FSU, Clemson In Talks With ACC Over Revenue Distribution Model: Is It Sustainable?

The new agreement could grant more revenue to conference members with higher viewership.

Jul 22, 2024; Charlotte, NC, USA; ACC commissioner Jim Phillips speaks to the media during ACC Kickoff at Hilton Charlotte Uptown. Mandatory Credit: Jim Dedmon-Imagn Images / Jim Dedmon-Imagn Images

The Atlantic Coast Conference and its presidents are considering a different revenue structure system, according to Ross Dellenger of Yahoo Sports. The contemplation of this move is in an attempt to appease Florida State and Clemson – who are both in the process of suing the conference to leave it and retain their TV rights.

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This new structure would no longer distribute conference payouts evenly and would instead distribute them based on football TV ratings and “potentially basketball.” Dellenger’s article revealed that the ACC’s presidents have also deliberated over amending (likely shortening) the grant of rights. These discussions are ongoing.

I am not a legal scholar, but I have been following this issue closely since late December. I’ll give it my best shot.

This deal on its face resembles a ceasefire rather than a peace treaty. To be more in-depth, if you’re familiar with politics – the possible agreement screams the likeness of a continuing resolution; neither side can agree, so they will find a compromise that kicks the can down the road but avoids the government shutdown.

My initial reaction was, “Why wasn’t this done in the first place?” FSU said for months before the litigation that a change in the revenue distribution model needed to be made if the Seminoles were to stay in the conference. However, I think this deal only works in the short term because if it was a viable option, it would’ve already been made to keep both Clemson and FSU in the mold.

Therefore, this agreement likely does not get the aforementioned schools to a number they feel would be competitive with the SEC and Big Ten despite the change in the revenue distribution, but it would bring them closer to that figure.

Moreover, if the deal was the end all be all, then why would the grant of rights timeline need to be amended? I believe FSU and Clemson will still attempt to leave the conference whenever they can legally do so. But if there is an agreement, it will only kick the can down the road.

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