Ad Disclosure
Florida State, Clemson reportedly closing in on settlement with ACC
By Paul Harvey
Published:
Florida State and Clemson are reportedly closing in on a major settlement with the ACC to bring multiple ongoing lawsuits to a conclusion.
According to a joint report from ESPN’s Andrea Adelson, David Hale and Pete Thamel, a key component of the settlement revolves around a new revenue-distribution model for the ACC designed to solidify the conference’s membership for the near future. The ACC Board of Directors is scheduled to meet on Tuesday to review the settlement terms while Florida State and Clemson must also hold meetings regarding the settlement. All 3 boards must reach an agreement for the settlement to move forward.
ESPN’s sources cited two key objectives within the settlement: a new revenue-distribution model that is centered around viewership ratings and a change in financial penalties for leaving the ACC early prior to June 2036.
According to ESPN’s report, the new distribution model is based on a 5-year rolling average of TV ratings. Under this model, described as the “brand initiative,” 40% of the TV revenue will be evenly distributed to the 14 longstanding members while 60% will go toward the brand initiative to be distributed based on the ratings.
Estimated numbers for the new model have top earners expected to add around an additional $15 million or more while others could see a deduction in payouts up to around $7 million annually. Those losses were deemed “acceptable” by several administrators at the programs most likely to be impacted in order to obtain more short-term stability, per ESPN.
If approved, the brand initiative is expected to begin in the upcoming fiscal year.
To little surprise, Clemson and Florida State are expected to be among the top winners of the new distribution model with North Carolina and Miami also expected to receive higher payouts than the previous model. However, ESPN notes that Georgia Tech was the ACC’s top-rated program this past season, thanks in large part by the Week 0 contest vs. Florida State in Dublin and the rivalry 7 overtime matchup vs. Georgia.
Basketball ratings are also included in the brand initiative but on a smaller scale.
As for the exit fees related to leaving the ACC, ESPN reports the biggest decline in financial penalties for leaving prior to 2036 would come after 2030. That would likely keep programs together for the near future but also provides flexibility for teams after 2030 when new TV contracts (Big Ten, Big 12) and the College Football Playoff model will be up for renewal.
Paul Harvey lives in Atlanta and covers SEC football.
