The Atlantic Coast Conference board of directors endorsed a new revenue-distribution model Wednesday that will reward success based on postseason performance, the league announced in a statement.
As reported by ESPN senior writer Andrea Adelson, these "success incentives" are based on performance in revenue-generating postseason competition — specifically, the College Football Playoff and NCAA men's basketball tournament. Instead of dividing shares from those events equally among ACC members, larger shares will now go to the teams generating revenue for the ACC through their participation in those events.
All other revenues, including those from the league's current television contract, will continue to be shared equally, Adelson reported. The success incentive will begin in 2024-25, coinciding with the expanded, 12-team College Football Playoff.
The ACC board of directors, comprising the league's 15 presidents and chancellors, met this week in Charlotte.
"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 spent months discussing a new revenue-distribution plan for a conference that has fallen behind the Southeastern and Big Ten conferences by tens of millions of dollars in annual revenue.
The new model has been pushed for months by Florida State athletic director Michael Alford. In a prepared speech in February, Alford said Big Ten schools will receive about $80 million each year from their television contracts, while SEC members will get $72 million, as reported by the Tallahassee Democrat. He said FSU, when “you throw everything in,” including the kitchen sink, receives around $42 million. FSU has calculated revenue projections to 2042, and Alford insists, “We have to do something."
Related: Florida State to ACC on Revenue: 'Something Has to Change'
It appears the ACC has done something.
"Today's endorsement follows significant and meaningful conversations by the ACC Board of Directors," conference commissioner Jim 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."