ACC, Florida State And Clemson Expected To Settle Lawsuits With New Agreement. Who Actually Won?

After filing multiple lawsuits against each other over the past two years, it looks as though the ACC, Florida State and Clemson have reached an agreement that will end the ongoing litigation and create a new revenue-sharing model within the conference that will satisfy its key members. 

The ongoing battle between two of the most prominent teams within the ACC has been a major talking point as we enter a new era in college athletics, with Clemson and Florida State looking for more money out of the conference, while the ACC has been hesitant about giving into the demands that were brought forth in multiple filings. 

Now, as first reported by ESPN, the battle seems to be coming in for a smooth landing that will present opportunities for both Clemson and Florida State to increase their wealth within the conference amidst threats to leave for greener pastures. 

As we've reported in the past, a number of schools have been looking for holes within the ACC's Grant-Of Rights in order to potentially leave for a different conference, or at least make it look that way for the opportunity to garner more financial securities to keep up with schools from the SEC and Big Ten. 

Clemson and Florida State have now formally called BOT meetings for Tuesday, where they are expected to vote on this settlement, with the ACC also meeting to formally discuss the agreement. 

At the forefront of the arguments by FSU and Clemson were the financial ramifications of a television deal with the ACC, along with getting a bigger share of the pie when it came to payouts to conference members. Seeing schools from the Big Ten and SEC rake in nearly twice what schools from the ACC were making left a sour taste in the mouth of administrators of both prominent schools. 

Among the items that have been negotiated for this settlement, which will see all parties lay down the swords in the court room, were the exit fees associated with leaving rhe ACC, along with the revenue distributed to conference members based on television viewership. 

Obviously, Florida State and Clemson see themselves as the premier teams of the ACC, and wanted to be taken care of financially, compared to the current model that was in place. Among the key arguments that looked to have been settled, the ACC is prepared to split 40% of its television revenue among the fourteen conference members, while the remaining 60% will be distributed based upon television ratings. 

This revenue model obviously helps Florida State and Clemson, especially if the conference is looking at ratings that both teams garner on any given Saturday, compared to teams like Wake Forest or NC State. 

How Much Money Would Florida State And Clemson See In The Future?

One of the key aspects of this potential settlement that will be discussed during BOT meetings on Tuesday is how much extra money per year these schools are looking at receiving. While this comes at the perfect time for schools in the ACC, it's not just Florida State and Clemson that will clearly benefit from this new model. 

North Carolina will clearly see a bump in their financial distrubution when looking at television ratings, thanks to the hiring of Bill Belechick. The college football world will be fixated on Tar Heel games this season, and television ratings for their games should garner a nice paycheck at the end of 2025. 

Through these ‘success initiatives’, they will create more financial opportunities from money also generated through the college football playoff contract that the ACC agreed to. This past season, both Clemson and SMU received an additional $4 million each for making the postseason. 

ACC commissioner Jim Phillips discusses some of the high points for the league during its 2022 spring meetings. (Matt Murschel/Orlando Sentinel/Tribune News Service via Getty Images)

While this will be beneficial for some ACC schools, others will take a pay decrease due to them not producing enough television numbers to enact the new revenue-distribution model. A school like Stanford will obviously not draw the same type of ratings that Florida State would, so the Cardinal will see a decrease in their payout at season's end. 

But, this comes with the territory of wanting to appease the schools that are a main driving force in network audiences around the country, so taking a slight hit when it comes to financial terms is not the end of the world for these schools. What could this financial hit look like? According to ESPN, and confirmed by OutKick, some conference members could see a $7 to $8 million decrease in payouts. 

‘Grant Of Rights’ Exit Fees Part Of The Proposed ACC Settlement

One of the bigger talking-points over the past few years has centered around the highly guarded ‘Grant of Rights’ that the ACC has in-place for its current members, which would force schools to pay an exorbitant amount of money to leave. 

For this, schools like Florida State and Clemson have postured over the past few years that they were looking for a way out of the ACC, but the financial penalty for leaving was reportedly upwards of $700 million, according to lawyers that represented Florida State. While this figure has been floated numerous times, it's clearly unknown how much it would've actually taken to bolt for another conference. 

Now, the settlement between all parties will also have a clearly defined exit fee, which the ACC has not made publicly known. While the current grant of rights does not expire until after the 2035-2036 academic year, all schools will know how much it would take to exit the ACC before the agreement comes to an end. 

Meaning, if Florida State, Clemson, Miami or any other school wanted to leave, they would have an exact figure that would have to be paid. Yes, the grant of rights is complicated, and everyone has an opinion on how much it would cost to get out. 

As the college athletics world continues to shift, it's worth noting that while this agreement is good for keeping schools in the ACC, that could all change in 2030-2032, when the current Big Ten and the College Football Playoff television contracts end. 

So, could this settlement between the ACC, Florida State and Clemson be a bridge for the next four years? 

Absolutely. But it brings stability to a conference that has been garnering headlines for all the wrong reasons for the past few years.