Florida State and Clemson are set for a Tuesday vote on an agreement that would settle four lawsuits between the two schools and the ACC, according to a report from ESPN's Pete Thamel.
The lawsuits, which are tied to conference realignment, will now be settled due to a new revenue distribution strategy for the ACC. The settlement hinges on a revenue distribution model for the league that will be based on viewership. Additionally, there will be a change in the financial penalties for exiting the league's grant of rights prior to its conclusion in June of 2036.
The new revenue distribution model will be based on a five-year rolling average of television ratings. It will be funded through a split in the league's television revenue, with 40% distributed evenly among the 14 longstanding members (not including Stanford, SMU and Cal) and 60% going toward the "brand initiative" based on television ratings. The top schools in this new model are expected to receive an additional $15 million or more.
The change in the revenue distribution is expected to begin in the upcoming fiscal year.
While the revenue distribution model could certainly help things in the short-term for Clemson, Florida State and the ACC, the more significant portion of the settlement could be the reduction in penalties for exiting the league's grant of rights early. Exiting the grant of rights, a binding document between the conference and its member schools, is required in order for programs to leave for other conferences in realignment. Current language in the ACC's grant of rights stipulates that schools would have to pay "three times the annual distribution" - a number that is in the neighborhood of $120 million - to leave the ACC.
The settlement will now bring the penalty to leave the league to under $100 million if schools should leave the ACC, according to Thamel.
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This article was originally published on www.si.com as Florida State and Clemson Expected to Settle Ongoing Lawsuits With ACC.
