ACC, FSU, Clemson reach revenue settlement
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Andrea Adelson
The ACC, Florida State and Clemson ended their ongoing litigation Tuesday after agreeing to a settlement that changes the league’s revenue distribution model and significantly reduces exit penalties for members wanting to leave the conference before 2036.
ACC commissioner Jim Phillips thanked all parties for their “patience and dedication” in getting a deal done, solidifying the conference for the near future.
“Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference,” Phillips said in a statement. “As we look ahead to our collective long-term future, I want to express my deepest appreciation to the ACC Board of Directors for its ongoing leadership, patience and dedication throughout this process. The league has competed at the highest level for more than 70 years and this new structure demonstrates the ACC embracing innovation and further incentivizing our membership based on competition and viewership results.
“The settlements, coupled with the ACC’s continued partnership with ESPN, allow us to focus on our collective future — including Clemson and Florida State — united in an 18-member conference demonstrating the best in intercollegiate athletics.”
Shortly after the ACC board approved the move, the boards of trustees for Florida State and Clemson approved the settlement terms. Clemson athletic director Graham Neff told his board the settlement is “consistent with the objectives we set out with initially” with its lawsuit against the conference.
“The ACC is an excellent fit for Clemson,” Neff said. “The academic prestige and reputation we so emphasize here at Clemson is a natural fit with other members of the ACC. The historic football success the league has had and that Clemson has had in the ACC and access to the College Football Playoff currently — this is a great home for Clemson.”
Both schools filed lawsuits against the ACC in their home states challenging the grant of rights agreement, that, according to Florida State’s attorneys, could have meant paying as much as $700 million to leave the conference. The ACC sued both schools to preserve the grant of rights agreement through 2036.
As a result of the settlement, the penalty to leave the conference has been significantly reduced. The grant of rights remains in place through 2036, but beginning next year, the exit fee will be $165 million. That fee then declines by $18 million per year, leveling at $75 million in 2030-31. Any team that pays the exit fee can leave with its media rights intact.
Currently, any school that wants to leave before June 2036 must pay three times the operating budget — a figure that would be about $120 million — plus control of that team’s media rights through the conclusion of the grant of rights.
The timing of the exit penalty reduction is significant. Television deals for the Big Ten (2029-30), Big 12 (2030) and the next iteration of the College Football Playoff (2031) come up for renewal just as that fee goes down to $75 million.
The new revenue distribution model, or “brand initiative,” will be based on a five-year rolling average. Sixty percent of total ACC television revenue will go toward this initiative. More weight will be given to more recent viewership. A team’s total viewership will then be divided by the total ACC viewership to equal its percentage of the money available in this pool. The other 40 percent of the television revenue will be distributed evenly among all league schools.
Florida State athletic director Michael Alford brought forward a similar proposal to reward teams that rate well on television to the ACC Board in February 2023 but there was no support for the move at that time.
“We started this path on what was best for not only FSU but for the conference and this really incentivizes everyone in our conference to have the opportunity to go out and choose a path,” Alford said. “That’s all we ever asked for, was for the opportunity for us to compete nationally amongst our peers, and it’s also going to make the league better.”
Clemson began pushing for changes to the revenue distribution model after is six straight CFP appearances, believing teams should be rewarded for athletic success. Florida State pushed for the changes, too, and in 2023 the ACC adopted the first of its revenue distribution changes with “success initiatives,” giving more money to teams that do well in football and men’s and women’s basketball.
With the success initiatives and brand initiative now in place, Neff told his board that Clemson will have an opportunity to earn an additional $120 million over six years. That number does not include potential College Football Playoff money. Every ACC team that makes the playoff earns $4 million for a first-round appearance; $8 million for a second-round appearance; $14 million for a semifinal appearance and $20 million to make the national championship game.
Clemson has had the highest viewership in the ACC over the past six years while Florida State consistently ranks in the Top 4. Those are not the only two schools that stand to earn more money, though. Last season, for example, Georgia Tech led the ACC in viewership thanks in part to a Week 0 game against Florida State and a seven-overtime thriller against Georgia on the final Friday of the regular season.
Basketball ratings will be included in the brand initiative, too, but at a smaller rate than football, which is responsible for about 75% of the league’s TV revenue.
“At the end of the day, this innovative distribution model, which further incentivizes performance and investment, will help strengthen the ACC — and a strong ACC is good for Clemson; and a strong Clemson is good for the ACC — while providing future flexibility to adapt to changes we should anticipate within the collegiate model,” Neff said.
Florida State sued the ACC first, in December 2023, over increasing frustrations over a widening revenue gap between the SEC and Big Ten and its belief the ACC was not doing enough to solve the problem. Clemson then sued the league in March 2024.
Though neither school ever declared their intention to leave the conference, Florida State was far more vocal about the looming issues it saw with a shifting collegiate landscape. President Richard McCullough, board chair Peter Collins and several board members publicly questioned whether staying in the ACC long-term was sustainable without a radical shift in the revenue distribution model.
Now Florida State has that shift it had been wanting, and it believes all league schools stand to benefit.
“We had to do something, and it had to be a positive outcome for Florida State,” Collins said. “We’re way better off than where we were 14 months ago, when we were being told we had no options. Now, we have options and we have a good fit. This is going to make the conference better. I think it’s going to incentivize people in the conference to really invest.”
LAS COLINAS, Texas — Ohio State athletic director Ross Bjork told leaders of the College Football Playoff on Tuesday that the sport’s calendar needs to change, and it’s a critical component as they consider the playoff’s future format.
Bjork, just months removed from watching his Buckeyes win the national title, attended a portion of the annual CFP spring meetings to provide feedback with the three other athletic directors who participated in semifinals and hosted first-round games: Texas athletic director Chris Del Conte, Penn State athletic director Pat Kraft and Notre Dame athletic director Pete Bevacqua, who is part of the CFP’s management committee along with the 10 FBS commissioners.
Bjork said CFP executive director Rich Clark asked if he had one major point he wanted to make before leaving.
“We’ve had so many disruptions over the last five-plus years that I think the time is now to not be reactive, be proactive,” Bjork told ESPN. “When we had this setting here with the commissioners, our job was to provide feedback on what was it like to go through the 12-team playoff … but it all gets impacted by the calendar. I felt it was important to lay that out with everyone in the room to say, separate from the CFP process, if we don’t fix our calendar as an industry, then we’re going to continue to have unintended consequences.”
Bjork shared with the commissioners the perspective of a school trying to win a national title while classes had begun Jan. 6. Ohio State’s academic advisers traveled with the team to the semifinal and national title game, he said, but some athletes missed class and the school had to apply for waivers around the countable athletically related activities, which limits schools to 20 hours of practice time while classes are in session.
“When you don’t have class, there is no limit to CARA hours,” he said, noting that Texas started classes later. “It created some disadvantages. It all goes back to what’s countable CARA hours, NCAA structure. The portal is the next big conversation after the House case and truly what kind of rules can we set? Will we have the authority around transfer rules to set some parameters?”
Bjork said the transfer portal needs to move to a 10-day period in May for fall sports because if the NCAA House settlement is approved, most of the players are going to be signing revenue share agreements with the schools from July 1 to June 30.
“May makes the most sense” to align player contracts with the portal, Bjork said.
Bjork, who said he’s on the implementation committee for the House settlement, said “if everyone follows the structure, it’s going to be a great structure.”
“And everyone has to follow the rules,” he said, “and agree that this is the structure, which we have to. If we don’t do that, then what good is the settlement?”
CLEVELAND — Guardians center fielder Lane Thomas was placed on the 10-day injured list Tuesday with a bruised right wrist sustained when he got hit by a pitch two weeks ago.
The move is retroactive to April 20.
Thomas, who was a postseason star for Cleveland in 2024, was struck on the wrist in the home opener against the Chicago White Sox on April 8. He has played in five games since, including Sunday at Pittsburgh.
Thomas said his wrist initially responded to treatment, but it began troubling him after he played over the weekend.
“I got that first jam shot base hit when I played that first day and it just kind of swelled up after that,” Thomas said. “I kind of lost some range of motion, so they just thought the best option was to try and get all that out of there and not go through that same cycle again.”
Manager Stephen Vogt hopes putting Thomas on the IL will give him time to let the injury heal correctly.
“Let’s take eight to 10 days, knock this thing out so that it’s behind us for the rest of the year,” Vogt said. “Out of fairness for him to be able to be himself and not wonder how’s it going to feel today when I wake up. We decided that with Lane, that this was the best course of action.”
Thomas has twice broken the same wrist after being hit by pitches. He went 2 for 15 with five strikeouts in five games after getting hit.
The Guardians acquired Thomas, 29, in a July trade with Washington. He struggled for much of the regular season before having his biggest moments with Cleveland in October.
Thomas hit two homers in the AL Division Series against Detroit, connecting for a grand slam in Game 5 off Cy Young winner Tarik Skubal to help the Guardians advance.
To replace Thomas, the club selected the contract of infielder Will Wilson from Triple-A Columbus. The Guardians also transferred right-hander Trevor Stephan, who is recovering from Tommy John surgery, to the 60-day injured list.
Wilson was batting .324 for the Columbus Clippers with six homers and 18 RBIs in 18 games. He homered in three of his past four games.
This is the 26-year-old’s first promotion to the majors. He’s a former first-round pick of the Los Angeles Angels, who traded him to San Francisco in 2019. Cleveland acquired Wilson in the minor league portion of the Rule 5 draft this past offseason.
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