ACC Embraces Expansion and Revenue Growth Amid Legal Battles
Phillips Champions ACC’s Financial Health
CHARLOTTE, N.C. (AP) — Amid the murmur of realignment and changes in college sports, Commissioner Jim Phillips remains confident about the Atlantic Coast Conference’s future. Speaking at the ACC Kickoff event, Phillips highlighted gains in the ACC’s financial standing. He addressed the ongoing legal disputes with Florida State and Clemson over exit fees, stressing that the ACC would defend its position vigorously. Delivering specific figures, Phillips illustrated the league’s robust financial health and its potential to thrive.
Expansion Bolsters Revenue
Kicking off in an expanded format, the ACC welcomed new members California, Stanford, and SMU. Phillips revealed that these additions would generate $600 million in incremental revenue through the current ESPN deal, set to run until 2036. Cal and Stanford will receive reduced payouts initially, while SMU forfeits nine years of TV money. A new success-driven incentive model will allocate an additional $20 million to $25 million based on postseason performance, further boosting the financial outlook.
Record Revenues Despite Challenges
Despite lagging behind the Big Ten and SEC, the ACC has seen record revenues. The league distributed an average of $44.8 million to its football-playing members in the 2022-23 season, with TV revenue spiking by nearly 67% since the launch of the ACC Network. Nevertheless, lawsuits from FSU and Clemson challenging the media rights agreement pose significant challenges. Phillips vowed to protect the ACC’s interests, even as these legal battles unfold. Speaking about the league’s future, he urged for creative strategies to maintain forward momentum.
