What if there is no "bank" to be had?
Suppose, for example, that the BIG or SEC agrees to take on ACC defectors on the condition that the defectors will not be entitled to share in any BIG or SEC media revenue for as long as the defectors are subject to a GOR. From the defectors' point of view, it should make no difference to them because they won't be seeing that revenue either way. From the acquiring conference point of view, that's a bonus as the expected incremental media revenue from the expanded conference that would otherwise go to the newcomers (or ACC under the GOR) will instead be retained and shared among the other acquiring conference members. Only after the GOR ended, in this example, would the defectors begin to share in the media revenue. Under this scenario, there would be no "bank" available to be paid to the ACC during the term of the GOR because the defectors would have no media revenue during that term, consistent with the condition of their admittance. Of course, that raises the issue of having to finance the revenue loss during that time period, which is a different subject.
Thread Replies (21)
Our best move is probably to cling to the GoR and make bank off defectors.
-- Maroon Effect
Jul 10, 2022 at 07:54 PM ET
Maroon Effect
•
07/10/22 07:54 PM ET
The money goes to the ACC. Gotta stay to collect.**
-- hokieZ71
Jul 11, 2022 at 11:07 AM ET
hokieZ71
•
07/11/22 11:07 AM ET
True. But tv revenue gap will make haves (sec) and have nots of acc worse
-- 3TechFanz
Jul 11, 2022 at 09:10 AM ET
3TechFanz
•
07/11/22 09:10 AM ET
I think it takes a long time to make the GOR $ thought, right?**
-- MrBayAreaHokie
Jul 11, 2022 at 09:06 AM ET
MrBayAreaHokie
•
07/11/22 09:06 AM ET
What if there is no "bank" to be had?
◄
-- El Paso Hokie
Jul 11, 2022 at 12:43 AM ET
El Paso Hokie
•
07/11/22 12:43 AM ET
They aren’t paying the ACC $35 million a year.
-- hokieZ71
Jul 11, 2022 at 11:14 AM ET
hokieZ71
•
07/11/22 11:14 AM ET
The "defectors" athletic departments would be bankrupted. How can they
-- 133743Hokie
Jul 11, 2022 at 06:25 AM ET
133743Hokie
•
07/11/22 06:25 AM ET
As I explained two days ago (Link)
-- El Paso Hokie
Jul 11, 2022 at 09:05 AM ET
El Paso Hokie
•
07/11/22 09:05 AM ET
Gonna borrow $100M per year for 13 years? How do you pay that back?
-- 133743Hokie
Jul 11, 2022 at 09:14 AM ET
133743Hokie
•
07/11/22 09:14 AM ET
Borrow $35M/year to cover what they currently live with
-- El Paso Hokie
Jul 11, 2022 at 09:50 AM ET
El Paso Hokie
•
07/11/22 09:50 AM ET
How do they compete in the new conference? Doormat status for 23 years
-- 133743Hokie
Jul 11, 2022 at 10:03 AM ET
133743Hokie
•
07/11/22 10:03 AM ET
Probably could finance that with high interest bonds**
-- MrBayAreaHokie
Jul 11, 2022 at 09:08 AM ET
MrBayAreaHokie
•
07/11/22 09:08 AM ET
Where would the money come from to pay off the bonds? **
-- 133743Hokie
Jul 11, 2022 at 10:04 AM ET
133743Hokie
•
07/11/22 10:04 AM ET
eventually the GORred conf gets their cash flow back
-- MrBayAreaHokie
Jul 11, 2022 at 10:10 AM ET
MrBayAreaHokie
•
07/11/22 10:10 AM ET
So you aren't going to pay on the bonds for 13 years? Then at that point
-- 133743Hokie
Jul 11, 2022 at 11:19 AM ET
133743Hokie
•
07/11/22 11:19 AM ET
So will those schools receive zero media payments for over a decade?
-- EDGEMAN
Jul 11, 2022 at 06:18 AM ET
EDGEMAN
•
07/11/22 06:18 AM ET