Jim Phillips on if added expansion revenue will appease disgruntled ACC schools: 'It's a step forward'

ACC commissioner Jim Phillips may have intitated the addition of three new schools to the conference with Friday’s announcement that Cal, SMU and Stanford are joining the conference. But it doesn’t mean he has a happy group of 18 schools.

Three schools voted no on the proposal with some schools, notably Florida State, openly discussing the idea of leaving. Part of the reason for the disgruntlement is because of revenue. Phillips said he thinks the deal to add the three schools should help — at least somewhat — with that.

The addition of the three schools adds $72 million in revenue from ESPN every year to the ACC — with SMU not receiving any of the television revenue money for the first nine years.

Cal and Stanford will receive split of the television revenue, but at a lesser price.

“I know that there’s something in this for everybody,” Phillips said during a Friday press call. “No one can deny that. It also takes a step forward towards it. Maybe it’s not enough. Maybe it is. But we are doing everything we can within the conference to address that piece of it. The success initiative, let’s let that play out. Let’s see what that looks like. Let’s see how much revenue is generated and then distributed to those that maybe have more success in football.

“I’m not ready to say that it doesn’t or it will or might. I want to get this structure in place and let us move forward. I’d encourage you to talk to the folks that voted no on this and see what their thoughts are. But I felt and came away and my staff and the chair came away that this was a very good outcome for the ACC. It has something for everyone. It may not have everything for everyone. But whether you voted for it or not, you’re going to benefit from this new arrangement and these three world class schools joining the ACC.”

The conference was third among Power Five conferences in total revenue for the 2022 fiscal year — but well behind the Big Ten and SEC. It was also fourth in revenue per school behind the Big Ten, SEC and Big 12. The Big Ten schools got $58.8 million, SEC schools got $49.9 million and Big 12 got $42-44.9 million, while ACC schools made $37.9-41.3 million.

Phillips told the media the deal was not only done for financial reasons but also because it hopefully gives the conference stability heading into the new world of college football and college sports.

The ACC was the only Power Five conference other than the Pac-12 not to make any realignment moves during this recent cycle the past two years.

“It’s absolutely good financially for us,” Phillips said. “But it also provides some stability. It just does. We look at next summer where folks are going to be at. The ACC will have 18 members, 17 full-time in football. The Big 10 will have 18 members, the Big 12 and SEC will have 16 members. I think that gives you strength and it gives you stability.”

The addition of three members also gives the ACC a buffer against dropping below 15 members, which could be financially devastating for the conference. If the ACC ever goes below 15 members, ESPN can re-negotiate its contract with the conference.

Phillips said he feels confident that adding the three schools is a step in the right direction for the conference.

“It is a step forward in addressing some of the concerns our schools have from a revenue standpoint,” Phillips said. “This was always going to be a combination of both. Our success initiative program would be met and connected to expansion and expansion would be connected to a success initiative. So it was a really, I think, good business proposition for us. As I said before, I’m thrilled about where this ended and what this means for the ACC now and into the future.”