FSU and Clemson Expected to Reach Settlement

[MCMLXXX]

The brand initiative will be funded through a split in the league's TV revenue, with 40% distributed evenly among the 14 longstanding members and 60% going toward the brand initiative and distributed based on TV ratings.

Top earners are expected to net an additional $15 million or more, according to sources, while some schools will see a net reduction in annual payout of up to about $7 million annually,

Sources - FSU, Clemson expected to reach settlement with ACC - ESPN

Edited Monday at 06:30 PM by MCMLXXX

[NT80]

To me, the bigger news in this settlement article, and the part that eventually could affect us (UNT/AAC) is reducing the penalty for schools to leave the ACC in 2030.  This also is when new media rights start with the SEC and BIG10 (no coincidence). 

If FSU, Clemson, UNC, etc left the ACC there is a good chance the replacements would come from the AAC (Memphis, Tulane, USF?). 

Do we sit tight and wait for the AAC to become CUSA 2.0, or be Proactive and reach out to the PAC (soon to bypass us as the best G5 conference)?

……..

“Although the settlement will not make substantive changes to the grant of rights, it is expected that there will be declining financial penalties for schools that exit before 2036, with the steepest decreases coming after 2030 -- something that would apply to any ACC school, not just Clemson and Florida State.

The specific financial figures for schools to get released from the grant of rights were not readily available. But the total cost to exit the league after the 2029-30 season is expected to drop below $100 million, sources said.“

 

[NT80]

Settlement is done and signed today by all parties.

Here is the good part....

"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."

https://www.espn.com/college-football/story/_/id/44108761/acc-florida-state-clemson-reach-revenue-distribution-settlement