Slaying the ACC Grant of Rights Dragon? (Long)

Mar 4, 2025, 11:53 AM

We all know that Clemson football is not interested simply in a winning record and playing in mid-level bowl. Clemson, like FSU, is focused on competing nationally. It is one of the big differences between a program like Clemson and programs like NC St, Pitt, South Carolina, Rutgers, Mississippi St, etc. We aim for the highest prizes. Success is measured, at least in part, by how close we come to achieving them.

Being in a conference that paid less than other conferences has not been great – but it has been sustainable. But staying in a conference that is about to pay thirty to forty million (or more) dollars less annually poses very different challenges to say the least.

Personally, I cheered when Clemson filed the lawsuit against the ACC. There would be no incentive to leave the ACC without being confident of a better opportunity. Clemson would not have filed a lawsuit challenging the ACC’s Grant of Rights if we did not know (private back channels perhaps, but “know”) that joining either the Big (which pays the most money per team) or SEC (which pays the 2nd most) was an option. Neither would FSU.

Fans might care about tradition, geography, culture, etc. However, TV execs do not. Clemson football draws attractive TV ratings – and has for a long time. That is what TV execs care about. It is all that TV execs care about. So, it is reasonable for Clemson to be desirable to a higher paying conference.

But when – and how – to leave? I keep seeing the 2030/2031 years as the point at which the biggest conference renegotiations will happen (someone please correct me if I am mistaken here). Therefore, that date seems to be the “deadline” date for Clemson to exit and still be part of the newly renegotiated contracts either for the Big or for the SEC.

Obviously, with every year that we get closer to the end of the ACC contract in 2036 the cost of leaving will decrease. But the cost to leave was still projected to be in the hundreds of millions of dollars for the bulk of the contract. That 2030/2031 time period seemed too far away from 2036 for Clemson to exit the ACC smoothly and cost-efficiently. In my mind that seemed like our biggest obstacle to overcome.

When I saw the headline that Clemson was about to settle with the ACC, I was prepared not to like what I was reading.

Then I read it. And I really like what I see here!

Please help me if I am mistaken, but I think Clemson and FSU are getting exactly what they wanted – short of an immediate release from the Grant of Rights.

Critical Point for Clemson:
- “…there will be declining financial penalties for schools who exit prior to 2036 with the steepest decreases coming after 2030”
- “… the total cost to exit the league after the 2029-30 season is expected to drop to below $100 million dollars, sources said.”

This new agreement reduces the buyout to leave the ACC in 2030 to under $100 million. Since that is the “total cost” I am assuming it includes both the buyout and the TV rights (Correct?). That should be key to why this agreement is appealing to Clemson. Assuming Clemson still is attractive enough to join either the Big or the SEC, then they could recoup this amount fairly quickly. The key will be for Clemson to continue to draw strong TV ratings.

Additional Money Along the Way:
- “Top earners are expected to net an additional $15 million or more”
- “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.”

Clemson should receive an additional $15 million per year – and possibly more. For a five year period, that will obviously help the cause!!

Potential for Continued Disunity in the ACC:
- “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 the meantime, the other ACC members might be looking at a reduction of approximately $7 million per year. In other words, they could be forced to compete with Clemson and FSU in the ACC while making substantially less. For example, the difference in payout would be $22 million each year if Clemson/FSU each gain $15 million while they each lose $7 million. I can certainly see these other programs getting disgruntled very quickly. For some of them (NC St, Louisville, Pitt), reducing their payouts means that they will start making less than what the Big 12 would be willing to offer them. Perhaps each ACC team that sees that they could make more in the Big 12 will become incentivized to join the movement to break up the ACC.

Unless I am missing something, this all seems good for Clemson. I am definitely no expert at contract law and I recognize that I could be way off base with my thinking here. If other people see things that I am missing, I would love to know your thoughts on it.

Otherwise, I am thinking Clemosn may have scored a nice victory here.

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Thanks, Clemgalalways®!
I appreciate your thoughts on this. You bring up some good points.

I do think that South Carolina fans and any other fan base would LOVE to win a football National Championship. I actually shudder to think what some Gamechicken fans do for a natty in football (scary). My intent was more to say that Clemson fans have higher expectations. I do not think that South Carolina fans truly expect to win at the highest level. If their program starts to win at a national level, then their expectations would change (and they might become even more unbearable)! Clemson fans have experienced the football mountaintop. I do think that changes the expectations of a fan base. I probably did not word my statement clearly.

As for the money:
I do think that the money currently matters. But the difference in money has not been problematic enough to keep us from competing. Once that difference become $30 - $40 million or more, then I have to believe it would hurt our ability to recruit and retain the best coaches, keep up with the facilities arms race, and/or even fund the other (nonrevenue) sports that we love.

Clemson has always received substantial funds from donors through IPTAY. With NIL growing more and more out of control, donor monies are needed for NIL Collectives. That could mean less money for the athletic program if IPTAY and The 100 Collective begin to compete for donor funds.

All in all, I do think the money will matter going forward. This agreement allows Clemson to gain more TV revenue going forward while we are in the ACC. It also allows us to leave the ACC for greater revenue before the next round of renegotiations, which should be huge.

I don't think Clemson sues to get out of the Grant of Rights otherwise. And for the ACC to yield these concessions, I have to think that the ACC believed that Clemson and FSU might have been able to get out. This was the ACC's way of paying Clemson and FSU competitively to keep them in the conference.

FWIW: Eventually, I do think we will see ONE major conference - not two. Eventually, Alabama will get tired of taking money out of its wallet and handing it to Vanderbilt, Mississippi St, Arkansas, etc. Eventually, Ohio St will get tired of subsidizing Purdue, Iowa, Northwestern, etc. The programs that make the most money will eventually align with each other in whatever way maximizes each other's revenue.

Thanks again, Clemgalalways, and everyone else for your thoughts on this!!

Slaying the ACC Grant of Rights Dragon? (Long)

From my understanding I don't think that there was an set exit fee

I also found this.

I don't understand how the other ACC members lack a vote or a say

Re: I don't understand how the other ACC members lack a vote or a say

? (Long) response and question

Year 2030: Realignment of Big, SEC and ACC

Re: ? (Long) response and question

Re: ? (Long) response and question

Re: ? (Long) response and question

Re: ? (Long) response and question

Re: Slaying the ACC Grant of Rights Dragon? (Long)

Re: Slaying the ACC Grant of Rights Dragon? (Long)

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