FSU files for exit from ACC

Thiefery said:
and ESPN has the cards due to the media rights.. I know ESPN wants to keep them and the ACC going til 2034 at the very least.. terrific contract for them
Click to expand...

Of course. FSU and Clemson provide Tier 1 content for ESPN on the cheap. Why wouldn't ESPN love that?
 
While Florida State in 2013 willingly signed the ACC’s original Grant of Rights, which was tied to the league’s television contract with ESPN, school officials point out that was designed to expire in 2027 at the conclusion of that media deal.

They say the GOR was extended three years later when ACC schools were told that ESPN would not move forward with a proposed ACC Network on cable television — similar to ones created by the SEC and Big Ten several years earlier — if that pact wasn’t extended.

From the complaint: “The ACC verbally represented to its members that ESPN had issued an ultimatum: unless each ACC member executed an extension of the ACC GofR, from 2027 to 2036, a full nine years beyond the then-expiration of ESPN’s Tier I agreement, ESPN would enter into no further media rights agreements with the ACC.”

Florida State’s then-president, John Thrasher, signed off on the extension, but FSU officials contend it was under false pretenses. According to the complaint, they believe the ACC “feigned” the ultimatum from ESPN in order to preserve the conference as long as possible.

“We were already in handcuffs,” an FSU source said. “Then they decided they were going to apply a second set of handcuffs.”
Click to expand...

I still can't get over the fact FSU, Clemson agreed to the extension of the GOR from 2027 to 2036.
Even crazier is the fact the ACC gave ESPN the option to pull away from the ACC from 2027-2036 if it wasn't working out.
Completely bent over by ESPN but this is what the ACC wanted, to keep everyone together for 20 years with no media rights negations and you signed the extension

:burt:


While the Grant of Rights was extended to 2036, FSU points out that ESPN still hasn’t exercised its option to push the media rights contract out that far. “It is a widely repeated misconception that the ACC’s multi-media rights agreement expires in 2036. As explained below, in truth, the multi-media rights agreement expires in 2027 unless ESPN chooses to exercise its unilateral option through 2036.” FSU’s complaint states that ESPN originally faced a deadline to extend the agreement back in 2021, but the, “ACC Commissioner gratuitously extended that option exercise deadline for four additional years, or until February 2025.” So theoretically, ESPN could essentially opt-out of the ACC’s deal in 2027, leaving the league with no guranteed revenue — even after extending the Grant of Rights.
Click to expand...

www.on3.com

FSU files lawsuit, asks court to declare ACC Grant of Rights, $500 million-plus penalty 'unenforceable'

Florida State files a lawsuit against the ACC on Friday, seeking to have more than $500 million in exit penalties to be ruled 'unenforceable'
www.on3.com www.on3.com
 
It’s time for GOR to be challenged but this isn’t going to be a quick process. They literally could trade arguments back and forth in several state courts foe several years just to determine venue and it won’t end up being in Florida as FSU wants.
 
Wild Turkey said:
It’s time for GOR to be challenged but this isn’t going to be a quick process. They literally could trade arguments back and forth in several state courts foe several years just to determine venue and it won’t end up being in Florida as FSU wants.
Click to expand...

There's gonna be a settlement way before then
 
duckboy33 said:
There's gonna be a settlement way before then
Click to expand...
Why would the ACC settle? With 572mm on the table it has to be a huge check or the rest of the conference will stroke. They added Cal, Stanford and SMU to make sure they had the votes not to dissolve to protect an end around.

There is a reason TX and OU cut full checks to the Big 12 and it isn’t because they wanted to, it’s because the GOR would take years to settle in court. They paid 50mm each if I remember correctly so I’m not sure what you think will happen but a discounted exist isn’t on the table. They win in court or pay up.
 
Wild Turkey said:
Why would the ACC settle? With 572mm on the table it has to be a huge check or the rest of the conference will stroke. They added Cal, Stanford and SMU to make sure they had the votes not to dissolve to protect an end around.

There is a reason TX and OU cut full checks to the Big 12 and it isn’t because they wanted to, it’s because the GOR would take years to settle in court. They paid 50mm each if I remember correctly so I’m not sure what you think will happen but a discounted exist isn’t on the table. They win in court or pay up.
Click to expand...

We'll revisit this in a few months. They'll settle and FSU won't be paying 500+ Million.

The Stanford/Cal/SMU additions were because even the ACC knew this was coming and they'll stay above the 15 team requirement.
 
Wild Turkey said:
Why would the ACC settle? With 572mm on the table it has to be a huge check or the rest of the conference will stroke. They added Cal, Stanford and SMU to make sure they had the votes not to dissolve to protect an end around.

There is a reason TX and OU cut full checks to the Big 12 and it isn’t because they wanted to, it’s because the GOR would take years to settle in court. They paid 50mm each if I remember correctly so I’m not sure what you think will happen but a discounted exist isn’t on the table. They win in court or pay up.
Click to expand...
If they had the votes to add Cal, Stanford, & SMU, then they differently had the votes to not dissolve. The addition is more to keep the ACC at 15 if schools were to leave the conference. The contract btw ACC & ESPN implies that the conference needs at least 15 or ESPN would be able to negotiate down ACC media rights or take them away.

The ACC still have the leverage against FSU and wouldn't have to settle but how much energy do they want to put into this. Why not just cash out the ACC media check and FSU (and any others) checks until 2036? For every year that passes, the less times ACC members will be able to cash in that FSU check
 
Wild Turkey said:
Why would the ACC settle? With 572mm on the table it has to be a huge check or the rest of the conference will stroke. They added Cal, Stanford and SMU to make sure they had the votes not to dissolve to protect an end around.

There is a reason TX and OU cut full checks to the Big 12 and it isn’t because they wanted to, it’s because the GOR would take years to settle in court. They paid 50mm each if I remember correctly so I’m not sure what you think will happen but a discounted exist isn’t on the table. They win in court or pay up.
Click to expand...
Texas and OU didn’t cut full checks. Reported to be 100mm. The full number was 160mm. Much of that is this years cut.. ESPN agreed to make “transition” payment to both Texas and OU. I have not seen that number disclosed.
 
Wild Turkey said:
Why would the ACC settle? With 572mm on the table it has to be a huge check or the rest of the conference will stroke. They added Cal, Stanford and SMU to make sure they had the votes not to dissolve to protect an end around.

There is a reason TX and OU cut full checks to the Big 12 and it isn’t because they wanted to, it’s because the GOR would take years to settle in court. They paid 50mm each if I remember correctly so I’m not sure what you think will happen but a discounted exist isn’t on the table. They win in court or pay up.
Click to expand...
what if I told you... UT and ou left without paying a dime..

:)
 
TaikoTiger said:
If they had the votes to add Cal, Stanford, & SMU, then they differently had the votes to not dissolve. The addition is more to keep the ACC at 15 if schools were to leave the conference. The contract btw ACC & ESPN implies that the conference needs at least 15 or ESPN would be able to negotiate down ACC media rights or take them away.

The ACC still have the leverage against FSU and wouldn't have to settle but how much energy do they want to put into this. Why not just cash out the ACC media check and FSU (and any others) checks until 2036? For every year that passes, the less times ACC members will be able to cash in that FSU check
Click to expand...
How much energy do they want to put into it? This is livelihoods here. The ACC has virtually no incentive to negotiate this. If they start giving discounts to FSU, it’s likely going to domino into others getting out on the cheap or cheaper and like it or not it’ll be the death nail (losing 4+ of your best teams) to the ACC being considered a Power conference, Much like the B12. You can argue they would lose them anyway after the contract was done and I wouldn’t argue but that’s a decade+ from now. An eternity of time for things to change or The pendulum to swing.

Plenty of people do plenty of dumb things and Im not saying the ACC won’t, but looking at this objectively I don’t see why the ACC wouldn’t fight this until the end.
 
ralphiewvu said:
Plenty of people do plenty of dumb things and Im not saying the ACC won’t, but looking at this objectively I don’t see why the ACC wouldn’t fight this until the end.
Click to expand...

Does the ACC want public questioning about their Raycom deal? My guess is they don't want that issue coming to light
 
duckboy33 said:
Does the ACC want public questioning about their Raycom deal? My guess is they don't want that issue coming to light
Click to expand...
If it prevents the death knell in the ACC as a power conference sooner then what it would be they won’t have a choice. But again, stupid things are done all the time.
 
You must log in or register to reply here.
Back
Top