FSU joined by other ACC heavy hitters in call for updated conference revenue share
The Atlantic Coast Conference once enjoyed financial growth and was among the country's richest conferences.
Today?
The ACC, which reported a revenue of near $580 million in 2021, has fallen millions, millions and millions behind the SEC and Big Ten in revenue. That gap will only widen in the future. For its member schools such as Florida State, it's about self-preservation.
Seminoles Athletics Director Michael Alford, a former collegiate baseball player, threw a little chin music at the conference a few weeks ago when he told the Board of Trustees FSU should receive a larger cut of ACC revenue. Money is currently distributed equally among member schools regardless of individual program success, value or size.
Clemson, North Carolina, Miami and a few others feel the same way, too, believing they deserve more money. Whispers say the 14-member football room is nearly split in regards to unequal revenue sharing. But how it should be done remains a 1,000-piece puzzle.
The conference's spring meetings are in May.
Hold on to your wallets, folks.
“I completely understand that there’s some frustration among member institutions, and that is why we’re working together to address these concerns,” ACC Commissioner Jim Phillips recently told The Athletic in reference to unequal revenue sharing. “We talked a lot about it in the fall and in the winter, and we’ll continue to make that a topic of emphasis."
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North Carolina nudges its way to the table, too
On Tuesday, North Carolina Athletic Director Bubba Cunningham said in a radio interview the Tar Heels also deserve more of the conference's financial pie compared to other league programs. He joined FSU, Clemson and UM by publicly voicing for unequal revenue sharing among ACC schools.
"Equal distribution was very appropriate, particularly when you had eight schools in your league," Cunningham said in a North Carolina radio interview, referring to the league's membership in 1953.
From a historical perspective, FSU's entry in 1991 for non-football sports and 1992 for football increased the membership to nine. The league has gone through several rounds of expansion since 2004 and now has 15 members. Notre Dame is a member in all sports except football.
Back to Cunningham, who further explained, "As your league expands, the footprint expands, the number of sports that you offer differs, the overall value to the league and its media markets is different, and I think some of us are starting to suggest we need to re-examine that and take a look at where is the value and how do we distribute the money differently so that we can ensure the teams that want to invest the most, the schools that want to invest the most will be rewarded for that investment.
"That discussion is just beginning."
Actually, discussions have been ongoing behind the scenes. Alford's public comments simply reflect the sense of urgency. Alford, who is quickly establishing himself within the ACC as a strong leader, communicator and visionary, doesn't bluff. And, despite his high and inside pitch at the conference's head, he is quick to credit Phillips, calling him a friend and "the best in the business."
Alford shared he and others within the conference have been talking and working on how to create a "revenue distribution model that takes in factors of who you are, how you produce, how you play, what your brand is."
FSU, despite its football struggles prior to coach Mike Norvell's rebuild, is a powerful national brand.
FSU football attracts eyeballs across state, region and nation
FSU currently represents 70% more viewers than the ACC average, according to the school. The numbers also show FSU and Clemson were the only two ACC teams to play in multiple games last season that attracted more than 4 million viewers. Taking it a step further, FSU played in the two most-watched games last season to include an ACC team − their opener against LSU (7.55 million viewers) and Black Friday showdown against Florida (6.71 million).
In a typical conference, the top three or four brands account for more than 50 percent of television viewership, according to TV executives. The ACC is top-heavy with FSU and Clemson.
The ACC is at a crossroads. Unequal revenue sharing — proportional distribution could be a more accurate catchphrase — needs to happen in some form. It would incentivize investment (in football) and reward success. Bonuses could also be paid to teams that advance into the College Football Playoff or generate larger television viewership.
And what's ESPN — the league's television partner in the ACC Network — thinking?
Naturally, there has been pushback from ACC members. It's silly to think schools would agree to taking less money under the current setup of distributing all revenue evenly that every ACC president pledged their commitment to last decade.
Ten years ago feels like the stone age in terms of how far, and quickly, college football has traveled.
"I’m not sure you’re going to satisfy everyone with a differential payout," Cunningham said. "In fact, I’m relatively confident you’re not going to satisfy anyone. Because some aren’t going to think they have enough and others feel like they took an unnecessary haircut."
Does FSU, Clemson and others have any leverage?
Even if FSU and others receive a bump in distribution, will it matter?
The conference is locked into a grant of rights deal through 2036. It could cost a school upwards to $300 to $400 million between exit fees and grant of rights to leave the conference, according to multiple reports. Sports Business Journal reports the ACC is working with media consultant Octagon on a revenue distribution plan for members.
There also has to be a reason why FSU and Clemson appeared to coordinate their public displeasure with the ACC's revenue sharing on the same day.
Alford spoke his peace to FSU's Board of Trustees, while Graham Neff, the Tigers' athletic director, told The Post and Courier (Charleston, S.C.) that "Yeah, I’ve been very active in those conversations within the league and continue to expect to take a leadership role in our desire for that to be a changed circumstance. Urgently.”
Maybe FSU and others are waiting to be officially told no to unequal revenue distribution by the ACC. Could that open the door for FSU and others to challenge the grant of rights in court? Can schools claim a lack in equity that could result in a modification of the grant of rights contract?
Litigation and negotiation generates change and feels like a way of life. The U.S. Supreme Court ruled in favor of college athletes when it came to controlling their own name, image and likeness (NIL).
One also has to believe the Big Ten and SEC will eventually expand again, and FSU will be a prime target.
The SEC is a natural fit geographically. But, my heaven, the Big Ten has secured deals that will pay the league more than $1 billion a year.
It would probably be unfair to ask the Seminole Nation to travel to away games in a conference that will soon see its footprint stretch from the Atlantic Ocean to the Great Plains, and in 2024, will extend to the Pacific Ocean.
Who knows?
Fans might eventually be cheering for two major football conferences nationally no longer under the NCAA. This new business model will feature collective bargaining and contracts with players. Smaller schools will operate under the more traditional model we've known.
It seems unlikely the ACC will ever look the same.
And even if FSU operated at a $10.364 million surplus during the 2022 fiscal year, according to the annual NCAA financial report obtained by the Tallahassee Democrat/USA TODAY Network, revenue provided by the conference needs to be resolved.
FSU needs to protect its own hide at this point.
This article originally appeared on Tallahassee Democrat: UNC joins FSU, others in call for uneven distribution of ACC revenue
