The Atlantic Coast Conference, Clemson University, and Florida State University have reached a settlement resolving all legal disputes, ensuring both schools remain full members of the conference and bringing an end to litigation in Florida, North Carolina, and South Carolina.

The agreement introduces a revised financial structure aimed at addressing longstanding concerns over revenue distribution while maintaining stability within the ACC’s 18-member framework, with all pending lawsuits in Florida, North Carolina, and South Carolina dismissed as part of the resolution.

As a component of the settlement, a newly structured revenue model will be introduced that ties a portion of conference payouts directly to television viewership for football and men’s basketball. Schools that generate higher media engagement will receive increased distributions from the ACC’s media rights revenues, primarily derived from its long-term partnership with ESPN.

The updated system expands upon the ACC’s previously implemented “success initiatives,” which reward athletic performance but did not include a specific mechanism for compensating schools based on audience size. The change represents a shift toward performance-driven financial incentives, responding to pressure from universities with larger national followings seeking greater control over their revenue potential.

“We’re very pleased to have reached a settlement that benefits not only Florida State, but the Atlantic Coast Conference as a whole,” said Florida State University President Richard McCullough. “From the start, we’ve held firm to the belief that the best solution would be one that enables FSU and every ACC institution to earn enhanced revenue through performance.”

ACC Commissioner Jim Phillips described the settlement as a step toward securing the league’s long-term future, noting the importance of innovation in revenue allocation and positioning the agreement as a means to strengthen the conference’s position in intercollegiate athletics.

Today’s resolution begins the next chapter of this storied league and further solidifies the ACC as a premier conference,” said Phillips. “The league has competed at the highest level for more than 70 years and this new structure … further incentiviz[es] our membership based on competition and viewership results.”