Florida State and Clemson will vote on Tuesday by an agreement that will finally result in the agreement of four in progress between schools and the ACC and a new income distribution strategy that would solidify the membership of the conference for the near future, the sources told ESPN on Monday.
The Board of Directors of ACC is scheduled to make a call on Tuesday to review the liquidation terms. In addition, Florida State and Clemson have called for meetings of the Board to present the terms at noon on Tuesday. The three meetings must accept the agreement to advance, but the sources throughout the league expect an agreement to be reached.
According to the sources, the agreement includes two key objectives: establish a new income distribution model based on the hearing and a change in financial sanctions for leaving the granting of the League before its conclusion in June 2036.
This new income distribution model, or “brand initiative”, is based on a continuous average of five years of TV classifications, although some logistics of this formula remains complicated, including the average form of games on the Network Unclainated or other subscription channels. The brand initiative will be financed through a division in television revenues of the League, with 40% distributed uniformly among the 14 long -standing members and 60% for the brand initiative and distributed according to the TV ratings.
The main winners are expected to obtain $ 15 million or more additional, according to the sources, while some schools will see a net reduction in the annual payment of up to approximately $ 7 million annually, an acceptable loss, according to several administrators in the schools that will probably be affected, in exchange for a certain short -term stability.
The brand initiative is expected to begin for the next fiscal year.
The bottom of the brand, combined with the separate fund of “successful initiatives” approved in 2023 and promulgated last year that rewards schools for postseason appearances, would allow the equipment that reaches the necessary reference points in each to close the income gap with the SEC and Big Ten, possibly adding in the neighborhood of $ 30 million or more annually a school to make a deep care The NCAA basketball tournament.
Success initiatives are largely financed through the money generated by the new extended university soccer playoff and the additional income generated by the additions of Stanford, Cal and SMU, each of which is taking a reduced part of television money in the next six to eight years, while the new brand initiative will involve some schools in the conference that receives less television revenues than before.
As a result of its inclusion in the university soccer playoff last season, said Athletic Director of SMU, Rick Hart, the Mustangs and the Tigers won $ 4 million through the success initiatives.
The sources have suggested that Clemsson and Florida State would be among the largest winners of this brand -based distribution, although others are expected to be expected to pay a higher payment. Georgia Tech was actually the best qualified ACO program in 2024, based in a game of week 0 against Florida State and a seven strangers thriller against Georgia on the last Friday of the regular season.
Basketball classifications will also be included in the brand initiative, but at a lower rate than football, which is responsible for approximately 75% of the league television revenues.
If the ACC Commissioner, Jim Phillips, can take this to the finish line on Tuesday, it would be a great victory for him and for the conference during an unprecedented time of change in university athletics, particularly for a league that many speculated would separate when the litigation between the state of ACC and Florida and Clemson began in 2023.
Both schools would also consider it a victory after they decided to submit demands in their states of origin in the hope of exposing themselves to a rights subsidy agreement that, according to the lawyers of the State of Florida, could have meant paying up to $ 700 million to leave the conference. The ACC hired both schools to preserve the rights granting agreement until 2036.
Although the agreement will not make substantive changes in the granting of rights, it is expected that there are financial sanctions in decline for schools that come out before 2036, with the most pronounced decreases after 2030, something that would apply to any ACC school, not only of Clemson and Florida State.
The specific financial figures for schools to be released from the granting of rights were not available. But it is expected that the total cost of leaving the league after the 2029-30 season falls below $ 100 million, the sources said.
The current language would require that any school that comes out before June 2036 pays three times the operational budget, a figure that would be approximately $ 120 million, plus control of the rights of the media of that team through the conclusion of the granting of rights.
This was seen as a critical piece for settlement, which allows flexibility for ACC schools in the middle of a changing university football overview, particularly beyond the 2030 season, when the television agreements for the Big Ten (2029-30), Big 12 (2030) and the next iteration of the University Football Playoff (2031) arise for the renewal of a Florida State figure in more than $ 500 million years.
The sources told ESPN that there would only be a number to get out of the league, not the combination estimated by FSU of a traditional output rate and the loss of means of the granting of rights.
In addition to ensuring success and brand initiatives, seen within the League as progressive ideas to help encourage gain, Phillips also guided the recently announced ESPN option to continue transmitting the ACC until 2036.
