At the end of the ACC’s spring meetings Thursday, conference commissioner John Swofford said little concrete about negotiations with ESPN for a possible ACC Network, as is his wont. But just about everything he said suggested that the two entities are still confidently moving toward some sort of network.
“We’re bullish about it, and I’d say they’re bullish about it,” Swofford said.
ESPN and the ACC have been negotiating over a possible channel similar to the SEC or the Big Ten network dating at least to 2013. That was when the league’s member schools bound themselves together with a grant-of-media- rights agreement. The contract obligates any school leaving the conference to forfeit its rights to TV revenues for the duration of the agreement, which is through 2026-27.
Swofford said that “very significant discussions” have continued with ESPN and that the league spent “a significant amount of time” at the meetings on the topic.
League athletic directors and coaches are undoubtedly eager for a network and its expected revenues increase. Clemson athletic director Dan Radakovich, formerly of Georgia Tech, told the Clemson Insider in April that there is concern about the conference falling behind the Big Ten and the SEC, which both have significantly larger media contracts, without its own network. He said there is “urgency” to move forward with a network.
Swofford acknowledged the same eagerness. The Big Ten projects that member schools will receive more than $40 million by 2017-18. In the 2014-15 fiscal year, the SEC shared $31.2 million with each of its schools. ACC members are closer to $20 million.
“That’s why we’re doing it,” Swofford said. “That’s why ESPN’s in the discussion with us. They like to make money, too, and we like to make money, as well. And need to.”
Swofford said there is no deadline with ESPN and painted a picture of discussions that are continually evolving.
“The days of everything just being a rights-fee negotiation, there still is some of that, but there’s a lot more negotiations about developing businesses together that are a partnership, if you will,” he said. “As opposed to a guaranteed rights fee that will be, ‘You get this much this year, this much next year.’ There’s where some of the transition is going to be.”
Swofford praised ESPN, which is facing concerns about its continued profitability because of declining viewership and increasing rights fees. He also stressed the importance of timing for both sides.
“We’ve got to hit it just right, make the right decisions,” he said. “We’re talking about decisions that are not only very important but are for the long term. Getting it right is a lot more important than expediency.”
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