Why is Clemson suing the ACC? University leadership explains lawsuit

Clemson made national news Tuesday morning by filing a lawsuit against the Atlantic Coast Conference, its home since 1953, in an initial step to explore a potential move to another conference amid growing athletic revenue gaps.

The lawsuit challenged the enforceability of the ACC’s grant of rights (which, the conference has argued, gives it control of the media rights and revenues for schools’ home games through 2036 even if they leave the conference) and an “unconscionable and unenforceable” exit penalty.

After roughly two years of speculation, why was now the right time?

In a statement provided The State on Tuesday afternoon, Clemson said the ACC’s “position regarding the Grant of Rights, the exit penalty, and obligations owed by members to the conference, as detailed in its public statements and other court filings,” left the school with “no choice but to move forward with this lawsuit.”

The statement also makes a point of noting that Clemson “has not given notice that it is exiting the ACC and remains a member of the conference” at this moment.

Here’s the full statement, which was not directly attributed to Clemson president Jim Clements or athletic director Graham Neff (the school’s top two leaders for athletic matters) but was representative of university leadership at large:

“Today, Clemson University filed a lawsuit in Pickens County, South Carolina, against the Atlantic Coast Conference (ACC).”

“In this litigation, Clemson seeks confirmation of the plain language found in the Grant of Rights agreements and the related media agreements between the ACC and ESPN — that these agreements, when read together, plainly state that Clemson controls its media rights for games played if it is no longer a member of the ACC.

“Clemson also seeks a ruling regarding the unenforceability of the severe penalty the ACC is seeking to impose upon exiting members and confirmation that it does not owe a fiduciary duty to the conference as alleged by the ACC.”

“The ACC’s position regarding the Grant of Rights, the exit penalty, and obligations owed by members to the conference, as detailed in its public statements and other court filings, leaves Clemson with no choice but to move forward with this lawsuit.”

“Clemson has not given notice that it is exiting the ACC and remains a member of the conference.”

Explaining Clemson’s lawsuit

Clemson is the second school to sue the ACC and challenge its grant of rights and roughly $140 million exit fee, following Florida State, which sued the conference in December after publicly criticizing the ACC for months.

Tuesday’s lawsuit is a clear first step, on Clemson’s end, to fully explore the possibility of joining another conference. Thanks to advantageous and more recently negotiated television deals, member schools in the recently expanded Big Ten and the SEC will out-earn ACC schools by an estimated $30 million per year, per the lawsuit.

“As the revenue gap widens over the coming years, Clemson will fall behind its peer institutions,” the lawsuit says.

A revenue gap is a primary concern for Clemson and FSU, which have routinely fielded two of the ACC’s most prominent and nationally successful college football programs. Coach Dabo Swinney’s Tigers have two CFP national championships in 2016 and 2018 and have also won nine or more games for 13 consecutive seasons, which is tied for the fourth-longest streak in major college history.

Clemson’s lawsuit says the ACC’s “erroneous assertions and related actions” regarding media rights and withdrawal penalties “diminish the value of Clemson’s future media rights” and potential negotiations with other conferences, such as the Big Ten or SEC, in the future. (Clemson, as previously noted, remains a current ACC member and did not give the ACC any notice of exit Tuesday in conjunction with the lawsuit.)

The ACC’s positions “have a chilling effect on Clemson’s ability to explore and pursue an exit from the ACC, or to negotiate alternative revenue-sharing proposals among ACC members,” the lawsuit says. “They interfere with Clemson’s free exercise of its rights to disassociate from the Conference in the best interests of Clemson, its students, and its athletics program.”

According to online court filings, Clemson and the ACC are currently scheduled to begin their case in common pleas (civil) court with an alternative dispute resolution, or mediation, on Oct. 15, 2024. But, as the ongoing lawsuit between the ACC and FSU has proven, Tuesday’s lawsuit is only the start of what could be an extended legal battle and take longer than seven months to reach court.

ACC responds to lawsuit

The ACC issued a statement of its own late Tuesday afternoon, attributed to commissioner Jim Phillips and ACC board of directors chair Jim Ryan (who is also the president of the University of Virginia).

“The ACC remains confident that its agreements with all its members will be affirmed by the courts. Clemson, along with all ACC members, voluntarily signed and re-signed the 2013 and 2016 Grant of Rights, which is binding through 2036,” the statement read. “In addition, Clemson agreed to the process and procedures for withdrawal. The Conference’s legal counsel will vigorously enforce the agreement and bylaws in the best interests of the ACC’s current and incoming members.”