True. Although, I doubt that we’ll ever here whether a GOR was turned down and by-whom until well after the fact if it isn’t adopted.
Realistically, the only way a GOR gets signed by the members of the conference is if the financial benefits are sigificant. I doubt schools sign on if it only raises the TV contract payout to $10M per school. There will need to be more than that: NY6 bowl access or $15-20M range would probably be enough to entice all of the schools. The question would then be for how long. My guess is that ESPN would want it to be around 10 years, but I’m not sure the conference should sign any contract for that long with ever-changing market conditions and live-sports demand only going up.
Even then, the GOR is probably worth about as much as a football coach’s contract is in trying to keep them at a school…which means not much. If a school wants to leave for a P5, they’ll do so and it’s likely the new conference would help them.
If AAC teams sign the GOR, we would go from $2M to maybe $8-$10M for top AAC schools. That is what people are looking at but I thought the rumor was that ESPN offered us $4M originally so we should compare $4M (no GOR) to $8M-$10M (GOR). If we do all equal shares, it would be $6M.
Basically the way GOR works is that you sign your media rights over to the conference for a fixed period of time. The conference then packages all member rights and negotiates with a media provider to market and air that content.
If you break the GOR, in theory you owe the conference the remainder of your rights to the GOR. So you could be a member of another conference but the AAC would still own the rights to your content. Of course no conference would add you if your media rights didn’t come along with you.
Suppose AAC has GOR is for 10 years at say $10 million a year. Let’s say UH wants to leave the AAC after 5 years. Baring any lawsuits or other arrangements, UH will have to buy its way out of the GOR, by paying the AAC $50 million up front or $10 million a year for 5 years.
The trouble is that if the AAC does not agree to surrender UHs media rights to UH or the new conference, the new conference cannot air UH content, because they don’t have the rights to it. So the fastest way for UH to get its content is come to some sort of agreement with the AAC, and that could cost more than just the $50 million. AAC could demand not just that amount but also some kind of penalty, particularly if the value if the AAC media deal falls if UH leaves. Maryland had to pay thru the nose to leave the ACC, so much so they had to take a loan from the Big 10 to cover their exit costs.
Of course a lower exit package can be negotiated or UH could take the AAC to court to break fhe GOR.
I can only make limited comment on any of this right now. We’re not asking our schools for anything right now," Aresco said on Sports 560AM/87.7 FM with Wolo and Peter. “We’re in a position right now where we’re just talking about a lot of different things. I don’t know where this stuff comes from. I really don’t.”
This whole business of grant-of-rights is very poorly understood, generally," Aresco explained. “It doesn’t mean schools can’t move, it just means their TV rights go with them. What it means, Dave, is that if someone leaves, their TV rights remain with the conference where they once were. If your TV deal is with X network, it stays. Every game you play in that other conference that’s a home game stays with the conference you left. Whatever TV deal that was. That’s a strong incentive for schools not to leave. It doesn’t mean you’re bound, period. That’s not the kind of situation that it would be.”
“Unequal sharing (of revenue) is not who we are, period. It just isn’t,” the commissioner said
No GoR… Expect about $4.5M to $5M per school for primary/secondary rights. The rumor is ESPN offered $4M per school. I am sure they come up a little from that.
I will also add Aresco’s comments are a non-denial, denial. They haven’t asked the schools for anything “right now”.
His explanation of the GoR is hilarious! Yeah, a grant of rights doesn’t mean you can’t leave a conference, but it definitely does mean you are completely unattractive to a conference looking to expand.
Lastly, this conference has had unequal revenue since inception. Cincy, UConn, and USF get residual departure fees that more than quadruple their annual take and Navy has some agreements with CBS Sports and the Army/Navy game that are unique.
I think no matter what happens, UConn is gone before this agreement, whatever it ends up being, becomes active. Their is too much smoke with the Big East basketball conference and UConn has made it known they are unhappy. I think they are waiting for the residual departure fees to be paid out to them and then they are gone.
Currently, the Big East basketball schools make $4M per school for basketball only. If the new American contract doesn’t surpass the $6M per school mark, it is more lucrative for UConn to drop their football down and focus on basketball.
The big10 May not make money when Ohio State would play an in conference game at UT for several years but I bet the tv money from UT playing at Ohio State and Michigan and Nebraska would make up for it.
With all due respect to its current conference, UCF must be free to better itself and exercise its unalienable rights to life, liberty and the pursuit of a Power 5 conference.
This, after all, is the American (Athletic Conference) way.
Does anyone know how the college basketball tournament money is distributed? is it equal amongst all the schools in the conference or do the schools that make the tournament get the majority of the money?
Grant of rights may not happen but unequal revenue sharing is definitely going to happen. It is the American way.
With all due respect to its current conference, HOUSTON must be free to better itself and exercise its unalienable rights to life, liberty and the pursuit of a Power 5 conference.
This, after all, is the American (Athletic Conference) way.
Clearly and without a doubt this is being pushed by espn to aresco.
It is in their mutual interest that everybody stays put.
It makes it harder for P5’s to try and “grab” a few “apples”
It makes it harder for G5 Teams/Schools to accept a P5 invite. A stiff penalty will have to be paid in case someone accepts a P5 invite.
It makes it easier for espn to negotiate their future P5’s media deals.
It makes it easier for espn to dictate what they want to offer to the AAC.
There is no way that we should accept this.
aresco time and time again has clamored that he is enamored with the current cfp. He is in “bed” with espn. He has done nothing, rien, nada, zilch, גאָרנישט, ештеңе жоқ to help us get into the “cash register” that is the cfp.
The financial gulf is getting bigger and bigger. Why should we be content that it stays that way?
College football is a business. We want to improve our business model.
espn? Show us what you want to give us. Then maybe we will talk. Not one business enterprise would accept these conditions. This is an insult to the AAC members. You never dictate negotiations before the negotiations start.
In the mid 90’s we were at a cross road. Our media ratings speak for themselves. Our new infrastructures speak for themselves. Who does not speak for ourselves is aresco. Negotiating times are coming up. We have something to offer that many G5’s do not. We are about to be given five cards. Would you show your hand? Would you be dumb enough to show your hand? Would you try to play your hand the best way that you can? You bet we would.
That is crystal clear.
IMHO, the only way an ESPN deal for $10 million per team team is worth taking is a short term one (expiring when the P5’s expire) AND our conference champ is guaranteed a NY6 bowl during that period.
If we’re stuck in G5 purgatory until realignment happens (which most believe won’t happen until the current P5 contracts expire), we might as well make the best of that time money wise, and most importantly by having a guaranteed NY6 bowl, separate ourselves from the rest perception wise.
Another guarantee to a NYE bowl does not advance our right to a cfp inclusion. A status quo deal is only enlarging the $ & cents gulf that separate us from the P5’s.
Guarantee us a seat at the cfp then we can start talking. We are in no position to show our hand.
Every “gizmos” goes through product/market saturation. In the long run espn needs us as much as they need the P5’s. The quickest way to turn off your audience is to know the end of the story before you read the book.