ACC settles Florida State, Clemson lawsuits: Revised revenue distribution, lowered exit fees among key details

Florida State and Clemson voted to agree on settling their four ongoing lawsuits against the ACC and a new revenue-distribution strategy Tuesday, CBS Sports’ Brandon Marcello has confirmed. The ACC Board of Directors also approved the measure earlier in the day, bringing litigation between the conference and two of its most prominent member institutions to an end. 

ESPN recently exercised its opt-in clause with the ACC, extending its media rights deal with the conference through 2036 while providing some relief for the ACC through turbulent times. The new revenue-distribution strategy, as proposed in the settlement, would distribute 40% of the television money evenly through the 14 longstanding ACC members — including Florida State and Clemson — with 60% of the revenue distributed on a ratings-based formula from the past five years. 

In addition, the total cost to exit the ACC is expected to decline by $18 million each year through 2029-30. After that period, the fee drops to $75 million and any exiting program will retain its media rights with the league. 

Florida State filed its initial lawsuit, which took aim at the league’s grant of rights and withdrawal penalties, against the ACC in December 2023. Clemson joined in March 2024, asserting that the ACC’s exorbitant exit fee and control of media rights after leaving the conference is ultimately unenforceable and prevents Clemson from doing what is right for its institution.

ACC extends media rights deal through 2036: What it means for Florida State lawsuit, conference realignment

Chip Patterson

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Source link : https://www.cbssports.com/college-football/news/acc-settles-florida-state-clemson-lawsuits-revised-revenue-distribution-lowered-exit-fee-among-key-details/

Author : Will Backus

Publish date : 2025-03-04 17:54:00

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