Florida Sate, Clemson Officially Settle Lawsuits with ACC

After nearly a year of litigation, boards at Florida State and Clemson voted Tuesday to approve its settlement with the Atlantic Coast Conference (ACC), maintaining their full-time membership in the conference.

The agreement settles four lawsuits between the two programs and the ACC, along with approving a new revenue-distribution model that would sustain the conference’s membership for the near future.

“Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference,” said ACC Commissioner Jim Phillips in a press release. “As we look ahead to our collective long-term future, I want to express my deepest appreciation to the ACC Board of Directors for its ongoing leadership, patience and dedication throughout this process. The league has competed at the highest level for more than 70 years and this new structure demonstrates the ACC embracing innovation and further incentivizing our membership based on competition and viewership results. 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.”

It was expected that both schools would settle, according to a report on Monday by Andrea Adelson, David Hale and Pete Thamel of ESPN.

Per the report: “This new revenue-distribution model — or “brand initiative” — is based on a five-year rolling average of TV ratings, though some logistics of this formula remain tricky, including how to properly average games on the unrated ACC Network or other subscription channels. The brand initiative will be funded through a split in the league’s TV revenue, with 40% distributed evenly among the 14 longstanding members and 60% going toward the brand initiative and distributed based on TV ratings.”

Top schools could pull in up to an additional $15 million or more, while some schools will see roughly $7 million annually, according to the report.

Adelson reported Tuesday that the exit fees — which currently sits at roughly $165 million for the 2025-26 season — to leave the conference will decrease by $18 million each year through 2029-30. Following that, it will drop to $75 million and remain there. Any team that leaves will retain its media rights if they pay the exit fee.

More details emerging from settlement between ACC, FSU and Clemson via sources. Exit fee is expected to drop by $18 million each year through 2029-30. After that, exit fee drops to $75 million and any exiting team will retain is media rights.

— Andrea Adelson (@aadelsonESPN) March 4, 2025

The settlement comes as an important juncture as it brings stability to the ACC for the next few seasons. However, with exit fees dropping at the end of the decade, it aligns with renewals of the Big Ten (2029-30), Big 12 (2030) and College Football Playoff (2031) TV deals.