Florida State and Clemson will vote on a settlement agreement with the Atlantic Coast Conference (ACC) on Tuesday that could settle four ongoing lawsuits between the schools, conference officials, and rival leagues like the SEC and Big Ten.
The agreement includes a new revenue-distribution model based on viewership ratings, replacing the current system. The model, called the “brand initiative,” aims to stabilize conference membership for the near future. Top-earning schools are expected to net an additional $15 million or more annually, while some schools may see a net reduction of up to $7 million annually.
The brand initiative will be funded through a split in TV revenue, with 40% distributed among member schools and 60% allocated towards the new model and individual ratings. The fund is expected to close the revenue gap between ACC schools and rival conferences, potentially adding $30 million or more annually for teams that excel on the field.
The agreement also includes reduced financial penalties for schools exiting before June 2036, a provision valued at over $500 million by Florida State’s attorneys. This would allow ACC schools flexibility as TV deals in other leagues come up for renewal. The deal could stabilize conference membership and secure the future of ACC athletics during a time of change.
If successful, the agreement will also benefit ACC Commissioner Jim Phillips, who is overseeing a period of significant transformation in collegiate athletics.
Source: https://www.espn.com/college-football/story/_/id/44093338/sources-fsu-clemson-expected-reach-settlement-acc