Why rumors of Clemson, FSU leaving ACC for Big 12 doesn't make financial sense

There is tension in the ACC as Clemson and Florida State are both suing the ACC over the Grant of Rights in an apparent attempt to leave the conference. With that, rumors have swirled about the future of those schools, including a recent report that there are early conversations between the two schools and the Big 12.

Andy Staples shared his thoughts on the rumors that Clemson and FSU could leave the ACC for the Big 12 on Andy Staples On3. There, he argued that the move doesn’t actually make financial sense for the schools.

“The other thing that’s come out this week,” Andy Staples said. “We’ve heard a lot of whispers. Ross Dellenger at Yahoo mentioned this in a story but also we’ve heard it coming out of the Big 12 Media Days. I find it hilarious that when everybody in the Big 12 gets together, suddenly, there’s more talk about realignment, and in this case about Florida State and Clemson.”

Both schools are currently using the ACC in separate court cases, with the ACC’s attempt to get the case against FSU dismissed being denied in June. Those are cases that the ACC is likely to settle if there’s even a chance they lose, which means negotiating a fee to exit the conference before the Grant of Rights ends.

It was previously reported that the cost of the ACC GOR buyout is $572 million. So, that is likely the max that the two schools would individually need to pay to leave. However, the negotiation is likely starting with a floor of $150 million in negotiations.

“I don’t know that you’re going to pay that very large number to go to the Big 12. Like I said, the ACC is gonna come up with a number at some point down the road, but I don’t know if going to the Big 12 — and look the Big 12 would be able to do a new TV deal to at least probably add to its TV deal if they got brands like Florida State and Clemson — I just don’t know if it’s gonna be enough to justify the spend you have to make to get out of the ACC.”

Notably, Staples thinks it would be different if Clemson and Florida State could get into the SEC or Big Ten because those conferences have much larger media deals than the Big 12. That way, the negotiated buyout is less of an issue to pay.

“If you could get into the Big Ten or the SEC? Yes. You will make enough money. You will break even for a little while and then you will make even more money down the road. So, that makes financial sense. I don’t know if the Big 12 makes financial sense.”

Another aspect of this story is the Big 12 looking at new revenue streams to try to keep up with the SEC and the Big Ten. That includes looking into private equity, which may be part of these conversations with Clemson and Florida State.

“Then, you’ve got the private equity piece of it, where perhaps some people telling Brett Yormark and the Big 12, ‘Well, if you could get these guys, perhaps we invest this,'” Staples said. “That’s all fine and good, but it would have to make financial sense for them to do it.”

For now, Clemson and Florida State are still battling it out with the ACC in court. There, the ACC recently got a win in a North Carolina court regarding their legal battle with Clemson. Meanwhile, Florida State has recently signed a multimedia rights partnership with Legends.