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CU Guru [1055]
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GOR Value Questions...
Mar 21, 2024, 9:51 AM
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1. If a team wants to leave the ACC and pay out their GOR upfront, what is the value? The
ESPN contract is only through 2027 with rights to extend beyond to 2036. If that is the case, there is no value in GOR from 2027-2036.
2. Media rights are usually for home games. Could you not offer to play all road games in the new conference? I know it would be brutal but the ACC cannot claim rights to rights that don't exist.
And before you flame away on #2, this option could be modified something like 3 home games per year.
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All-TigerNet [12943]
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I think #1 is a big deal... and could be the way out
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Mar 21, 2024, 9:55 AM
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If there's a threat that a deal won't exist past 2027 (could be likely), the ACC may just settle and pursue other schools and take a smaller deal for essentially at G5 conference.
It depends on if the ACC wants to survive, or become like the Pac 12.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 9:58 AM
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The value is basically going to be the share that you would get from the contract up through the end. The problem is the contract doesn't really end in 2027. I know people are trying to claim that based on something that was in Florida State lawsuit, but in reality the contract does run through 2036.
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CU Guru [1055]
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I agree that the GOR runs through 2036 but what is the value of the GOR from
Mar 21, 2024, 10:12 AM
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2027-2036? With any contract and buyout, the value needs to be addressed. The ACC cannot quantify the extension because it does not exist. I suspect that the ACC is redacting the ESPN contract because it is not guaranteed to be renewed OR the value could decrease.
Keep in mind that Clemson's lawsuit is about clarification of both the GOR and the ESPN contract. Yes, it is positioning a possible exit OR leverage for additional monies from the ACC.
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CU Guru [1045]
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Re: I agree that the GOR runs through 2036 but what is the value of the GOR from
Mar 21, 2024, 10:23 AM
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The value of the buyout is going to be the of the media rights. The actual number is going to be the TV contract. The thing is it really does run through 2036. I know people have tried to jump on what was said in the Florida state lawsuit about 2027, but it really runs through 2036.
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110%er [5513]
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Re: I agree that the GOR runs through 2036 but what is the value of the GOR from
Mar 21, 2024, 10:28 AM
[ in reply to I agree that the GOR runs through 2036 but what is the value of the GOR from ] |
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The GOR is not a one-time buyout amount. There is not a dollar figure. It means that each year, any TV revenue generated from Clemson home games goes to the ACC. That cannot be predicted. It would have to be paid annually, or after each game, or however they work that out....it's not a buyout you pay up-front.
Clemson could leave for the SEC, then 5 years later bounce to the Big10, then 2 years later become an independent. None of that matters, nor can it be predicted...whatever TV revenue is generated in each of those years through 2036 goes to the ACC.
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110%er [5401]
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Re: I agree that the GOR runs through 2036 but what is the value of the GOR from
Mar 21, 2024, 11:20 AM
[ in reply to I agree that the GOR runs through 2036 but what is the value of the GOR from ] |
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Your OR part is something that I feel needs to be discussed further. Clemson, FSU and one or two more are worth more to the ACC than the rest of the dead weights. The ones that have upgraded and are attempting to compete in football and bring eyeballs to the tv deserve more money.
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110%er [5513]
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Re: GOR Value Questions...
Mar 21, 2024, 9:59 AM
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It means the ACC owns the rights to Clemson's TV-revenue for home games through 2036. It doesn't matter if the ESPN/ACC deal is extended or not.
Any TV money generated from home games goes to the ACC. There is not a current value...the value is unknown. The estimates are in the $400M+ range.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 10:02 AM
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The problem with part number two is if all you're doing is playing road games, then your new conference is not making any money off of those. The value to your new conference is that you have additional home games that you can add to their inventory so that they can get more money from whatever Network is paying them. So in other words if Clemson goes to the SEC and doesn't have any home games, then the SEC is not even going to take them because they don't get any additional inventory to sell to the network. And no, just having Clemson on road games is not really going to get any value. Again it's not because saying Clemson doesn't have value, it's saying they don't have any additional inventory to sell.
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110%er [5513]
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Re: GOR Value Questions...
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Mar 21, 2024, 10:06 AM
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That's not accurate. If Clemson were to go to the SEC and agree to play 8 conference games on the road, ESPN would get all 8 of them.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 10:18 AM
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No what I said is accurate. Schools only have the rights to their home games. They don't own the rights of their away games. The problem with the scenario that the original poster suggested is that let's say for example Clemson plays on the road at auburn. The SEC already owns the rights to that game because they already on the rights to all of Auburn's home games. So just because they're playing a different opponent it doesn't matter. They already on the rights to that game. The only way that the SEC would get additional money is of Clemson brings in new home games that they don't already on.
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110%er [5513]
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Re: GOR Value Questions...
Mar 21, 2024, 10:32 AM
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ESPN SEC contract deal does not own the rights to Clemson @ Wake.
ESPN SEC contract deal would own the rights to Clemson @ Tennessee.
We'd be replacing all of our ACC games with SEC games. ESPN/SEC would then own those rights, so yes it is more inventory.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 11:24 AM
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No that's not how it works. The SEC already owns the rights to all of Tennessee's home games. It will be just like if Clemson played a row game at Tennessee now. ESPN would already own the rights of that game it wouldn't matter whether it was a conference game or not. ESPN was still on the rights to it. The only way to bring additional inventory is home games.
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110%er [5513]
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Re: GOR Value Questions...
Mar 21, 2024, 11:30 AM
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There would be MORE SEC games with a larger conference. That is more inventory.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 11:48 AM
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No it wouldn't. Because Tennessee is going to play a 12-game and schedule no matter what. Tennessee would just be swapping a game that they would already be playing anyway for a game against Clemson. That's not additional inventory They're going to have the same number of home games no matter what. ESPN already owns those home games. The only additional inventory they would have would be home games for Clemson.
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All-In [27193]
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Re: GOR Value Questions...
Mar 21, 2024, 10:20 AM
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I tend to think #1 is the most important issue, and particularly after 2027. I think Clemson is about to make a pretty compelling case that the ACC grossly undervalued our media value.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 10:25 AM
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They really aren't going to be able to make that case. The SEC in the Big Ten are both simply more valuable than the ACC. The value of the acc's contract is not determined just by clemson. It's also determined by the value of Wake Forest, Syracuse, Boston College, etc.
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Varsity [229]
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Re: GOR Value Questions...
Mar 21, 2024, 12:26 PM
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What is interesting is Big 10 seems to be a mess. NBC surely knows they got skinned for taking Maryland and Rutgers. They've added full shares for USC and UCLA and then partial shares for Oregon and Washington to play on the far west coast.
How are they going to add Clemson or UNC or anyone? My guess is next time the Big 10 GOR comes up that someone's going to get cut - like Rutgers.
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Varsity [229]
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Re: GOR Value Questions...
Mar 21, 2024, 12:18 PM
[ in reply to Re: GOR Value Questions... ] |
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So Clemson et al are going to make a case that they agreed to a bad deal and ESPN got a good deal?
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Head Coach [768]
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Re: GOR Value Questions...
Mar 22, 2024, 9:49 AM
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Sure we are and in fact you can throw out everything else in our lawsuit and read sections 35 to 39 or so! We were tickled with the GOR when it happened...it was a big jump in $ but now with the new SEC deal and BIG deal there is a gap! Green eyed monster at work! Could it be that the ACC does not reach the viewership targets to reach higher value (you bet) and as we know the ACC does not put as many buttons in the stadium as those other two conferences...that's not Clemsons fault but as a fou ding member of the ACC we do have responsibility...we probably would not have won our last two natties had we bwwn in the SEC or BIG...everyone on the team got to play in most ACC games! I wonder if Clements and Dabo are also ashamed..Necessity or not it stinks!
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Varsity [229]
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Re: GOR Value Questions...
Mar 21, 2024, 12:13 PM
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Texas and OU paid $100 million (so $50 million each) to get out of the Big 12 deal just one year early which was probably comparable to the ACC deal. My guess is it would cost Clemson and FSU 3 times that amount so $150 million per school to leave.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 12:18 PM
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It's going to be more than that, because Oklahoma and Texas were paying for just one year.
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Varsity [229]
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Re: GOR Value Questions...
Mar 21, 2024, 12:20 PM
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Yes, thats why I tripled the amount. Feel free to offer your thoughts on the amount based on that.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 12:34 PM
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Tripling it is not really going to be enough. Out of that 50 million some of that was most likely an exit fee. The Big 12 was paying out anywhere from 30 to 40 million from the TV contract, so let's split the difference and say that they were paying 35 million a year. If you multiplied that out by 13 years you'd come up to somewhere around 455 million. That would square with some of these reports that said that Clemson and Florida State would have to pay about somewhere in the neighborhood of 400 million to get out of the grant of rights.
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110%er [5513]
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Re: GOR Value Questions...
Mar 21, 2024, 12:53 PM
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You are mixing the exit fee and the GOR. They will be negotiated separately...in fact I doubt the exit fee will be negotiated at all.
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110%er [5513]
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Re: GOR Value Questions...
Mar 21, 2024, 1:02 PM
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Well I missed on that - we are challenging the exit fee. But it is a separate item.
The exit fee is 3x ACC operating budget, a flat cost to exit.
The GOR is a decade+ lockdown on media rights.
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CU Guru [1045]
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Re: GOR Value Questions...
Mar 21, 2024, 1:03 PM
[ in reply to Re: GOR Value Questions... ] |
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I'm not mixing the two. I specifically said that of the $50 million Texas paid, some of that was probably exit fees. That's why i used the figure of 35 million.
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Head Coach [768]
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Re: GOR Value Questions...
Mar 21, 2024, 9:02 PM
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All speculation FSU is FOS and inflated everything to get sympathy! All the rest is what we are trying to nail down...ACC is sharp...started their suit with a direct quote f t om the Clemson President...at the time it was much Dinero and folks were giddy...What changed?
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