SMU has made an impressive entrance into the Atlantic Coast Conference (ACC), showcasing its potential and ambition. Under the leadership of head coach Rhett Lashlee, the Mustangs reached the conference title game in their inaugural season, narrowly missing out on a championship against Clemson. This remarkable achievement has generated buzz around a program that was initially predicted to finish seventh in the ACC this year.
Why is SMU in the ACC?
You might be wondering how a university located over 1,000 miles from the ACC’s headquarters in Charlotte, N.C., found its way into this prestigious conference. The answer lies in the shifting landscape of college football. In 2023, the ACC faced intense competition and revenue challenges amid rapid conference realignment involving the Big Ten, Big 12, and SEC, along with the collapse of the Pac-12.
While the addition of teams like Cal, Stanford, and SMU may seem geographically illogical, it was essential for the ACC to demonstrate its capability to expand and remain competitive with other power conferences. SMU, once a dominant force in college football during the 1980s, has been eager to reclaim its status after suffering from the NCAA’s infamous “death penalty” in 1987, which severely impacted the program’s trajectory.
SMU’s unique financial situation
What makes SMU’s move to the ACC particularly intriguing is its financial strategy. Despite joining the conference, the Mustangs will not receive any television revenue for the next decade. Instead, they have opted to forgo approximately $24 million annually in exchange for membership. This decision raises questions about how a small private school in Dallas, with an enrollment of just over 12,000 students, can sustain itself without the financial support typically associated with joining a power conference.
SMU’s athletic director, Rick Hart, explained the rationale behind this unusual choice, stating, “I’m gonna leave some mystery around all that. You can’t forgo something you don’t have. We’re not going to take a step back resource-wise, even from a conference perspective. So this is all positive.” The Mustangs have adopted an underdog mentality, embracing the challenge of doing more with less.
Fundraising efforts and key boosters
At the heart of SMU’s financial strategy is a robust fundraising effort led by influential boosters. One of the standout figures in this initiative is David B. Miller, the chairman of SMU’s board of trustees and a billionaire oil and gas entrepreneur. Miller has played a pivotal role in rallying support for the program, emphasizing that the university’s fundraising capabilities are more than sufficient to offset the lost television revenue.
In fact, SMU boosters have pledged over $200 million to bridge the gap left by the absence of TV money. This impressive sum includes $100 million raised by a small group of just 30 donors. The school’s fundraising efforts have been nothing short of remarkable, with SMU announcing it raised $154 million during the 2023-24 fiscal year alone.
Miller’s son, Kyle, who is also involved in the NIL collective board, is the CEO of Silver Hill Energy Partners, which recently closed a substantial deal worth $1.13 billion. Other notable boosters include Chris Kleinert, CEO of Hunt Realty, and Blake Lawrence, CEO of Opendorse. Kleinert, with a reported net worth of $7.2 billion, is also related to oil tycoon R.L. Hunt, further solidifying the financial backing behind SMU’s ambitious plans.
SMU and ACC television revenue
So, what does this mean for SMU in the long run? By forgoing ACC television revenue, the Mustangs are betting on their ability to generate funds through alternative means. The ACC’s average television revenue for the 2023-24 season stands at $44.8 million per school, making SMU’s decision to forgo $24 million annually a bold move.
The Mustangs are not only focusing on traditional fundraising but also on enhancing their NIL (Name, Image, and Likeness) capabilities. In 2022, SMU launched the Boulevard Collective to facilitate NIL deals for its athletes. This initiative is set to pay football and basketball players $36,000 a year, totaling about $3.5 million annually for NIL activities.
The financial backing appears to be paying off, as SMU’s 2025 recruiting class currently ranks fifth overall in the ACC, featuring four 4-star recruits, the fifth-most in the conference. This success on the recruiting front indicates that the Mustangs are not just surviving in the ACC; they are thriving.
Looking ahead: SMU’s future in the ACC
With a strong fundraising foundation and a commitment to excellence, SMU has positioned itself as a formidable contender in the ACC. The Mustangs have made a significant impact in their first year, and the question now is whether they can convert this momentum into tangible success, such as an ACC title or a College Football Playoff (CFP) bid.
Even if they fall short of these lofty goals, SMU’s first year in the ACC can already be deemed a triumph. The combination of strategic financial planning, a passionate fan base, and a commitment to excellence has set the stage for a bright future. As the Mustangs continue to navigate the challenges of being in a power conference, one thing is clear: they are ready to compete and make their mark in college football once again.
