Florida State opened a lawsuit against the Atlantic Coast Conference in December, citing “years of mismanagement” of its media rights agreement and “draconian” withdrawal penalties, a suit that was pre-empted by one from the ACC earlier that month. On Tuesday, FSU was joined by the ACC’s other football power—Clemson.
In Clemson’s lawsuit, filed in Pickens County, S.C., the school makes it clear that the lawsuit is focused on the feasibility of finding a new conference home, citing the Grant of Rights agreement that runs through 2036 which would allow the league to own a school’s media rights even after a departure. Clemson cites that price as “an exorbitant $140 million to leave the conference,” later comparing it to the lesser fees of the other Power 4 conferences, via Ross Dellenger of Yahoo Sports.
“Each of these erroneous assertions separately hinders Clemson’s ability to meaningfully explore it options regarding conference membership, to negotiate alternative revenue-sharing proposals among ACC members, and to obtain full value for its future media rights,” the school said in the lawsuit, as shared by ESPN’s Pete Thamel.
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The school goes on to argue that the Grant of Rights only covers games played while Clemson is in the ACC, and that “the media rights to games played at a time when Clemson is not a member of the ACC were never part of any grant of rights.”
Clemson, along with the league’s other members, signed the Grant of Rights in 2013 but argues that the agreement should not cover future games played as a member of another conference before that 2036 date. It calls this a “public misconception” that “interferes with Clemson’s pursuit of opportunities with other collegiate conferences and media providers regarding potential future collaborations.”
The suit is not identical to the one brought forth by Florida State in December, but in court documents, Clemson backs its disgruntled conference mate, stating that “the ACC did not hold a vote requesting that its members, including Clemson, approve of the lawsuit against Florida State. Nor has Clemson ever authorized the ACC’s lawsuit against Florida State,” per Dellenger.
The further consolidation of power in college sports—namely, football—is the backdrop for both lawsuits.
As the College Football Playoff eyes further potential expansion to 14 teams, it is estimated that the Big Ten and SEC could be granted around 29% of revenues from a future playoff format, with the ACC getting 17% and Big 12 receiving 15% of the pie. The remaining 10% would be divided up between Group of 5 and independent programs.
Add that CFP payout disparity to the already significant difference in media rights revenue between the ACC and the Big Ten/SEC, and it becomes obvious there is plenty of financial incentive for Clemson and Florida State to attempt to get out of what has long been considered an ironclad Grant of Rights deal.
