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I don't find it that odd that ESPN has the unilateral power to not extend
the contract beyond 2027. Then again, I work in contracts where some of the contracts have a base period and option period(s). It will depend on the wording in the ACC-ESPN "Agreement" (as referenced by the GOR). If it is truly an option period, then it should behave no differently than when the federal government, state governement, a private company, pro team, or even a college/university decides to not exercise the next option for any contract. The other party doesn't have a say in the matter because they are only providing a good or service.
Now an argument could be made that the ACC was foolish to enter into that type of contract. As I have noted a couple times on this board, I point back to Swofford's motivation to get the ACCN launched as the crown jewel to his legacy. If he was willing to do anything to accomplish that goal and he had a lot of influence within the ACC, then it isn't that unreasonable to think people may have given him the benefit of the doubt on some of the decisions. Depending on how much of that was going on behind the scenes, it is possible that some of the decisions made may not have been in the best interest of the ACC and/or its members for the long-term. One example, is the ACC (maybe even Swofford himself) unilaterally deciding to extend the GOR to June 30, 2036 even though the Agreement ran until June 30, 2027. If the ACC made the decision based on the assumption that things would still be the same or similar enough to how things were when the amendment was issued, then a potential flaw in that logic is assuming the ACC would extend the Agreement until June 30, 2036. It would not surprise me if the ACC had not considered the scenario that enough changes could take place in how the "game" is played or ESPN's financial position changes enough that it is no long in its best interest to remain in the Agreement with the ACC.
ESPN has reasons to extend the Agreement until June 30, 2036. At the same time, ESPN may have reasons to not extend it. A potential reason is that ESPN could make more money re-allocating those resources to other things/projects than what it made from the ACCN. Another potential reason is ESPN's new stakeholders (i.e. the NFL) may have different views on how ESPN allocates its resources. Depending on how much influence a stakeholder may have on the decisions, it is possible ESPN may need to listen to the stakeholder. If the NFL tells ESPN that it doesn't believe ESPN is getting the most bang for its buck by investing in the ACCN and it could get more bang for its buck re-allocating that money to the NFL, FBS College Playoff, or even the potenial Super League involving the P2s, then ESPN would be foolish to ignore the NFL's "recommendations."
Thread Replies (96)
The Atlantic Coast Conference has asked an appeals court to put on hold a
-- WBGV
Jun 07, 2024 at 02:05 PM ET
WBGV
•
06/07/24 02:05 PM ET
Yeah, it’s never a good idea to ignore opinions from the court …
-- lawhokie
Jun 07, 2024 at 04:16 PM ET
lawhokie
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06/07/24 04:16 PM ET
Let's sort some things out and maybe you'll have a more cogent question:
-- 33laszlo99
Jun 09, 2024 at 07:02 PM ET
33laszlo99
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06/09/24 07:02 PM ET
Well, in a concise way, maybe liquidated damages isn't the right word
-- VTCALS72
Jun 09, 2024 at 08:01 PM ET
VTCALS72
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06/09/24 08:01 PM ET
If the parties to the GoR wanted the value of the "Grant" to be equal to
-- 33laszlo99
Jun 09, 2024 at 08:20 PM ET
33laszlo99
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06/09/24 08:20 PM ET
I see a serious problem in the wording of the grant to ESPN
-- lawhokie
Jun 08, 2024 at 08:53 AM ET
lawhokie
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06/08/24 08:53 AM ET
Certainly I am not a lawyer but
-- VTCALS72
Jun 08, 2024 at 12:19 PM ET
VTCALS72
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06/08/24 12:19 PM ET
So you thinking now, FSU, Clemson, Va Tech and State to the SEC, UVA, UNC,
-- Stech
Jun 09, 2024 at 04:09 PM ET
Stech
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06/09/24 04:09 PM ET
I approve this message **
-- VaTechHokiesACC
Jun 09, 2024 at 11:16 PM ET
VaTechHokiesACC
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06/09/24 11:16 PM ET
Interesting, what schools r saying that Tech and State aren’t P2 material?
-- Stech
Jun 09, 2024 at 07:43 PM ET
Stech
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06/09/24 07:43 PM ET
I think I would answer that by asking how many times you have heard
-- VTCALS72
Jun 09, 2024 at 07:53 PM ET
VTCALS72
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06/09/24 07:53 PM ET
So I take that as Podcasters with an agenda are your sources, not schools,
-- Stech
Jun 09, 2024 at 08:12 PM ET
Stech
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06/09/24 08:12 PM ET
Not and insider and are only offering my take
-- VTCALS72
Jun 09, 2024 at 09:24 PM ET
VTCALS72
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06/09/24 09:24 PM ET
Been saying this 4 about a year, for the ACC to let the big rating schools
-- Stech
Jun 09, 2024 at 09:42 PM ET
Stech
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06/09/24 09:42 PM ET
I think the ESPN can work out an agreement to save the ACC even if the 7+1
-- Stech
Jun 10, 2024 at 12:00 PM ET
Stech
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06/10/24 12:00 PM ET
We are in agreement except for the more than 2-4 schools
-- VTCALS72
Jun 10, 2024 at 12:04 PM ET
VTCALS72
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06/10/24 12:04 PM ET
First round could be 2-4, but I think the whole Mag 7+1 goes P2 over time,
-- Stech
Jun 10, 2024 at 01:17 PM ET
Stech
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06/10/24 01:17 PM ET
I think many ACC teams, just like many PAC and B12 teams, will
-- Big12 guy
Jun 09, 2024 at 05:37 PM ET
Big12 guy
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06/09/24 05:37 PM ET
We have hashed it out and finally come to an agreement
-- VTCALS72
Jun 09, 2024 at 06:07 PM ET
VTCALS72
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06/09/24 06:07 PM ET
There will be no new PAC for the 100th time. We will no agree
-- Big12 guy
Jun 09, 2024 at 07:08 PM ET
Big12 guy
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06/09/24 07:08 PM ET
There will a New PAC, but it will be a G5 conference.
-- 33laszlo99
Jun 09, 2024 at 09:28 PM ET
33laszlo99
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06/09/24 09:28 PM ET
The poster was inferring that there will be a PAC at the same level
-- Big12 guy
Jun 09, 2024 at 09:45 PM ET
Big12 guy
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06/09/24 09:45 PM ET
Lot of talk about the PAC coming back and the west coast is pretty spread
-- VTCALS72
Jun 09, 2024 at 08:03 PM ET
VTCALS72
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06/09/24 08:03 PM ET
Geographically, it makes sense to have the PAC 12. The problem is that
-- Big12 guy
Jun 09, 2024 at 08:11 PM ET
Big12 guy
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06/09/24 08:11 PM ET
now we are back to disagreeing.
-- VTCALS72
Jun 09, 2024 at 09:26 PM ET
VTCALS72
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06/09/24 09:26 PM ET
They were not placed there. They were lucky, like all
-- Big12 guy
Jun 09, 2024 at 09:37 PM ET
Big12 guy
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06/09/24 09:37 PM ET
We disagree again you way over value the Big 12, understandable but still
-- VTCALS72
Jun 10, 2024 at 09:01 AM ET
VTCALS72
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06/10/24 09:01 AM ET
We will forever disagree on the value of the B12, and
-- Big12 guy
Jun 10, 2024 at 09:32 AM ET
Big12 guy
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06/10/24 09:32 AM ET
Your 2nd paragraph is BS, 3rd too
-- VTCALS72
Jun 10, 2024 at 12:19 PM ET
VTCALS72
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06/10/24 12:19 PM ET
What you call BS is me disagreeing with you. Neither my opinion,
-- Big12 guy
Jun 10, 2024 at 01:04 PM ET
Big12 guy
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06/10/24 01:04 PM ET
The contract details are not known to either one of us. You know the
-- Big12 guy
Jun 10, 2024 at 10:34 AM ET
Big12 guy
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06/10/24 10:34 AM ET
Again, you are comparing the current ACC contract with that of the
-- Big12 guy
Jun 10, 2024 at 01:00 PM ET
Big12 guy
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06/10/24 01:00 PM ET
Without looking back at my post, I was referring to the media contracts,
-- Big12 guy
Jun 10, 2024 at 01:29 PM ET
Big12 guy
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06/10/24 01:29 PM ET
Fair, and my post was to point out the
-- Big12 guy
Jun 10, 2024 at 01:40 PM ET
Big12 guy
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06/10/24 01:40 PM ET
The ACC is a joke. But not as much of a joke as the Big 12.**
-- NokieHokie
Jun 10, 2024 at 01:51 PM ET
NokieHokie
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06/10/24 01:51 PM ET
I disagree with both statements. **
-- Big12 guy
Jun 10, 2024 at 02:34 PM ET
Big12 guy
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06/10/24 02:34 PM ET
The media? As we have understood what power conference have been
-- Big12 guy
Jun 09, 2024 at 10:00 PM ET
Big12 guy
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06/09/24 10:00 PM ET
I think there are several.......
-- 2hhoop3
Jun 10, 2024 at 01:43 AM ET
2hhoop3
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06/10/24 01:43 AM ET
The CFP Committee identified the upper tier of FBS (NCAA terminology) by
-- 33laszlo99
Jun 09, 2024 at 10:23 PM ET
33laszlo99
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06/09/24 10:23 PM ET
In that case, it's time to jettison baggage
-- hokie_jayhawk
Jun 09, 2024 at 06:19 PM ET
hokie_jayhawk
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06/09/24 06:19 PM ET
What "big state schools?" IMHO this mid level will not have 16 teams
-- VTCALS72
Jun 09, 2024 at 08:07 PM ET
VTCALS72
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06/09/24 08:07 PM ET
Too late for that. You will have to join a new conference if
-- Big12 guy
Jun 09, 2024 at 07:56 PM ET
Big12 guy
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06/09/24 07:56 PM ET
The GOR is a mess, and here is why…
-- lawhokie
Jun 08, 2024 at 10:41 AM ET
lawhokie
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06/08/24 10:41 AM ET
That's a ridiculous interpretation
-- SpeakToDamien
Jun 08, 2024 at 02:16 PM ET
SpeakToDamien
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06/08/24 02:16 PM ET
So as a former member, FSU would be a “current member”…
-- lawhokie
Jun 08, 2024 at 03:22 PM ET
lawhokie
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06/08/24 03:22 PM ET
No offense meant. And Greenberg is a great firm
-- SpeakToDamien
Jun 08, 2024 at 03:25 PM ET
SpeakToDamien
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06/08/24 03:25 PM ET
"Member Institution" simply means each school that signed the original GOR
-- SMU Pony
Jun 08, 2024 at 11:04 AM ET
SMU Pony
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06/08/24 11:04 AM ET
The first paragraph weighs heavily against that interpretation…
-- lawhokie
Jun 08, 2024 at 03:20 PM ET
lawhokie
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06/08/24 03:20 PM ET
It’s the status of the institution at the time of signing, right?
-- Marooned
Jun 08, 2024 at 11:09 AM ET
Marooned
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06/08/24 11:09 AM ET
Interesting but don't they borrow and issue bonds
-- VTCALS72
Jun 08, 2024 at 12:23 PM ET
VTCALS72
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06/08/24 12:23 PM ET
Debt issuance is different than a revenue contract.
-- RJHokie
Jun 08, 2024 at 12:57 PM ET
RJHokie
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06/08/24 12:57 PM ET
That's an interesting point...
-- SMU Pony
Jun 08, 2024 at 11:16 AM ET
SMU Pony
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06/08/24 11:16 AM ET
Selling off 5% of an athletic department is nonsensical
-- Pylons
Jun 09, 2024 at 03:50 PM ET
Pylons
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06/09/24 03:50 PM ET
a university athletic department doesn't fall under "pretty much"
-- Pylons
Jun 09, 2024 at 04:34 PM ET
Pylons
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06/09/24 04:34 PM ET
It is semantics. And, to me, an important distinction.
-- Pylons
Jun 09, 2024 at 06:21 PM ET
Pylons
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06/09/24 06:21 PM ET
Well, really, my initial point was that
-- Pylons
Jun 09, 2024 at 06:45 PM ET
Pylons
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06/09/24 06:45 PM ET
I don't see decision making getting murky
-- Pylons
Jun 09, 2024 at 07:27 PM ET
Pylons
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06/09/24 07:27 PM ET
Where have you seen PE take on any sort of decision making power
-- Pylons
Jun 09, 2024 at 08:09 PM ET
Pylons
•
06/09/24 08:09 PM ET
Read the previous post again......
-- 2hhoop3
Jun 09, 2024 at 08:19 PM ET
2hhoop3
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06/09/24 08:19 PM ET
I'm not sure if the GOR is jeopardized if ESPN drops the ACC, but...
-- EDGEMAN
Jun 08, 2024 at 09:29 AM ET
EDGEMAN
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06/08/24 09:29 AM ET
So if the mouse drops the ACC, then couldn't the GOR signees put the group
-- IB4TECH
Jun 09, 2024 at 01:36 PM ET
IB4TECH
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06/09/24 01:36 PM ET
Yeah, I think the consideration is the ESPN deal
-- SpeakToDamien
Jun 08, 2024 at 02:44 PM ET
SpeakToDamien
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06/08/24 02:44 PM ET
If ESPN drops the ACC contract, they will start working on new media....
-- EDGEMAN
Jun 08, 2024 at 09:43 AM ET
EDGEMAN
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06/08/24 09:43 AM ET
ESPN made approx $150M in profit on the ACC Network last year
-- SMU Pony
Jun 08, 2024 at 09:52 AM ET
SMU Pony
•
06/08/24 09:52 AM ET
What happens to those profits if FSU and Clemson leave? might impact espn**
-- wwhokie1
Jun 08, 2024 at 09:09 PM ET
wwhokie1
•
06/08/24 09:09 PM ET
not much, the higher rate for SC subs.
-- daveinop
Jun 09, 2024 at 08:06 AM ET
daveinop
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06/09/24 08:06 AM ET
There may be a benefit for having ACC schools in Texas in California, but
-- wwhokie1
Jun 09, 2024 at 08:04 PM ET
wwhokie1
•
06/09/24 08:04 PM ET
I can't believe the ACC did not have some sort of parachute penalty to
-- Maroon Unit
Jun 08, 2024 at 09:39 AM ET
Maroon Unit
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06/08/24 09:39 AM ET
They could, for all we know...
-- SMU Pony
Jun 08, 2024 at 09:45 AM ET
SMU Pony
•
06/08/24 09:45 AM ET
I don't find it that odd that ESPN has the unilateral power to not extend
◄
-- VTHokie2000
Jun 08, 2024 at 10:33 AM ET
VTHokie2000
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06/08/24 10:33 AM ET
I don't think the unilateral option concept is odd
-- SMU Pony
Jun 08, 2024 at 10:37 AM ET
SMU Pony
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06/08/24 10:37 AM ET
could be that look ins are very common, think about the CFP "look in."**
-- VTCALS72
Jun 08, 2024 at 01:06 PM ET
VTCALS72
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06/08/24 01:06 PM ET
As I noted in my previous post, it may go back to how much trust people had
-- VTHokie2000
Jun 08, 2024 at 10:49 AM ET
VTHokie2000
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06/08/24 10:49 AM ET
Clemson sued the ACC before the ACC sued Clemson
-- LeadingEdge
Jun 07, 2024 at 02:36 PM ET
LeadingEdge
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06/07/24 02:36 PM ET
Does any of what goes on in a Fla, NC or SC state court really matter?
-- VTCALS72
Jun 08, 2024 at 08:17 AM ET
VTCALS72
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06/08/24 08:17 AM ET
No.acc has little nexus with SC. A ton with NC. Plus same issue as fsu**
-- SpeakToDamien
Jun 07, 2024 at 06:29 PM ET
SpeakToDamien
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06/07/24 06:29 PM ET