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MEGA Conference Realignment and lawsuits Megathread: Stories, Tales, Lies, and Exaggerations

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If Ashley Moody was smarter she would add an amendment that addresses the 19 cap number. This only takes care of FSU because the B1G will only hold out for ND for that number 19. Even if the cap number goes to 20 and ND sees the ACC falling apart then they could jump to the B1G and pull Stanford with them, which would basically ***** Miami. Of course if quick strike realignment happens prior to the PCSA start date then the B1G and SEC could expand to whatever number they want, however, there may not be the $ to add who they want without Fox chipping in more TV contract $.
 
Just curious about our payouts in the ACC, where are Stanford and SMU in that aspect? When do they start getting full shares? That will put a dent into future earnings, no? I’m not sure what the Stanford partial was at, but SMU is getting zero still? Wasnt it like 7 years?
 
**ACC Grant of Rights (GoR) payout/exit penalties*​

### Pre-Settlement Rules (through early 2025)
The ACC’s Grant of Rights (signed 2013, extended 2016 in connection with the ESPN/ACC Network deal) assigned each member’s media rights to the conference through June 30, 2036, **regardless of whether the school remained a member**.

Combined with the constitutional exit fee (typically three times the ACC’s operating budget, roughly $130–165 million depending on the year), the total cost of leaving was estimated at $500–700 million per school. This included:
- The cash exit fee.
- Forfeiture of media-rights revenue for the remaining years of the GoR (often cited in the $400+ million range for a school leaving in the mid-2020s).
- Related unreimbursed broadcast costs.

This structure made exits practically impossible and was the central issue in the lawsuits filed by Florida State (2023) and Clemson (2024).

### Current Rules After the 2025 Settlement
Florida State, Clemson, and the ACC settled the lawsuits in March 2025 (finalized around June 2025). The GoR remains in effect through 2036, but the exit mechanics changed substantially:

- **Exit fees are now fixed and declining** (no longer tied solely to 3× operating budget in a way that kept rising indefinitely).
- **Paying the exit fee returns the school’s media rights**. Upon proper notice + payment, any grants/licenses of media rights under the GoR are automatically rescinded, and the departing school controls its own rights going forward.
- Formal notice must be given by **June 1** for withdrawal effective **June 30 of the following year** (roughly a 13-month process). Membership is locked through at least June 30, 2027 under the new notice rules.

**Year-by-year exit fees** (full membership withdrawal):

| Year (fiscal/academic) | Exit Fee |
|------------------------|----------|
| 2025-26 | $165 million |
| 2026-27 | $147 million |
| 2027-28 | $129 million |
| 2028-29 | $111 million |
| 2029-30 | $93 million |
| 2030-31 through 2035-36| $75 million |

As of August 2026, the June 1, 2026 notice window has passed, so the earliest full exit under the current schedule is June 30, 2028 (notice by June 1, 2027 at the $129 million rate).

**Limited/single-sport withdrawal option**: If six or more schools simultaneously withdraw in only one sport (e.g., to form or join a football-only league), each pays the greater of 50% of the regular exit fee or $75 million.

### Connection to Payouts
The GoR underpins the ACC’s media rights deal with ESPN (base deal + ACC Network). Schools receive annual distributions from conference revenue (primarily TV money, plus bowls, NCAA distributions, etc.).

Recent figures:
- FY 2024-25 (tax filings): Conference revenue ~$826.5 million; full-share schools averaged ~$47.1 million (Clemson highest at $55.1 million after success incentives). New members (Cal, Stanford, SMU) and Notre Dame received reduced/partial shares.
- FY 2026: Gross revenue reported over $900 million; full-share averages expected above $50 million.

**Post-settlement revenue model** (designed to retain top brands):
- 40% of TV revenue distributed equally.
- 60% distributed via a “brand initiative” based on a five-year rolling average of TV viewership (football weighted more heavily; recent years weighted more).
- Additional “success initiative” payments for postseason performance (CFP, NCAA Tournament, etc.).

This replaces the older near-equal model and gives higher-viewership programs (historically Clemson, Florida State, etc.) a larger share while still providing meaningful equal-share floors.

**Bottom line**: The old combination of a high cash penalty *plus* permanent forfeiture of media rights through 2036 is gone. Schools can now leave by paying a known, declining cash fee and taking their media rights with them. The fees remain substantial in the near term but become more manageable ($75 million) starting in 2030–31, which coincides with the expected expiration/renewal windows of major SEC, Big Ten, Big 12, and CFP media deals.
 
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