(02-17-2024 09:04 AM)GTFletch Wrote:  True Cost fo tor FSU buy back TV Rights and pay exit fee I am told is 750M!

I get about $1.2 Billion if paid on an annual basis.

The exit fee is about $130 M.
The value of the FSU rights, according to them, is at least twice what the ACC distributes to the member schools. So if the average value distributed is $35M a year, FSU's is worth $70 M and of course FSU knew this going in and traded money for easy wins from the 3-4 ACC schools who are smaller football entities.

12 years starting at $70 M with a 4.5% ratchet yields about $1.1 Billion. I guess the net present value of the $1.1 Billion is $650-$700 M.

This makes me curious how the ACC can leverage this scenario.

A. Keep FSU's rights apart of ACC's ESPN contract renewal. Money for league. Potentially split FSU's share amongst members if FSU is judged to have left the league and owes $130M. FSU only available on ACCNX.

B. Separate FSU media rights from ACC's ESPN contract. Just put the rights up for Monetary Bid from any entity, league or network.

C. Remove FSU media rights from ACC's ESPN contract. Bid the rights out to Fox for some combination of national network football time for ACC + Money. FSU effectively joins BIG, but ACC gets their BIG share. Does Fox care if they pay ACC, BIG, or
FSU?

(02-17-2024 03:06 PM)AeroWolf Wrote:  This makes me curious how the ACC can leverage this scenario.

A. Keep FSU's rights apart of ACC's ESPN contract renewal. Money for league. Potentially split FSU's share amongst members if FSU is judged to have left the league and owes $130M.

B. Separate FSU media rights from ACC's ESPN contract. Just put the rights up for Monetary Bid from any entity, league or network.

C. Remove FSU media rights from ACC's ESPN contract. Bid the rights out to Fox for some combination of national network football time for ACC + Money. FSU effectively joins BIG, but ACC gets their BIG share. Does Fox care if they pay ACC, BIG, or
FSU?

It's always best to cut cancer out as soon as you find it.

Without knowing the exact terms of the contracts and the contract extension triggers we here can only guess. We are told ESPN has an option to continue from 27-36 if they chose to trigger it. If they do not the ACC goes to the market. The ACC holds FSU rights until 2036 unless and until FSU pays to get them back. If the ACC is paid for them before the extension trigger dates, ESPN might be able to continue the current deal through 2036 without being able to penalize the ACC for not having FSU in that package. If you go to the market without them, you go without them. Without them you are not talking about a catastrophic loss of revenue - witness the B12 who was able to keep TV contract payments almost the same despite losing OU and Texas.

The ACCN is making the ACC schools $10-12 M a year each. You would lose that with Fox.

I get it's not a 1-1, maybe it's been discussed & I haven't seen it, but FSU/ACC outcome not being much compared to how ESPN massaged UT+OU from B12 to SEC while trying? to placate all parties.
UT + OU were never going to B10.
Can see ESPN being similarly/moreso engaged to keep an undeniable brand/region away from B10.

(02-17-2024 06:33 PM)OrangemanRich Wrote:  I get it's not a 1-1, maybe it's been discussed & I haven't seen it, but FSU/ACC outcome not being much compared to how ESPN massaged UT+OU from B12 to SEC while trying? to placate all parties.
UT + OU were never going to B10.
Can see ESPN being similarly/moreso engaged to keep an undeniable brand/region away from B10.

In my opinion, this is a completely different scenario.

I suspect the B10/Fox were behind FSU’s legal challenge. The B12 and OU/UT contents were shared between ESPN and Fox. ESPN already owns 100 percent of ACC and FSU content and has no real incentive to move FSU to the SEC.

So no I don’t see ESPN cutting a deal at this stage. For ESPN, the best scenario would be the ACC wins the legal fight and FSU stays put.

Now, in a later stage, ESPN may eventually decide to keep FSU. But that would be a defensive move. That’s different from what happened to UT/OU.

(02-17-2024 06:33 PM)OrangemanRich Wrote:  I get it's not a 1-1, maybe it's been discussed & I haven't seen it, but FSU/ACC outcome not being much compared to how ESPN massaged UT+OU from B12 to SEC while trying? to placate all parties.
UT + OU were never going to B10.
Can see ESPN being similarly/moreso engaged to keep an undeniable brand/region away from B10.

OU and Texas were exiting the B12 a year early, not attempting to leave 12 years early. OU and Texas actually having enough money to pay their obligations is a big difference. Some are acting over on the combined board like it is news that you can buy you way out of an contractual obligation.

(02-17-2024 08:14 PM)SouthernConfBoy Wrote:  

(02-17-2024 06:33 PM)OrangemanRich Wrote:  I get it's not a 1-1, maybe it's been discussed & I haven't seen it, but FSU/ACC outcome not being much compared to how ESPN massaged UT+OU from B12 to SEC while trying? to placate all parties.
UT + OU were never going to B10.
Can see ESPN being similarly/moreso engaged to keep an undeniable brand/region away from B10.

OU and Texas were exiting the B12 a year early, not attempting to leave 12 years early. OU and Texas actually having enough money to pay their obligations is a big difference. Some are acting over on the combined board like it is news that you can buy you way out of an contractual obligation.

Folks act like they've never heard: "every contract has its p_____".
(rhymes with "rice")

(02-17-2024 10:29 PM)Hokie Mark Wrote:  

(02-17-2024 08:14 PM)SouthernConfBoy Wrote:  

(02-17-2024 06:33 PM)OrangemanRich Wrote:  I get it's not a 1-1, maybe it's been discussed & I haven't seen it, but FSU/ACC outcome not being much compared to how ESPN massaged UT+OU from B12 to SEC while trying? to placate all parties.
UT + OU were never going to B10.
Can see ESPN being similarly/moreso engaged to keep an undeniable brand/region away from B10.

OU and Texas were exiting the B12 a year early, not attempting to leave 12 years early. OU and Texas actually having enough money to pay their obligations is a big difference. Some are acting over on the combined board like it is news that you can buy you way out of an contractual obligation.

Folks act like they've never heard: "every contract has its p_____".
(rhymes with "rice")

Yep!
And as we delve deeper into the numbers the estimated P**** of "the exit" continues to rise.