The Atlantic Coast Conference (ACC) has reached an agreement with Florida State and Clemson, ending their lawsuits against the league over revenue distribution. The settlement changes the league’s revenue model, significantly reducing exit penalties for members leaving before 2036.
According to Clemson athletic director Graham Neff, the settlement is “consistent with the objectives we set out initially,” providing a natural fit with other ACC member schools. Florida State’s athletic director Michael Alford stated that the new structure demonstrates the conference embracing innovation and incentivizing membership based on competition and viewership results.
The agreement reduces exit fees, making it easier for teams to leave. The grant of rights remains in place through 2036, but the penalty will decline from $165 million to $75 million by 2030-31. Any team that pays the exit fee can leave with its media rights intact.
The new revenue distribution model is based on a five-year rolling average, giving more weight to recent viewership and dividing total ACC television revenue among member schools according to their percentage of the league’s total viewership. The other 40% will be distributed evenly.
This move comes ahead of key television deals for the Big Ten (2029-30), Big 12 (2030), and the College Football Playoff (2031). The changes aim to incentivize performance, investment, and competition among member schools, with each team expected to earn more money based on their viewership. Florida State believes this shift will benefit all league schools and create a stronger ACC.
Clemson has had the highest viewership in the ACC over the past six years, while Florida State consistently ranks in the top four. The changes also include basketball ratings, but at a smaller rate than football, which generates 75% of the league’s TV revenue.
Source: https://www.espn.com/college-football/story/_/id/44108761/acc-florida-state-clemson-reach-revenue-distribution-settlement