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Atlantic Coast Conference Reports Record Revenue Amid Continued Stability Concerns

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Football

(BCSNN) It's no secret that college sports are big business, and the Atlantic Coast Conference remains among the Big 3 when it comes to how much it's hauling in. The (ACC) generated $711 million in revenue for the 2023-24 academic year, marking a slight increase from the previous year and a 56% jump compared to five years ago.

The league distributed an average of $45 million to each of its 14 full-time member schools, setting a new financial benchmark for the conference. Despite the record payout, the ACC remains behind the SEC and Big Ten, which continue to dominate college athletics financially.

The revenue distribution comes at a critical time for the ACC, as the conference has faced legal challenges from Florida State and Clemson, both of which filed lawsuits in late 2023 and early 2024 to contest the league’s grant of rights agreement. The lawsuits were settled earlier this year, with the ACC agreeing to a new revenue distribution model that prioritizes its biggest brands. Commissioner Jim Phillips expressed optimism that the agreement would provide stability for the conference for at least the next three to four years.

The ACC’s financial standing remains a point of concern for its members, particularly as the SEC and Big Ten continue to widen the revenue gap. The SEC distributed $808 million to its schools in 2023-24, averaging $53 million per institution, while the Big Ten reported $880 million in revenue for 2022-23, with expectations of a significant increase due to its new television deal. To address these disparities, the ACC has implemented “success initiatives”, which will reward schools with higher postseason payouts based on performance in football and basketball.

While the ACC’s financial outlook has improved, questions remain about its long-term stability. The league recently expanded to include SMU, Stanford, and Cal, which could impact future revenue distributions. Phillips emphasized the need for the conference to “settle down” and focus on strengthening its position in college athletics. Whether the ACC can maintain its footing amid ongoing financial pressures and realignment discussions remains to be seen, but for now, the league has secured a temporary reprieve from instability.