Wednesday, April 24, 2013

Commitment Mechanisms and Conference Realignment

The 15 university members of Atlantic Coast Conference (ACC) have agreed on a "Grant of Rights." These rights vest the conference, not member schools, with media rights. Even if a team university were to leave the ACC for another conference, the ACC earns the lucrative revenues from broadcasting games. Since much of the recent conference realignment has had to do with the TV rights to football games, the ACC members have committed to taking this incentive to leave off the table. ACC teams universities can make stronger commitments to intra-conference rivalries knowing that the conference membership is more secure.

Hat tip: Josh Price

1 comment:

  1. So with commitment, you would expect more conference specific investment?

    What's the hold-up problem?