Breaking News: FSU and Clemson Near Settlement with ACC – What It Means for College Sports

Florida State and Clemson are set to vote on a new agreement that could resolve ongoing lawsuits with the ACC and reshape the way revenue is shared within the conference. This call is happening soon, and it’s a crucial moment for all involved. All three boards of directors need to approve the agreement for it to move forward, but insiders believe a deal is on the horizon.

The proposed settlement has two major goals: creating a new revenue-sharing plan based on TV viewership and adjusting the financial penalties for schools that want to leave the conference before the grant of rights expires in June 2036.

This new revenue-sharing model, known as the “brand initiative,” will use a five-year average of TV ratings. It aims to distribute the league’s TV income differently, with 40% given equally among all 14 long-standing members and the remaining 60% allocated based on those TV ratings. This means that top-performing schools could see an increase of around $15 million, while others might face reductions of up to $7 million annually. Despite these cuts, many administrators consider this an acceptable trade-off for more stability.

The brand initiative is expected to kick in during the upcoming fiscal year. It will work alongside another funding program introduced last year, which rewards teams for making it to the postseason. Together, these funds could help schools close the revenue gap with bigger conferences like the SEC and Big Ten. For schools that achieve significant milestones, this could mean an additional $30 million or so each year.

Clemson and Florida State are among the schools likely to gain the most from this new revenue-sharing plan. Other programs, like North Carolina and Miami, are also expected to receive larger payouts. Georgia Tech even topped the ACC’s ratings in 2024, partly due to standout games that captured viewers’ attention.

The new agreement will also factor in basketball ratings, though football will still hold the larger share of revenue, accounting for about 75% of the total. If ACC Commissioner Jim Phillips can finalize this deal, it will mark a significant achievement for him during a time of instability in college athletics. Just a year ago, many speculated that the ACC might fall apart due to legal disputes with both Florida State and Clemson.

Both schools had initiated lawsuits in hopes of breaking free from a grant of rights deal that could have cost them nearly $700 million to exit the conference. In response, the ACC filed counterclaims to uphold this agreement through 2036. While the new deal won’t drastically alter the grant of rights, it will likely reduce financial penalties for schools leaving before 2036. Significant decreases are projected after 2030, creating a more flexible environment for all ACC schools.

The actual numbers around exiting will be more straightforward than before. Experts suggest the cost to leave the ACC after the 2029-30 season could drop below $100 million, which is a welcome change for many schools. Currently, any school that leaves before June 2036 faces payments calculated as three times their annual distribution, plus the retention of that team’s media rights until the conclusion of the grant.

Securing this agreement would not only help the schools involved but also show progress in adapting to the shifting landscape of college football, especially as new TV contracts are set to come up in the near future. By ensuring schools have viable options, the ACC can better navigate this changing environment.

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