The Atlantic Coast Conference (ACC) is discussing how to close the revenue gap with other larger conferences, such as the Southeastern Conference (SEC) and the Big Ten. Unequal revenue distribution, or sharing, could be a topic of conversation. Former ACC commissioner John Swofford’s media rights deal with ESPN goes until 2036, and is already considered a bargain for ESPN. The ACC is projected to fall $50M annually behind the SEC and Big Ten schools, making this a giant problem.
Clemson Athletic Director, Graham Neff, states the ACC understands it is time to address the revenue disparity. The conference is now looking at distribution that incentivizes future success, such as football success, postseason, CFP, TV viewership and metrics. While the goal is to prevent member schools like Clemson, Florida State, and Miami from leaving the ACC due to revenue distribution, more money cannot be given to Clemson just because of the school’s football program.
Neff’s example was Wake Forest, who invested in coach retention and facilities, and this investment translated into success, with 19 wins over two seasons. Although winning can help a team earn more distribution, the current TV contract arrangements can hamper this. For example, Washington State went 10-2, but ended up in the Alamo Bowl due to TV contracts. A focus on incentivizing winning through revenue distribution, along with investments in infrastructure, could help bridge the revenue gap.
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