Clemson University and the Atlantic Coast Conference have reached a settlement in the ongoing legal battle over the league’s grant-of-rights agreement, ending months of uncertainty surrounding the school’s financial obligations and future in the ACC.
The Clemson Board of Trustees unanimously approved the settlement Tuesday during a specially called meeting focused solely on resolving athletic litigation. The decision follows similar approvals from both Florida State’s Board of Trustees and the ACC’s Board of Directors, all of which were necessary for the settlement to move forward.
Clemson and Florida State initially sued the ACC, challenging the terms of the grant-of-rights deal, which governs the media rights of member schools. The ACC responded with countersuits. While neither university had officially announced plans to leave the conference, the legal dispute was widely viewed as an early step toward exploring other options.
Clemson Athletic Director Graham Neff made it clear that the lawsuit was never about leaving the conference. Rather, it was about securing a future where the Tigers could compete at the highest level without being financially handicapped. When Clemson’s Board of Trustees approved the settlement terms, Neff described it as “consistent with the objectives we set out with initially.”
“The ACC is an excellent fit for Clemson,” Neff said. “The academic prestige and reputation we emphasize here at Clemson is a natural fit with other members of the ACC. The historic football success the league has had, and that Clemson has had in the ACC, along with access to the College Football Playoff — this is a great home for us.”
At the center of the agreement is a restructured revenue-sharing system that rewards schools based on television viewership and performance, as well as a revised exit fee structure that lowers financial penalties for schools that may choose to leave the ACC.
Under the old system, television revenue was split evenly among all member schools, regardless of performance. Now, that money will be distributed based on a school’s television ratings. The new model — referred to as the “brand initiative” — allocates 60% of ACC TV revenue based on a rolling five-year average of viewership, with more weight given to recent years. The remaining 40% will still be split evenly.
With that, the implications of the settlement are significant. The Tigers have consistently been the ACC’s most-watched football program over the past six years, with Florida State ranking near the top as well. Yet, as the financial gap between the ACC and conferences like the SEC and Big Ten widened, frustration for Clemson became apparent. According to Neff, this new model could bring Clemson an additional $120 million over six years, not including potential College Football Playoff payouts. Those payouts, which range from $4 million for a first-round appearance to $20 million for a national championship, provide another avenue for financial growth.
Now, Clemson stands to benefit significantly from the new distribution model, which places greater emphasis on football and men’s basketball viewership.
In addition to the redistribution of revenue, the settlement also placed major implications on the future of schools’ departure from the conference. Beginning next year, the exit fee will drop to $165 million, decreasing annually by $18 million until it levels off at $75 million by the 2030-31 season. Any school that pays the fee will retain its media rights, removing a major barrier to potential departures.
Clemson President Jim Clements praised the resolution, calling it a step forward for the program’s financial future while maintaining the University’s strong presence in the ACC.
“We have secured new opportunities that will allow us to remain nationally competitive while continuing to be a proud member of the ACC,” Clements said.
While this agreement provides clarity on media rights and financial distribution, it also leaves the door open for Clemson’s long-term future. Should the University ultimately decide to explore options outside the ACC, it now has a more defined and manageable exit path.
Neff believes the settlement strikes a balance between strengthening the ACC and providing flexibility for schools to adapt as college athletics continue to evolve.
“This model incentivizes performance while keeping the league strong,” Neff said. “It’s a win for Clemson and for the ACC’s future.”
Though the immediate focus remains on stability within the conference, the changing landscape of college sports all around means that Clemson may continue to evaluate its options in the years ahead.
