Here’s a breakdown of the provided text, focusing on the financial implications for ACC schools considering a move to the Big Ten or SEC:
Key Takeaways:
ACC Exit fees are Decreasing: The settlements with Florida State and Clemson have reduced the ACC’s exit fees. These fees will drop by $18 million annually until reaching $75 million in the 2031 fiscal year. This makes leaving the ACC more financially feasible.
Big Ten and SEC Revenue is attractive: The Big Ten budgeted around $75 million in disbursements to its members in fiscal year 2025.The SEC’s rights agreements are in place through 2033-34, implying significant revenue potential.
North Carolina’s Position: North Carolina is in a strong financial position irrespective of its future conference affiliation. It can either stay in the ACC or explore a move.
Uncertainty in Big Ten Entry for New Members: The amount of money new members receive in their first six years in the Big Ten is unclear, as the league has handled new members differently.
USC and UCLA’s Big Ten Experience:
USC and UCLA joined as “fully vested members,” meaning thay are expected to earn more than their previous conference valuations.
UCLA, for example, reported $19.93 million in media rights revenue in its final Pac-12 year (FY24). A projected $75 million Big Ten payment in FY25 would represent a $55 million increase, possibly offsetting a $51 million shortfall.
Maryland and Rutgers’ Big Ten Experience (Less Favorable):
maryland and Rutgers,who joined in 2014,did not have “day-one vested membership.”
For six years, they received stipends similar to their previous conferences.
The Big Ten allowed them to borrow against future earnings. Maryland, in particular, struggled financially after leaving the ACC and still lags behind other Big Ten schools, reporting the lowest revenue among public Big Ten schools in 2024. It received over $125 million in grants and loans from the Big Ten between 2014-2020.
Rutgers borrowed $48 million against future earnings but didn’t receive the same financial assistance as Maryland.
Oregon and Washington’s Big Ten Experience (Stronger Pre-Existing Financials):
Oregon and Washington earn “half-shares” until becoming vested members in 2030, coinciding with a new Big Ten media rights deal.
These schools had strong revenue situations before joining the Big Ten, which is why their valuations are high.
Oregon benefits from a strong brand and its relationship with Nike.
Washington generated $190 million in fiscal 2024 before leaving the Pac-12 and will borrow from the Big Ten against future earnings.
* SEC’s Financial Support for New Members: The SEC disbursed around $53 million to each member in FY24, plus an additional $27.5 million to Texas and Oklahoma to help with their Big 12 exit fees. The SEC could potentially offer similar financial support to other potential new members.in essence, the text highlights a shifting landscape in college athletics where the financial incentives of the Big Ten and SEC are becoming increasingly attractive to ACC schools, especially as exit fees become more manageable. However,the financial benefits of joining these leagues can vary substantially based on the specific terms of entry and the financial health of the incoming institution.
