Florida State and Clemson voted to agree on settling their four ongoing lawsuits against the ACC and a new revenue-distribution strategy Tuesday, CBS Sports’ Brandon Marcello has confirmed. The ACC Board of Directors also approved the measure earlier in the day, bringing litigation between the conference and two of its most prominent member institutions to an end.
“Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference,” ACC commissioner Jim Phillips said in a statement. “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. The settlements, coupled with the ACC’s continued partnership with ESPN, allow us to focus on our collective future — including Clemson and Florida State — united in an 18-member conference demonstrating the best in intercollegiate athletics.”
ESPN recently exercised its opt-in clause with the ACC, extending its media rights deal with the conference through 2036 while providing some relief for the ACC through turbulent times. The new revenue-distribution strategy, as proposed in the settlement, would distribute 40% of the television money evenly through the 14 longstanding ACC members — including Florida State and Clemson — with 60% of the revenue distributed on a ratings-based formula from the past five years.
In addition, the total cost to exit the ACC is expected to decline by $18 million each year through 2029-30. After that period, the fee drops to $75 million and any exiting program will retain its media rights with the league.
Florida State filed its initial lawsuit, which took aim at the league’s grant of rights and withdrawal penalties, against the ACC in December 2023. Clemson joined in March 2024, asserting that the ACC’s exorbitant exit fee and control of media rights after leaving the conference is ultimately unenforceable and prevents Clemson from doing what is right for its institution.
ACC extends media rights deal through 2036: What it means for Florida State lawsuit, conference realignment
Chip Patterson
Naturally, a settlement would mean that the two schools intend to remain with the ACC for the foreseeable future. That would be a big win for the ACC, which has managed to retain its most prominent members while capitalizing on the latest wave of conference realignment with the additions of Stanford, California and SMU.
The future of revenue
The new revenue sharing strategy seems tailor-made for institutions like Florida State and Clemson, which routinely draw more viewers and higher ratings thanks to their historic status and wide reach to college football fans. ESPN notes that top earners are expected to earn an additional $15 million based largely on the revenue generated by ratings.
There is another side to that coin, as some programs will see a net reduction of as much as $7 million, though according to ESPN, member institutions were willing to trade that revenue loss for more league-wide stability.
The ACC is also considering “brand initiatives” that would further increase the war chest of the league’s most prominent schools. Florida State, specifically, first proposed this idea nearly two years ago before it began the legal process of freeing itself from the grant of rights.
It should also be noted that the 40% of television money distributed evenly among the 14 longstanding institutions is not a slight towards the more recent members. SMU decided to forgo media rights payments for nine years to join the ACC, while Cal and Stanford agreed to a 30% rate, so the newcomers are on a different scale.
ACC settling lawsuits provides short-term stability, but conference realignment still lingers down the road
John Talty
Exit fee keeps the door open
Though this agreement solidifies the ACC’s near-term future, it’s clear that the exit fee scale opens the door for movement before the media rights deal reaches its end. Florida State claimed at the time of its suit in Dec. 2023 that the penalty for withdrawing early from the ACC would be a mind-boggling $572 million.
That figure is already down to $165 million for fiscal year 2026, which is still steep. But a continuous decline through 2030 will make it more manageable, and a flat fee of $75 million beyond 2030 is more in line with a standard exit fee.
The ACC does have some good standing to hold on to its current members, though the balance of power in college football shifts constantly. The ACC joined the Big Ten and the SEC as the only three conferences to send at least two schools to the inaugural 12-team College Football Playoff in 2024, including Clemson.
If the current playoff format applied for the entirety of its existence, than either Clemson or Florida State would have automatically qualified in 10 of the last 11 years. While other conferences could offer more money — the Big Ten and the SEC dominate in terms of television revenue — the ACC can at least pitch opportunity to keep its bigger programs on the line.
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