Florida State and Clemson have served as the bedrock programs of the ACC, but over the weekend the two league powerhouses expressed their displeasure with certain aspects of their home conference. Of course, these concerns have led to speculation about the latest round of conference realignment that's engulfed college football the past few years -- though the hypothetical scenario of the Seminoles and Tigers bolting to a new conference faces some major hurdles that make the execution near-impossible.
On Friday, Florida State was the first to make its unhappiness with the current state of the ACC known; more specifically, the powers-that-be pointed to the financial gap that is growing between itself and schools in other conferences. The board of trustees held a meeting where, according to the Tampa Bay Times, Florida State athletic director Michael Alford voiced his concern over the ACC and its future in the changing college athletics landscape.
"At the end of the day for Florida State to compete nationally, something has to change moving forward," Alford said.
Later in the day, Clemson athletic director Graham Neff joined Alford in voicing his displeasure with the current state of the ACC's finances, according to the Charleston Post and Courier.
"In all candor, I put it as a need," he said. "We certainly recognize the investment that we've continued to make as an institution, in our community, in athletics, namely in football, which certainly drives a lot of value that is important from a television and revenue-generation standpoint. Is it time revenue distribution within conferences, or at least the ACC, is done differently? Yeah, I've been very active in those conversations within the league and continue to expect to take a leadership role in our desire for that to be a changed circumstance. Urgently."
Let's dive a little deeper into the issues surrounding the ACC and take a look at why you may not see Florida State and Clemson find a new home in the near future.
The future isn't so bright
The concerns of Clemson and Florida State -- and potentially other ACC programs -- not only center around the Big Ten and SEC's recent financial windfall that allowed the two conferences to separate from the ACC, but the gap that will widen in the future.
The SEC announced this month that it distributed $49.9 million during the 2021-22 fiscal year, which ended on Aug. 31, 2022. The prior season, which included the early stages of the COVID-19 pandemic, the conference paid its member institutions approximately $54.6 million. The Big Ten distributed $48.7 million during the 2020-21 fiscal year despite playing fewer football games than most other Power Five conferences due to the pandemic. That figure is expected to make a big jump during the most recent fiscal year.
When you contrast that with the ACC's payout during the 2020-21 fiscal year -- an estimated $36 million per school, according to Front Office Sports -- it's clear where Clemson and Florida State's frustrations stem. And that frustration will likely grow based on the future of college athletics.
The conference's current television deal with Disney (ESPN and ABC) lasts through 2036, which means that the payouts to its member institutions won't jump in the same way as the Big Ten and the SEC. The Big Ten agreed to a new deal with CBS, Fox and NBC that will pay its schools -- including newcomers UCLA and USC -- an average of $75 million annually from media rights. That deal expires after the 2029-30 academic year, six years sooner than the current ACC deal. The SEC's new deal with Disney (ESPN and ABC) that begins in 2024 is expected to pay out a similar figure, according to estimations from CBS Sports' Dennis Dodd.
Alford singled out the disparity in revenue distribution during the meeting on Friday.
"At the end of the day, if something's not done, we cannot be $30 million behind every year compared to our peers," Alford said.
Cost of departure
Contracts are made to be broken in every industry. In college athletics, the most recent example is the upcoming depature of Texas and Oklahoma from the Big 12 to the SEC in 2024 -- one year earlier than the end of the Big 12's deal. It will be very pricey for Clemson, Florida State -- or any other ACC program, for that matter -- to leave under the league's current grant of rights.
Carolyn Egan, Florida State's vice president for legal affairs and general counsel, said during Friday's meeting that the exit fee would be approximately $120 million, according to the Tampa Bay Times.
That figure seems crazy on the surface. However, if ACC member institutions are making approximately $30 million less than the "Power 2," a four-year financial hit in order to secure long-term financial stability has to be an option that is on the table. What's more, clauses in media rights deals in other conferences that conceivably land ACC schools could increase their value even more.
Dodd grabbed this screenshot from Friday's meeting at Florida State that details what the financial future of the Power Five looks like.
This round of college athletics realignment got kick-started when it was announced in July 2021 that Texas and Oklahoma would be joining the SEC, which led to dominoes falling all around the country. It seemed like things calmed down in 2022, but Florida State and Clemson are clearly upset, which could lead to more movement if the two schools can clear the financial hurdle.