Report: ACC Considering New Revenue Structure to Resolve FSU, Clemson Lawsuits
Scott Polacek@@ScottPolacekFeatured Columnist IVSeptember 18, 2024
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There reportedly could be financial changes to the ACC as the futures of Florida State and Clemson inside the league hang in the balance.
Ross Dellenger of Yahoo Sports reported Tuesday “the ACC is exploring a new revenue structure intended to bring an end to the litigation with its two restless members.”
Florida State and Clemson are each suing the conference looking for an exit path during a time of unprecedented conference realignment and two leagues in the SEC and Big Ten that have largely pulled away from the rest of the country when it comes to football performance and money generated.
Yet Dellenger reported the proposal the ACC presidents examined would involve new formats of revenue distribution that have not been finalized as discussions continue. Its “ultimate goal” would be resolving the legal disputes and keeping the two powerhouse programs inside the league.
“Details around the new revenue structure remain murky, but leaders have reviewed a plan to create a separate pot of revenue to be divided based on media value metrics,” Dellenger wrote. “This separate distribution would be specifically tied to a school’s television viewership ratings for football and potentially basketball.”
Florida State and Clemson are two of the most notable football programs in the country and would presumably benefit more from such a revenue process than they do from the current television model that distributes the money evenly.
There is also the ACC’s grant of rights that keeps the schools together through 2036 and the ESPN broadcasting contract that ends in 2027 but will extend for nine additional years if the network opts in by next February.
Florida State and Clemson want out of the grant of rights with their lawsuits, and conference leaders are looking into potentially shortening the timeline from 2036.
Dellenger reported it is believed at least two-thirds of the schools will need to approve any such changes.
This isn’t the only step the conference is taking in an effort to close the money gap with the SEC and the Big Ten. It approved a “success initiative” policy earlier this year that gives more money to football programs that meet certain benchmarks such as advancing to the College Football Playoff and finishing in the Top 25.
The ACC’s future has been under the spotlight while many other conferences have experienced drastic changes.
Former Big 12 schools Texas and Oklahoma are now competing in the SEC, while erstwhile Pac-12 members Oregon, USC, Washington and UCLA are in the Big Ten. Arizona, Utah, Colorado and Arizona State left the Pac-12 for the Big 12, and the ACC itself hasn’t been immune to changes with the additions of Stanford, Cal and SMU.
Even the Pac-12 may not be in as much trouble as it appeared to be when it was just Oregon State and Washington State, as Boise State, Colorado State, Fresno State and San Diego State are set to leave the Mountain West and join the league before the 2026-27 academic year.
Florida State has fought for a potential exit from the ACC after it went undefeated last season and was still left out of the CFP in favor of one-loss teams in Texas and Alabama.
Perhaps the Seminoles would have been granted more favor in a different league, although they have struggled this season with an 0-3 start. Clemson is 1-1 with a loss to Georgia and a win over Appalachian State.
