CLEMSON — On March 4, Clemson finalized its legal dispute with the ACC, with athletic director Graham Neff framing the settlement as a win for both sides.
Neff explained that the settlement’s provision for increasing revenue to the league’s top football programs would encourage further investment in athletics.
Clemson and Florida State, which both approved the ACC’s settlement on Tuesday, will remain in the conference—for now.
“A strong ACC is good for Clemson, and a strong Clemson is good for the ACC,” Neff told Clemson’s board of trustees, “while also ensuring future flexibility to adjust to anticipated changes in the collegiate model.”
The agreement not only gives the ACC’s top football schools more money—an estimated $20 million more annually according to Neff—but also revises the conference’s exit protocols.
In the past, the ACC imposed a reported $150 million exit fee, and any departing school would retain broadcast rights with the conference until ESPN’s contract ends in 2036.
However, according to Neff, the new exit fee for 2025-26 will be $165 million, and schools will take their media rights with them. This fee is a flat amount, which decreases by $18 million annually, leveling out at $75 million in 2030-31.
As television deals for the Big Ten (2030), Big 12 (2031), and SEC (2034) expire, realignment talks could heat up again.
The ACC seems to have avoided a crisis, at least for now.
Clemson and FSU have paved the way for future changes, though their current position may extend into the next decade.
So, who benefits? Here’s a breakdown of the pros and cons for both sides.
Clemson and FSU
There’s likely some tension, especially as FSU’s board of trustees and fan base have been vocal about wanting to leave.
Clemson didn’t outright state its desire to depart, but its lawyers argued that Clemson should retain its broadcast rights if it leaves for another conference.
Neff emphasized the clarity the settlement provides for Clemson’s media rights, stating that the settlement aligns with Clemson’s goals during litigation.
The $165 million exit fee for next year is steep, but the ACC’s new revenue model, which allocates 60% of the “base rights” from the ESPN deal to a “viewership pool,” will likely help Clemson.
In 2022-23, ACC schools earned an average of $45 million per year from the conference. The “Power 2” (SEC and Big Ten) average around $50 million and $60 million, respectively.
Clemson could potentially earn an additional $20 million annually from the viewership pool, based on a rolling average of TV ratings, which could help close the gap with the SEC and Big Ten.
The ACC’s “success initiative” also allows schools to keep College Football Playoff bonuses, which could bring in another $4 million per school in the first and second rounds, and up to $20 million if a team reaches the national title game.
There could eventually be a point when the Big Ten and SEC’s new TV deals increase the revenue gap beyond what the ACC’s new structure can manage, but Clemson and FSU have an exit option.
The $75 million price tag for 2030 may sound high, but Texas and Oklahoma paid $100 million each to leave the Big 12 for the SEC, and SMU recently agreed to forgo nine years of media rights payouts to join the ACC.
Big athletic departments can typically find the funds for such a large expense if the potential return on investment justifies it. And in an era of uncertainty, buying time might be valuable.
Clemson coach Dabo Swinney has suggested college football may eventually evolve into a massive “super league,” which he jokingly dubbed the “New Megatron World Conference.” That could be the direction in the early 2030s.
For now, Clemson and FSU have spent a few million dollars in legal fees to secure much larger ACC payouts and a much lower cost of exit in the near future.
“This is an excellent outcome for Clemson,” said university president Jim Clements.
Other ACC Schools
The outcome could be even better for North Carolina, which considered trying to leave the ACC like Clemson and FSU but ultimately held back.
UNC avoided millions in legal costs but still stands to benefit from the unequal revenue distribution.
Schools like Miami and Georgia Tech (based in Atlanta) have the potential to become top draws in the conference.
Meanwhile, schools like Boston College and Pittsburgh, located in less football-focused markets, may face more challenges.
Smaller schools in the conference, like Wake Forest, will see a decrease in broadcast revenue. But a $7 million loss is preferable to seeing the ACC break apart, as happened to the Pac-12, leaving schools like Washington State and Oregon State stranded.
Every school in the conference can still claim to be a “Power 4” institution, even if there’s a growing disparity between the wealthier and less prosperous schools.
“Today’s resolution begins the next chapter of this storied league,” said ACC commissioner Jim Phillips. “It further solidifies the ACC as a premier conference.”
The ACC
It’s a win for Phillips, who managed to keep the conference’s top football schools in the fold for as long as possible.
However, the settlement raises questions.
Will other conferences adopt similar revenue distribution strategies, undercutting the gains made by Clemson and FSU?
Has the ACC bought enough time to truly address its financial situation and catch up with the SEC and Big Ten, or does this agreement simply delay the inevitable, with that $75 million exit fee looming in 2030-31?
The future remains uncertain, but the present is more stable. Clemson and FSU are staying in the ACC—for now—and the conference has survived.
