In a story that broke Monday night, the ACC finally got what it was looking for, a TV network, and with it, a new TV contract that has been extended to the 2035-36 season. The story first surfaced in the Raleigh News & Observer which first discussed an over the top digital platform. But then as the story developed, we learned that this was going to be a two-pronged approach: an online network called “ACC Network Plus” which will be seen on the WatchESPN platform and then the linear TV network which will begin operation in 2019:
Source: ESPN to launch a digital-only, "ACC Network Plus" in Aug 2016 and a linear "ACC Network" in Aug 2019. Full story in SBD tomorrow.
— John Ourand (@Ourand_SBJ) July 19, 2016
Now, you may be wondering why the three-year delay in launching the TV network, and again, John Ourand of Sports Business Journal notes that it has to do with ESPN’s current contracts with the cable and satellite providers:
Because ESPN's cable/satellite operator deals don't expire any time soon. https://t.co/xuP8CkSRnJ
— John Ourand (@Ourand_SBJ) July 19, 2016
And ESPN’s deals for the SEC Network and Longhorn Network had to be negotiated with the major pay TV providers over the last few years. With those agreements locked in place for several years, bringing an ACC Network into place now would leave it out in the cold so by launching it in 2019 when several contracts are up for renewal, ESPN through its owner, Disney can work on bundling the ACC Network with the other ESPN Family of Networks in hopes of avoiding disputes and preventing customers from missing the launch.
When the ACC signed with ESPN in 2011, the conference’s presidents and athletic directors had been optimistic that a TV network would be coming. But ESPN was hesitant. There was the worry over cord cutting, reduced costs and there was also an alleged penalty payment hanging over ESPN’s head if a network wasn’t in the cards by 2017. But as talks between the Alleged Worldwide Leader and the conference progressed, optimism grew not just among the conference’s AD’s, but also ACC President John Swofford who danced around reporters questions, but did make it sound that a TV network was getting closer to fruition earlier this year.
ESPN’s Brett McMurphy says the extension of the network’s rights with the ACC for another 20 years now makes it extremely tough for a school to leave for another conference and strengthens ties with Notre Dame which is in league for all sports except for football:
The conference’s grant of rights makes it untenable financially for a school to leave, guaranteeing in the 20 years of the deal that a school’s media rights, including revenue, for all home games would remain with the ACC regardless of the school’s affiliation.
The ACC’s new grant of rights also automatically extends Notre Dame’s contract with the conference as a member in all sports but football through 2035-36, a source said. If the Irish forgo football independence in the next 20 years, they are contracted to join the ACC.
So ESPN has locked the ACC and SEC into long-term contracts and controls both the digital rights and league TV networks ensuring content from two of the major BCS conferences well into the 2030’s. And it allows the ACC to keep up with the Big Ten and SEC, the two richest college conferences.
And it leaves the Big 12, the only major conference without a TV network and puts pressure on that league to get one into place. We’ll see what happens as the college sports landscape continues to change.
