Mtwasik wrote:I never in a million years would believe that UNC would ever leave the ACC, unless it was completely falling apart and they had no choice.
Here is what I think UNC is looking at...
Last year BT schools like Wisconsin earned roughly $20M more in Media rights than the UNC. If the ACC loses its grip on the DC market (with Maryland gone and a possible Virginia exit), the gap will probably grow by around $5M.
The total earnings for NC was $76M ($17M from donations) and it had a profit of $560,000 after it received aid from its school for $7M. So in essence it lost $6.5M in 2011. How long will taxpayers and students be willing to supplement the NC athletic budget, specially if it grows has to pony up another $5M per year?
As as example, a school like Wisconsin earned $96M while having almost the same amount of donations ($17M) and ticket sales. The only difference was media revenue. How long can NC compete if it has to operate on a budget that is $20M less than its peers and while being subsidized by the academic school to the tune of $7M - $12M? I know that history and tradition play a large role, and there is a concern that donations may be hurt, but even if donations went to $0, your still looking at an increase in overall revenue. Worse case, donations drop by 30% and your still earning $15M more with the BTN contracts before you count for the additional TV sets that Maryland and Rutgers bring in.
How much does $15M per year buy you? ALOT. Increase in facilities, better coaches, bigger recruiting budget, the ability to stop taking aid from the university. Remember, the Presidents and boards are the ones that make the decision, not the athletic director, and they are ultimately responsible for the schools academic budget.
The kicker is inclusion into the CIC, which is basically a lobbying body that funnels BILLIONS of dollars to the BT universities in research grants. It is the richest co-op in the world and attracted $8B in research grants split amoungst the BT in 2011. Double the amount of the IVY league. By comparisons, the ACC has the ACCIAC which has a total of 1 part time employee and does not release its figures.