@Hokie83 Is there an anticipated timeline of when you think things
will truly start unfolding ?
44 Replies
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Hokie83
2y
Fee then its most likely will be a free for all not long after that because ACC will be done , if FSU is not successful or the Exit Fee is exuberant the timeline will slow down to 3-5 years.. imo
(In response to this post by olemisshokie4life)
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VTCALS72
2y
I ask because it seems there is so much more to the ACC than just FSU, especially if the ACC can get the FSU payment for leaving up to 300 mil.
I don't think that FSU can really win much in court primarily because I believe the GOR will be ruled a completely different and independent agreement than the ESPN deal. If that is established, then FSU can't challenge the GOR on their own and in Florida as it would be a class action of all the members and really has to be challenged in North Carolina, the home base of the ACC. That is why I think they will pay into the 300s to get out without the risk of losing in court and having to pay way more.
How many ACC schools can realistically pay $300 mil? especially if the only other place to play is the Big 12? That is not a good option for eastern teams at best.
(In response to this post by Hokie83)
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Hokie83
2y
they have secured a landing spot if cost is not exuberant
(In response to this post by VTCALS72)
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VTCALS72
2y
IMHO unless the ACC loses the lawsuit and GOR is ruled invalid, the ACC will remain a very valid option as a "minor league" just as the big 12 is and will be and the ACC coffers would swell by whatever the FSU exit fee was with every team that leaves. And if it looked like the GOR would be invalidated then that would put every leagues GOR at risk as reports are all the GORs are pretty much the same. I don't believe the other leagues nor the media want that. In fact I believe the P2 rather have their GORs intact than have FSU. In the end, the ACC will have to do what ESPN etc. say to do. I believe that is THE reason we added teams, ESPN said so. The thing is so will FSU have to do what the media and potential destination say to do. So there is that.
The P2 could take as little as 2-3 teams or as many as 7. For those who are not chosen by the P2, what better options than the ACC will exist? Remember we were an independent for years and even when we did get into the BE, it did not feel like home. The ACC was still king in just about every neighborhood and locality in VA. In one way we were cut off from our fanbase. Of non west coast teams, only Pitt and Louisville have much or any of a fanbase west of their locations. So for everyone else, the only option appears to be moving to a conference in another time zone and way away from our fanbase. Honestly why do that?
Money? Really? If say VT is not taken in the P2, what money? If the ACC wins or even negotiates an exit price from FSU in the 300 mil range, what teams would be better off attempting to pay that in the Big 12 which is the only other option? Do you really want VT in a place we make less than say Boston College or Cuse and are playing in another time zone from our fans?
Both the ACC and the Big 12 are living on borrowed times at the pleasure of the P2 and media. It is only a dream that the big 12 can somehow get closer to the P2 than it will be to the ACC.
(In response to this post by Hokie83)
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2hhoop3
2y
next to nothing to the P2. Aside from no one leaving those conferences in the recent past the only place those schools could go would be the other P2. The only others that would jump will have to have a P2 slot. The Big 12 makes zero sense for economic and travel reasons short of both leagues(ACC and Big 12) combining to create likely 4 geographically aligned pods and that is still predicated on the numbers making sense.
(In response to this post by VTCALS72)
2y
Everything on X, Youtube, etc is all created by Big 10, Big 12 and FSU people. Very little counterbalance. The Big 12 stuff is sick. Just because Texas and OU bolted you want to see the ACC take hits.
(In response to this post by VTCALS72)
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Hokie83
2y
and possibly start a separate conference if a TV partner is found, no one knows what will happen for certain at any level other than P2 is where you need to be unless a Revenue Sharing Deal happens which many think is a real possibility ... I do not think the ACC survives past the GOR Term if even that long as it currently shaped and we all know FSU is a good as gone one way or another..None of us on this or any board or any Public Forum knows the certainty of how the Conference Realignment Nonsense plays out...
(In response to this post by VTCALS72)
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VTCALS72
2y
(In response to this post by Hokie83)
What might a revenue sharing deal look like?
(In response to this post by Hokie83)
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Stech
2y
likely be involved if it were to happen? What’s being proposed as the structure? Is this something new?
(In response to this post by Hokie83)
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Hokie83
2y
explain it or even totally understand it to be honest, I will ask and dig around more on possible specifics of what the Deal might look like..
(In response to this post by Stech)
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Stech
2y
(In response to this post by Hokie83)
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Stech
2y
(In response to this post by Hokie83)
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2hhoop3
2y
should be the absolute worst case settlement floor and they should shoot for $400 Million or north. FSU has already set the number they believe to be the minimum at $572 Million.
(In response to this post by VTCALS72)
2y
Don't see how a court agrees to lowering the cost. The whole thing about a buy back was put in the latest ACC filing to continue to persuade the court the buy out is not a penalty. The exit fee could be seen as a penalty. This is the reason GOR came into existence.
(In response to this post by 2hhoop3)
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2hhoop3
2y
that the court will construe the fees as a penalty although I believe some writers and a few posters here fantasize about that. I believe the buyback was put in to call FSU's bluff in their original filing and now FSU has backed themselves in a corner as to how they argue their filing. The GOR came into existence for a few reasons but, I do not believe any of them had much to do with any fears that the exit fee could be seen as a penalty. The exit fee was previously litigated with Maryland and legal loopholes and language previously contested was adjusted to be on point from the precedents established in that case and the procedural missteps that allowed Maryland to depart paying a reduced amount were supposedly addressed with the signing of the new agreements. I don't think the ACC fears going to court but, if they can allow FSU to depart for a settlement amount in the ballpark of what they expect to get from litigating, net of the legal fees they would not be averse to saving the time and effort of litigation. FSU is the once hot chick at age 25 that has now put on 100lbs by age 50 but, still expects everyone to treat her like she is 25.
(In response to this post by vtfaninnc)
2y
These are the telling signals in the most recent ACC court filing, as reported by Matt Baker in Tampa Bay Times (02-16):
"If Florida State wishes to regain control of the rights before the end of the term, it could attempt to repurchase them," the filing said. "But having to buy back a right which was assigned is not a penalty; it is simply a commercial possibility.”
First, this is the announcement to anyone interested that The ACC is willing to settle out of court. That has not been part of the discussion until now.
Second, they make the point that buying back the rights is not a penalty. Why do they say that out-of-the-blue? It’s because the exit fee is liquidated damages and would probably preclude the seeking of further damages. If the conference tries to attach future media money to the value of the FSU rights, it may look as though they are calculating damages. So... the value of the FSU rights will be determined… how?
The rights were assigned without monetary payment. So, what is their value? Well, what is their function? I would say that the GoR is just an instrument that gives some sense of stability to the media company who wishes to invest in ACC content. It’s akin to buying an airline ticket at the higher price because it allows changes of travel dates without penalty and earns bonus miles. But most of the value is just securing a seat on the flight, just as most of the value for The ACC is bundling ACC football content.
Does FSU really have damning accusations that they could weaponize in a trial? I surely don’t know. And maybe the conference doesn’t even know. But the conference might know if such problems exist. Has FSU shared this information with other schools or are they using it as their own lever? Could this compel the conference to settle quickly and bury the threatening secrets?
All speculation, but these are the reasons I think FSU will escape The ACC much more cheaply than others have predicted.
** Edited by 33laszlo99 at 2/21/2024, 9:47:52 PM
(In response to this post by 2hhoop3)
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2hhoop3
2y
to your speculation?
(In response to this post by 33laszlo99)
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2hhoop3
2y
that we disagree in the slightest nor does your line of reasoning surprise me. You're consistent and we'll see whether you are any closer on the amounts in due time.
(In response to this post by 33laszlo99)
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2hhoop3
2y
it is good to know your number. Even at that amount, cheaper than most hokies think, you are far above the number speculated by some others. It will be interesting to compare all the speculation to the final number IF/WHEN one ever becomes finalized.
(In response to this post by 33laszlo99)
2y
decision that you can not walk away from. Simply calculate the difference in per team payout between the SEC/B1G and ACC and run a calculation.
(In response to this post by Hokie83)
2y
Just kidding.
My actual rough back of napkin guess is existing annual revenue times 12 years left on GOR ($35Mx12=$420M) plus an exit fee ($130M).
Gets me to $550M cost if they did it today with no negotiated discounts or reductions. Seems close to what FSU had as a starting point for discussions. I'm sure the actual numbers will be far more nuanced than these high level generalizations. When it's all over I'd guess something 20% less than this plus subtracting a year or two from the payment calculation. Gets things down to around $400M.
** Edited by HokieAl at 2/22/2024, 9:23:55 AM
(In response to this post by 133193Hokie)
2y
(In response to this post by Hokie83)
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Hokie83
2y
my gut says SEC is the most likely to add us at this point in time but nothing is a given yet..
(In response to this post by olemisshokie4life)
2y
(In response to this post by Hokie83)
We've been working on that for years. I asked Prez Steger about that.....
in 2013. He told me that VT had been working on it for years even then and expected to become AAU in about 5 years. So that would make it 2018. Since it didn't happen then and hasn't happened to date, I don't see it happening anytime soon. Maybe in next 10-20 years.
(In response to this post by hokie77)
2y
it's a subjective invite, not an objective measurement.
(In response to this post by hokie77)
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Stech
2y
especially if they take the Virginia Carolina 4. Is that accurate?
(In response to this post by Hokie83)
2y
the risk of "offending" the SEC (yet again) IF we get the chance to join the SEC.
(In response to this post by Hokie83)
2y
I can see it hitting at any time. All way up to 10 years. My best guess would be 5 years.
(In response to this post by olemisshokie4life)
2y
I have no clue what the FSU legal battle will do or how long that will take. But the ESPN contract is now a known catalyst that could start the wheels of destruction in motion as early as 2025.
(In response to this post by MrFantastic!)
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daveinop
2y
unilateral nine-year option" we won't know what that potential opt-out actually entails. The rest of their legal complaint isn't exactly a complete and unbiased historical account. Are there any financial penalties? What happens to the ACCN, does the ACC then own it? Does ESPN still have to carry it?
(In response to this post by HokieAl)