While NFL Combine buzz had most college football fans glued to their screens, Clemson and Florida State faithful were juggling two screens, their attention split. Because, as it turns out, the scoreboard isn’t the only battleground; CFB just stepped into a legal cage match. Yes, the ACC lawsuit. Finally, the conference has reached a settlement with Mike Norvell’s Florida State Seminoles and Dabo Swinney’s Clemson Tigers. Now, we all know the tangled web of conference politics and pay structures can make your head spin. But amidst the legal wrangling, a surprising twist emerged. The ACC’s $500 million move, initially a point of contention, is now looking like a blessing in disguise for some. So, while that settles, Norvell’s program has the SEC and ESPN sweating a bit.
The entire hoopla started with the disparity in revenue. When programs belonging to the SEC and the Big 10 made up to $51.3 million and $60.3 million, respectively, the ACC could only shell out $45 million. That’s a serious gap. Naturally, FSU and Clemson weren’t exactly thrilled. Enter the legal showdown. The ACC, facing a full-blown family feud, blinked first. They hammered out a settlement with FSU and Clemson, and ESPN played a big part in smoothing things over with an extended media rights deal. Basically, they reworked the revenue distribution.
“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.” What that means is they’re now splitting 40% of the TV money evenly among the 14 long-standing ACC members, FSU and Clemson included. Plus, schools wanting to jump ship before 2036 get a break on exit penalties and get to keep their TV rights, which everyone thought were locked down tight. Now that the legal disputes have been ironed out, FSU insiders gave some behind-the-scenes insight as to how luck favored them.
Dec 2, 2023; Charlotte, NC, USA; Florida State Seminoles head coach Mike Norvell looks on during the fourth quarter against the Louisville Cardinals at Bank of America Stadium. Mandatory Credit: Jim Dedmon-USA TODAY Sports
On the Locked On ACC podcast, FSU insider Attorney Doug Rohan revealed how their expectations were low. That’s because “The worst case scenario was that the status quo was maintained and we had to pay 500 million (the old exit fee) or stay in the ACC until 2036.” In that way, “Florida State didn’t have anything to lose by going down this path. What we gained is a substantial return on the nominal invested dollars for the attorney’s fees, a guarantee of how the process works, and now we can have conversations about where if in either of the P2 conferences we might possibly end up.”
As per the reports, $75 million is the total cost for Seminoles to leave the ACC in 2030-31. Now, $75 million any day seems to be a better option than $500 million. Well, Norvell’s FSU holds an operating revenue of $91,476,275. This is the most in the ACC and among the highest totals in the country. With this, they can easily swap wagons.
With this, they might be pursued hard by the Big 10. The insider sounded all confident, “I would say between the viewership numbers between the geography, we’re at least attractive to the Big 10.” In that way, SEC might be caught in some deep FOMO seeing Big 10 land the big fish. Already they are a big fat conference. Now joining hands with Florida State would only make the fortune reserve fatter with more revenue and attention. That’s when the attorney stated, “The SEC may not want us but they may take us as a defensive measure to the Big 10 expanding their nationwide reach.”
Meanwhile, ESPN’s deal would lose the viewership with only Clemson onboard. It looks like FSU has already put one foot out the door.
Will a $500M discount be enough for Florida State to walk?
So, FSU’s future is still up in the air? Attorney Rohan laid it out: “Florida State still needs to go to one of the other conferences. But when you look at the viewership numbers and look at the brand—again, [FSU] homer as charged—I have to believe [it is] between the Big 10 and the SEC.” But with that hefty $700 million exit fee looming, it was a tough call. That’s where the legal drama kicked in. Both FSU and Clemson sued the ACC, challenging the grant of rights agreement that could’ve cost them a fortune. The ACC, naturally, counter-sued to keep those agreements locked down until 2036.
Then came the settlement, a game-changer. That $700 million figure? Slashed. Now, the exit fee starts at $165 million next year, and as analyst Pete Thamel reported, it “descends by $18 million per year until its $75 million in 2030-31 and levels off. The member would leave with their media rights after paying the fee.” Essentially, FSU’s looking at a potential $500 million-plus discount. Plus, “The member would leave with their media rights after paying the fee.” That’s huge.
But the ACC isn’t just sitting back. They’re trying to lock the doors from the inside, securing their future. And if FSU does decide to jump ship, they won’t be the only ones in the race. So, while FSU’s got a clearer path, they’re still going to have to play their cards right.
Thamel also predicted the future: “One of [those conferences] wants Clemson. At least one of them wants Florida State. At least one of them wants UNC, and at least one of them wants Miami. Where do they end up? We have to worry about AAU membership. We have to worry about a host of other considerations.”
They’re not about to let Mike Norvell’s Seminoles have all the glory. As host Craig Shemon put it, “Some of those good middle-tier teams are going to be going, ‘Wait a minute, we’re not giving Florida State more money than us. We’re not giving Clemson more than us…’” In other words, the rest of the ACC is watching closely, and they’re not going to be happy if FSU and Clemson get too big for their britches. So, yeah, it’d probably be smart for the Seminoles to start plotting their next move before things get messy.
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