On June 3, 2025, Florida State University (FSU), Clemson University, and the Atlantic Coast Conference (ACC) officially resolved a longstanding legal dispute that had centered around the conference’s restrictive “Grant of Rights” agreement. The settlement, which comes after months of negotiations, marks a significant shift in the structure of the ACC, offering a more flexible financial arrangement for its member schools, particularly FSU and Clemson.
The key element of the settlement is the dismantling of the “Grant of Rights” agreement, a clause that had previously allowed the ACC to control and retain media rights for its member schools. Under the old arrangement, if any school decided to leave the conference, it would lose its individual media rights and be subjected to steep exit fees. This provision had created a significant financial barrier for schools seeking to explore new conference affiliations, particularly as the landscape of college athletics continues to evolve with the increasing importance of television and digital media rights.
The resolution of this legal dispute is a major victory for FSU and Clemson, who had been the most vocal schools pushing for greater financial autonomy. Both universities have long been rumored to be considering moves to other conferences, particularly as the power dynamics within college football have shifted with the emergence of new lucrative media deals. The settlement now allows these schools to retain control over their media rights, providing them with a new source of revenue and greater flexibility moving forward.
For FSU, the settlement means an additional $15 million in revenue. The university is expected to see an immediate boost in its athletic program’s financial standing, which could be reinvested into various sports programs and facilities. Clemson also stands to benefit from the settlement, though the specifics of their financial windfall have not yet been fully disclosed. The schools now have more room to negotiate individual media rights deals, potentially leading to enhanced profitability through TV and streaming deals, which are crucial for the financial health of major college athletics.
Beyond the immediate financial benefits, the settlement also reduces the exit fees for FSU and Clemson if they choose to leave the ACC in the future. These fees, which had previously been prohibitive, will be gradually reduced over time, offering both schools greater flexibility to explore their options without the looming financial burden. This change could open the door for FSU and Clemson to pursue more lucrative conference affiliations, particularly with the growing allure of the Southeastern Conference (SEC) and Big Ten, both of which have expanded rapidly in recent years.
This settlement is not just a win for FSU and Clemson; it also represents a shift in the dynamics of college conference affiliations. The ACC, in particular, has faced increasing pressure from its members to adapt to the changing landscape of college sports. The decision to modify the Grant of Rights clause is seen by many as an acknowledgment that the old structures no longer fit with the modern realities of college athletics, where media revenue is king and schools are more willing than ever to consider switching conferences if the financial incentives are strong enough.
The resolution also serves as a wake-up call to other conferences, as the growing importance of television and streaming deals continues to reshape the college sports industry. Schools that feel constrained by restrictive agreements may now push for similar concessions, leading to a potential shift in the overall balance of power in college athletics.
For the ACC, this settlement allows the conference to maintain its current membership without the immediate threat of losing key schools like FSU and Clemson. However, the financial concessions made in this deal raise questions about the future of the conference’s competitive standing, particularly as rival conferences like the SEC and Big Ten continue to grow in strength and profitability.
As the settlement concludes a chapter in the ACC’s history, it also opens the door to new possibilities for Florida State, Clemson, and the conference as a whole. The changes resulting from this legal resolution could have long-lasting implications for how media rights are handled in college athletics, and could set a precedent for other universities looking to assert more control over their financial futures.
