Florida State University (FSU) and the Atlantic Coast Conference (ACC) have finalized a settlement that will significantly alter the conference’s revenue distribution model and reduce exit fees for member schools. The agreement, approved by both the FSU Board of Trustees and the ACC Board of Directors on Tuesday, ends a year-long legal battle over media rights and revenue sharing.
The settlement introduces a new “brand initiative” that will distribute 60% of the ACC’s television revenue based on viewership. This marks a significant shift from the current model, which distributes revenue equally among all member schools regardless of performance or viewership.
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“What you’re going to see represents a large paradigm shift in revenue sharing and conference exit with media rights from the world we existed in before,” said FSU General Counsel Carolyn Egan.
What Changed?
- Viewership-Based Revenue: 60% of the ACC’s television revenue will be allocated to a “viewership pool” and distributed based on a five-year rolling average of viewership ratings.
- Reduced Exit Fees: Exit fees for schools leaving the ACC will be significantly reduced, with the current fee of approximately $165 million decreasing to around $75 million by the 2030-2031 season.
- Clarity on Grant of Rights: The settlement provides clarity on the “grant of rights” agreement, which had been a major point of contention in the litigation. Schools will be able to exit the conference with their media rights after paying the reduced exit fee.
This settlement marks a significant development in the landscape of college athletics, potentially influencing how other conferences approach revenue sharing and exit fees in the future.
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