ACC Football Daily Links — How Maryland’s Athletic Department Went Broke (And Why It Needs the Big Ten)

Maryland Financial Issues Broke Athletic Department Conference Expansion Realignment Big Ten ACC Football

Monday through Friday each week, we compile the best links on ACC football from around the web.

Tuesday, December 4, 2012

Maryland to Big Ten: League’s More Stable Revenue Streams Lead Broke Terps to Bolt (The Sporting News)

Just a decade removed from winning the NCAA championship in basketball and competing in the Orange Bowl in football, the University of Maryland athletic department is broke. That’s the main reason university officials used to explain why it decided to divorce itself from the ACC, an athletic conference that it helped found nearly 60 years ago…

Boston College Football Coaching Search: The Notre Dame Fan Case Against Bob Diaco to BC (BC Interruption)

When word got out that Notre Dame defensive coordinator Bob Diaco would interview for the vacant Boston College football coaching position, Irish fans were predictably all like … The f**k! RT @bcinterruption: Boston College Football Coaching Search: Notre Dame DC Bob Diaco To Interview sbn.to/QAo6if — Michael McNeil Jr. (@michaelkmcneil) December 2, 2012…

Fedora Interviewing at Tennessee? (Tar Heel Blog)

According to Tennessee site, Volquest(via Clay Travis on Twitter), Larry Fedora’s name has surfaced in the coaching search at Tennessee with reports that he will interview with the Volunteers today. Fedroa’s name is being mentioned along with Louisville’s Charlie Strong and Oklahoma State’s Mike Gundy as potential replacements for recently fired coach Derek Dooley. So what, if anything, does this mean?…

Nevin Shapiro’s Two Roles: Miami Hurricanes Sugar Daddy, Pseudo Agent (Miami Herald)

While Nevin Shapiro was handing out small amounts of cash like candy to the University of Miami’s star football players, the Hurricanes booster was sinking a much larger sum — $1.5 million — into a budding sports agency fittingly called Axcess. Axcess was hoping to sign many of those same athletes as clients and score huge fees on multimillion-dollar pro contracts…

NC State vs. Vanderbilt: Strength vs. Strength in the Music City Bowl (Backing the Pack)

Way back in August during our series of previews for the much-anticipated, ultimately-deflating, signs-of-sad-to-come season-opener against Tennessee, the normally prescient Omega Swami concluded that the game would pit the irresistible force of Tyler Bray’s right arm against the immovable object that was supposed to be N. C. State’s secondary…

Tenuta, Willis, O’Brien Possible Candidates as London Remakes Virginia Staff (Daily Press)

Anyone who follows University of Virginia football anticipated and/or endorsed offseason staff changes. The Cavaliers’ fifth losing record in the last seven years and a ninth consecutive defeat to Virginia Tech could not be ignored. But few expected the dismissals announced Sunday. Tight ends coach Shawn Moore is a program icon, a former All-America quarterback whose son is a promising defensive end on the team…

The Difference Between 6-7 and 7-6? A Lot, Say Virginia Tech Players (Virginian-Pilot)

The difference between a 6-7 season and a 7-6 might seem minuscule in most peoples’ minds. No matter how Virginia Tech finishes, it will still be far below the goals the Hokies had coming into the season. But that hasn’t diminished the importance of winning the Russell Athletic Bowl matchup against Rutgers in the players’ minds. “I think it says a lot,” quarterback Logan Thomas said…

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10 thoughts on “ACC Football Daily Links — How Maryland’s Athletic Department Went Broke (And Why It Needs the Big Ten)

    • From what I understand, yes. The value of that deal included Pitt and Syracuse. That said, unsure if there will now be another negotiating period, which would include the Notre Dame and Louisville inventory, while subtracting Maryland’s. I think that’s still a net positive for the ACC, but I’d also like to see Swofford negotiate third-tier rights back to the conference (and/or the schools themselves). It’s the only way we’re getting an ACC Network off the ground, and the only way to truly make Clemson and FSU happy.

      • If I read that article on Maryland correctly, it said the Big 10 paid out 24M per school last year. What will the ACC pay out next year? It seems like the numbers I keep hearing are between 17M & 19M? It does not seem like the 5 to 7M difference is all that much when you consider that it could potentially cost MD 50M+ to get that. That’s 7 to 10 years just to break even. I realize the Big 10 contract gets renegotiated in 2017, but I believe the ACC has look-ins built into their contract, so no one really knows whether that gap will grow or shrink. And what if the ACC does start its own network like the Big 10? There just seem to be too many unknowns for the MD decision-makers to be so certain they are going to realize a huge benefit from their move. It would seem that their travel costs will eat into their expected profit as well as the two extra schools to split up the Big 10 money.

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        • The keys for the ACC are a grant of rights and its own cable network. Those are the only ways it ever catches up to the other leagues. On top of that projected $24M figure, there’s another $20M+ coming from the B1G Network. Meaning Maryland left for more than double the money they’d have made in the ACC (totally worth it). Now, an ACC Network wouldn’t pay out $20M+ per year, but even it gave $10M, that, along with a grant of rights, would at least get the ACC in the same ballpark as everyone else, with the protection of the GoR.

  1. Let me preface this comment with the statement that the following questions are serious, not intended to be sarcastic or snarky. I am truly trying to understand this.

    Doesn’t the Big 10 network already exist? If it does already exist, then I don’t understand how to reconcile the 24M payout last year with the 44M number you cite. Did the schools not receive a payout from the Big 10 network last year?

    • No worries. The B1G gives two separate media payouts (so does the Pac-12): one for their cable network ($20M for the B1G) and one for their media contracts with ESPN/CBS/anyone else. So while the increase in base revenue isn’t much of a jump from the ACC to the B1G, that number is much larger when you consider the cable network, too.

      • So does that mean the Big 10 currently makes 240M (or 260M if the conference office gets a share) in net profit per year from the Big 10 network?

        • OK, I thought I would contribute something to the conversation other than questions. I did a little research and I found articles from NBC Sports and the Chicago Tribune that indicate the 24M figure includes the payout from the Big 10 Network. In fact, the NBC article indicates that the payout for the Big 10 network was actually less in 2012 than it was in 2011. Here’s a quote from the NBC Sports article:

          “The Big Ten’s record haul comes despite the payout from the wildly successful Big Ten Network coming in less than last year. In 2011, Big Ten schools received $7.9 million from the network; this year, that total will drop to “just” $7.2 million.”

          Again, they quote the total pay out to Big 10 schools for 2012 was 24.6M. So, I stand by my earlier math. It will take many years for schools leaving the ACC to break even on the 50+M exit fee, and right now once they do the increase is about 7.5M gross. Maybe that is why the rumors of further defections are still just rumors from unnamed sources.

          Here’s the link to the NBC Sports article is you are interested: http://collegefootballtalk.nbcsports.com/2012/05/21/big-tens-per-member-payout-this-year-nearly-25-million/

          Here’s the Tribune’s: http://articles.chicagotribune.com/2011-07-19/sports/chi-big-ten-payouts-to-member-schools-climb-20110719_1_schools-conferences-big-ten-network

          Granted, that’s still a nice payout. It is the highest of any of the conferences right now, but it is not the kind of difference I have been hearing people throw around that makes the decision sound so ridiculously easy that every school that doesn’t leave is just foolish.

        • Appreciate the additional research, Allen. Definitely some good reads there. Curious to see what the new basic contract will pay out, as well as how the additions of Rutgers and Maryland will increase payouts from the B1G Network as well. Should the network end up package with YES, as some are predicting, those numbers would jump considerably.

        • One estimate mentioned in a Pete Thamel article (Sports Illustrated), which I’ll grant you was the best-case scenario for the Big Ten, was getting the BTN on the basic cable package for Washington, Baltimore, Philadelphia and NYC, and getting a carriage fee per subscriber of $1.25 (that’s a monthly fee). My understanding is that the carriage fee is only $0.10 per subscriber when it’s not on the basic cable package.

          If that happened (and obviously that’s a huge IF), then those additions of Maryland and Rutgers would bring in an additional $200 million per year simply from BTN carriage fees.

          Even the lesser scenarios are still talking about $60 million or so coming in from carriage fees, and that’s before they’ve sold any additional advertising.

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