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Florida State University and Clemson Settle ACC Media Rights Dispute

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News Summary

Florida State University (FSU) and Clemson University have successfully settled their litigation with the Atlantic Coast Conference (ACC) over media rights and exit fees. This agreement allows FSU and Clemson to retain media rights after leaving the conference, significantly benefiting their financial future. The unanimous approval from FSU’s Board of Trustees showcases a united front for moving forward. The settlement introduces a structured exit fee system and a revenue-sharing model that rewards schools based on performance, ensuring stability for the ACC amid challenges in college athletics.

Florida State University, FL – Florida State University (FSU) and Clemson University have reached a settlement with the Atlantic Coast Conference (ACC), concluding litigation over media rights and exit fees. This agreement, announced in March, allows both schools to maintain control over their respective media rights even after leaving the conference, a significant financial advantage for their future endeavors.

The settlement stipulates that FSU and Clemson will be responsible for their own legal costs, with all lawsuits related to this matter now officially dismissed. The decision to end the litigation received unanimous approval from FSU’s Board of Trustees earlier this month, highlighting a united front in moving forward.

At the core of the agreement is a clearly structured exit fee system that starts at $165 million for the 2026 fiscal year. This fee is set to decrease by $18 million each year, ultimately reaching a flat fee of $75 million for the 2030-31 season. This well-defined financial framework aims to ease the process for FSU and any other ACC schools considering a departure, which previously saw exit fees soaring as high as $500 million.

Additionally, the ACC has introduced a revenue-sharing model that rewards schools based on their viewership and overall performance. This plan dedicates approximately 60% of the conference’s media revenue to be allocated based on viewership metrics, while the remaining 40% will be distributed equally among all member institutions. This new arrangement means that top-performing campuses like FSU and Clemson have the potential to earn an extra $15 million annually, depending on their success in garnering viewership.

ACC Commissioner Jim Phillips characterized the settlement as a pivotal moment that ensures stability in the conference’s future. Amid concerns about potential disbandment and rival conferences gaining an upper hand, this agreement reinforces the ACC’s position within the competitive landscape of college athletics.

Throughout the legal discussions, FSU’s leadership emphasized the cooperative effort that brought about this resolution. The settlement is unanimously seen as advantageous not only for FSU and Clemson but also for the entire ACC, as it facilitates stability during a tumultuous period for college sports.

Furthermore, the existing grant of rights agreement that secures the ACC’s control over the media rights of its member schools will remain intact until 2036. This timeline is strategically aligned with renewal periods for other major athletic conferences, providing a clear framework for the future.

In summary, the settlement between FSU, Clemson, and the ACC marks a significant turning point, creating a more predictable exit process for schools and reinforcing a unified structure for revenue distribution. The implications of this agreement are broad, potentially affecting financial dynamics and competitive strategies across the conference as it moves into the next decade.

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