Clemson's Bold Move: Suing ACC Over Exit Fees

In a dramatic escalation of the conference realignment saga, Clemson University has taken the bold step of filing a lawsuit against the Atlantic Coast Conference (ACC). This legal maneuver aims to challenge the ACC’s grip on its member institutions, specifically targeting the hefty exit fees and the conference’s claim over media rights.

The lawsuit, filed in the Court of Common Pleas in Pickens County, South Carolina, strikes at the heart of the ACC’s measures designed to discourage member schools from departing. Clemson’s legal challenge calls into question the validity and enforceability of the ACC’s “grant of rights” provision and the exorbitant withdrawal penalty, estimated to be around $130 million.

At the crux of the matter lies Clemson’s assertion that the ACC’s interpretation of owning the media rights to its games after the university’s potential departure is “nonsensical” and “inconsistent with the plain language of that agreement.” The university argues that such a reading would unjustly allow the ACC to retain control over Clemson’s media rights even after it ceases to be a member.

Moreover, Clemson contends that the staggering exit fee, which amounts to three times the ACC’s operating budget, constitutes an “unenforceable penalty” that violates public policy. This fee, combined with the purported grip on media rights, has been cast as a colossal $572 million hurdle, according to a previous lawsuit filed by Florida State University.

The timing of Clemson’s legal salvo coincides with the impending announcement of a lucrative new media rights deal between the College Football Playoff (CFP) and ESPN. This deal is expected to further widen the financial gulf between the powerhouse conferences, such as the Big Ten and the SEC, and their counterparts, including the ACC.

Projections indicate that each Big Ten and SEC team could earn in excess of $21 million annually under the new CFP agreement, while ACC teams are projected to receive over $13 million. This disparity underscores Clemson’s concerns about the ACC’s ability to provide a competitive playing field for its athletic programs to thrive at the highest level.

Clemson, a perennial contender in college football with two national titles in 2016 and 2018, argues that the ACC’s actions “interfere with Clemson’s free exercise of its rights and are fatally detrimental to Clemson’s efforts to ensure that its athletic programs can continue to compete at the highest level.”

The lawsuit filed by Clemson echoes the sentiments expressed by Florida State in its December 2022 lawsuit against the ACC. With the two most prominent football programs in the conference now seeking legal recourse, the landscape of college sports appears poised for further seismic shifts.

As the conference realignment drama continues to unfold, Clemson’s bold move to challenge the ACC’s grip on its members could potentially open the floodgates for other institutions to reassess their allegiances and pursue opportunities that better align with their aspirations for athletic excellence and financial viability.