Florida State University convenes urgent meeting, contemplates historic exit from ACC in bold move

FSU's board called for an emergency meeting to discuss the school's future beyond the ACC.

Florida State University convenes urgent meeting, contemplates historic exit from ACC in bold move

FSU is looking to switch conferences. (via CNN)

Florida State University is not wasting any time assessing all available options. This is in regard to determining the University’s decision to exit the Atlantic Coast Conference. This comes after a report had indicated that the team was on the fence about leaving its current conference. They aim to make a move to the Big 10 or SEC. Such a move could come with lucrative financial remuneration from those divisions when compared to the ACC.

The University called a special board of trustees meeting for Friday morning, per CBS Sports. There was no reason stated for the meeting. However, the future of the University in the division is likely to be the topmost subject on their agenda. The board is likely to approve a legal filing against the ACC. It would mark the first step in initiating a split from the division. However, doing so remains easier said than done, as the grant of rights that FSU is a signatory to runs through 2036.

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FSU is reeling from its college football exclusion from the CFP contention despite going 13-0 this season. Teams that lost one game this season, such as Alabama and Texas, managed to make the cut. However, FSU did not have the same outcome. The University has been vocal about exploring its options to move to other conferences throughout this year. There is a reason for them to consider such a move. They are losing almost $30 million through their affiliation with the ACC. The SEC and the Big Ten offer more financial benefits.

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Florida State University remains ignorant of the ACC’s efforts to increase compensation for all members

A move at this stage seems almost inevitable. This is what Drew Weatherford said:

It's not a matter of if we leave (the ACC) but how and when we leave.
Drew Weatherford on move away from the ACC

The ACC has attempted to find ways to bump up compensation for all members. The latest move came through the introduction of their ‘success incentives’ program. This allowed schools that did well in their postseasons to receive more financial remuneration than their peers.

Florida State University 2
Florida State University (via CNN)

FSU would have received a larger payout under this plan this year. However, its exclusion from the CFP disqualifies it from being entitled to this sum. The team’s biggest issue will be finding a way around its current television contract. The ACC’s broadcasting deal with ESPN runs for 20 years, making it the longest contract of any FBS conference.

FSU is not the only school to take a look at possibilities to work around this deal. The airtight contract has conditions that make it next to impossible to violate or get out of without contracting significant liability.

Buying out of the contract costs $120 million, which makes it a very expensive ordeal. FSU has considered reverting to private equity to raise funding for the same, but it is hard to convince investors when so many legal complications are involved. Even if FSU does leave the conference and makes it to the SEC or Big Ten, it will take a long time before they can repay the entire principal amount with lucrative interest.

FSU has approached JP Morgan Chase and Sixth Street with this proposal. The school wants to raise money upfront for a potential grant of rights buyout, and they intend to compensate the lenders through the proceeds from the television rights deals and other sponsorships. For reference, the Pac-12 conference considered a plan with similar details back in 2019, but it ultimately did not work out.

FSU is considering becoming a part of the SEC, but again, the existing conference members will have the right to block its entry. The University of Florida will attempt to keep another school from the same state from joining the same division. If they cannot join the SEC, then it will leave the team with the Big Ten as a final option. This is only an option if there is a mutual interest.

If both the SEC and the Big Ten refuse to get FSU a spot in their conferences, it will be the most awkward situation. The team will have no option but to revert back to the ACC. However, the mere fact that the board is considering a split seriously means that they do have a stable plan to switch conferences.

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