I think the ACC should expect, and can get
greater distribution of Tier 3 content in addition to updating current market value for Tier 1 and 2 content.
If we look at previous comments from the various schools, including VT, the dedicated channel idea has apparently been dead for awhile. But if it was just ESPN paying out $45 million, there would be no need for a team to negotiate anything...just make the announcement.
ESPN production costs for the LHN in Austin is in the $30 million range (the contract says $26 million with a 4%/yr increase, so do the math).While they are apparently getting there, they have struggled to make that entire setup profitable.
Conversely, they already have the SECN set up in Charlotte. Under that system, the SEC schools provide the feeds. I think the ACC will do the same...send feeds from the member schools to Charlotte where ESPN already has infrastructure, as well as Raycom. It doesn't cost 10's of millions to do this.
What will this yield $ or distribution-wise for the ACC? I have no idea. But changing the logo and cutting a check is much less complicated than what they seem to be talking about. And if ESPN is going to pay 17% more for what it already has, I would think it would want to increase its profits, especially if the infrastructure and content investment has already been made.
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In response to this post by Red Hokie)
Posted: 03/15/2016 at 11:26AM