Clemson ‘open’ to dropping grant of rights lawsuit and staying in ACC. Here’s why
After suing its own conference six months ago, in what was considered an initial step to leave, could Clemson drop its lawsuit against the ACC and stick around?
As of this week, that option’s on the table.
The Atlantic Coast Conference’s board of directors recently heard a proposal to create a separate stream of revenue — on top of the results-based “success initiative” that went into effect this athletic year — that would be distributed annually to member schools based on various “media value” metrics, multiple sources familiar with the situation have confirmed to The State.
News of the proposal first emerged through various national reports Tuesday night.
The move is specifically meant to maintain the ACC membership of Clemson and Florida State. Both of those schools have challenged the enforceability of the conference’s grant of rights in court and have been open — either in public (FSU) or in court filings (Clemson) — about their intent to leave for another conference as the ACC lags behind the SEC and Big Ten in per-school revenue distribution.
The proposal also includes potentially reducing the length of the ACC’s grant of rights — which currently states member schools must forfeit the majority of their media rights revenue to the league through 2036 if they depart the conference — down to as early as 2030, per reports from Yahoo Sports, ESPN and CBS Sports.
The proposal was first discussed during a regularly scheduled, in-person board of directors meeting in Charlotte last week and discussed again Tuesday during a weekly conference call among school presidents and chancellors.
A source familiar with the situation told The State the proposal was “pretty straightforward” but, at the same time, conceptual in nature since it’s so new.
If this new proposal ultimately finds traction and gets approved by ACC leaders, Clemson and FSU would drop their lawsuits against the conference, per ESPN.
There are currently four active lawsuits in the ACC’s legal battle against the Tigers and the Seminoles: FSU’s lawsuit against the ACC in Leon County, Florida (Tallahassee); Clemson’s lawsuit against the ACC in Pickens County, South Carolina (where Clemson is located); and the ACC’s countersuits against both schools in Mecklenburg County, North Carolina (Charlotte).
Based on various rulings and developments over the summer — including Clemson appealing a North Carolina judge’s initial decision to allow the league’s countersuit to go in North Carolina to the state supreme court — there’s a belief those legal disputes currently playing out in three separate states could take years to resolve.
“Nothing is imminent and particulars of the deal remain mostly private, but the structure’s ultimate goal is to resolve a dispute with the Tigers and Seminoles, both suing the conference in an attempt to exit the league,” wrote Yahoo Sports’ Ross Dellenger, who first reported the news.
ESPN’s David Hale and Andrea Adelson added in their report that the conversations “represent a strong signal that Florida State and Clemson are open to remaining in the conference under more favorable financial terms.”
Reached by The State, Clemson and the ACC both declined to comment.
Explaining new initiative
Earlier this summer, ACC commissioner Jim Phillips said that a member school could earn up to $25 million annually as a part of the conference’s new “success initiative” that begins with the 2024-25 athletic year.
That initiative, which Clemson and FSU heavily pushed for before it was approved in summer 2023, will reward schools that excel in revenue sports, something that was clearly of interest to the Tigers, who boast one of the ACC’s top football programs.
The “success initiative” model is available to all 17 of the ACC’s member schools, which includes first-year expansion members Cal (Pac-12), Stanford (Pac-12) and SMU (American Athletic). It would reward them for, say, making the College Football Playoff or a bowl game; finishing in the final AP Top 25 poll for football; or advancing in the CFP or the NCAA basketball tournament.
The new proposal being circulated by Clemson and FSU leadership, framed by Yahoo Sports as a “media value metrics” initiative, would reportedly be “specifically tied” to schools’ TV viewership ratings for football and possibly basketball.
It’s unclear how much money a school could make annually off such metrics, but it’s worth noting those would be more or less guaranteed payments, where the “success initiative” payments are specifically tied to on-field results and aren’t a lock.
Once again, that’s the sort of metric that could appease Clemson, which is considered one of the league’s top brands and television products, primarily because of the success and national prominence of its football program, led by colorful coach Dabo Swinney. The Tigers, who’ve won nine or more games in 13 consecutive seasons, routinely get top TV placements and draw large TV audiences regardless of record.
And altering the length of the ACC’s grant of rights — the primary focal point of Clemson and FSU’s legal challenges — could better position the conference to renegotiate for money after signing what’s now widely considered an unfavorable deal with ESPN back in 2016 (for 20 years, far longer than other conferences).
ESPN reported that, under the proposal, the GOR could be shortened to as early as 2030, which would line up with the expiration date of the current Big 12 and Big Ten television deals (and presumably lead to a much larger contract for the ACC).
So, why sue in the first place?
Tuesday’s developments, however, do raise some questions. On its face, it’s a bit shocking to see a school that sued its own conference six months ago now reportedly being willing to stick around in that conference under an altered — but not dramatically different — monetary setup.
In the most recent fiscal year, the ACC distributed $44.8 million on average to member schools, per ESPN, which was a record amount but still roughly $7 million less than what the SEC distributed to its member schools. The gap is expected to reach closer to $30 million annually, in terms of what your average ACC school gets in comparison to your average SEC school, once the SEC’s massive new TV contract with ESPN and ABC, which started this year, kicks in.
Does an added “media value” metric really move the needle that much?
A few possible answers: College athletics are forever changing, and short-term stability — in the form of a bit more extra revenue from the ACC — could appease all parties (Clemson, FSU and the ACC) as the sport keeps changing.
With revenue sharing likely coming to Power 4 schools next year and proposals for a standalone college football “super league” floating around (Swinney’s ultimate prediction), there hasn’t been a more unpredictable time in college athletics.
There’s also the importance of CFP access. The ACC is currently guaranteed a first-round bye and a top four seed in the field under the new 12-team College Football Playoff format, and a clear path to the sport’s postseason can’t be understated.
Tuesday’s news, though, could also be a reflection of the legal feat ahead of Clemson, or a lack of immediate realignment options.
The university spent over $1 million in legal fees through July in its challenge of the ACC grant of rights, and Phillips, the ACC commissioner, has vowed his conference will fight the Clemson and FSU lawsuits “as long as it takes.”
Most legal experts consider the ACC to be in a clear position of strength when it comes to legal challenges surrounding the grant of rights, which has been called an “ironclad” contract.
Although plans can change in an instant, the two conferences viewed as most desirable for Clemson — the SEC and the Big Ten — have also both publicly said they’re done expanding “for now” after shaking up the college landscape.
Also worth noting: ESPN, per various reports, is in the middle of these “settlement” discussions since the network is rapidly approaching a February 2025 deadline when it must inform the ACC if it intends to pick up the remainder of their 20-year television deal. ESPN could also choose not to extend the deal past 2027.
This story was originally published September 18, 2024 at 11:45 AM with the headline "Clemson ‘open’ to dropping grant of rights lawsuit and staying in ACC. Here’s why."
