CLEMSON — Since the first motion was filed, some have believed that the lawsuits against the Atlantic Coast Conference filed by Florida State and Clemson would likely not be decided in a courtroom, but instead in a settlement.
That possibility looks even more likely today.
The Clemson Insider has confirmed the ACC is exploring a new revenue structure that could bring an end to all the lawsuits.
Last December, FSU filed a complaint in the state of Florida, while last March, Clemson followed suit. Both want out of the ACC’s Grant of Rights Agreement (GOR) and are fighting the league’s stringent exit fee, as well. The league sued Florida State in the state of North Carolina as a pre-active response to the Seminoles’ lawsuit, while counter suing Clemson’s complaint in the Tar Heel state as well.
The primary complaint for both Florida State and Clemson is having the ability to explore leaving the conference without the fear of losing their GOR, which the ACC says it owns through 2036.
According to sources, the ACC’s presidents met in Charlotte last week to discuss a proposal that potentially could distribute revenue dollars to league schools in hopes to provide stability, while also keeping Clemson and FSU in the conference for years to come.
A settlement is not imminent and the discussions are conceptual at this point. But the league continues to discuss the framework for a potential settlement. A two-thirds majority vote would likely be needed for the settlement to be passed.
ACC leaders have discussed a plan that could create a separate source of revenue to be distributed based on media analytics related to football and potentially men’s basketball.
As part of the settlement talks, the league is also discussing changing the end date for the GOR, which is currently 2036.
There have been active conversations about this potential settlement plan for the past few months. The settlement was discussed by the presidents’ and chancellors’ at last week’s annual meetings in Charlotte. Discussions continued this week on the regular-scheduled conference call on Tuesday.
The ACC announced at its Annual Football Kickoff in July that it has established a success initiative program which will reward schools who advance in the College Football Playoff and Men’s NCAA Basketball Tournament.
Schools potentially could earn an extra $25 million from the league.
Revenue dollars play a big role in why Clemson and FSU have explored leaving the ACC and subsequently sued the league. In the current system, the SEC’s and Big Ten’s television deals are expected to make in excess of $30 million dollars more per school than ACC members.
Both Clemson and FSU feel this large gap will hurt their ability to compete at the highest level in the two big sports.
It is not a coincidence that settlement talks are abounding considering the league could potentially lose its contract with ESPN in 2027. The four-letter network could opt out of the remaining nine years, a decision it has to make by next February.
Commissioner Jim Phillips and ESPN have been in discussions regarding the contract for several months. The Commissioner said back at the ACC’s Football Kickoff in July that the conversations with ESPN have been positive.
—photo by Jerome Miron / USA TODAY Sports