ACC Still Mulling Over Expansion, Weighing Stanford, Cal, and SMU as Candidates
The Atlantic Coast Conference (ACC) is in active discussions concerning potential expansion, with Stanford, Cal (University of California, Berkeley), and Southern Methodist University (SMU) being at the forefront of deliberation, according to insider reports.
Previously seen as unlikely, the expansion move has garnered considerable interest due to newly presented financial models. These projections suggest that the ACC could benefit from approximately $72 million in added annual revenue if the expansion proceeds.
In an unexpected twist, Stanford and Cal have offered to accept a notably reduced revenue distribution for several years, commencing with a rate of about 30%. On the other hand, SMU has shown willingness to forego any distribution for up to seven years. Current discussions are exploring various scenarios, ranging from incorporating all three institutions, choosing only Stanford and Cal, opting for SMU alone, or maintaining the status quo.
The added revenue that would be waived by these potential new members could be utilized to boost the financials of the existing ACC members. This point holds significant weight as many ACC institutions have been vocal about their desire for additional funds.
Key talks in the coming days will center around the crucial question of revenue distribution. This debate holds immense significance as the ACC's current TV contract with ESPN mandates the network to amplify the deal's worth for each additional member. With each new member potentially bringing about $24 million to the table, the ACC's financial structure stands to see a noteworthy alteration.
An incentive structure, with a focus on football achievements such as championship wins, top-25 rankings, and bowl placements, is being considered for distributing the new income. However, the specifics of this model remain in contention.
Well-known teams within the ACC, like Florida State and Clemson, have previously vouched for a revenue distribution system based on athletic prowess and viewership metrics. Recent changes to the revenue distribution for the College Football Playoff and NCAA tournament earnings reflect this sentiment, with funds now being allocated based on athletic performance in the respective events.
Despite the financial allure, the decision is far from straightforward. The ACC's verdict will have broader implications, especially for institutions in the West. With the ACC's decision on Stanford and Cal looming, Oregon State and Washington State, two of the remaining four members in the now diminished Pac-12, are in a wait-and-see mode. Without Stanford, their choices for future alignment appear limited.
Stanford's potential exclusion from the ACC might force the institution to contemplate football independence, while Cal's trajectory remains uncertain.
The ACC's contemplation over these expansions, while financially promising, underlines a broader theme in college sports: leading football and basketball teams consolidating their presence to enhance their monetary worth. A final decision from the ACC, which could reshape collegiate athletic dynamics, is anticipated in the coming week.







