$300 million buyout in line for Florida State leaving ACC, Noles to reap 2x profits if the program joins Big Ten or SEC: Reports
Florida State's attempt to exit the Atlantic Coast Conference is reportedly gaining momentum. The rumors of the Seminoles' plan to leave the conference started last week, but how the university would navigate its binding contract with the ACC wasn't known then.
However, the latest reports suggest the university will arrange a buyout. According to college football insider Greg Swaim, Florida State will negotiate a $300 million buyout to exit the ACC. This will be the most expensive conference exit in the history of college sports.
The Seminoles are expected to make the massive buyout payment in installments. Swaim reports that the university will pay $30 million annually over ten years. The fee eclipses the $100 million paid by Texas and Oklahoma to exit the Big 12 early.
BREAKING: Here's the update on #FSU, as we're now hearing it will be a negotiated buyout of the contract, down to $300M, but paid in installments of close to $30M annually. The #Noles get roughly double that from the #B1G or #SEC each year though.
Is the decision worth it for Florida State?
Without a doubt, a $300 million payment to exit a conference is huge for any university athletic department in the United States. However, the Seminoles' focus is on the bigger picture, as this is more about what the program will gain from realigning with a new conference.
Should Florida State secure a move to the Big Ten, it comes with substantial financial incentives. The new Big Ten media deal will see each in the conference get $70 million annually. Its teams could earn a total of $100 million annually, considering other conference revenue sources.
On the other hand, joining the Southeastern Conference also offers a huge financial promise to the university. The SEC distributed approximately $50 million to its teams in the last fiscal year, and it is expected to grow to nearly $70 million when the new TV deal starts in 2024.
This agreement could result in Florida State earning more than double what it will pay the ACC each year if the program secures a move to the Big Ten or SEC. The move is also expected to ensure the university many years of financial stability after the payment is complete.
Does this create a pathway out of the ACC for other teams?
The reported move by Florida State to negotiate the massive payout creates a pathway out of the conference’s binding contract. However, not many teams within the ACC can afford to pay this huge amount to buy themselves out.
It was previously believed that the ACC's contract would safeguard it against losing teams. However, recent developments indicate that this assumption may not hold true. Nonetheless, the inability of many to afford the massive buyout keeps the conference's future safe.