Clemson actually lost money this year when capital improvements were factored in. Granted, those are one time expenses but capital projects are always going to be needed. Yes, the new agreement will give them more money but revenue sharing with players is coming and that could potentially eat up every penny of the increase and more. Assuming they land in the SEC (there is no evidence the SEC has any interest in them, or the B1G for that matter) the new revenue would probably put them back to where they are now with revenue sharing. Give them the benefit of the doubt and lets say they will have a $15 million surplus going forward after everything is factored in. They will be looking at every penny of surplus going to the exit payment for 10 years. I am certain they would want to do some capital projects and there will be unforeseen expenses during that time so all of the surplus could not be directed to the exit fee.
Is getting out of the ACC so appealing that Clemson would be OK with spending all of their annual athletic surplus (assuming the surpluses continue after Clemson moves to a conference where they are not the giant among dwarves and no longer have a cakewalk to the CFP) for the next 5-10 years? I think when the people in charge of the money at Clemson actually sit down and look at the numbers they will realize leaving the ACC is a bad idea until something major changes. I think there will be major changes in college sports in the next 10 years and the schools who make emotional decisions and decisions based on short term financial rewards will look back with regret.
Yeah, I think the capital investments are also why FSU was in the red this year too.
You pose a good question though. If they could maintain their current expenditures, (ignoring the 12M surplus) allow the 15M to go towards the revenue sharing, and put only the SEC/B10 increase towards the buyout, would it be feasible?
Also remember that we're talking an immediate notice of switching conferences, set for 2 years in the future. Any year delay to that knocks off another year of payment (ish).
But you then weigh maintaining your current spending, having the revenue sharing mostly covered, and spending your increase for letssay 7 or 8 years.
Take that vs staying in the ACC, and in 2030 (is that the year of our new contract?) Falling more and more tens of millions behind annually?
That doesn't even take into consideration that if a couple schools are snatched ahead of FSU and Clemson, then the future of the ACC is in significant peril, and conference revenue by them would only drop further and further behind at an accelerating rate.
I think it only makes more sense the more you look at it long term.