ACC backs plan to supply elevated payouts to colleges for postseason success

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The Atlantic Coast Conference is transferring ahead permitting colleges to earn more cash generated from their very own postseason performances, a transfer coming because the league tries to seek out methods to shut a rising monetary hole with two power-conference friends.

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The ACC introduced Wednesday that its board of administrators have endorsed a “success incentive initiative,” with particulars being labored out within the coming months for implementation for the 2024-25 season. The league has lengthy distributed income evenly amongst its membership, together with cash coming from revenue-generating postseason occasions just like the College Football Playoff and the NCAA males’s basketball match.

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The timing of the change would coincide with CFP enlargement to 12 groups. The remainder of the equal revenue-distribution construction - which might cowl cash tied to an ESPN TV contract working by 2036 - stays unchanged.

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In a press release, Duke president Vincent E. Price stated league management continues to be “dedicated to exploring all potential alternatives that may end in further revenues and sources for the convention.

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“Today’s decision provides a path to reward athletic success while also distributing additional revenue to the full membership,” stated Price, the board’s chairman.

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The transfer comes after a long-running collection of discussions by the ACC, from commissioner Jim Phillips speaking brazenly quite a few occasions about evaluating methods to generate extra income to latest spring conferences in Florida the place the subject was a transparent precedence amongst directors.

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That’s as a result of the ACC is falling farther behind the Big Ten and Southeastern Conferences even because the ACC continues to generate its personal document income hauls.

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For instance, the league reported a document $578.3 million in whole income for the 2020-21 season whereas distributing a median of $36.1 million per college. Yet the SEC reported practically $833.4 million in income and a median distribution of $54.6 million for that very same season, whereas the Big Ten checked in at $679.8 million and a median $47.9 million payout.

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That has fueled hypothesis concerning the long-term well being of the ACC in a time of realignment, although the grant-of-rights provision within the ESPN deal - signed in 2016 to finally launch the league’s personal TV channel - affords a major impediment.

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It means the league controls media rights for any college that makes an attempt to depart throughout the contract, which might deter defections since a college wouldn't have the ability to carry TV worth to a brand new league.

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