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- Nov 2, 2011
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It’s about the value of the contract as a whole. This is not a spot on description, but my understanding is the upfront cost is allegedly $120 million to get out of the conference. Then you have to account for the fact that the ACC owns FSUs tv rights until 2036 and the value of that is several hundred million dollars on top of the $120 mil. So any money Florida State makes off TV rights goes to the ACC until 2036 regardless of what conference they’re in. Obviously, no one would take that deal so to be completely free they would have to pay off the 120 and value of those TV rights through 2036 to the ACC, which is a nonstarter.Where is this 300-500 million dollar number for the grant of rights coming from though? I have heard multiple people reference these number for a Florida State or Miami buyout on top of the 120 million to get out of the ACC. This makes no sense because I thought the ACC/ESPN deal was only 1.8 billion. So one team could theoretically responsible for **** near a third of the buyout?
I think it is realistic that either the ACC is taken to court in a lawsuit and loses or multiple teams leave at one time and ESPN renegotiates their grant of rights with those teams.
I’m sure someone smarter than me will correct the above, but I think that’s the gist.