ESPN has opted to extend its media rights agreement with the Atlantic Coast Conference (ACC) until the conclusion of the 2035-36 season, thereby synchronizing it with another contract related to the ACC Network. This was officially announced by both ESPN and the ACC on Thursday, a decision that is considered beneficial for the conference at a time when revenue concerns and its long-term viability are in question.
The decision from ESPN came ahead of a February 1 deadline regarding the pickup option for the base rights set for 2027-36. This situation gained additional context due to the recent legal disputes involving Florida State’s lawsuit against the conference regarding exit fees should it choose to leave for another league. The existing rights agreement encompasses events aired on major ESPN platforms like ESPN, ESPN2, ESPNU, and ABC, detailing the financial proceeds stipulated within the contracts. A source familiar with the agreements noted that the new contract specifically related to the ACC Network will also last through 2035-36, irrespective of whether the base rights option was activated, a point initially highlighted by a media outlet.
Currently, both segments of the contract are set for renewal, extending their duration for an additional 11 years. “The ACC plays a vital role in ESPN’s unwavering commitment to collegiate sports, and we are excited to continue this collaboration over the next decade,” stated ESPN’s chairman Jimmy Pitaro in a press release regarding the extension.
This development arrives as Florida State and Clemson find themselves embroiled in legal disputes linked to a 2016 grant-of-rights agreement that coincided with the announcement of the ACC Network, which launched in August 2019. This agreement is designed to discourage schools that are contemplating leaving for other conferences in pursuit of higher revenue. Consequently, ACC commissioner Jim Phillips has been vocal about exploring revenue enhancement strategies, which includes ongoing dialogue with ESPN to boost the value of the existing media-rights contract.
Phillips noted that the conference’s recent additions of Stanford, California, and SMU this season could generate $600 million in incremental revenue tied to their media-rights arrangement. “Our commitment from both sides to innovate and enhance our partnership to drive additional value remains our foremost priority,” remarked Phillips in conjunction with the extension announcement.
Additionally, Phillips has addressed potential modifications to the revenue distribution model among the conference schools. Recently, the league implemented a “success initiative,” allowing schools to retain a greater share of the revenues generated from their postseason achievements, rather than sharing it evenly throughout the conference.
Philips has been transparent regarding efforts to improve revenue for member institutions, particularly in light of the growing financial disparity compared to the Southeastern and Big Ten conferences. Tax records indicate that the ACC allocated an average of $44.8 million to its 14 football-playing members for the 2022-23 season, with a total revenue of $706.6 million. Despite this record revenue, the ACC still trails behind the Big Ten ($879.9 million in revenue and an average payout of $60.3 million) and the SEC ($852.6 million and an average of $51.3 million), while still surpassing the smaller Big 12, which reported $510.7 million, resulting in an average payout of $44.2 million.
