The Atlantic Coast Conference (ACC) is close to reaching a settlement with two of its most restless members, Clemson and Florida State, over the dispute surrounding the league’s revenue distribution structure. The deal would see the two schools end their litigation in exchange for a change to the conference’s revenue distribution model.
Under the proposed agreement, the ACC would create a new revenue concept that awards significant dollars to programs achieving higher television ratings and viewership in football and basketball. The revenue formula would be based on a five-year rolling average of Nielsen ratings generated by each league school. Florida State and Clemson, which routinely draw the most viewership among their conference peers, are expected to earn eight-figure payouts.
The settlement is seen as a solution to avoid any court decision over the validity of the grant of rights, an agreement that binds ACC schools together through 2036 and is tethered to the league’s ESPN television contract. The deal would establish financial penalties for leaving before the grant of rights expires after the 2035-36 academic year.
The proposal comes as the ACC seeks to reward winning teams with more revenue, similar to its “success initiative,” which distributes more revenue to teams that excel in football and basketball. This new media value bonus pool is expected to be a significant addition to the league’s efforts to close the financial gap between the ACC and the two richest conferences: the SEC and Big Ten.
The settlement has sparked debate over whether it will pave the way for other leagues to distribute revenue unevenly, potentially changing the dynamics of college sports. The ACC’s television contract with ESPN remains a point of contention, as the league pays a fraction of what the SEC and Big Ten earn from their television partners.
Source: https://sports.yahoo.com/college-football/article/sources-acc-nearing-agreement-with-clemson-fsu-to-end-litigation-153822017.html