Florida State and Clemson have agreed to settle their four ongoing lawsuits against the ACC and accept a new revenue-sharing model, CBS Sports’ Brandon Marcello has confirmed. The ACC Board of Directors approved the decision earlier in the day, officially resolving the legal disputes between the conference and two of its most high-profile programs.
ACC commissioner Jim Phillips described the settlement as a pivotal moment for the conference, emphasizing its commitment to innovation, competition, and viewership-based incentives. He also highlighted the league’s continued partnership with ESPN, which recently extended its media rights deal with the ACC through 2036.
As part of the new revenue-sharing structure, 40% of television revenue will be distributed equally among the 14 longstanding ACC schools, including Florida State and Clemson. The remaining 60% will be allocated based on a performance-based formula reflecting ratings over the past five years.
The settlement also impacts the cost of leaving the ACC, with exit fees decreasing by $18 million annually until 2029-30. After that, the penalty will be set at $75 million, and departing schools will retain their media rights.
Florida State initiated its lawsuit against the ACC in December 2023, challenging the conference’s grant of rights and withdrawal penalties. Clemson joined the legal battle in March 2024, arguing that the ACC’s exit fee and media rights control were unreasonable and restricted institutional autonomy.
This settlement suggests that both schools plan to remain in the ACC for the foreseeable future, a significant win for the conference amid ongoing realignment efforts. The ACC has also strengthened its position by adding Stanford, California, and SMU.
The new revenue model benefits high-profile programs like Florida State and Clemson, which generate strong television ratings. ESPN estimates that top-performing schools could earn an additional $15 million annually, while some institutions may see reductions of up to $7 million. However, most member schools accepted these adjustments for the sake of long-term conference stability.
The ACC is also considering “brand initiatives” aimed at boosting revenue for its most prominent programs. Florida State first proposed this concept two years ago before pursuing legal action.
Meanwhile, exit fees remain a key factor in future conference realignment. Florida State initially estimated that leaving the ACC could cost as much as $572 million, but that figure has already dropped to $165 million for the 2026 fiscal year. The gradual reduction through 2030 will make departures more feasible, with a $75 million flat fee beyond that.
Despite financial disparities compared to the Big Ten and SEC, the ACC maintains its appeal by offering competitive opportunities. Alongside the Big Ten and SEC, it was one of only three conferences to send multiple teams Clemson included to the first-ever 12-team College Football Playoff in 2024. If the format had existed earlier, either Florida State or Clemson would have qualified in 10 of the last 11 seasons.
While the settlement secures short-term stability, the ever-changing landscape of college athletics means the ACC must continue adapting to retain its top programs.
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