Financial Highlights: A Record-Breaking year

The ACC’s latest tax filing, covering the 2023-24 season, reveals a significant increase in revenue, reaching approximately $711.4 million. This figure represents a slight increase from the $706.6 million reported the previous year.This financial upswing enabled the ACC to distribute an average of nearly $45 million to its 14 football-playing members.

• Top Earners: Louisville received $46.4 million, closely followed by Florida State University (FSU) with $46.3 million.
• Notre Dame’s Share: As a football independent with partial ACC membership, Notre Dame secured $20.7 million.

Revenue Distribution Revolution

Looking ahead,the ACC is set to implement a revamped revenue-distribution plan that factors in TV viewership and rewards schools that draw larger audiences. This initiative is scheduled to take effect next year, as part of the settlements resolving disputes with Clemson and FSU, who had challenged the league’s exit fees.

Commissioner Jim Phillips has emphasized the league’s aggressive efforts to generate more revenue, acknowledging the growing financial gap between the ACC and the Big Ten and Southeastern Conferences (SEC). Despite this gap, the ACC has maintained a strong position, outpacing the Big 12 in revenue and payouts.

The Big 12’s Financial Picture

In comparison, the Big 12 reported revenue of $493.8 million for the 2023-24 season, a decrease from $510.7 million the previous year. This decline occurred during the final season with Oklahoma and Texas as members, before thier move to the SEC for the 2024-25 season. The big 12 also added BYU, Cincinnati, Houston, and UCF that year.

The Big 12’s revenue distribution reflected this shift, decreasing from approximately $44.2 million to 10 schools in 2022-23 to $39.5 million to the same programs in 2023-24. The four new schools received reduced shares, averaging around $20 million.

Legal Battles and Financial Strain

Despite the ACC’s financial gains, the conference faced significant legal challenges. The league reported over $12.3 million in legal expenses for 2023-24, a 70.2% increase from the previous year’s $7.2 million. This surge in expenses coincided with lawsuits filed by FSU in December 2023 and Clemson in March 2024.

These legal costs also occurred amid broader legal cases reshaping college athletics, including the landmark settlement of a $2.8 billion federal class-action antitrust lawsuit against the NCAA and its largest conferences. This settlement, awaiting final approval, could require schools to share over $20 million annually with athletes.

The ACC’s legal expenses for the two most recent tax filings totaled nearly $19.6 million, comparable to the combined total reported for the previous six years ($20.8 million).

Looking Ahead: Stability on the Horizon

The resolution of the FSU and Clemson cases, coupled with ESPN’s decision to extend its base-rights ACC media deal through 2035-36, has provided a sense of stability for the league. This stability was a key topic at the ACC’s annual spring meetings in Florida.

Chaos and the constant wondering of what’s happening here or there,I just think that distracts from the business at hand, said Commissioner Phillips. But I feel good about where we’re at.
Jim Phillips, ACC commissioner

FAQ: Understanding the ACC’s Financial Landscape

What was the ACC’s revenue for the 2023-24 season?

Approximately $711.4 million.

How much did the ACC distribute to its football-playing members?

An average of nearly $45 million per school.

Why did the ACC’s legal expenses increase?

Due to lawsuits filed by Florida State and Clemson.

What is the “success initiative”?

A plan allowing schools to keep more money generated by their postseason success.