The ACC, Clemson, and Florida State settled their ongoing lawsuit earlier this week. The settlement stipulates restructured revenue distribution and smaller exit fees. As Andrea Adelson wrote for ESPN, 40% of the ACC’s total revenue will be shared equally among its 18 members, while 60% will be dispersed depending on how well each school does in the ratings.
New Settlement Gives FSU Opportunities to Rake in More Cash
This comes a year after the ACC implemented a “success initiative” in its revenue-sharing system based on a school’s performance in the football and basketball seasons. These changes were spurred by Clemson and FSU, and now the two schools have spurred more changes in how the conference’s revenue will be doled out.
On the “Locked On ACC” podcast, hosts Alex Donno and Kenton Gibbs invited attorney and Seminole fan Doug Rohan to discuss the settlement’s implications on the future of Florida State and the ACC. About seven minutes in, Rohan revealed the possible endgame for FSU regarding the revamped “brand initiative” revenue-sharing system.
“Between the viewership, between the location, we’re at least attractive to the Big Ten, and if we’re attractive to the Big Ten, that’s a threat to ESPN and the SEC,” Rohan said during the interview. “The SEC may not want us [FSU], but they may take us as a defensive measure to the big ten expanding their nationwide reach.”
The Atlanta-based lawyer went on to mention that the “success initiative” can benefit different schools almost every year and mentioned Syracuse as a hypothetical example. But viewers will not immediately jump ship from big brands like FSU and Clemson, who will now receive more of the ACC’s revenue simply by being a bigger draw.
“There’s going to be enough people hate-watching the train wreck of Florida State going 1-11 if that’s what happens in 2025,” said Rohan. “FSU as a brand will have the viewers, and at least the first year is virtually a lock for getting that additional performance improvement bonus.”
According to Adelson’s article, the ACC’s gradually decreasing exit fees will reach as low as $75 million by 2030-31, coincidentally when the Big Ten and the College Football Playoff renegotiate their expiring TV contracts. With college football already in the throes of massive realignment, this settlement gives FSU more freedom to capitalize on the changing landscape.
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“That’s the first benefit to the settlement,” Rohan said. “We don’t have to do cloak-and-dagger behind-the-scenes secret talks, and we can now talk openly. This settlement is the best possible outcome.”
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