Sources: ACC nearing agreement with Clemson, FSU to end litigation

quote:

---

The ACC and its two restless members — Clemson and Florida State — are inching closer to finalizing a settlement that could allow for league schools to buy back years of their media grant of rights and allow for defections from the conference earlier than the current 2036 timeframe. The agreement would see Clemson and Florida State end their litigation in exchange for a change to the conference’s revenue distribution structure and clarity around the grant of rights, sources tell Yahoo Sports.

ACC presidents are expected to meet Tuesday morning, sources say. Any agreement is subject to a vote from ACC presidents. The board of trustees at both Clemson and Florida State are expected to meet later on Tuesday to discuss any settlement, a separate source told Yahoo Sports.

The schools, each having filed suit against the conference over the last 15 months, have been engrossed in negotiations with the ACC in an effort to increase the revenue that the league distributes to them as well as see the media grant of rights shortened, amended or clarified in some way. The settlement is expected to define the penalty fee that any school would owe for breaking the grant of rights — an agreement that binds ACC schools together through 2036 and is tethered to the league’s ESPN television contract.

The change to the revenue distribution structure is, perhaps, the most interesting piece of this settlement puzzle and could pave the way for other leagues to distribute revenue unevenly.

Under the proposal, the conference would create a new revenue concept that awards significant dollars to programs achieving higher television ratings and viewership in football and basketball, among other factors. The revenue formula would be based on a five-year rolling average of Nielsen ratings generated by each league school, a source said. The media value initiative is expected to distribute millions to members in decreasing payments — from most watched to least.

---