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Why Clemson is set up to leave the ACC in the next decade after settlement of dueling lawsuits
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- Why Clemson is set up to leave the ACC in the next decade after settlement of dueling lawsuits
CLEMSON — Clemson settled its lawsuit with the Atlantic Coast Conference on Tuesday and positioned itself for an exit in the next decade.
Clemson's Board of Trustees unanimously voted to approve the settlement of the school's lawsuit against the ACC. Florida State's Board of Trustees and the ACC board of directors also voted to settle the ongoing lawsuits. All three boards needed to agree for the settlement to proceed.
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"We are incredibly thankful for all of the time and work that has gone into this proposed settlement," Clemson athletic director Graham Neff said in a media release. "We often talk about competitive excellence, and this settlement allows us to leverage our national brand to fuel that success."
Clemson and FSU 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.
Still, the agreed terms of the settlement − an enhanced revenue distribution and a new exit fee schedule while retaining future media rights − will satisfy both schools for the short term and set up a path to exit in the 2030s when the college football landscape will shift again.
The current ACC exit fee is around $165 million in fiscal year 2026, which is three times the conference's budget. The new exit fee schedule will reduce the withdrawal penalty by $18 million per year, until it reaches a floor of $75 million during the 2030-31 fiscal year.
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This will be around the same time when TV deals for the Big Ten (2029-30), Big 12 (2030) and the College Football Playoff (2031) will be up for renewal. Clemson will have the flexibility to determine its next move amid these changes to remain in the ACC, try to join a new conference or for it or its football program to join a super league.
"For Florida State , for Clemson and probably for some other ones that weren't involved in the litigation, I think this is a pretty significant win for them," Kevin Paule, a Tampa, Florida, attorney who specializes in business disputes, told The Greenville News. "They may not be able to leave the conference tomorrow, but they're going to get increased revenue over the next few seasons, and then if they do decide to leave a few years down the road, they'll pay a much lower exit fee in order to do so."
Clemson and FSU didn't have a set destination if they left the ACC, but the league opted to please its big brand members. The new revenue distribution model will favor its bigger members while hurting some of its smaller members, but the settlement will give the conference certainty and structure over the next four to five years while ending conference infighting.
"The settlements, coupled with the ACC's continued partnership with ESPN, allow us to focus on our collective future − including Clemson and Florida State − united in an 18-member conference demonstrating the best in intercollegiate athletics," ACC commissioner Jim Phillips said.
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Texas and Oklahoma paid $100 million to leave the Big 12 and join the SEC in the 2024-25 season. If Clemson decides to leave the ACC in 2029-30 or 2030-31, it will cost less than what those schools paid. Clemson has often been linked to the SEC, who's deal with ESPN runs through 2034, as a destination should it leave the ACC because of its location and prestige in football during the CFP era.
Texas and Oklahoma will receive a full share of the SEC's revenue. USC and UCLA earned a full share of the Big Ten's revenue when they left the Pac-12, too.
MORE: Dabo Swinney, Clemson football had $19 million profit in 2024. So why did athletics lose money?
Per the settlement, Clemson will keep its future media rights, too, if it exits the ACC. Originally, the conference argued it would retain any exiting member's rights until the end of the current grant-of-rights agreement in 2036. The league's grant of rights was seen as "ironclad," guaranteed it could not be broken or taken back, but Clemson and FSU's litigation, then collective settlement, showed that isn't the case.
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Clemson will be satisfied in the short term, projecting to make $120 million in new revenue during the next six years based on the revenue distribution model and the ACC's success initiatives. It can potentially earn more in the 2030s if it decides to pay the ACC's exit fee and become a conference free agent.
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
This article originally appeared on Greenville News: Why Clemson's settlement with ACC sets up exit from league in 2030s
