"Analysis: Potential Increase in Revenue Expected from ACC Settlement with Clemson and FSU"

The universities of Florida State and Clemson have scheduled meetings for Tuesday, during which they are expected to approve an agreement with the ACC. This agreement will settle four ongoing lawsuits and introduce a new revenue distribution model, according to multiple reports on Monday.

Both the league's board of directors and the boards of each school must agree to the settlement in order for it to move forward. It is anticipated that this will happen, as the ACC's board of directors will also be voting on Tuesday as part of their regularly scheduled meeting.

If the settlement is approved, it will ensure that the ACC's 18-member league remains intact until 2036, when the league's Grant of Rights contract expires.

The agreement will address financial penalties for leaving the ACC's grant of rights and establish a new revenue structure based on TV viewership or brand-based distribution, as reported. The penalties for exiting the league will be significantly reduced.

According to the reports, the presidents of the ACC will vote on the framework of the settlement, followed by the boards of FSU and Clemson.

In December 2023, FSU was the first to sue the league, followed by Clemson. The ACC then countersued both schools. FSU's lawsuit was a result of their failure to reach the then-four-team College Football Playoff, despite being undefeated. The schools were also concerned with the ACC's revenues falling behind those of the SEC and Big Ten.

Under the new revenue structure, every ACC school will be subject to the same distribution, with no special treatment for Clemson or FSU. However, these prominent programs could potentially see an annual increase of up to $15 million, based on the terms of the proposal.

According to ESPN, FSU and Clemson are expected to be among the biggest beneficiaries of the new distribution, due to their strong performances in the College Football Playoff and the NCAA Tournament.