This is why the numbers “work” for SMU.
This was their only and last shot to get in a P5. The Big 12 won’t take them. Nor will the SEC or Big 10. The PAC 12 was going to take them but blew up. That left the ACC who needed some schools to add revenue.
SMU is giving up 9 years of revenue, not just 7. But they were only making like $7 million a year in the American. And that was a deal made when decent programs like Cincinnati, Houston and UCF were members. Go look at the current lineup of teams in the American. Real bad. They replaced those three with UAB, Charlotte, FAU, North Texas, Rice and UTSA. The next negotiations were going to be ugly.
The deal with the ACC is they forgo TV revenue but still get their share of playoff, bowl and NCAAT revenue. Which will get close to that $7 million they are leaving behind.
Not to mention, tickets sales will be better in all sports based on decent opponents as opposed to the current slate. Some fans may scoff at an ACC schedule being exciting, but - not even mentioning Clemson and FSU - Miami, Pitt, NCST and Louisville, VaTech, etc are a hell of a lot more interesting games to attend than SMU's current home conference slate of North Texas, Navy, Tulsa, and Charlotte. Try selling that to a DFW family looking for something to do on a Saturday.
And the boosters have supposedly raised north of $200 million to help SMU weather the 9 years.
So, they had one shot to make P5 and they essentially “bought” their way into it. And while we all believe the whole system may blow up in the next 9 tears, when it does, they are least heading into that stage as a P5 team, not a G5.