The question of the day after the release of the terms is why? Why did the ACC give up so much to reach settlements with Clemson and FSU?
From Andrea Adelson’s article at ESPN discussing the settlements terms.
As a result of the settlement, the penalty to leave the conference has been significantly reduced. The grant of rights remains in place through 2036, but beginning next year, the exit fee will be $165 million. That fee then declines by $18 million per year, leveling at $75 million in 2030-31. Any team that pays the exit fee can leave with its media rights intact.
I’m going to be honest my jaw dropped when I saw this. I expected some concessions, but nothing to this extent.
Why would the other ACC member schools agree to this? I got nothing. I couldn’t think of a single reason why the ACC basically gave away any and all leverage they had. So I kept thinking, and now here are my grasping-at-straws reasons why the ACC effectively capitulated.
1. Fear
Oregon State and Washington State struck a tremendous amount of fear in not having a P4 home. Nothing is worse than the fate those two schools had. Those are legitimate athletic departments struggling for survival.
2. ESPN
Maybe ESPN behind the scenes said we’re not agreeing to the extension without a settlement by any means. As a lawyer told me offline that could create liability, for ESPN so who knows. Maybe ESPN dangled some carrot out there we’re not aware of in a dark back room.
3. The Votes just worked out
The ACC has 18 voting members. 3/4 of a vote is 14, and 2/3 is 12. One of those two were the votes needed. Ok FSU, Clemson, UNC, and Miami probably were yes. Wake Forest had no choice, but to agree. That left 7 or 9 more votes to get. Yea I have no idea, see number 1.
4. FSU/Clemson had a smoking gun
Maybe they had something, I don’t know what. I have no answer here. Possibly pictures of voters in compromising positions?
5. They said just get 5 years and hope for the best.
The landscape of college athletics could look completely different in 5 years, and maybe the conference is banking on that. It seems like a stretch to bank your future on that, but…
As you can see, I’ve got nothing here. There’s no way I would have agreed to anything less than $250 Million GOR + Exit fee before 2030. Then maybe drop it half to $125 Million after that.
Remember Oklahoma and Texas paid $50 Million to get out of their GOR with 1 year left on the Big 12’s media deal. Any school can leave the ACC with 6 years left for $75 Million. The math doesn’t work.
If more details come out that explain why the the majority of ACC schools agreed to this, we’ll talk about it. For now, congrats to FSU, Clemson, and anyone else thinking about leaving the ACC in a few years. You can walk out for a bargain basement rate.
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