Friday, May 25, 2012

The Bankrupt ACC

By the end of this decade, the ACC will be forced to apply for bankruptcy. 

Whether or not they enter willingly, only they can decide.  And it will determine their future and their relevance.

Currently the ACC has plenty of assets, cash on hand, and the respect of its peers.  But this won’t last forever.  There are some serious bills about to come due, which will alter their financial position.

If it intends to make it as a major player in collegiate athletics, it would behoove the ACC to enter Chapter 11 bankruptcy right now.  This very moment.  They should follow the standard practices of Chapter 11 and reorganize and restructure.  If they do, they could potentially come out a better, stronger conference.

However, with all bankruptcies, this would not be an easy task.  It would require changes in leadership, strategy, focus, and implementation.

Swofford – out.  Greensboro – out.  Equitable finances – out.  Favoritism – out.

The good news is history shows us bankruptcies do not always spell doom.  Delta & US Airways have emerged from Chapter 11 multiple times.  GM, Lehman Brothers, and Washington Mutual all just emerged following the recession.

Also consider folks like Abraham Lincoln, Walt Disney, and Henry Ford.  These guys all made their mark after bankruptcy, not before.  And the ACC can do the same.

However, if the ACC is unwilling to enter Chapter 11 bankruptcy, it will ultimately be forced to enter Chapter 7 or 13.

If it sits back and does nothing, it could very easily be in Chapter 7 before the end of this decade.  3-4 teams would leave for the Big XII, another 1-2 to the SEC, and another 2-3 to the B1G.  If this happens, there is nothing left for the ACC to hold on to.  It will have to liquidate its remaining teams and dissolve, which essentially defines Chapter 7.

Even if the ACC can convince some teams to stay, it won’t be able to keep them all.  And the teams that do leave will relegate the ACC to a lower level, on par with the Big East, Conference USA, or Mountain West.

The relegation to a lower tier conference would follow with the removal of its chair at the big boy table.  And it’s still forced to enter bankruptcy - Chapter 13.  It would retain some of its assets, keep its driver, but it will still be upside down.  And it would never be the same again.

So the ACC, and its assets (or debtors if you look at like the administrations of Clemson & FSU), have some decisions to make.  None of them are pretty.  None of them are easy.  And none of them are certain.

But if the ACC recognizes it has a problem, enters Chapter 11 willingly, I believe it will come out stronger, more focused, and in better position.  And I think its assets/debtors will give them the benefit of the doubt and look forward to a long, mutually beneficial relationship.

If the ACC’s ego gets in the way, well, let’s just say they’d better seek advice from Enron, Adelphia, and MC Hammer.

2 comments:

  1. No, I think your a little off base about bankruptcy within the ACC. They will always have MONEY. What you should look at is the MORAL bankruptcy with Swoffie Swofford and the ESPN contract. Hell, Swoffie gave away ACC's lower tier rights to RAYCOM, lowest of the lows in production. Hello Mike HogHead... BTW, Swofford's son is a head(HOG) at RAYCOM... Thats all ya' need to know, other than Swoffie was AD at UNC B-4 taking on and riuning the ACC.

    Also, Swoffie (while AD @ Tarhole city) forced thru a vote against Clemson to add ONE more year punishment after the NCAA dropped the hammer on Ford & Pell.

    Do some research on this Moral bankruptcy...

    I enjoy uour new site.. Keep it up..

    ReplyDelete
    Replies
    1. You are the first one to make the non-financial connection. The article is not a literal take on bankruptcy, but a satirical one, where the process is similar.

      Ultimately, I agree. The biggest problem right now with the ACC is the fact that they don' realize there is a problem. And this starts from the top and works its way down, very slowly.

      Thanks for stopping by.

      Delete

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