ACC announces settled litigation with Florida State, Clemson

“We are grateful for Commissioner Jim Phillips’ leadership throughout this process and we look forward to continued success.”

As part of the settlement, the members of the ACC have agreed to build upon the previously announced success initiatives by creating an additional revenue-distribution model that is based on viewership. The new model will continue to support the entire membership while adding a component directly focused on annual football and men’s basketball viewership.

As with success initiatives, ACC member schools will have the opportunity to earn increased viewership distributions from the ACC’s media revenues and will be incentivized to take actions that enhance viewership across the ACC’s 18 member schools.

According to a report from ESPN, the brand initiative will be funded through a split in the league’s TV revenue, with 40% distributed evenly among the 14 long-standing members and 60% going toward the brand initiative and distributed based on TV ratings. Top earners are expected to net an additional $15 million or more while some schools will see a net reduction in annual payout of up to about $7 million annually.

“Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference,” ACC commissioner Jim Phillips said in a 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.”

Said Clemson president Jim Clements: “This settlement allows Clemson to remain nationally competitive at the highest levels and also makes our conference stronger. I appreciate the efforts of the ACC members and commissioner Phillips in the creation of this innovative conference model. We remain proud members of the ACC, one of the strongest conferences in the country and where our students, the other 17 ACC schools, and the league are committed to accomplishing greatness both on the field and in the classroom.”

Said Florida State president Richard McCullough: “We’re very pleased to have reached a settlement that benefits not only Florida State, but the Atlantic Coast Conference as a whole. From the start, we’ve held firm to the belief that the best solution would be one that enables FSU and every ACC institution to earn enhanced revenue through performance. I want to thank commissioner Jim Phillips and my colleagues on the ACC Board of Directors for their leadership, and we look forward to continuing our membership in the ACC.”