The Atlantic Coast Conference, Clemson, and Florida State have agreed to put recent legal disputes behind them and focus on moving forward as unified members of the league. On Tuesday, both schools, along with the ACC, reached a settlement that altered their financial dealings, benefiting their prominent football programs. The new deal modifies revenue distribution to potentially bolster the income of both institutions and clarifies the financial implications for any school contemplating leaving the conference.
This agreement, however, doesn’t offer long-term security, leaving the 2030-31 season as a critical point for future negotiations. Nonetheless, it assures stability for the ACC in the near term as the league has been under scrutiny about its survival amidst revenue discrepancies compared to the Southeastern Conference and the Big Ten.
In a statement, ACC commissioner Jim Phillips conveyed optimism, calling this resolution the beginning of a new chapter for the league, which will also halt ongoing lawsuits in Florida and the Carolinas. He highlighted that the settlement, together with stronger ties with ESPN, allows for a strategic focus on the future, keeping Clemson and Florida State as integral parts of an 18-member conference committed to excellence in college sports.
Approval for the agreement was given by the ACC’s Board of Directors, composed of university leaders, and separately by Clemson and FSU’s trustees. The revised revenue-distribution model is significant because it rewards programs based on television viewership, allowing successful teams to generate additional income. Under this new model, 60% of the league’s TV revenues are based on a rolling five-year viewership performance, while the other 40% is equally split among members.
For standout programs, this could translate into an increase of up to $15 million annually, while it might result in a reduction of about $7 million for others. This initiative is part of a broader strategy that includes increasing league membership and launching the “success initiative,” incentivizing postseason achievements.
A presentation at Clemson suggested that this new revenue model and performance-based incentives could result in over $120 million in extra income for Clemson over a six-year period. According to Clemson’s athletic director, Graham Neff, these changes enhance both Clemson’s and the ACC’s standings.
Financial disparities had fueled tension, given that ACC schools were earning significantly less than their peers in other major conferences. The settlement addresses the longstanding concerns over the terms related to media rights, extending to 2036, and potential exit costs, clarifying that if a school does choose to depart, it would retain its media rights after paying a predetermined fee.
By 2031, any early-exit fees for the ACC would be around $75 million. This timing coincides with the expiration of media agreements for other conferences, potentially setting the stage for significant shifts in college athletics.
Meanwhile, the ACC has reinforced its partnerships, most notably with ESPN, which recently extended its contract to align with the ACC Network’s agreement until 2036. This expanded alliance has already contributed an additional $600 million in revenue, with some schools agreeing to reduced TV revenues to facilitate this expansion.
The “success initiative,” largely tied to the forthcoming expanded College Football Playoff, could yield up to $25 million annually for qualifying schools. This aligns with Phillips’s vision of incentivizing athletic success, fostering enthusiasm for consistently high-performing teams.
Florida State trustee and former quarterback Drew Weatherford expressed satisfaction with the agreement’s outcomes, emphasizing that the commitments made have strengthened the league’s competitive edge and ensured the ability to compete at the highest levels.
