The fate of the Atlantic Coast Conference has been on the chopping block with a unilateral contract extension option by ESPN looming on February 1st, 2025. It now appears that the conference will avoid a fate similar to the Pac-12’s as ESPN writers David Hale and Andrea Adelson are reporting the sports network giant is going to “ok” the media rights extension through 2036.
As we all know, there is still the elephant in the room of the lawsuits between Florida State, Clemson, and the ACC. However, new details from the extension appear to provide some clarity on how those may come to a close in a way that gives everyone a little bit of what they want. Although ESPN declined to comment on picking up the option, their sources provided details on the process.
It’s reported that ESPN agreed to pick up the option after the ACC agreed to new “value adds,” pushed by ACC commissioner Jim Phillips. The most notable is creating more marquee matchups in football and men’s basketball to maximize premium content on the ESPN networks. The ACC board of directors approved these additions on a Wednesday night. It is also reported that one way of creating these matchups is leveraging the conference’s partnership with Notre Dame, whose AD already mentioned being open to playing more games against Clemson in the future.
The other big change, which is the most relevant to Florida State, is the proposal of a new revenue distribution model aimed at cooling concerns over the widening revenue gap between the ACC and the two growing powers of the Big Ten and SEC. The proposal includes a portion of the conference’s television revenue being put into a “Brand Fund,” to be distributed to the schools that generate the most revenue for the conference annually in football and men’s and women’s basketball. This targets schools like FSU, Clemson, North Carolina, and Miami. Three of those four voiced displeasure with the revenue issues and were exploring options to leave the conference.
Although that proposal has not yet been finalized per their sources, it is closely tied to the extension option being picked up as it would be expected to also end the FSU and Clemson lawsuits, which picked back up in the courts this week. But let me be clear, this is a deal between ESPN and the ACC, NOT FSU and Clemson. There is no guarantee that the lawsuits will end. They may very well continue with the two programs seeking an early and potentially penalty-free exit date before 2036.
ACC sources suggested that the new revenue distribution model may not be ideal or pass unanimously because that would mean conference foes getting a bigger paycheck and potentially requiring a revenue haircut for some schools to provide funding. However, it is viewed as a better option than an uncertain future if they were to lose their top brands as we saw with the Pac-12 conference.
The thought behind this model comes after displeasure was voiced by FSU Athletic Director Michael Alford about the Seminoles bringing in as much as 15% of the ACC’s media value but only receiving 7% of the distributions under the current model. As far as football is concerned, FSU and Clemson are head and shoulders above programs like Wake Forest, Syracuse, and others who receive an equal payout. The two power programs that have proven to be the only two to compete at a national level consistently are simply tired of dragging the rest of the conference like a boat anchor as they race to keep up with the Big Ten and SEC programs.
The new revenue distribution model would be in addition to the success initiative that has already been put in place. Obviously, for FSU, seasons like 2024 simply cannot happen again and it is time to emphasize fixing the men’s basketball program. However, if they get back into the national spotlight, this can provide a significant earnings boost for the program. Combined, the two revenue initiatives are reported to get the top earning programs within a “few million” of their peers in the Big Ten and SEC.
There are various other reasons why Florida State would be better suited to finding their way to one of the “Power 2” conferences like bigger matchups in better time slots leading to better games at Doak. There is also recruiting prowess to consider and the potential for more spots in the College Football Playoffs as those two conferences are reportedly pushing for as many as three to four automatic bids. I still believe that is the long-term goal for the university, but this can serve as a short-term solution to help alleviate the revenue gap issue while they navigate their future in the big picture of the arms race that is modern college athletics.
Sources tell me & @aadelsonESPN that ESPN has picked up its option on the ACC TV deal thru 2036. Additionally the league is working toward a new rev distribution model to reward biggest brands that would keep Clemson & FSU in the fold. https://t.co/JPgpELfNiH
— 💫🅰️♈️🆔 (@ADavidHaleJoint) January 30, 2025
Ideally, FSU gains extra revenue and still finds a way to negotiate an earlier end to the ACC’s Grant of Rights than the current 2036 date. The “Power Two” go back to the negotiating table around 2031, so it would be ideal if FSU could make a break for the door around that time. However, assuming a worst-case scenario where they lose the lawsuit and the school is stuck in the ACC until 2036 or forced to pay an estimated 5-700 million to exit, this is certainly better than that outcome. It is a situation that we will continue to monitor as more details emerge, but for now, although disappointing to most, it appears the future has become a little clearer at least for the next few years. Read the full release here. Thanks for reading and Go Noles!
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