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Why Clemson decided to end its lawsuit and remain in the ACC
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- Why Clemson decided to end its lawsuit and remain in the ACC
This story was updated to add new information.
CLEMSON — Clemson 's Board of Trustees unanimously voted Tuesday to approve the settlement of the school's lawsuit against the Atlantic Coast Conference .
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Clemson and Florida State sued the ACC over their grant-of-rights agreements, which was seen as the first legal step to their departing the conference. The conference sued them both. Neither Clemson nor FSU officially declared that they were intending to leave the conference.
Clemson's Board of Trustees held a special meeting Tuesday to discuss one action item: approval to authorize the administration to settle athletic litigations. The university's general counsel, Chip Hood, and athletic director, Graham Neff, led the session.
Florida State's Board of Trustees and the ACC board of directors also voted to settle the ongoing lawsuits on Tuesday. All three boards needed to agree for the settlement to proceed.
Here's what the end to the litigation means.
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Why did Clemson settle its lawsuit with ACC?
The settlement framework revolved around two key points:
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an enhanced revenue distribution model that rewards performance and media value by viewership
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a new exit fee schedule for ACC teams that provides clarity about withdrawing members retaining their future media rights.
The new revenue distribution model is called a "viewership pool," which is directly focused on football and men's basketball viewership. It will be funded by 60% of the league's TV revenue. Payout will be split based on a five-year weighted rolling average of a team's viewership divided by ACC total viewers. More weight will be placed on recent years.
Clemson projects it will generate $120 million in new revenue during the next six years based on this model and the ACC's success initiatives.
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"In five of the last 10 football seasons, Clemson has had the most-watched college football game, and over the last six years within the ACC, we are the most viewed college football program in the ACC," Neff said in a release. "We certainly have proven success of viewership and brand value over the recent years."
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Clemson earned $4 million for making the CFP last season thanks to one of the ACC's success initiatives. It could have made $20 million if it reached the national championship game.
The settlement also will reduce the withdrawal penalty for member schools in the coming years. The current ACC exit fee is around $165 million in fiscal year 2026, which is three times the conference's budget.
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The new exit fee schedule will reduce the withdrawal penalty $18 million per year until it reaches a floor of $75 million during the 2030-31 fiscal year. If a member pays the fee, it would leave with its future media rights.
"I believe this is an excellent outcome for Clemson," Clemson president Jim Clements said in the meeting. "We achieved our goals, have enhanced revenue opportunities that will allow us to stay competitive on a national basis, and we remain a proud member of the ACC."
Did Clemson's legal dispute against ACC work?
Despite settling its lawsuit against the ACC, Clemson achieved its objectives. Its goals in the litigation were to clarify Clemson's media rights, seek determination of validity of withdrawal fee from the conference and receive an enhanced revenue model that would allow Clemson to remain competitive nationally.
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If Clemson decides to leave the ACC, it can do so at a reduced amount over the coming years, and it will retain its future media rights. Originally, the ACC argued it would retain any member's rights if it leaves until the end of the current grant of rights agreement in 2036.
Clemson also will have more opportunities to generate revenue with the new revenue-distribution model. Clemson and FSU are among the top members in viewership and brand, and both will be rewarded in the new structure on top of the ACC's success initiatives.
"This innovative distribution model, which further incentivizes performance and investment, will help strengthen the ACC," Neff said. "A strong ACC is good for Clemson, and a strong Clemson is good for the ACC while providing future flexibility to adapt to changes that we should anticipate within the collegiate model."
For the ACC, it maintains stability for its league over the coming years by ensuring its two big brand members don't depart.
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When did Clemson, FSU's legal dispute with ACC start?
Clemson filed its initial complaint against the ACC in Pickens County on March 19, 2024. The ACC responded a day later with its countersuit in Mecklenburg County, North Carolina.
The league filed its lawsuit against Florida State on Dec. 21, 2023, in Mecklenburg County, knowing that the school had to vote before litigating. FSU sued the ACC the following day in Leon County, Florida.
Derrian Carter covers Clemson athletics for The Greenville News and the USA TODAY Network. Email him at dcarter@gannett.com and follow him on X, formerly known as Twitter, @DerrianCarter00
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This article originally appeared on Greenville News: Why Clemson, FSU decided to end lawsuits, remain in ACC
