On Wednesday, the ACC announced that the conference’s board of directors endorsed a new revenue distribution model that will reward teams for postseason success.

The implementation of these “success incentives” will come solely from the performance of teams in revenue generating postseason competition, namely the College Football Playoff and NCAA tournament. Participating teams will get a larger share of that revenue, while all other revenues will continue to be equally shared.

Although the specifics of this plan are in progress and haven’t yet been solidified, the success incentive initiative will begin during the 2024-25 academic year, coinciding that year with the expansion of the College Football Playoff to 12 teams.

ACC commissioner Jim Phillips made an appearance Thursday on ACC Network and discussed how the conference got to this point in endorsing the new revenue distribution model.

“Listen, this has been conversation over the last 10 or 12 months, so this isn’t just the last couple weeks,” Phillips said. “This is about being progressive in an area that we feel like we can be the standard for not only our conference, but maybe for others in college athletics. This is an opportunity to reward those programs that have really done well. We’re finalizing some of the details.

“I can’t tell you how much I appreciate the board of directors we have in the ACC. Jim Ryan, the president at Virginia, has led a subgroup of the board to talk about this, to discuss this. This is about making sure that none of our programs go backwards from a financial standpoint, but that we look forward, both financially and those that are having some success have a chance to garner some additional resources. So, I think it’s the right time, it’s the right situation, and it’s one of a number of things we’re doing to make sure we’re growing revenue within the conference.”

Phillips also spoke about how this has been received by the ACC board of directors, who met this week in Charlotte.

“Everybody has a chance to earn it. So, the playing field is pretty level to start with, and it has been received well amongst the board,” Phillips said. “What I really appreciate from our board is the collegiality, but also people talking about their individual institutions but then collectively coming together at the end of our meetings in Charlotte the last couple days to say, we do believe in this as a board, we’re going to move forward on it, and again, I think it’s a really progressive move by the ACC.”