Yow says ACC Network “single most important thing for future of athletic program.” Is she right?

A year from now, the ACC will finally have their own ESPN-partnered channel. That launch couldn’t come soon enough for the ACC’s athletic programs who are at a disadvantage against schools in conferences with their own channels. Just take a look at these numbers…

“The single most important thing for the future of this athletic program financially is the success of the ACC Network, without question,”
– @gopacknow https://t.co/rjb3DkFn6J

— Fred Demarest (@Fred_Demarest) August 29, 2018

As you can see from NC State AD Debbie Yow’s comment (she is @gopacknow), she is banking on this deal to really boost revenue for NC State.

However, this venture is not without risk.

As reported by Sports Business Journal, each ACC school is being required to spend anywhere from $7-10 Million to prepare for the launch. That is a high price tag for sure, but ESPN is requiring these schools to basically build TV studios into their facilities.

Schools are expected to be capable of producing multiple linear-quality broadcasts at once, in addition to digital broadcasts and videoboard content. Each school will have four to five control rooms, with at least two with linear capabilities, and there are plenty of further costs out there, ranging from $100,000 for a camera platform to $1 million to run fiber-optic cable from the venues to the control rooms. Oh, and at some schools like North Carolina, there are major construction or renovation costs (around $4 million in the Tar Heels’ case) just to get suitable space for these control rooms. (Awful Announcing)

So is expecting the new ACC Network to be a cash cow the right move?

In an industry where revenue is strictly tied to winning, there is very little stability in long-term financial planning. So, if you’re going to bet on one sure-fire way to increase revenue, betting on the new ACC Network seems like the right play.

It helps that the SEC and BIG-10 are basically ‘proof-of-concepts’ for the idea, and both are out-earning the ACC by a large margin.

If you’re wondering why there is any concern at all, it’s because traditional TV subscriptions are on a downward trend. Cord-cutters and app users are really eating into the old model of bundling channels and ESPN is one of the last hold-outs. The sports media monolith still refuses to launch a standalone app that gives you access to all their live channels with playback ability.

Sure, with live sports and tons of licensing rights in place, it could get dicey, but ESPN has had a TON of time to figure this out and all they have to show for it right now is ESPN + (and WatchESPN, which is tied to a cable subscription).

It’s really still not clear what the vision for ESPN + is. Is it ESPN doing a test-run on their ability to produce an industry-leading standalone app? Or is it some idea hatched by execs with wallets bloated from years of traditional TV contracts, basically hedging their bets and getting SOMETHING in the app store because the entire sports-watching nation is pressuring them to?

At the end of the day, I think this nation is sports crazy enough that no matter what ESPN does with their digital delivery, the ACC Network will be a success. But just how much of a success likely depends on ESPN figuring out their positioning in this new generation of television.