In a bold move that will reshape the landscape of college football, the Atlantic Coast Conference (ACC) is expanding its reach into new territories. The conference’s presidents have voted to extend invitations to Stanford University, University of California at Berkeley (Cal), and Southern Methodist University (SMU) for the 2024 season. This expansion is not only an exciting development in the world of collegiate sports, but it also signifies a strategic step forward in the ACC’s future.
A New Chapter for ACC and Pac-12 Teams
Stanford and Cal, long-standing members of the Pac-12, are anticipated to make their way into the ACC fold. While their entry will result in reduced media rights revenue shares of approximately 30%, it’s seen as a cultural fit more than a financial one. The Bay Area schools’ addition to the ACC is remarkable given the geographical distance from other ACC institutions. Still, both universities’ membership in the distinguished American Association of Universities aligns them well with the ACC’s academic standards.
SMU’s Stride to Power Five
SMU’s journey to the ACC marks a significant milestone in the university’s history. The school, which last participated in a major conference in 1995, has agreed to forgo media rights revenue for its first seven years as an ACC member. This transition from the American represents over a decade of hard work and dedication. Despite the infamous “death penalty” by the NCAA in 1987, SMU’s elevation to the Power Five level is a testament to its resilience and commitment to excellence.
Financial Implications and Incentive Discussions
As a result of these additions, the ACC is poised to rake in an estimated $72 million in additional media rights revenue. An impressive $50 to $60 million of this revenue will be available for distribution among the ACC schools, either through a revised financial model or an incentive program. All three new schools, along with existing league members, stand a chance to earn extra revenue based on their performance in major sports. The additions of Stanford, Cal, and SMU would mean a $5-10 million annual increase in Clemson’s share of the television revenue.
While the specifics of the incentive distribution model are still under discussion, the anticipation builds as many expect a formal introduction for the 2024 athletic season.
A Unanimous Decision?
The road to this expansion was not without bumps. Four league members initially opposed the ACC’s growth, necessitating a vote by 12 out of the 15 voting members, including Notre Dame, for approval. However, the addition of Stanford, Cal, and SMU serves a crucial role in maintaining the ACC’s current media rights deal with ESPN, which could be renegotiated if membership falls below 15 schools.
Looking Ahead
With the debut of the 12-team College Football Playoff format in 2024, Stanford and Cal are set to continue their high levels of competition in their Olympic sports. Stanford, known for sponsoring 36 collegiate sports and boasting the same number of Nobel laureates, had a successful football run from 2007-2022 under Jim Harbaugh and David Shaw. Cal, home to 29 Nobel Prize winners and 11 Pulitzer Prizes, is equally prepared to make its mark in the ACC.
As the ACC grows, the Pac-12 faces a potential dissolution once its grant of rights expires on July 1, 2024. Only Oregon State and Washington State remain from the legacy Pac-12 without secure landing spots, making the process of rebuilding the conference challenging.
This expansion ushers in a new era for the ACC, promising thrilling matchups, increased revenue, and a reshaping of the college football landscape. As we look ahead to the 2024 season, the anticipation is palpable, and the stakes have never been higher.
