JUST IN: ACC FSU,Clemson Reaches Revenue Settlement

The Atlantic Coast Conference (ACC), along with member institutions Florida State University (FSU) and Clemson University, have reached a settlement to resolve ongoing legal disputes concerning revenue distribution and conference exit penalties. This agreement introduces a new revenue-sharing model and adjusts the financial implications for schools considering departure from the ACC before 2036.

**Revised Revenue Distribution Model**

Under the new structure, the ACC’s television revenue will be allocated based on a combination of equal sharing and performance metrics:

– **60% Performance-Based Allocation**: This portion is distributed according to a five-year rolling average of each school’s television viewership, with more recent data receiving greater emphasis. This approach rewards programs that attract higher audiences, particularly in football, which accounts for approximately 75% of the league’s TV revenue. citeturn0search0

– **40% Equal Distribution**: The remaining revenue is shared equally among all member institutions, ensuring a baseline level of funding for each school. citeturn0search0

This model aims to incentivize schools to enhance their competitiveness and viewership, potentially increasing their revenue shares. For example, Clemson, which has led the ACC in viewership over the past six years, stands to benefit significantly under this arrangement. citeturn0search0

**Adjusted Exit Fees**

The settlement also revises the financial penalties for schools opting to leave the ACC before the expiration of the current grant of rights agreement in 2036:

– **Initial Exit Fee**: Starting in the 2025-2026 fiscal year, the exit fee is set at $165 million. citeturn0news14

– **Annual Decrease**: This fee decreases by $18 million each subsequent year, reaching $75 million by the 2030-2031 fiscal year. citeturn0news14

– **Retention of Media Rights**: Importantly, schools that choose to exit and pay the stipulated fee will retain their media rights, effectively nullifying the previous grant of rights agreement that extended through 2036. citeturn0news14

These adjustments provide member schools with greater flexibility regarding conference affiliation decisions in the future.

**Statements from ACC Leadership**

ACC Commissioner Jim Phillips expressed optimism about the settlement, stating, “Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference.” He emphasized that the new structure reflects the ACC’s commitment to innovation and incentivizing membership based on competition and viewership results. citeturn0search0

**Implications for the Future**

The timing of the reduced exit fees aligns with the expiration of major television deals for other conferences, such as the Big Ten and Big 12, in the early 2030s. This synchronization may influence future conference realignment discussions, as schools assess their options in a shifting collegiate athletics landscape. citeturn0search0

Overall, this settlement aims to stabilize the ACC’s immediate future, enhance financial incentives for its members, and position the conference competitively within the evolving dynamics of collegiate athletics.

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