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 March 3 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

[Matt from A700]

So do the more insightful people here think this is a good enough deal to keep the ACC 4 in the ACC? If so, that is good for us.

We all hope Mosley and Co. are being proactive with realignment, but there are still so many directions the dominos could fall.

The most burning question to me is what that Pac-12 media deal ends up being. Is it so good that Memphis, Tulane, and USF continues their pursuit?

If I am Pernetti and am committed to building the American for the longhaul, stay strong with your recent revenue sharing requirements. For the weaker programs, get them out of here, those like Rice, Tulsa, and Charlotte.

Both our media deal, and the MWC's grant of rights end after the 2031-32 school year. If you have the opportunity to get rid of the previously mentioned weak links in favor of UNLV, Nevada, Air Force, New Mexico, potentially even SJSU to be a true coast-to-coast "American" league, I like our standing better in the next media deal negotiations.

[NT80]

  On 3/14/2025 at 3:46 AM, Matt from A700 said:

So do the more insightful people here think this is a good enough deal to keep the ACC 4 in the ACC? If so, that is good for us.

We all hope Mosley and Co. are being proactive with realignment, but there are still so many directions the dominos could fall.

The most burning question to me is what that Pac-12 media deal ends up being. Is it so good that Memphis, Tulane, and USF continues their pursuit?

If I am Pernetti and am committed to building the American for the longhaul, stay strong with your recent revenue sharing requirements. For the weaker programs, get them out of here, those like Rice, Tulsa, and Charlotte.

Both our media deal, and the MWC's grant of rights end after the 2031-32 school year. If you have the opportunity to get rid of the previously mentioned weak links in favor of UNLV, Nevada, Air Force, New Mexico, potentially even SJSU to be a true coast-to-coast "American" league, I like our standing better in the next media deal negotiations.

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A lot of interesting subjects to discuss.   

As for the ACC deal, it now allows an affordable escape clause in the 2030 time frame for schools that wanted to shop themselves for a better deal (FSU, Clemson, UNC, etc).  Sorta like Free Agency.  The reduced-fees out comes at the same time the SEC/Big10 media deals come up for renewal...no coincidence.   I think a couple schools will leave.

For Memphis, Tulane, and USF...they were approached by the PAC, and after getting low-ball tentative offers they declined the pursuit.  I read that all would prefer to wait for ACC openings as backfill.  The PAC, once they have media numbers, and settle their poaching court case with the MWC may make another attempt at AAC schools.  I read they would focus on Texas schools this time.  Would we, should we pursue? 

[Matt from A700]

  On 3/14/2025 at 3:30 PM, NT80 said:

The PAC, once they have media numbers, and settle their poaching court case with the MWC may make another attempt at AAC schools.  I read they would focus on Texas schools this time.  Would we, should we pursue? 

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If we can have a solid East Division of easy travel partners in Colorado State, UTSA, TXST, Memphis, and Tulane, then absolutely yes.