Clemson University and Florida State University have reached a revenue sharing agreement with the Atlantic Coast Conference, bringing to an end a bitter and contentious battle of litigation between the parties.
The agreement, which changes the revenue distribution model, also significantly lowers the exit penalties for any team that chooses to leave the ACC prior to 2036. The later had been a great source of discontent for Clemson and Florida State as they explored the possibility of exiting the conference in the past year.
Both Clemson University and Florida State University had previously filed lawsuits against the ACC, challenging its grant of rights agreement, which stipulated an exit fee of up to $700 million for any school that chose to leave prior to 2036. Due to what it perceived as unfair revenue distribution, Clemson, among others, had explored the possibility of switching conferences as it searched for ways to increase its financial inflow.
As part of the agreed upon settlement, the penalty to leave the ACC was significantly reduced to $165 million and will decrease by $18 million per season until it levels at $75 million during the 2030-31 fiscal year. The grant of rights will remain intact through 2036, but any team that leaves prior to 2036 and pays the exit fee in full, will be able to retain 100 percent of its media rights.
ACC commissioner Jim Phillips lauded the agreement as a way to move forward with two of the conference’s most influential members.
“Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference,” stated Phillips. “As we look ahead to our collective long-term future, I want to express my deepest appreciation to the ACC Board of Directors for its ongoing leadership, patience, and dedication throughout this process. The league has competed at the highest level for more than 70 years and this new structure demonstrates the ACC embracing innovation and further incentivizing our membership based on competition and viewership results.”
Jim Phillips, ACC Commissioner
The board of trustees for both Clemson University and Florida State University approved the agreement shortly after it was given the green light by the ACC board signed off on the agreement. Of note is the fact that television deals for the Big Ten and Big 12 conferences expire in 2029-30 and 2030 respectively, and the next potential format of the college football play-off (2031) would be up for consideration at the same time as the ACC exit fee levels out at $75 million.
At its base, the new revenue distribution model, or “brand initiative” as it is being tabbed, will be based on a five-year rolling average of which 60 percent of ACC television revenue will be earmarked for the initiative. More credence will be given to more recent viewership. A team’s total viewership will then be divvied up among the total ACC viewership to equal the percentage of the money available in the pool. The remaining 40 percent will be equally shared among the rest of the conference’s member schools.
Who “Won” the ACC Settlement? Florida State & Clemson
Clemson athletic director Graham Neff spoke positively of the agreement, and with the court battle ending, affirmed the longstanding relationship between Clemson University and the Atlantic Coast Conference.
“The ACC is an excellent fit for Clemson,” Neff said. “The academic prestige and reputation we so emphasize here at Clemson is a nature fit with the other members of the ACC. The historic football success the league has had, and that Clemson has had in the ACC and access to the College Football Play-off currently, this is a great home for Clemson.”
Graham Neff, Clemson University Athletic Director
Clemson has enjoyed the highest viewership of any ACC member school in the past six years, while Florida State has ranked in the top four in that metric. But with the ACC producing multiple marquee games over the past half decade and compelling athletic competition abounding, it would appear the agreement now in place will preserve the core of the ACC and ensure Clemson University and Florida State University will remain in the fold for the foreseeable future.
