The apparent desperation among the remaining Pac-12 schools has reached the point where one may prefer a new conference even if that doesn’t guarantee any shared revenue.

Stanford has reportedly told California, Oregon State, and Washington State that it has informed the ACC it would be open to joining the conference with potentially no media rights payout for multiple years, according to the Associated Press.

ESPN is paying the ACC $240 million per year through 2036 and doesn’t have to up its spend if the conference adds schools, although it could agree to do so. The current 14 members would likely want a promise of more media revenue if it were to expand, especially if they were splitting any or all of that money with new universities.

Apple’s final offer to the Pac-12 before it was dismantled reportedly would have paid schools about $25 million a year. Last year, the Pac-12 reportedly turned down an offer from ESPN that would have paid schools about $30 million each.

Stanford has often been linked with Cal throughout realignment, but the Cardinal appear to be showing more aggression in finding a new home — with former U.S. Secretary of State Condoleezza Rice making a recommendation for a Stanford ACC move.

Waiting Game

The holdup in any ACC decision-making has forced Oregon State and Washington State to wait before solidifying any next moves. The American Athletic Conference is also waiting to see if any of its teams will be poached or if it could potentially add new ones.

Winning is always good for business — and for MSG Sports, it helped generate record revenue in fiscal 2023.

Fueled in part by the New York Knicks’ best season in a decade, the parent company of the NBA team and NHL Rangers posted $887 million in revenue for the fiscal year, up by 8% for a new high, and adjusted operating income of $115 million.

There were eight home playoff games between the Knicks and Rangers this past spring, down from 10 in 2022, which contributed to a 28% decline in fourth-quarter revenue to $127 million. But the overall annual revenue lift was owed in part to the Knicks’ 4% spike in attendance, which led to corresponding gains in sponsorship, premium seating, and merchandise sales as the team advanced to the Eastern Conference semifinals.

“The momentum was broad-based with every key revenue line up compared to fiscal ’22’s record results,” said David Hopkinson, MSG Sports president and COO. “We really think this is a testament to the strength of our business and the underlying value of the assets.”

Up For Sale?

Hopkinson said that underlying value could also lead to potential minority equity sales in either or both teams.

“We would not rule out the possibility,” Hopkinson said. “We continue to be as confident as ever in the value of our teams. They are incredibly scarce assets … with significant opportunities for long-term growth, which we don’t think is appropriately reflected in our current stock price.”

That stock is essentially flat for the year-to-date at about $180 per share, and a recent slide has erased what had been a double-digit percentage gain.

WWE’s popularity could be at an all-time high as the company closes in on a $9.3 billion merger with the UFC.

Tickets for WrestleMania 40 broke the all-time WWE gate record of $21.5 million less than 24 hours after going on sale Friday, WWE sources confirmed to Front Office Sports. More than 90,000 tickets have been sold for the two-day event at Philadelphia’s Lincoln Financial Field in April 2024.

The previous gate record was just set this spring at Wrestlemania 39 over two days at SoFi Stadium in Los Angeles. Given that WrestleMania 40 won’t begin for nearly eight months, those ticket and gate records could be pushed even higher.

By mid-to-late-September, WWE is expected to be fully merged with the UFC as the newly formed TKO Holdings, which will be majority-owned by Endeavor. 

WWE’s most recent quarterly revenue was up 25% year-over-year at $410.3 million, but Endeavor CEO Ari Emanuel has nevertheless hinted at potential layoffs as the two fighting units come together.

At the top of WWE’s agenda right now is negotiating new media rights deals for its SmackDown and Raw properties. Its current contracts with USA Network and Fox expire in 2024.

To The Octagon

The UFC broke the gate record at Salt Lake City’s Delta Center for UFC 291 last month, bringing in more than $6.5 million and over 18,00 fans in attendance.

The Premier League is reportedly creating a formal process to force out “bad” club owners, a situation that has frustrated pro leagues on both sides of the Atlantic Ocean for years.

The Financial Times said the top-tier English league is in talks with member clubs regarding the creation of a divestment protocol — an established standard to hold owners accountable. 

Violators would be barred from serving as directors. The list of disqualifying events would include a wide range of significant criminal offenses such as violence, fraud, corruption, and tax evasion, as well as various human rights abuses. 

The proposed protocol is slated to be discussed further at a league meeting next month, and if put for a vote would require approval from 14 of 20 clubs for ratification.

The rising issue follows a messy standoff between the U.K. government and former Chelsea owner Roman Abramovich. Last year, the Premier League placed sanctions on Abramovich for his connections to Vladimir Putin following Russia’s invasion of Ukraine, and the Premier League followed suit by removing him as a director. 

Abramovich got out in front of that by placing the club up for sale. Had he not done that, Chelsea faced a potential collapse. Ultimately, U.S. investors Todd Boehly and Clearlake Capital purchased the club in a then-record deal with an accelerated sales process.

Major U.S. leagues have rules allowing owners to call for a forced sale of a team, but such moves are rarely enforced. Most recently, former Washington Commanders owner Dan Snyder sold the team amid fast-rising pressure both inside and outside NFL ownership circles, though there was never a formal vote to oust him.