ACC Agrees To New Revenue Distribution Model, But How Long Will It Keep Clemson, Florida State And Miami Happy?

The ACC has agreed to a new revenue sharing model that will see teams financially rewarded for success in the postseason. The conference announced on Wednesday that its member institutions are on the same page, but the exact plan is yet to be worked out.

During conference meetings last week in Florida, the 'Quiet Seven' were finally unmasked. A group of schools looking for a potential way out of the ACC, based on the current revenue sharing model that had each school making almost $30 million less than the SEC and Big Ten.

Led by Florida State, Clemson and Miami, these schools let it be known that they'd been looking through the ACC's 'grant of rights' together hoping to find a loophole for an early exit. This move scared other conference members enough that during ACC meetings last week, they agreed to find other ways to compensate schools that delivered more than others.

"The ACC Board of Directors continues to be committed to exploring all potential opportunities that will result in additional revenues and resources for the conference," said Duke president Vince Price, also the chair of the board of directors. "Today's decision provides a path to reward athletic success while also distributing additional revenue to the full membership." 

ACC Schools Will Receive In terms Of Additional Revenue

Now that the conference has admitted they have a problem to fix and will work towards a solution, revenue becomes the main topic. There is a chance that schools who succeed in the postseason, by making the playoffs, could receive up to $10 million in additional revenue. This would certainly help some teams in the conference who feel as if they've been shorted over the last few years, while other schools make money off their success.

The uneven revenue share or incentive plan, will ease the tension for schools like Clemson, Florida State and Miami, who see themselves as the bigger draw. In the past, a team like Clemson making the Orange Bowl in 2022 would see a dramatic increase in revenue compared to others who were either not eligible or in a lower-tier game.

Mike Norvell is hoping to lead Florida State to the 2023-2024 College Football Playoffs . (Credit: Getty Images)

This new revenue plan would also include the NCAA Tournament.

Now, this is only a bandaid for where the some ACC schools feel they need to be in terms of revenue. Understandably, this will not fix all of the current revenue issues around the ACC, which is stuck in a deal with ESPN until 2036. But, this does provide additional sources of revenue that might alleviate some of the financial pain, for now.

"Today's endorsement follows significant and meaningful conversations by the ACC Board of Directors," ACC commissioner Jim Phillips said. "To be certain, I applaud their thoughtfulness and continued commitment to working collectively. As we've communicated consistently, we remain dedicated to exploring all options to enhance support for our member institutions and their student-athletes."

Now the real work begins, with the conference wanting this in place in 2024-25, as the College Football Playoffs expands to twelve teams.