Clemson found a breakthrough in its legal battle with the ACC on Tuesday after an agreement was reached with the conference. The Tigers filed a lawsuit against the conference in March 2024, following in the footsteps of Florida State, which took that route in December 2023.

The agreement reached by the ACC with the Tigers and the Seminoles brings about the dawn of a new revenue distribution model in the conference. It also leaves the door open for potential departure with exit fees reduced significantly from what it would have cost earlier.

If the Tigers choose to leave the ACC in 2026, the school will need to pay an exit fee of $165 million. This amount will decrease by $18 million each year, eventually settling at $75 million for the 2030-31 season. The clause is the same for every other team in the ACC.

“Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference,” ACC Commissioner Jim Phillips said in a statement on Tuesday.

“As we look ahead to our collective long-term future, I want to express my deepest appreciation to the ACC Board of Directors for its ongoing leadership, patience and dedication throughout this process.”

The breakdown of the ACC exit fee following the settlement:

2026 – $165 million

2027 – $147 million

2028 – $129 million

2029 – $111 million

2030 – $93 million

2031 – $75 million

Clemson could still remain in the ACC despite a clear exit route

Clemson was seeking a pathway out of the ACC and decided to use legal means to navigate the league’s watertight grant of rights agreement. The settlement on Tuesday, however, means the school can decide to leave the conference at any time if certain terms are met.

Despite that, the Tigers might choose to remain in the conference for the next couple of years. The review of the revenue distribution model means they now have a lot to gain financially from the league. The school spoke highly of the ACC after the settlement.

“The ACC is an excellent fit for Clemson,” The Tigers’ athletic director Graham Neff said in a statement following the settlement on Tuesday. “The academic prestige and reputation we so emphasize here at Clemson is a natural fit with other members of the ACC.

“The historic football success the league has had and that Clemson has had in the ACC and access to the College Football Playoff currently — this is a great home for Clemson.”

In the new distribution model, 60% of the ACC’s total television revenue will be allocated to “brand initiative,” with greater emphasis placed on recent viewership data based on a five-year rolling average. The remaining 40% will be evenly distributed among all conference schools.