Clemson Tigers Set to Settle Ongoing Litigation with ACC Board of Directors

The Clemson Tigers and the Florida State Seminoles are setting up to cast votes on a settlement in the ongoing lawsuits between the schools and the ACC. Set for Tuesday, three boards of directors are scheduled to discuss options for the four respective lawsuits.

According to an ESPN report, these talks could put to rest any conference membership uncertainties, especially if a new revenue-sharing model were to come from a settlement. Any new revenue-distribution models would be based on television viewership.

The settlement aims to also include changes in the league’s financial penalties. Currently, the ACC requires any school to pay an enormous exit fee if they plan to leave the conference before 2036. Both the Tigers and the Seminoles filed lawsuits in 2023 against the ACC after thoughts of leaving the conference were brewing.

Keeping schools under expensive contracts until 2036 was a strategy brought on by the ACC in order to keep the league intact.

Regarding the new brand initiative, the schools would receive payouts based on a split in the league’s TV revenue. Funding based on views would serve as key motivation to keep schools playing for the ACC.

Other success initiatives were approved and enacted in 2023 to reward programs that made postseason appearances, both in College Football Playoff and the NCAA Basketball Tournament. Combined with the potential for new brand initiatives, the ACC would accommodate their teams for success against bigger leagues.

These initiatives also serve to close the revenue gap with the SEC and Big Ten conferences, contingent, of course, on TV ratings based on performance.

Just this past season, the Tigers earned up to $4 million in success initiatives just by making their College Football Playoff appearance.

If things go well on Tuesday, the ACC, Clemson and Florida could all take in a win. Commissioner Jim Phillips aims to keep the ACC intact and will lead talks on Tuesday.

Any significant decreases in financial penalties for breeching the grant of rights by leaving the ACC would be noticeable in 2030, even if a settlement is reached. The current estimated cost to leave the league is around $100 million but the settled cost has not been released. The current projected estimate is rumored to be under the $100 million, hopefully before 2030.

Tuesday’s talks could answer a lot of questions for fans and schools in the ACC; either heightening the need for a better system or encouraging better team performance to appease the success initiatives. Either way, the terms will be presented at noon EST for all parties involved.