According to reports from ESPN and Yahoo Sports, FSU, Clemson, and the ACC could reach a settlement to end litigation as soon as this week. While the final details are still unclear, sources revealed two main sticking points to the settlement (revenue distribution and exit penalties), which are detailed below.
As for a new revenue model, top programs in the conference are believed to be able to earn an additional 15-20M annually through a new “Brand Initiative” on top of the success initiative that is already in place. This is an attempt to bridge the growing revenue gap by the Power 2 conferences (SEC & Big Ten). It could mean some lower-performing schools will take a pay cut of up to $7M to fund the new model.
The brand initiative is believed to be based on a rolling five-year average of TV ratings and be heavily weighted towards football, with men’s basketball being the second-largest component. This new initiative is expected to be put in place as soon as the coming fiscal year if agreed upon.
FSU and Clemson are slated to benefit the most from this change, although schools like North Carolina and Miami are also expected to receive an increased payout. However, it is open to every school in the conference, so other schools like Georgia Tech, which was the top viewed ACC school in 2024, could also benefit from a successful year.
The other key component is a clearer picture of the cost to leave the conference prior to the end of the Grant of Rights in 2036. Reports indicate that the cost to leave the ACC would steadily decline each year and, after the 2029-2030 season, would drop below $100M. The schools may also be able to take their media rights with them despite an early exit, which was not possible under the current GOR model. This was a big factor for the schools involved in the litigation, as FSU estimated that amount could be valued as high as $500M over the next ten years. It is also believed that the cost to exit the conference would be one number rather than the media rights buyout and an exit penalty as it currently stands.
This exit timeline aligns with when the other Power 2 conferences go back to the negotiating table for their media rights contracts, giving the main programs in the conference who are looking to exit an opportunity to make a move at a time that would be convenient for all parties involved. This is also before the next College Football Playoff model comes up for renewal (2031), which has been a hot topic of discussion with the Big Ten and SEC going after additional automatic qualifier bids in the future.
There are additional details, such as scheduling adjustments for the ACC’s top football brands to play against Notre Dame more frequently, leveraging the conference’s relationship with the university. It could mean that the Irish will face as many as two top football brands from the ACC every year. This is believed to be part of the agreement for ESPN to extend the media rights deal through 2036.
Is this the ideal outcome for FSU and Clemson? I’d say no, but I wouldn’t consider it a loss, either. This settlement would provide additional revenue opportunities to bridge the gap and allow an earlier exit than 2036. Of course, FSU fans (me included) wanted to be out of the conference immediately, but this could still be considered a win for the university.
You put more money in your pocket while you wait to leave at an earlier date than 2036. There is no risk of losing the legal battle with this settlement and being stuck without anything in return. Yes, it cost FSU a pretty penny in legal fees to get here, however, with them standing to earn up to $15M more per year in revenue on top of the success initiative that was not announced until after the lawsuits were put in place, I’d argue it’s a good return on investment.
In return, the ACC gets stability in the near term by holding the conference together with the two programs remaining in the conference. The ACC board of directors will hold a call on Tuesday to discuss terms. FSU has scheduled a board meeting for noon on Tuesday to present the terms, and Clemson is expected to do the same. All three must agree to the terms for the deal to move forward. Stay tuned for additional updates as they become available. Thanks for reading, and Go Noles!
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