas Tech, Baylor and T.C.U. to the ACC would bring your total to 4.03 billion.
Iowa State 8th in value in the Big 12 and WVU is 10th.
What's 5/8's Notre Dame's value?
Add Notre Dame's value. The SEC would need to add two of: WVU, TCU, Iowa State, Texas Tech or Baylor.
Work out the numbers JR, you are good with math.
The SEC wouldn't be adding anyone as they detract and offer nothing we want.
N.D.'s value is 379 million. And Texas isn't coming without buddies and more than 2 at that. In fact there is no incentive for Texas to come at all unless they have their own division.
There is no magic bullet for you here X. It is what it is. Only 1 conference can catch the SEC's current value and that's the Big 10 if they landed both Texas and Oklahoma they would be within 100 million in value. If they added Texas and N.D. they would catch us unless we added Oklahoma.
The Big 12 and PAC could merge and they could catch the Big 10. But for the ACC to close the gap you really need to land Texa-homa and Notre Dame in fully and then that gets you to 5.3 plus another school gets you even with the Big 10 but with more schools.
I'm not looking for a magic bullet. The numbers are what they are. Any school that has a big stadium and can fill it will always have more value than a small stadium school regardless of 'media' income.
What you are looking for JR, is a formula that would allow a "conference" to solidify a collective fan base so that it could be marketed to that fan base for the purpose of playoff sports. The SEC and the B1G have done a much better job of making their fans feel a kinship with one another, and tend to follow other teams in their conferences much more closely than the other three P5 leagues.
If you can construct two other leagues (in addition to the SEC and B1G) such that the schools in those leagues will buy into a conference mantra, then you will have provided a foundation for successful playoff football.
Eventually 'media' income will be regulated by the NCAA or other overseeing group like it is in professional sports to aid the folks in small markets, but the money differential will always be there because Texas A&M will always be able to put 80,000 more fans in their stadium per game than Wake Forest can. That's a lot more chasers and mixers sold, not to mention the ticket revenue.
Of course the money is important and the SEC and B1G will always have the most, but for the sake of the sport and playoff football, marketable identities have to be found for the PAC, ACC and Big 12 with the caveat; only two of the three can survive.
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