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New revenue sharing discussions ongoing in the ACC

capnted

Drinking John Elway's Tears
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Feb 4, 2007
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The ACC and ESPN are apparently in negotiation over new terms for the ACC. The ACC wants the lawsuits to go away and ESPN would like to keep the GOR issues out of the courts.

This is a very important issue and will come to head soon IMO. ESPN needs to exercisethe opt in/out clause by February. They hold the GOR to 2036 if they opt in, or til 2027 if they opt out. There are pluses and minuses for each. ESPN and the ACC do not want to defend the GOR in court. FSU and Clemson are spending a ton of money fighting and they could lose.

The GOR being shortened is the big sweetener ESPN and the ACC is offering. That has value. How much they shorten it is still TBD. The new revenues they may receive are still in discussion as well, but there would be some. Along with the success incentives they want to implement it could be a nice revenue addition for those that perform well in media value and on the field.

This looks like a very nice compromise for all. ESPN could opt in and keep the inventory til 2036. Several schools would like this. About as many would not. If the lawsuits do go forward it could end well for FSU/Clemson and others. But it could be a loss and tie them to the conference til 2036 and be very expensive.

I think an agreement to shorten the GOR throw a bit more revenue the ACCs way and remove the lawsuits has benefits for most of the conference. And ESPN. This needs to happen soon. The February opt in/out date looms. Given all the talk about future realignment I think an agreement is more likely than not to occur.

That ESPN and the litigating schools are at least discussing options tells me they both feel it has some value. I see all sides to this and I am not sure which is more beneficial to Cal. The details matter. They always do.

I have always believed a compromise was a likely outcome and it appears the involved parties are trying to find one. Will be interesting to watch.
 
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