Clemson Approves ACC Settlement, Ending Lawsuit

Jim Phillips smiles as he presents Coach Dabo Swinney and Clemson the ACC Football Championship trophy in December 2024. (Photo By: Charles Mays/Tiger View Media)

The matter is resolved. Clemson and the ACC have reached an agreement, concluding the legal dispute that has loomed over the conference in recent years. The Clemson Board of Trustees unanimously approves the agreement, which not only settles the lawsuit but also introduces significant changes to revenue distribution and the cost of exiting the ACC.

The dispute centered on Clemson and Florida State opposing an outdated revenue-sharing model and hefty exit fees that bound teams to the conference until the current grant of rights deal ended in 2036. The lawsuits filed in 2023-24 sparked rumors that both schools were preparing to leave, but this agreement, for now, maintains the status quo while establishing a financial structure that better compensates top-tier programs.

A key part of this deal is the "brand initiative," offering Clemson a potential $120 million boost over six years by leveraging the ACC's top marketable programs to enhance viewership and league value. Additionally, the settlement significantly lowers exit fees for teams wishing to depart. Starting in FY26, the cost is $165 million to exit and will decrease by $18 million annually until it stabilizes at $75 million by 2030-31. More crucially, schools that leave will retain their future media rights upon payment of exit fee.

This is a major win for ACC Commissioner Jim Phillips, who has been striving to maintain the conference's unity amid speculation about its potential disintegration. By revising revenue sharing, introducing incentives like the brand initiative, and making exit fees more feasible, the ACC aims to keep its premier programs content while preventing a total realignment crisis.

Clemson AD Graham Neff emphasized that the Tigers are in a strong position, noting that Clemson has been the most-watched ACC program over the past five or six years. He views the new financial model as an acknowledgment of Clemson’s value to the league, and the brand initiative further reinforces that.

President Jim Clements echoed this view, describing the agreement as “an excellent outcome” and affirming that Clemson remains proud to be part of the ACC. The Board of Trustees supported him, officially authorizing him to finalize the settlement.

Overall, this agreement resolves the legal saga and establishes a new financial model that rewards the conference's leading brands. Clemson is in a favorable position, both in the short term with increased revenue and in the long term if a future move becomes necessary. For now, the Tigers are staying put, but this ACC settlement keeps options open for future developments.