From Front Office Sports <[email protected]>
Subject A Huge ACC Settlement
Date March 3, 2025 9:05 PM
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Afternoon Edition

March 3, 2025

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After a lot of acrimony, a settlement would reportedly end lawsuits between Clemson, Florida State, and their conference, the ACC—and give both schools a chance to earn more money. Here’s what we know.

— Amanda Christovich [[link removed]], Eric Fisher [[link removed]], David Rumsey [[link removed]], and Colin Salao [[link removed]]

FSU, Clemson, ACC Near Landmark Settlement [[link removed]]

Ken Ruinard-Imagn Images

Florida State, Clemson, and the ACC are considering a framework to settle all four lawsuits over the validity of the ACC’s contracts holding the conference together, sources confirmed to Front Office Sports. The settlement would implement a new revenue-incentive structure related to TV viewership, and it would provide “clarity” around what it would take for a school to leave the league.

If the parties can successfully settle, the ACC will have secured its future with its current 18 members until at least 2036, when its grant of rights contract—which binds schools’ media rights together and imposes exit fees if they leave early—expires.

It’s a remarkable turnaround from just a year ago, when the group of lawsuits threatened to invalidate the contracts holding the league together [[link removed]].

As part of a regularly scheduled meeting Tuesday, ACC presidents will discuss and potentially vote to agree to the settlement framework, a source said. Then, FSU and Clemson board members will hold their own separate meetings.

FSU sued the ACC in December 2023 alleging negligence and asking for its grant of rights contract to be invalidated so that the school could leave the conference. After losing out on a spot in the then-four-team College Football Playoff despite being undefeated, FSU was frustrated about not having a path to college football’s postseason, which it blamed on the conference. The school was also concerned the league’s revenues would fall behind those of the Big Ten and SEC. (The ACC’s media-rights deal with ESPN, which pays out in the mid-$30 million range annually, runs until 2036.)

Clemson filed a less harsh lawsuit soon afterward. The ACC countersued both schools.

The settlement would implement a revenue incentive for schools to earn extra dollars based on television ratings, sources said. The structure would be available to all schools, with no specific carve-outs for FSU or Clemson. (FSU presented this idea to the league in 2022 to no avail, another source said.)

The revenue distribution would be in addition to the ACC’s new “success incentive” program [[link removed]], which offers $20 million to $25 million in extra revenue based on a school’s football postseason success. The league has also earned $600 million in additional media-rights revenue by adding Stanford, Cal, and SMU, which is bumping revenue distribution even more, the first source noted.

The settlement confirms that schools that want to leave before the media-rights deal and grant of rights expire in 2036 would have to pay a specific dollar amount in exit fees, based on a formula of conference annual revenue. This aspect of the settlement satisfies Clemson’s specific requests in litigation to understand what, exactly, the program would have to pay if it wanted to leave the ACC.

FSU, Clemson, and the ACC declined to comment due to the fact that the litigation was still pending.

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Nationals Finally Free As MASN Rights Settled After 20 Years [[link removed]]

Brad Mills-USA TODAY Sports

The Mid-Atlantic Sports Network dispute involving MLB, the Nationals, and the Orioles—which has roiled the sport for two decades—is at last over following a landmark settlement involving the three entities.

The Nationals, whose local media rights have been tied to the Orioles-controlled regional sports network for their entire 20-year existence, are free to pursue other deals after a final season on MASN in 2025. The settlement also involves the dismissal of all legal claims, which over the years brought the MASN dispute into a series of courts and internal MLB processes without final resolution.

MASN debuted in 2005 as a means to help compensate the late former Orioles owner Peter Angelos following the relocation of the Montreal Expos to Washington to become the Nationals. Almost immediately in the RSN’s existence, however, the Orioles and Nationals battled over media-rights fees, with Washington alleging the Orioles and MASN were not providing fair-market value. The Nationals were the only MLB team not in full control of their own local rights, and the MASN arrangement—originally designed to last in perpetuity—cast a long cloud over team operations, including unsuccessful prior efforts to sell the franchise.

Because of that, the MASN situation remained one of MLB’s thorniest problems. Ultimately, though, several key factors aided the final settlement:

A 2019 legal ruling in the Supreme Court of the State of New York favoring the Nationals. That decision influenced an eventual rights-fee agreement nearly two years ago between the two clubs for the 2011–2016 seasons [[link removed]], and then a subsequent one struck later in 2023 [[link removed]] covering the 2017–2021 seasons. A recent decision by MLB’s Revenue Sharing Definitions Committee, which oversaw the settling of rights for both the Orioles and Nationals, similarly found that Washington was due an average of $64.1 million in annual-rights fees for the 2022–2026 seasons. That decision is now being superseded by the settlement. A nearly complete change from the key figures in the original formation of MASN and litigation of rights fees. Former MLB president Bob DuPuy left the league in 2010, former commissioner Bud Selig departed in early 2015, Angelos died nearly a year ago [[link removed]] and just as his family completed a sale of the Orioles to David Rubenstein [[link removed]], and former Nationals owner Ted Lerner died in early 2023. Large-scale disruption in the entire media business, a situation that now has MLB commissioner Rob Manfred looking to overhaul the sport’s entire portfolio of national and local rights [[link removed]]. The MASN split is the second major shift in baseball media in two weeks after the MLB-ESPN divorce [[link removed]].

“The Nationals and Orioles extend their gratitude to commissioner Manfred and his team at MLB for their efforts in bringing this matter to a successful conclusion,” the teams said in a joint statement. “Both clubs thank our fans for their support and look forward to continuing their partnership with MASN for the upcoming season.”

Financial terms of the deal were not disclosed.

Next Up?

It now bears close watching whether the Nationals will now align with the Ted Leonsis–controlled Monumental Sports Network. Leonsis is close to Nationals managing principal owner Mark Lerner, and Lerner is part of the ownership group at Monumental Sports & Entertainment.

Leonsis, meanwhile, has expressed interest acquiring both baseball rights for his RSN, and potentially the Nationals franchise if the Lerner family restarts aborted efforts to sell [[link removed]].

“They know our intentions, and at some point, we’ll reengage,” Leonsis told Front Office Sports Today last year [[link removed]] regarding the Lerners and the Nationals.

NFL Franchise Tag Frenzy: Big Names Could Hit List As Deadline Nears [[link removed]]

Barry Reeger-Imagn Images

Utilization of the NFL’s high-priced franchise tag is heating up ahead of a 4 p.m. ET Tuesday deadline for teams to formally place the tag on a player.

After it looked like just one player this offseason [[link removed]] might end up with the franchise tag, which allows teams to retain a player on a one-year contract, several players could now end up being tagged. The total number will still likely be lower than the eight players who were tagged last year and six in 2023.

The franchise tag pays a player 120% of their previous salary, or the average of the top five salaries at their respective position over the past five years—whichever is greater.

Done Deals in Cincy, K.C.

The Bengals formally placed the franchise tag on receiver Tee Higgins on Monday afternoon, meaning Higgins will make $26.18 million in 2025 if he plays on the franchise tag for the second straight season, after he made $21.81 million in 2024.

Cincinnati director of player personnel Duke Tobin said his preference is to work out a long-term deal with Higgins. But the Bengals are balancing working out a record extension [[link removed]] for fellow wideout Ja’Marr Chase, as well as a potential new deal for defensive end Trey Hendrickson—all while paying quarterback Joe Burrow $275 million over his own five-year extension signed in 2023.

Meanwhile, the Chiefs have placed the franchise tag on guard Trey Smith, who will earn $23.4 million in 2025 unless he agrees to a long-term deal in Kansas City by a July 15 deadline for new contracts. Smith, a sixth-round pick in 2021, earned $6.58 million [[link removed]] over the first four seasons of his NFL career (all figures via Spotrac).

Travis Kelce is returning for another season [[link removed]] with the Chiefs, but the team may look to restructure his contract, which is set to give him $17 million as the NFL’s highest-paid tight end.

Another Tag Likely Coming

The Cowboys plan to use the franchise tag on defensive tackle Osa Odighizuwa [[link removed]] if a long-term deal is not reached by Tuesday’s deadline, according to ESPN. Odighizuwa, a third-round pick in 2021, would make $25.1 million on the tag. His career earnings thus far are $6.85 million [[link removed]].

Quarterback Carousel

When Vikings coach Kevin O’Connell and GM Kwesi Adofo-Mensah spoke to the media at the NFL Scouting Combine last week, they stopped short of committing [[link removed]] to bring back quarterback Sam Darnold—on a long-term deal or via the franchise tag. Darnold, who played on a one-year, $10 million contract last season, would be in line for a $40.42 million deal on the franchise tag next season, but he is hoping for a longer term, whether it’s in Minnesota or elsewhere.

Matthew Stafford’s restructured contract with the Rams [[link removed]] has put the spotlight on Aaron Rodgers, who is looking for a new home after the Jets decided to part ways with the 41-year-old quarterback, despite taking a $49 million dead-cap hit to do so. The Giants are reported to be a potential landing spot for Rodgers.

STATUS REPORT Three Up, One Down

Brad Penner-Imagn Images

Billy Eppler ⬆ The former Mets GM and Yankees executive is joining the Brewers as a special advisor [[link removed]], SNY first reported. Eppler was suspended by MLB for all of last season after he violated the league’s injured list rules. Read more [[link removed]] about Eppler’s return to MLB from FOS reporter Margaret Fleming.

Lydia Ko ⬆ The world No. 3 women’s golfer took home $360,000 by winning the HSBC Women’s World Championship in Singapore over the weekend. The prize money elevated the 27-year-old, who has won 23 LPGA tournaments, to second highest in all-time career earnings with $20.5 million. Ko is about $2 million short of Annika Sörenstam and could vault to No. 1 this year if she can replicate her 2024 season when she earned $3.2 million [[link removed]].

Apple ⬆ The technology and streaming giant released its initial 2025 MLB broadcast schedule for Friday Night Baseball on Apple TV+. Coverage will begin with Orioles–Blue Jays and Mets-Astros games on March 28. Apple will supplement the live MLB game coverage with a new documentary series, Fight for Glory: 2024 World Series, chronicling last fall’s matchup with the Dodgers and Yankees [[link removed]], and a separate immersive film, VIP: Yankee Stadium, that provides a look at the venue in virtual reality through the Apple Vision Pro.

Scott Dixon ⬇ The Chip Ganassi Racing IndyCar Series driver finished second in Sunday’s season-opening race in St. Petersburg, Fla., after running the entire race without radio communications due to a technical malfunction. “He would have won—it was simple,” team owner Chip Ganassi said [[link removed]] of the mishap.

FRONT OFFICE SPORTS LIVE

Tune In This Wednesday

The Future of Sports virtual summit series returns, and this time we’ll be unpacking the transformational shift in the landscape of college athletics over the last year.

Join us [[link removed]] tomorrow at 1 p.m. ET for Future of Sports: Sea Change in College Sports, where we will sit down with leaders from various conferences as well as power players in NIL (name, image, and likeness) and hear directly from athletic departments.

This three-part event will discuss the changes in NIL, conference realignment, and the new rules of recruiting.

Register now [[link removed]].

Conversation Starters The Red Wings honored the late Johnny Gaudreau and his brother, Matthew, ahead of their Stadium Series matchup against the Blue Jackets on Saturday by wearing different jerseys they donned throughout their careers. Take a look [[link removed]]. That Stadium Series game drew 94,751 fans at Ohio Stadium in Columbus—the second-largest attendance in league history [[link removed]]. The Hurricanes sold popcorn Zambonis during their Whalers Night game against the Sabres. Check it out [[link removed]?]. Editors’ Picks Messi’s Load Management Shows Perils of Jam-Packed Soccer Calendar [[link removed]]by Margaret Fleming [[link removed]]The game still sold out thanks to free tickets to another match. Disgruntled UFL QBs Returning After 5-Day Wage Walkout [[link removed]]by Alex Schiffer [[link removed]]All 24 league quarterbacks sat out a preseason workout in protest. Jimmy Johnson Retiring from ‘Fox NFL Sunday’ at 81 [[link removed]]by Ryan Glasspiegel [[link removed]]Johnson was part of the top-rated show’s original cast. Advertise [[link removed]] Honors [[link removed]] Learning [[link removed]] Events [[link removed]] Video [[link removed]] Shows [[link removed]] Written by Amanda Christovich [[link removed]], Eric Fisher [[link removed]], David Rumsey [[link removed]], Colin Salao [[link removed]] Edited by Matthew Tabeek [[link removed]], Or Moyal [[link removed]], Catherine Chen [[link removed]]

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