Wahoowa84
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RE: Realignment Revenue Options
(04-22-2021 05:22 PM)georgia_tech_swagger Wrote: Using this data ultimately from the WSJ: https://csnbbs.com/thread-916418-post-17...id17265241
Quote:Clemson / 12.5% of Conference Value / $56,350,000 value of media share
Florida St./ 12.2% of Conference Value / $54,997,600 value of media share
Virginia Tech / 11.7% of Conference Value / $52,743,600 value of media share
Georgia Tech / 9.0% of Conference Value / $40,572,000 value of media share
Miami / 8.1% of Conference Value / $36,514,800 value of media share
N.C. St./ 7.5% of Conference Value / $33,810,000 value of media share
Louisville / 7.4% of Conference Value / $33,359,200 value of media share
North Carolina / 6.5% of Conference Value / $29,302,000 value of media share
Virginia / 5.7% of Conference Value / $25,695,600 value of media share
Syracuse / 5.1% of Conference Value / $22,990,800 value of media share
Pittsburgh / 4.8% of Conference Value / $21,638,400 value of media share
Boston College / 3.4% of Conference Value / $15,327,200 value of media share
Wake Forest / 3.2% of Conference Value / $14,425,600 value of media share
Duke / 2.8% of Conference Value / $12,622,400 value of media share
* Notre Dame's value is 5th nationally so if a full member of the ACC their % of Conference value would be 27.7% and would dwarf the rest of the ACC.
Option 1: Add ND as a full member
I think that's pretty obvious to everybody. It would be worth a substantial amount of money but ND wants no part of it. Probably $10m+/team/year.
Option 2: Cut football ballast. GT received $32.5m in 2020 from ACC media disbursements. Assuming everybody else got the same and football is 80% of the revenue ... the football shares are worth $26m/yr/team. Remove Duke FB. Remove Wake FB. That's $52m back in to the ACC divided by 12 = $4.3m/yr pay raise. If you also removed BC that would be $6.5m/yr pay raise. Those are somewhat drastic "anger the fan base" type moves which only yield a modest increase.
Option 3: Westward expansion.
Quote:Big 12
Texas / 31.3% of Conference Value / $112,680,000 value of media share (no T3)
Oklahoma / 25.0% of Conference Value / $90,000,000 value of media share (no T3)
Kansas St. / 7.8% of Conference Value / $28,080,000 value of media share
Oklahoma St. / 7.7% of Conference Value / $27,720,000 value of media share
Texas Tech / 6.9% of Conference Value / $24,840,000 value of media share
Kansas / 5.9% of Conference Value / $21,240,000 value of media share
T.C.U. / 5.4% of Conference Value / $19,440,000 value of media share
Iowa St. / 5.5% of Conference Value / $19,080,000 value of media share
Baylor / 3.0% of Conference Value / $10,800,000 value of media share
West Virginia / 1.7% of Conference Value / $6,120,000 value of media share
Not a lot of help except at the very top. That Kansas State is worth that much more than Kansas says everything about football's dominance in revenue. Kansas State is effectively a supersized DII school that has never done much of anything until Bill Snyder treated the JuCo ranks as his personal annual talent draft and turned KState football into a respectable program. There aren't many TV sets in Kansas either. And yet they easily surpass hoops blue blood Kansas. Presumably Texas requires Texas Tech to come with it and Oklahoma requires Oklahoma State to come with it. That dampens the impact but it's still a pretty substantial bump. Probably $10m+/team/year.
West Virginia ... wow. I'm sure they'd help increase the gate at Pitt and VT and maybe UVA. But they might end up being a boat anchor in TV land due to the WV diaspora and not many TVs in TV. Perhaps West Virginia is the Wyoming of the east.
Option 4: Fuhrer Mickey Merger
Disney gets tired of paying for 5 expensive competing sets of poorly divided conference assets in college sports and decides to go all in on the biggest markets in a bid to have a monopoly on them for advertising and carriage rates. This means merging the Big 12 and SEC and ACC together and redistributing the teams into tight geographies driven by history, tradition, rivalry, and viewership potential. Note this could very well also involve casting aside from football ballast, even in the SEC.
Quote:Alabama / 13.5% of Conference Value / $87,885,000 value of media share
Georgia / 11.9% of Conference Value / $77,469,000 value of media share
Auburn / 11.6% of Conference Value / $75,516,000 value of media share
Louisiana St./ 11.4% of Conference Value / $74,214,000 value of media share
Tennessee / 9.7% of Conference Value / $63,147,000 value of media share
Florida / 8.5% of Conference Value / $55,335,000 value of media share
Texas A&M / 7.2% of Conference Value / $46,872,000 value of media share
Arkansas/ 6.2% of Conference Value / $40,362,000 value of media share
South Carolina / 6.2% of Conference Value / $40,362,000 value of media share
Mississippi / 4.6% of Conference Value / $29,946,000 value of media share
Kentucky / 3.6% of Conference Value / $23,436,000 value of media share
Mississippi St./ 3.0% of Conference Value / $19,530,000 value of media share
Missouri / 1.6% of Conference Value / $10,416,000 value of media share
Vanderbilt / 1.1% of Conference Value / $7,161,000 value of media share
That's a rabbit hole where all possibilities open up. But in general it would involve blending together the SEC West and Big 12 South and the SEC East and ACC South. This recaptures a lot of lost high value inventory not currently played due to conference alignment.
Option 5: You made it, you keep it.
No more equal payouts from the ACC. What you earned is what you keep. So you don't have to scroll back up:
Quote:Clemson / 12.5% of Conference Value / $56,350,000 value of media share
Florida St./ 12.2% of Conference Value / $54,997,600 value of media share
Virginia Tech / 11.7% of Conference Value / $52,743,600 value of media share
Georgia Tech / 9.0% of Conference Value / $40,572,000 value of media share
Miami / 8.1% of Conference Value / $36,514,800 value of media share
N.C. St./ 7.5% of Conference Value / $33,810,000 value of media share
Louisville / 7.4% of Conference Value / $33,359,200 value of media share
North Carolina / 6.5% of Conference Value / $29,302,000 value of media share
Virginia / 5.7% of Conference Value / $25,695,600 value of media share
Syracuse / 5.1% of Conference Value / $22,990,800 value of media share
Pittsburgh / 4.8% of Conference Value / $21,638,400 value of media share
Boston College / 3.4% of Conference Value / $15,327,200 value of media share
Wake Forest / 3.2% of Conference Value / $14,425,600 value of media share
Duke / 2.8% of Conference Value / $12,622,400 value of media share
* Notre Dame's value is 5th nationally so if a full member of the ACC their % of Conference value would be 27.7% and would dwarf the rest of the ACC.
This would result in FSU, Clemson, GT, VT, and Miami getting a substantial pay increase. NC State and Louisville would be about a wash. Everybody else would receive a pay cut. Three teams would see their pay more than halved, and 6 (almost 7) teams would see a 8 figure pay cut. This means for this to happen a clear majority of the conference would have to vote to willingly take a pay cut. And nearly 1/3 of them a steep painful pay cut.
I think that covers all the actual realistic scenarios aside from having a massive donation infusion from fans/boosters/alumni to get your facilities and staffs to elite level to then win at an elite level to then expand the fan base and hopefully keep the feedback loop going. In the ACC this should be called "The IPTAY Approach".
The Wall Street Journal valuation modeling above is strictly for football...the WSJ does the identical analysis for basketball. Per the WSJ valuations, basketball adds another 40% value to the ACC schools. Unlike the other power conferences, basketball does make a difference when discussing "profitability" or "free cash flow" for ACC athletic programs.
Some oddities about WSJ valuations: Louisville basketball valuation ($320M) is nearly twice its football valuation ($176M); and Syracuse basketball valuation ($154M) is higher than its football valuation ($121M). If these valuations are accurate, then Louisville and Syracuse should have remained in the Big East and focused more on basketball...LOL
If WSJ valuations are to be believed as a proxy for media rights generation, then the accurate proportions would be
LOU 0.50 13.3%
CU 0.35 9.5%
FSU 0.34 9.1%
VT 0.32 8.7%
UNC 0.30 8.0%
SYR 0.28 7.4%
DU 0.26 7.0%
NCS 0.24 6.6%
GT 0.24 6.4%
MIA 0.23 6.2%
UVA 0.21 5.8%
PITT 0.20 5.5%
BC 0.11 3.0%
WF 0.11 3.0%
ND 0.01 0.4%
3.72 100.0%
The second column has the combined (football and basketball) WSJ valuation in billions of US$. Notre Dame's valuation is strictly the WSJ's basketball-only data.
Within the ACC, the generation of media rights payouts has little correlation to the WSJ valuation modeling. Clemson, Florida State and Miami are the bell cows that deliver media rights payouts (via viewership). To a lesser extent, Virginia Tech and Louisville are also above average contributors to the current media rights payouts.
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