After exploring situation, UM, FSU, others expected to stay in ACC, with new revenue deal

The University of Miami is displeased with the growing disparity in revenue between its league (the Atlantic Coast Conference) and the Southeastern Conference and Big 10, but appears very likely to remain in the ACC for the foreseeable future, probably under terms of a restructured revenue distribution split discussed by ACC athletic directors this week.

UM’s inclination to remain in the ACC is partly a byproduct of lack of alternatives. UM does not have an offer to join the Big 10 or SEC, according to a school source. And even if it did, leaving the conference would be financially crippling, at least for the next several years.

Not only would an ACC school be required to pay $120 million to exit the conference, but the ACC would continue to own departing teams’ television rights through 2036 because of a grant-of-rights contract that each of the ACC university presidents signed in 2016.

ABC and ESPN own ACC TV rights through 2036.

A source with direct knowledge confirmed a report, from Action Network HQ’s Brett McMurphy, that UM was among seven schools that met discreetly in recent months and had lawyers examine whether the grant of rights agreement could be broken, or legally challenged with a reasonable chance of success. The agreement reportedly is widely considered to be airtight, and no school — to this point — has decided to challenge it in court.

In a conversation this week with The Richmond Times Dispatch, Virginia Tech athletic director Whit Babcock confirmed that Miami, Clemson, FSU, North Carolina State, Virginia, Virginia Tech and North Carolina have met in recent months to discuss the situation.

“I would classify it as a number of conversations,” Babcock said. “Usually in small groups, on interpretations of grant of rights, of bylaws of the league, of options that may be out there. But as you know, the grant of rights has been looked at a lot of times by a lot of people.”

In conference meetings in Amelia Island this week, ACC schools made considerable progress toward a deal that would give a larger share of revenue to schools that participate in the College Football Playoff or NCAA Tournament, as opposed to the current model of dividing revenue equally among the 15 schools.

A team making the football playoffs, which will expand from four to 12 teams in the 2024 season, could pocket an additional $10 million annually, according to FSU AD Michael Alford.

According to footballscoop.com, ACC Board of Directors will vote next week on at least proposed revenue sharing model. Several models were discussed this week, and ESPN reported that the schools are nearing an agreement.

ACC commissioner Jim Phillips, asked this week if he’s confident that the seven schools with wandering eyes are now on board, said: “What I’ve been told is we’re all in this thing together, emphatically. We all believe in the ACC. We want to continue to work together.”

UM athletic director Dan Radakovich hasn’t been as vocal as FSU’s Alford about publicly expressing concern about the revenue gap between the ACC and Big 10/SEC, a disparity that is expected to reach $40 million in the next few years.

Earlier this year, Alford and Clemson’s Graham Neff said their schools should get a larger share of ACC revenue, because, as Alford framed it to FSU’s Board of Trustees in February, “we’re a very important brand, and we drive the media value in this conference.”

Radakovich has said nothing like that but has said that finding a solution is critical.

“Trying to keep things the same isn’t going to work,” Radakovich told ESPN this week, “but moving away is expensive and difficult. Sure, they could pay the $120 million [exit fee] and litigate the other [TV grant of rights] piece. But where does that put them? Where does it put anybody? It’s hard. We don’t have an answer yet. So I think it’s better to all get into a room and talk about it.”

ACC schools reportedly each make about $43 million annually from conference revenue. Big 10 teams will pocket about $70 million annually beginning this upcoming academic year, when contracts with NBC and CBS begin, supplementing the Big 10’s deal with Fox.

“We have this gap, and the gap is just not about the money,” Radakovich told ESPN. “It’s about schools being able to take those dollars and translate it into potentially NIL opportunities for student athletes. So forget about the fact that you might go and steal a coach if you have more money. Now it’s going to get better players. That’s where the rubber hits the road.”

FSU’s Alford said the “success initiative” distribution model that gained momentum in Amelia Island this week won’t solve the league’s revenue issues but will help.

“We’re never going to cover the entire gap, but it will allow you to be competitive,” he said.

Radavokich suggested he supported the new distribution model.

“Our presidents will look at that and see how to reward success,” UM’s AD told Sirius XM Radio. “In athletics, that’s very important. People are making investments and want to be able to say, ‘Hey, if I do some really good things, I can be rewarded.’

“We are going to have a great league for an awful long time to come. Sometimes you have to have discussions within your family that might not be easy.”

Alford emerged from the meetings telling ESPN: “The ADs and the universities are very unified. We’re thrilled about being in this league, and we want to stay in it.”

Virginia Tech’s Babcock said: “You’ve got 15 schools and 15 different approaches. After the initial shock of some of the news reported [about UM, Virginia Tech and five other schools holding private talks and exploring potential grant of rights loopholes in recent months], I think it was productive after that.

“I think it was less than ideal that it came out, but it’s been a catalyst for some real conversation and maybe getting to things a little faster that we’ve been working on as the ACC.”

The objective, Babcock said, is “hopefully become a clear-cut third [among the Power Five]” in revenue “and separate out from the” Big 12 and Pac-12.

THIS AND THAT

247 Sports said UM’s group of 14 transfer portal additions is the sixth best in the country, placing Miami behind only Colorado, Southern Cal, Auburn, LSU and Oklahoma.

UM signed eight portal players before spring practice and six since then — cornerbacks Jaden Davis (Oklahoma) and Jadais Richard (Vanderbilt), running back Ajay Allen (Nebraska), receivers Shemar Kirk (Reedy Community College) and Tyler Harrell (Alabama, and previously Louisville) and defensive end/tackle Anthony Campbell (Louisiana Monroe).

247 Sports ranked guard Javion Cohen as the eight best transfer in the country this offseason; Cohen left Alabama and joined UM early this year. Linebacker Francisco Mauigoa, who left Washington State for UM, was ranked 46th. Former UCF center Matt Lee, who also transferred to UM, was ranked 66th. All three players are expected to be Canes starters this fall.

Two other UM additions - defensive tackle Branson Deen (Purdue) and cornerback Davonte Brown (UCF) - were rated 94th and 97th, respectively, on 247’s list of the top transfers.

▪ Former Canes update: Offensive lineman DJ Scaife, released by the Dolphins two days into their rookie minicamp, was claimed off waivers by Green Bay… Philadelphia signed former UM receiver Charleston Rambo (who had 35 catches for 430 yards for the XFL’s Orlando Guardians this year) and released former UM offensive lineman Jarrid Williams.