Report: FSU and Clemson poised to settle their lawsuits against the ACC in return for increased share of TV revenue

[phoenix4nu]

"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 drop below $100 million by 2029-30."

Florida State, Clemson poised to settle ACC lawsuits with new revenue-distribution model in place, per report

 

[Charlie Marlow]

I guess it’s probably the future for all conferences.

 

[RedCap]

IMO once you go to unequal media revenue distribution in a conference, you're providing an unequal playing field and basically guaranteeing championships for the haves vs. the have nots especially with NIL and player revenue sharing situation.

 

[Spectrumalaska]

I think FSU and Clemson are still looking for their first possible exit opportunity

 

[HuskerAlum92]

I hope the idea of unequal revenue distribution doesn’t gain traction in the B1G. It seems like a natural extension to the “grab all the money you can” era of college football.

 

[Big bo fan]

I think FSU and Clemson are still looking for their first possible exit opportunity

The exit fee doesn’t drop below 100 million until 2029-30. It’s going to be a while before they can be realistic about it.

 

[RBigredMax]

Ohio State …

 

[thall_]

petition to consolidate the ACC and Big 12 into one conference called the G5+

 

[WHCSC]

petition to consolidate the ACC and Big 12 into one conference called the G5+

I prefer G5ish

 

[Landomatic]

I prefer G5ish

P5 adjacent

 

[RedCap]

The exit fee doesn’t drop below 100 million until 2029-30. It’s going to be a while before they can be realistic about it.

Honestly I think 100 million might be doable IF you could consider the difference in revenue shares. Needs a financial analysis.

Remember, that if the bigger schools can come up with big bucks to fund new mega million facilities and mega million contracts and buyouts for coaches, they can fund this as well.

 

[TFrazier]

Honestly I think 100 million might be doable IF you could consider the difference in revenue shares. Needs a financial analysis.

They can start preparing for it with their boosters and possibly future athletic budgets now.

 

[V-Doub]

IMO once you go to unequal media revenue distribution in a conference, you're providing an unequal playing field and basically guaranteeing championships for the haves vs. the have nots especially with NIL and player revenue sharing situation.

Yup, once you codify inequitable money distribution (within the conference) it’s the beginning of the end. You literally gave most your members one more reason to be disgruntled and one more reason to look for greener pastures. I suppose they (ACC) thought they had to do this to keep Clemson and FSU from leaving, but in reality it’s just delaying the inevitable.

 

[Cedric]

Yup, once you codify inequitable money distribution (within the conference) it’s the beginning of the end. You literally gave most your members one more reason to be disgruntled and one more reason to look for greener pastures. I suppose they (ACC) thought they had to do this to keep Clemson and FSU from leaving, but in reality it’s just delaying the inevitable.

I agree with both of you and am curious to know if this violates the contract already in place. Does the existing grant-of-rights specify that each school shares the revenue equally? Does this new agreement supersede the one in place right now? It likely does, but I have not seen that specifically reported in any news articles. Have the other ACC institutions agreed? If not, they are likely the next ones to sue. What a mess, and a perfect example of the present state of college football.

 

[RedCap]

I agree with both of you and am curious to know if this violates the contract already in place. Does the existing grant-of-rights specify that each school shares the revenue equally? Does this new agreement supersede the one in place right now? It likely does, but I have not seen that specifically reported in any news articles. Have the other ACC institutions agreed? If not, they are likely the next ones to sue. What a mess, and a perfect example of the present state of college football.

The powers that be who originally agreed to such a long term tie up made a huge mistake. When the football landscape is changing so drastically and unpredictably it's crazy to sign long term deals giving away your media rights for such a long period.

 

[phoenix4nu]

I agree with both of you and am curious to know if this violates the contract already in place. Does the existing grant-of-rights specify that each school shares the revenue equally? Does this new agreement supersede the one in place right now? It likely does, but I have not seen that specifically reported in any news articles. Have the other ACC institutions agreed? If not, they are likely the next ones to sue. What a mess, and a perfect example of the present state of college football.

The new revenue sharing plan was approved today by FSU, Clemson and the ACC's Board of Directors, which is made up of the ACC university presidents and chancellors. FSU and Clemson needed to approve the plan separately because of their lawsuits against the ACC. That appears to be all that is necessary to put the plan into place and supersede the previous plan, which provided for equal revenue sharing.

ACC, Clemson, Florida State approve settlement to end legal fight, change revenue-distribution model