CFB insider breaks down ACC teams' futures with new changes coming in

On Tuesday, the Atlantic Coast Conference reached a settlement agreement with its two biggest schools, the Clemson Tigers and the Florida State Seminoles regarding its ironclad media rights deal that has locked in teams from conference realignment. The settlement came after the Seminoles and the Tigers sued the conference last year.

During Friday's segment of "Always College Football," ESPN analyst Greg McElroy broke down the details of the settlement and how they affect the teams' futures in the conference.

"The ACC, Florida State and Clemson have finally reached a revenue distribution settlement," McElroy said. "This is a good thing in the near term for the conference. The grant of rights for the ACC remains intact. It means that the Florida State Seminoles and the Clemson Tigers and everybody else, their rights are still owned by the Atlantic Coast Conference through 2036."

Pate further detailed how various teams in the conference could leave earlier due to the settlement agreed by the Seminoles and Tigers.

"But starting next year, their exit fee will go from a couple of hundred of million down to $165 million," McElroy added. "And then, $165 million, that fee declines by $18 million a year and then it levels out at $75 million in the year 2030-2031.

"That means that any team, if they want to write a cheque, they are free and clear. They will then own their own media rights, they will have the chance to shop their media rights and if they want to go into another conference, they can do that."

ACC vs FSU, Clemson settlement explained

The settlement with the Seminoles and the Tigers who were looking to break the ironclad media rights deal and join more lucrative conferences found compromises for both teams.

At present, the conference is protected from the rampant loss of teams to richer conferences in expansion and realignment moves that threatened to finish off the Pac-12.

FSU and Clemson, the conference's top programs, will transition to a new TV-ratings-based model that will reward them more than traditionally smaller teams. According to ESPN, the top colleges are likely to earn up to $15 million more per year under the new revenue-sharing plan, while lesser institutions may lose up to $7 million.

The annual reduction in the exit fee will make for an intriguing year come 2031 when most teams can afford the $75 million fee that will finally free them from the shackles of the ACC and its ironclad media rights deal.