ESPN report: Clemson, FSU set to vote on settlement of ACC lawsuits

Clemson and Florida State are expected to reach a settlement with the ACC, ESPN reports. (Photo: Ken Ruinard / Imagn Images)

Brandon Rink - Assoc. Editor / Staff Writer - 5 hours ago

ESPN reported Monday that Clemson and Florida State are set to vote and are expected to pass this week a settlement of the ongoing lawsuits with the ACC.

What will come with the sides agreeing on a settlement are some moves to more incentive-based compensation for schools.

Per ESPN:

According to sources, the settlement includes two key objectives: Establishing a new revenue-distribution model based on viewership and a change in the financial penalties for exiting the league's grant of rights prior to its conclusion in June 2036.

This new revenue-distribution model -- or "brand initiative" -- is based on a five-year rolling average of TV ratings, though some logistics of this formula remain tricky, including how to properly average games on the unrated ACC Network or other subscription channels. The brand initiative will be funded through a split in the league's TV revenue, with 40% distributed evenly among the 14 longstanding members and 60% going toward the brand initiative and distributed based on TV ratings.

Top earners are expected to net an additional $15 million or more, according to sources, while some schools will see a net deduction in annual payout of up to about $7 million annually, an acceptable loss, according to several administrators at schools likely to be impacted, in exchange for some near-term stability.

ESPN says figures crunched on the new features could mean an additional $30 million to a program with a deep Playoff or NCAA Basketball Tournament run.

There is also a change set for the vaunted Grant of Rights part of the equation: "While the settlement will not make substantive changes to the grant of rights, it is expected that there will be declining financial penalties for schools who exit prior to 2036 with the steepest decreases coming after 2030 -- something that would apply to any ACC school, not just Clemson and Florida State...The specific financial figures for schools to get released from the grant of rights were not readily available. But the total cost to exit the league after the 2029-30 season is expected to drop to below $100 million dollars, sources said."

TV deals in the other major conferences are set to expire around 2030 and the next CFP deal will come up in 2031, ESPN reports.

The schools are reportedly meeting on Tuesday, as well as the ACC Board of Directors, to finalize the settlement terms.

ESPN exercised its option in January, as expected, to televise ACC sports through 2036.