Florida State has called a special board of trustees meeting for Friday morning. While no formal reason has been posted for the emergency meeting, multiple reports indicate that FSU’s athletic future in the ACC will be discussed.
The board could approve a legal filing against the ACC, which would be the first true step in trying to break the so-called “ironclad” grant of rights that tethers its members through 2036. Several ACC members have spent the past year examining the conference’s grant of rights, though Florida State has been its most vocal critic.
Florida State is a mere weeks removed from becoming the first undefeated power conference team to be left out of the College Football Playoff. The Seminoles were bumped from No. 3 to No. 5 — behind one-loss Alabama and Texas — after a lackluster offensive performance with a third-string freshman quarterback against Louisville in the ACC Championship Game. The decision has incensed officials around the state of Florida; however, the playoff will expand to 12 teams in 2024, practically assuring a spot for an undefeated team from any conference.
Still, the university has publicly acknowledged its desire to explore options outside of the conference in previous public settings. At a board meeting in August, Florida State president Richard McCullough presented to the trustees the challenges of staying in the ACC while the league falls as much as $30 million per year in payouts behind the SEC and Big Ten.
Said FSU trustee Drew Weatherford: “It’s not a matter of it we leave [the ACC], but how and when we leave.”
The ACC has attempted to be aggressive in finding further compensation for its top members. In May, the league introduced “success incentives,” allowing schools with postseason success to receive a larger piece of the distribution. The new plan would have greatly benefitted Florida State had it made the CFP as it would have kept a large chunk of the conference payout — a difference that could get into the eight figures. But after the CFP snub, the additional money may not be enough.
Challenges of leaving
The ACC has the longest television contract and grant of rights of any FBS conference, having signed a 20-year agreement with ESPN in 2016. At least seven ACC schools have looked at the procedures for breaking the grant of rights but have all ultimately opted to stay put after investigating the details.
Buying out the TV contract would cost north of $120 million, per multiple reports. It would be a separate negotiation to break free of the grant of rights that would push well into additional hundreds of millions. Even then, industry experts told CBS Sports’ Dennis Dodd in May that it’s unlikely that any ACC schools would be able to join one of the two big conferences without taking a partial share, making for a shaky benefit.
Also in August, Florida State contemplated turning to private equity to raise funds. The school was in contact with JPMorgan Chase and private equity firm Sixth Street to consider options. Florida State could essentially raise money up front to pay for a potential grant of rights buyout and compensate the private equity group with money from future television rights deals and sponsorships. The Pac-12 considered a similar plan in 2019 to raise capital, but it ultimately did not go through.
Where would FSU go?
The ideal landing spot would be the SEC. The league has established itself as the top dog in college football and the Seminoles fit neatly into the league footprint. However, there’s plenty working against them. In-state rival Florida would almost certainly do anything in its power to block FSU from entering the league. For many SEC members, adding Florida State would be more of a threat than a benefit both in recruiting and on the field.
That leaves the Big Ten as a potential Hail Mary destination. The league does not have any schools closer to FSU than former ACC partner Maryland, but FSU could provide some benefit. While the Big Ten is stocked with historic brands, only two members of the future conference — Ohio State and USC — have won a national championship in the BCS/CFP era. The ‘Noles, meanwhile, have two themselves (1999, 2013). Additionally, adding a southern power could open another door for the Big Ten to recruit in Florida, which ranks as one of the three top recruiting destinations in college football.
If the Big Ten is not interested, however, Florida State could find itself in a brutal position. Florida State athletic director Michael Alford told The Athletic in November that independence was “not a true option” because of the complications of media contracts and scheduling. The Big 12’s media deal is comparable to the ACC’s, making it an unlikely destination.
Landing in the power conferences is only getting more difficult. Oregon and Washington took approximately 50% shares to leave the Pac-12 for the Big Ten through the end of the media rights deal. SMU is notably not taking television payout for seven years to join the ACC. Florida State might have to take a similar short term haircut to make its case to another league.
