Clemson sues the ACC, challenging ‘unenforceable’ exit penalty. Here’s what we know

After years of speculation, Clemson University has followed the strategy of Atlantic Coast Conference member Florida State and formally filed a lawsuit against the ACC to challenge its steep “grant of rights” and exit penalties in a first step toward exiting the conference in a move primarily aimed to improve athletics and football funding.

According to online court filings in Pickens County, South Carolina, where Clemson is located, the university filed a lawsuit against the ACC early Tuesday morning in Common Pleas Court seeking a declaration that:

  • “The media rights Clemson granted to the ACC do not include any Clemson games that are played after Clemson ceases to be a member of the ACC”

  • “Clemson is not required to pay the ACC the withdrawal penalty, as such a payment is an unenforceable penalty in violation of public policy”

  • “Clemson owes no fiduciary duties to the ACC or its other members and has breached no legal duty or obligation it might owe to the ACC by filing this lawsuit”

The lawsuit calls the ACC’s total withdrawal fee, which has been ballparked at $572 million, as “unconscionable and unenforceable.”

It’s a monumental step for Clemson, which is a charter member of the ACC dating back to 1953, and athletic director Graham Neff, who has long said publicly that Clemson will remain a good faith member of the conference but will always prioritize what’s best for the school in the long run.

Clemson and other ACC schools have fallen behind rival SEC and Big Ten schools in terms of their conference payouts (which are distributed by school and help support athletic departments, revenue-generating football teams and other sports) as those conferences have signed new television deals worth hundreds of millions of dollars.

This is the second lawsuit the ACC is facing over its grant of rights penalty, as Florida State (which has been vocal about its displeasure with the conference) filed a similar lawsuit against the conference in December.

This is a developing story and will be updated.