ACC Payout Reveals Why Clemson Seeking Current Lawsuit

The Clemson Tigers received a big payout from the ACC, but there’s so much more if the program ends up leaving the league.

Dec 4, 2021; Charlotte, NC, USA; ACC logos at the tunnel entrance to the field during the ACC championship game between the Wake Forest Demon Deacons and the Pittsburgh Panthers at Bank of America Stadium. / Jim Dedmon-USA TODAY Sports

On one hand, the Clemson Tigers’ athletic department should be thrilled with their latest return from the ACC.

Last month the Tigers learned they would get $44.8 million from the ACC as part of its payout for the latest fiscal year (2022-23). Each of the league’s football playing members (minus Notre Dame) receive the full payout, per ESPN.

That’s part of a $706.6 million windfall in gross revenues for the ACC, which is a record, along with a 14% increase from the year before and the second-largest year-over-year increase in conference history.

But, the other leagues revealed their gross revenues and payouts at the same time, and in doing so it clearly explains why the Tigers, along with Florida State, are locked in a lawsuit against the ACC.

The Big Ten reported revenues of nearly $880 million for the same fiscal year, while the SEC reported $852.6 million.

Those reported revenues are before new television deals kick in for both leagues. The Big Ten has a massive TV deal with Fox, CBS and NBC that will pay the league $8 billion over the next seven years starting this fall.

The SEC has several deals with ESPN but it’s most recent is a $3 billion deal for the next 10 years that, in part, brings its traditional 3:30 p.m. eastern game with CBS to ABC/ESPN.

By contrast, the ACC has a long-term deal with ESPN that ends in 2036 and led to the creation of the ACC Network. But, the league doesn’t appear to have an ability to renegotiate the deal to keep up with the other conferences. Reportedly, one of the issues with the deal is that ESPN holds the option for the TV rights after 2027 and can exercise it at their discretion.

FSU and Clemson are both suing the ACC over the league’s grant of rights, which binds the conference’s television rights together for the life of the contract. Attorneys for the two schools contend the current contract leaves them at a competitive disadvantage.

Last year seven schools — including FSU and Clemson — studied the league’s grant of rights in an effort to determine if it could be broken.

When Oklahoma and Texas announced their departure from the Big 12 in 2021, the two schools announced they would not leave the league until 2025-26, which was the end of the conference’s current TV deal and the end of its grant of rights.

The two schools and the Big 12 negotiated an exit that allowed the Longhorns and Sooners to join the SEC one year early, even though the current TV contract is in place for 2024-25.