Thrasher: ACC Network, Boosters restructure will help shore up FSU finances
Editor's Note: Warchant managing editor Ira Schoffel sat down with Florida State University President John Thrasher and Athletics Director David Coburn in separate conversations over the last week to discuss a variety of issues facing the Seminoles in the coming months and years.
Today's story will focus on FSU's financial challenges, how much of a jolt the Seminoles expect to receive from the new ACC Network and what improvement might come from the restructuring of the athletics department's relationship with Seminole Boosters.
Coming this weekend: Coburn and Thrasher offer their thoughts on FSU football, baseball and other topics.
Coming Tuesday: We'll take a closer look at Coburn's lengthy working relationship with Thrasher and why he was the right fit to be the Seminoles' athletics director.
There's no way to know if the Atlantic Coast Conference's soon-to-be-launched linear television network will close the revenue gap between the league and other Power 5 conferences, but Florida State officials will be thankful if it at least helps them make ends meet.
At least in the short term.
Just last week, USA Today reported that the Big Ten distributed more than $50 million to its member schools during the 2018 fiscal year. That is the most in history for any college conference, and it dwarfs the roughly $30 million ACC schools received one year earlier. (ACC payouts have not yet been reported for fiscal year 2018).
The Southeastern Conference, meanwhile, reportedly doled out between $42 million and $45 million to member schools in 2018, while the Pac-12's payout per school was slightly more than $31 million. The Big 12 numbers haven't been released yet, but they likely will fall in the middle of the Power 5 -- the schools in that league received about $36.5 million in 2017.
With much of that revenue coming from television contracts, it's easy to understand why officials at FSU and every ACC program are eagerly awaiting the launch of their new linear network on Aug. 22. Perhaps more importantly, they're awaiting word on whether cable giants Comcast and Spectrum, as well as satellite provider DISH Network, will join the providers who already have agreed to carry it.
"I think we're all kind of hoping," FSU President John Thrasher told Warchant this week, when asked if the network would help close the ACC's revenue gap with other conferences. "A lot of it depends on distribution, and Comcast is a big part of that. We're all working -- I think every university in the conference is kind of working on its own plan to kind of push Comcast a little bit."
Not getting picked up by those providers would be frustrating for fans who would have to subscribe to different providers to watch the Seminoles compete in football and other sports. But it could be a much larger problem for the conference's member schools, who are depending on an expected infusion of cash.
While ACC and ESPN leaders are handling the negotiations at the corporate level, Thrasher isn't going to hesitate to flex any political clout he has with cable providers in the state of Florida. From his many years as a legislator, lawyer and lobbyist, Thrasher acknowledged that he still has some "friends" in that industry.
"I just want them to know that a lot of people like Comcast and a lot of people like Florida State University," Thrasher said. "I hope they can come together and make it happen. ... It's a business decision, no question about that, for them. But I think when they start hearing from our fan base and understanding how important it is to a lot of our fan base, I think they'll understand and take a look at it."
ESPN executive vice president Burke Magnus, who made a presentation to ACC leaders during the conference's spring meetings last week, expressed confidence that a deal would be reached. He pointed out that parent company Disney will leverage its existing properties, which include the various ESPN and Disney channels and recently acquired National Geographic and FX offerings, to turn up the heat.
The fact that ACC schools are coming off of national championships in football (Clemson) and men's basketball (Virginia) will only help.
"This is not a one-trick pony," Magnus said of the ACC channel. "This is not just a football network. This is not just a basketball network. This is all of that and more.”
Even if agreements are reached, however, the big question remaining is how much money will be generated for each school and how soon?
"It's going to be helpful in many ways," FSU athletics director David Coburn said. "But financially, at least the first year, it's certainly not going to be a bonanza. And I think we've realized that for some time. But as those big cable providers come on board, it's going to generate some much-needed revenue. It will help."
While FSU's long-term focus is not falling too far behind national powers from other conferences, the short-term goal is simply returning to solid financial footing. The Seminoles' athletics department ran at a deficit of $3.6 million for fiscal year 2018, and despite some cost-cutting measures, it's expected to finish around the same number this year.
With another challenging budget ahead, Thrasher said FSU is pursuing several initiatives to create a stronger financial base. They're reducing expenses where possible, they have recently worked on new contracts with apparel giant Nike and marketing partner Learfield/IMG College, and they're moving forward with the plan to restructure the relationship between Seminole Boosters and the athletics department.
"I'm confident, with a couple of adjustments we can make this year, we're going to end up fine," Thrasher said. "And then next year, I think we maybe have a small gap, but we've got a gap that's achievable in terms of bringing it down. And then we get into the years with some new contracts with Nike, Learfield, the ACC Network. And then the realignment with Boosters and Athletics is going to make a difference also -- in bringing us closer together for our priorities."
While much of the discussion regarding the FSU Athletics/Seminole Boosters relationship has focused on political power -- at least among media and fans -- Thrasher said there are tangible economic reasons for a restructuring.
"Today, if you came in and organized this, you'd do it differently than the way it's set up now," Thrasher said, acknowledging that the two departments have not always been "on the same page" in recent years.
Even before the topic flared up during the end of Jimbo Fisher's tenure as football coach, Thrasher said he had concerns about how the organizations would work together in the future.
While crediting the decades of "great work" by Seminole Boosters President and CEO Andy Miller, Thrasher said there also is a need for better communication, more "synergies of staff," and a shared vision when it comes to facility improvements and construction.
Thrasher believes the changes will not only create efficiencies but also foster new opportunities for growth. And he said FSU's trustees reviewed the plans for restructuring last week during a workshop in Sarasota and gave their blessing to continue.
"We laid it all out for our board, and our board basically gave us the green light to continue to move ahead," Thrasher said. "And we are."
Unlike at many universities, the booster organization at Florida State does not operate under the direction of the athletics director. The group raises tens of millions of dollars each year to meet the athletics department's budget requests and to fund construction projects, but instead of reporting to the A.D., Miller answers to the boosters' board of directors and to the university administration.
Under a new arrangement, Thrasher said, Miller would still report to his board.
"But I also see a line to the athletic director to where there's better communication," Thrasher said. "David and Andy get along fine. Down the road, though, we won't have a David and Andy. So what's going to bring them together? This organization [structure] kind of pushes them together. And I would say it's set up to require them to communicate. Require them to set priorities."
The fact that he and Miller are nearing retirement is just another reason why the timing is right, Thrasher said. "We've got to restructure in a way that works when John Thrasher's not here, Andy Miller's not here and David Coburn's not here, and it aligns those two organizations in a way that supports the university in an appropriate way."
Thrasher also clarified that the restructuring is not completely his vision. He said it is being crafted with the help of all parties involved, including Board of Trustees Chair Ed Burr and Seminole Boosters Chair Doug Russell.
"I wanted them to kind of do it because it's more than just John Thrasher saying, 'I think we could do it better by doing it this way,'" he said. "I wanted more people involved in it from our leadership, including our boards, because they've ultimately got to buy in.
"Could I do it? Yeah I could probably do it. But that might not be the best way for something like this."
Coming this weekend: Coburn and Thrasher offer their thoughts on FSU football, baseball and other topics.
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Talk about this story with other Florida State football fans in the Tribal Council