The Atlantic Coast Conference and Florida State University: The Economics of College Athletics

Abstract

The Atlantic Coast Conference (ACC) faced a crisis.  Routinely known as one of the best basketball conferences in the nation, the ACC faced the possibility that one of its premier football members, Florida State University, would leave the conference for the Big 12.  The reason was ostensibly because of the ACC’s less lucrative TV contracts and weaker football programs. John Swofford, Commissioner of the ACC was caught off guard and needed to react to the statement. The fear on the part of the ACC commissioner was that the league would not be as competitive in football and that several other schools might choose to move if FSU maked the decision to leave.  The case asks what the ACC commissioner should do and explores the reasons for FSU’s contemplation of a move.