Ross Dellenger details financial conditions for potential ACC expansion of Cal, Stanford, SMU

The ACC is reportedly considering expansion with Cal, Stanford and SMU, the newly revealed third team, per Yahoo Sports’ Ross Dellenger.

New financial details were revealed if the ACC were to add all three schools to the east coast conference. The biggest thing? Cal and Stanford come in at a reduced share while SMU would forgo years of distribution.

Plus, ESPN would get involved in this expansion with the ACC.

“Our Yahoo Sports story from Tuesday on the ACC exploring expansion additions Cal, Stanford and SMU, where we dive into the financials: SMU open to forgoing 5+ years of distribution, Cal, Stanford taking a 60-70% share, ESPN new $$ off-setting current member travel increases,” Dellenger wrote on Twitter.

If the decision to add all three of Cal, Stanford, and SMU becomes official, the ACC will have a ton of new territory to work with. California and Texas are booming areas of the country, with the Lone Star State being football obsessed.

As schools such as Clemson, Florida State, and even North Carolina attempt to leave the ACC, conference officials are attempting to at least compete against the Big Ten and SEC.

SMU in consideration for ACC expansion

The ACC would not be the first conference SMU has discussed joining in recent times. Pac-12 commissioner George Kliavkoff was in the Park Cities during basketball season, meeting with high-ranking Mustang officials. Dellenger says the Big 12 has been in contact in the past year too.

Plenty of advantages work in SMU’s favor as the ACC takes them under consideration. They are located in Dallas, bringing a potential large media market to the conference. Rhett Lashlee has the Mustangs ready to compete as well, recruiting the area well and seemingly having a bright future.

However, the biggest reported draw is the financial implications of having SMU join. Dellenger says due to the backing of the alumni, SMU would willing to skip a few years of distribution pay. The ACC would not have to pay the program out for several years on the current television contract.

“The university would arrive at a reduced rate,” Dellenger said. “Employing a rich donor base and a healthy desire to advance to the Power Four level, the university is open to forgoing conference distribution pay for their first several years in a new league. SMU officials held similar conversations with Pac-12 administrators.”

Griffin McVeigh contributed to this report