Florida State University has had their minds set on leaving the ACC for quite some time. 

According to Front Office Sports, “FSU officials became increasingly vocal about their displeasure with the ACC's financial position on media rights revenue — in the coming years ACC schools will each annually receive at least $30 million less than their Big Ten and SEC counterparts.”

The ACC contract holds schools in the conference until 2036, and a buyout would cost FSU $572 million. 

However, Florida State may have found a solution for themselves within private equity. 

In August, Sportico had made a public-records request for communication between FSU and at least two private-equity firms. These records revealed that Florida State had been speaking with J.P. Morgan Chase about exploring “institutional investment for its athletic department.” This has never been done before in college athletics, so the outcome is uncertain.

These discussions have been named “Project Osceola,” a nod to the Seminole leader and school mascot. 

The Private-Equity Firms

We know of two private-equity firms that have shown interest: 

• Arctos – has dozens of investments in massive teams, including Liverpool, the Boston Red Sox, the LA Dodgers, the Golden State Warriors, and the Philadelphia 76ers.
• Sixth Street – has investments in teams such as Real Madrid, Barcelona, San Antonio Spurs, and Bay FC.

If Florida State finalizes a deal with a private equity firm, that firm will invest in the Seminoles and help the team out of the ACC. That firm will also be able to profit off of the Seminoles' intellectual property and use it in its own way. 

What Does it All Mean?

As previously mentioned, this sort of deal has never happened before. It is obvious that Florida State wants out of the ACC, but this could lead the program down a slippery slope. 

In December, FSU sued the ACC over the hefty exit penalty to leave the conference. According to Sportico, it would take the Seminoles two years to pay off the $120 million exit fee alone. 

However, would the debt be better than selling their intellectual property? The private equity firm could stop any sort of long-term growth for the department by using the rights it gets from FSU for all they are worth.

Or, FSU and the private equity firm could work out great. The firm would buy them out of the ACC, Florida State would go on to have a long and successful career in another Power Five conference with a great media deal, and everyone would be happy. 

No one can tell the future, but one of these options might be more likely than the other.