Conference revenue sharing

J

JacketsRequired

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Does anyone know how the revenue is shared in the ACC?

Specifically, does ALL of the revenue from each FB game (including the bowls) get added to the pot and then divided up at the end of the season? Or, does each team get to take a certain amount out to cover the cost of the game and the remaining revenue gets add to the pot?

I have no idea. Any clarification on the subject would be informative.
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JR,
"The league doled out around $7 million per school this year in slicing its annual greenback pie. That included money earned from television rights for men's basketball and football, bowl payouts and the NCAA men's basketball tournament."

This is a figure from 2000 and is from an article I found in a search re: conference expansion. I'll link it below. The dipersing takes place after expenses to the best of my knowledge.

http://www.chapelhillnews.com/Issues/2000/07/26/sports01.html
 
Isn't revenue sharing basically socialism? Shouldn't the achievers be able to hold on to their own money, without having it taken from them? If Tech does the right things, and is successful, why should our money go to other schools?
 
The "take from the rich and give to the poor" thing is always an issue. Just a MLB right now.
 
well I think that revenue sharing is part of the advantages/disadvantages of being affiliated with a conference. It seems to work out pretty even for the ACC with teams that don't bring as much money to the pot in terms of football revenue seem to be the ones that contribute the most with basketball revenue.

I don't really see this as socialism. Businesses in America do this thing all the time where one business agrees to share revenue based on another business providing certain services (sales, marketing,...)
 
If Tech does the right things, and is successful, why should our money go to other schools?
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<font size="2" face="Arial, Verdana, Sans-Serif">Oh yeah? And what about in the early 80s when we were admitted to the ACC and our athletic department was in shambles? We couldn't even beat Agnes Scott.

The ACC let us in and the relationship has been nothing but beneficial to both since.

What is good for the conference is good for Tech and vice versa. That's the whole point of being in the conference. We make more by sharing a product - ACC Sports - thru TV, bowls, NCAA tourney, etc. Our success is cyclical, but the $$ isn't.

Trust me, Tech did not earn "our" share last year. We were mid-pack or worse in the 2 top money sports: football and basketball. Maryland is the team that made the money the past year (Orange Bowl in football and NCAA Champ in Hoops).
 
Originally posted by Gtech:
Isn't revenue sharing basically socialism? Shouldn't the achievers be able to hold on to their own money, without having it taken from them? If Tech does the right things, and is successful, why should our money go to other schools?
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<font size="2" face="Arial, Verdana, Sans-Serif">Because in order for us continue, we must have competition. Sports leagues are not like other industries. In the MLB, the Yankees need other teams to play against. They don't want to drive Boston or Baltimore out of business. They want to keep them around so that they can beat them.

OTOH, McDonald's couldn't care less if Burger King survives or not...as a matter of fact, they want BK to go belly up so they can get their business.

The Atlanta Braves don't want too many situations like Montreal, where they're gonna go belly up. They want more situations like the New York Mets, who can survive.

I hate socialism and communism to the bone. But sports leagues are a necessary thing, even if they are socialist.
 
Jacketsrequired - to answer your specific question - revenue from football games (and BB games for that matter) is not shared with the ACC. Each team keeps its own ticket sales.

The league splits bowl revenue (minus expenses), the ACC TV package for BB and FB and the revenue ACC teams get from NCAA BB. I think that is all but I may be missing a source or two.

Thus, you have to be careful when you compare SEC and ACC revenue figures. The ACC payout is larger than the SEC but most SEC schools (especially UGA, FL, TEN) have much bigger FB stadiums which give them much more ticket revenue than GT or most ACC schools except maybe FSU and Clemson.
 
Don't think of each team as an independent business, think of each conference as one and each team in the conference as a separate business unit. This is more how things are run - some revenues are shared (conference tournament, bowls and TV) and some are not (ticket sales, merchandise sales).

From a pragmatic point of view, sharing some of the revenue is a good thing because it keeps teams from completely hitting the skids when they have a run of bad seasons. Don't think of it as socialism exactly, more like unemployment insurance.
 
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