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The ACC is expected to reach a settlement with a pair of unhappy conference members in order to keep the league intact for the immediate future. Clemson and Florida State will reportedly agree to terms to stay in the league on Tuesday.
That said, the deal provides a new timeline should the Tigers and Seminoles choose to bail at a later date. Buyout numbers play a key role in those potential exit strategies.
Both universities expressed anger with the conference’s revenue distribution model believing they weren’t being paid enough as the league’s most valuable brands. The feelings emerged after seeing the SEC and Big Ten sign large media deals to boost financial stability for their league members.
While those rival conferences were raking in big bucks, the ACC was tied into a television agreement with ESPN that stretches through 2036. Unable to negotiate new terms, the schools searched for a way out.
The result was a series of lawsuits ahead of the 2024-25 athletic season. Since, the league has done what it can to reevaluate its revenue structure.
A settlement is likely to be agreed upon this week which includes a “brand initiative” that alters how affiliates are paid. It incentivizes viewership, which can be largely linked to on-field performance.
Key details:
*40% of TV money distributed evenly among legacy ACC schools. 60% percent by ratings based formula over last five years.
*Top ACC earners could net more than $15 million, while some schools will see a net deduction in annual payout of about $7 million.
*Total cost… https://t.co/5ImMqAGSbP— Pete Thamel (@PeteThamel) March 3, 2025
While the distribution model was a key factor in keeping top brands on board, future buyout terms could impact potential realignment in the coming years.
The $200M buyout is expected to be cut in half after 2030 once the ACC settlement goes through.
Andy Staples of On3 Sports claims that the current buyout for ACC programs looking to leave sits at $200 million. It will fall below $100 million after the 2029-2030 season.
The timing of that update is important as it aligns with the expiration of the Big Ten’s television deal.
“It sets the timeline for when schools can leave the ACC”
On3’s @PeteNakos_ weighs in on the ACC’s settlement with Clemson and Florida State👀 https://t.co/GbCpBrPprt pic.twitter.com/0c57eZdA3T
— On3 (@On3sports) March 3, 2025
The settlement helps keep teams in the boat now, but it doesn’t ensure the stability of the league after a five-year window. Should Clemson and Florida State, or any others, be unhappy with the conference’s outlook in 2030, they would have the financial means to leave.
For now, the ACC is staying intact. We’ll see what the future holds in terms of conference realignment.