In a statement, the league said that a new revenue distribution model that will reward success based on postseason performance was approved by the ACC board of directors on Wednesday.
Performance in revenue-generating postseason competition, specifically the College Football Playoff and NCAA tournament, is the basis for these “success incentives.” Instead of being distributed equally among all members, a larger portion of that revenue will be distributed to the participating teams.
The league’s current television contract and all other revenues will continue to be shared equally. The complete details of the success incentive program have not yet been determined, but it will begin in 2024-2025, when the expanded College Football Playoff begins.
The ACC governing body, containing the association’s 15 presidents and chancellors, met for the current week in Charlotte. ACC chief Jim Phillips said last week during ACC spring gatherings in Amelia Island, Florida, that he was hopeful the board would underwrite this new model.
“The ACC Board of Directors continues to be committed to exploring all potential opportunities that will result in additional revenues and resources for the conference,” Vincent E. Price, ACC board of directors chair and Duke University president, said in a statement. “Today’s decision provides a path to reward athletic success while also distributing additional revenue to the full membership.”
The ACC has gone through months examining another income dissemination plan as a method for moderating what is generally anticipated to be a $30-40 million yearly income hole between the meeting and the SEC and Large Ten. Last week, Florida State athletic director Michael Alford stated that a team that makes the College Football Playoff could potentially generate more than $10 million in annual revenue under the new success incentives plan.
“Today’s endorsement follows significant and meaningful conversations by the ACC Board of Directors,” Phillips said in a statement. “To be certain, I applaud their thoughtfulness and continued commitment to working collectively. As we’ve communicated consistently, we remain dedicated to exploring all options to enhance support for our member institutions and their student-athletes.”