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Add on the finances and backroom deals to the gridiron, and not everyone is pleased. The ACC has had a lengthy back-and-forth communication with FSU and Clemson regarding the grant of rights. So far, the exit fees have been reduced, but the possibility of their departure still looms large. With the updated settlement, which cost ACC its million-dollar potential revenue, if Clemson and FSU were to leave during 203-2036, they’d pay an exit fee of $75 million. Presently, the programs have not yet declared their intent to leave the conference. However, their lawsuits were considered a sufficient indication to mull over that possibility. If that happens, ACC seems closer to finding its replacement. ACC is not the only one going through financial shakeups. Throw in the Big Ten over that pile as well, for a $20 billion, 20-year capital investment proposal has been the talk of the town. The crux of the issue centers around the Big Ten Enterprises, which will hold the media rights and sponsorship deals of the conference. Now, a California pension fund, called UC Investments, has expressed its interest in owning a stake in that entity. A cash infusion of $2 billion for a 10% stake. ADVERTISEMENT With the school’s operation cost rising over the recent NCAA settlement, and other factors, this deal is proposed to “modernizing the operations of our conference.” However, Michigan and USC are not sold on that. They have criticised the move, calling it a short-sighted plan to raise money. Speculation regarding their departure from the Big Ten is gaining steam. An X account, MHVer3, claims to have insider news. “There is real fire to the smoke that Mich and USC could leave the B10 over the equity deal. So much so that both schools have negotiated a backroom backup plan for non-football sports to move to the ACC if necessary.” Combined, both these programs boast 23 national championships. ADVERTISEMENT According to a report by Ross Dellenger, the Big Ten has set a tentative deadline of November 20 for Michigan and USC to make their decisions. If the programs fail to agree to the proposed deal, they will lose the additional capital as part of their landmark proposal and jeopardize their future within the conference, beyond 2036. One thing stands out. The Big Ten is moving with the proposal. On the other hand, On3’s Andy Staples has hinted that even the SEC might be interested in Michigan and the Trojans. “If only there were some school that Fielding Yost hated that needed good annual opponents….It wouldn’t be an issue for Michigan. Nor would it for USC. Because the SEC would also happily welcome them too. Again, not schools you want to play chicken with.” ADVERTISEMENT Read Top Stories First From EssentiallySports Click here and check box next to EssentiallySports Both these programs have expressed their dislike of the new Big Ten proposal. However, it seems we’ll have to wait until November 20-21 to see how the whole saga unfolds. The possibility of them joining the ACC rests on the fact that if Clemson and FSU are in fact leaving as well. Are FSU and Clemson leaving ACC? ACC’s saga with Clemson and FSU introduced a major development in the conference, allowing every member to reap benefits from the incentive-heavy model. Following a lawsuit over the conference’s grant of rights, ACC caved in, introducing a new revenue distribution model based on TV ratings and reducing exit fees. ADVERTISEMENT Since both these programs brought in the majority of the views, they demanded a fair revenue system based on the viewership metric. Now, 40% of the revenue comes from the media rights and the rest from TV ratings. Presently, no official statement has been released regarding their departure. However, with reduced exit fees, it has created a way for them to wriggle out of ACC without a significant financial crunch. Under the new settlement, if they leave in the 2025-26 season, they’d be forced to pay $165 million. The amount continues to decrease significantly each year, with $75 million from 2030 to 2036.
