The dispute between the Atlantic Coast Conference (ACC), Florida State University (FSU) and Clemson University centers around broadcasting rights and the terms of the conference’s grant of rights agreement. This agreement, which runs through 2036, gives the ACC control over the media rights of its member schools. Both FSU and Clemson have argued that the terms are unfair and restrictive — the exit fees for Clemson and Florida State to leave the ACC are said to be approximately $140 million. Florida State disputes this number, arguing that the cost of leaving would be closer to half a billion dollars when considering the buyout of the remaining media rights.
November court ruling favors Florida State
In November 2024, a Florida court ruled that Florida State University has the right to pursue its lawsuit against the ACC. The court acknowledged that FSU’s claims regarding the validity of the grant of rights agreement and the associated exit fees were substantial enough to warrant a full trial. This ruling was significant because it allowed FSU to challenge the ACC’s control over its media rights, which the university argues should revert to them if they leave the conference.
Site for Clemson’s case unclear
Clemson’s lawsuit, filed in South Carolina, argues that the ACC’s grant of rights agreement is invalid and that the conference’s exit fees are exorbitant. Clemson has sought to have the case heard in South Carolina courts, but the ACC has countered with a lawsuit in North Carolina, arguing that the case should be heard there because the conference’s headquarters are in Greensboro, North Carolina. As of November 2024, Clemson urged the North Carolina Supreme Court to overturn a business law court and allow the case to proceed in South Carolina, citing state sovereignty and the university’s right to litigate in its home state.
What will likely happen
The outcomes of these disputes are still uncertain, but several scenarios are possible. If FSU and Clemson succeed in their lawsuits, they could potentially leave the ACC without paying the hefty exit fees, taking their valuable media rights with them. This could set a precedent for other schools looking to exit the conference, potentially leading to another significant reshuffling of college athletics conferences. If the ACC prevails, it would reinforce the strength of its grant of rights agreement, making it difficult for member schools to leave without facing substantial financial penalties.
ACC seeks solution before litigation
To resolve the matter and avoid trial, the ACC is exploring new revenue distribution models to address the concerns of its member schools and prevent further disputes. These models, which would consider audience size regardless of the team’s record, aim to provide more equitable revenue sharing, which could help quell some of the dissatisfaction among schools like FSU and Clemson. The resolution of these cases will have far-reaching implications for the future of college sports and the power dynamics within athletic conferences.