Clemson joins Florida State, sues ACC over ‘exorbitant’ exit fee

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Clemson argued that the ACC’s withdrawal fee was unenforceable and that the school shouldn’t remain subject to the ACC’s media rights deal if it opts to leave.

The ACC said it “remains confident that its agreements with all its members will be affirmed by the courts.” , Clemson filed a lawsuit Tuesday against the conference that seeks to establish conditions under which the Tigers could minimize the cost of a potential departure.the ACC’s withdrawal fee was “exorbitant” and too overtly punitive to be enforceable.

“The revenues generated by the media agreements between the ACC and ESPN are significantly lower than the revenues generated by media agreements negotiated by the Big Ten and the SEC with their media providers,” Clemson said in its lawsuit, “resulting in a dramatic gap between the revenues paid by those other conferences to their members and the revenues paid by the ACC to its members. In the coming years, this already large revenue gap is only expected to grow.

Clemson’s lawsuit was filed the same day ESPN and the College Football Playoff announced an agreement on a six-year, $7.8 billion contract set to run from 2026 to 2032. The playoff’sClemson and Florida State are the only ACC programs to have been selected for any of the CFP tournaments, which thus far have featured four teams in each field.

As to the withdrawal fee, Clemson said it was estimated to be approximately $140 million, an amount described by the school as “unconscionable.” Clemson compared that amount with penalties on departing schools imposed by other conferences, which it said included zero dollars charged by the Big Ten. The SEC’s penalties were said to range from $30 million to $45 million, depending on how much notice a school provides.

 

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