FSU alum lawyer analyzes a copy of the ACC GOR Agreement - verbal assurances are irrelevant

[billybud]

Public universities in Florida grant rights all of the time without legislative approval.

To ESPN, IMG, Nike, Fox Sports, licensing of patents...etc, etc.

 

[billybud]

Actually, the school granted rights to the ACC who, in turn, granted certain rights to ESPN.

The GOR is signed by the school Presidents.....Thorpe for UNC, Barron for FSU.

About a year and a half ago, I posted pics of the UNC GOR doc pages including Thorpes signature on the signature page

The Florida Legislature was not involved in these rights agreements.

 

[huskypantz]

So for argument's sake let's say FSU goes to the B1G tomorrow. Their rights are "tied up" with the ACC and hence ESPN until 2026 or whenever. We know that all of their road conference games would be eligible for B1G media contracts. Additionally, any games that were not picked up become available. I'm not clear on this, but I find it hard to believe that FSU would NOT be compensated for those media rights if ACC/EPSN choose to retain them. In addition to that, let's say that FSU plays Michigan at home - so the rights to that game fall under the ACC. Of course that is an ABC game, probably prime time -and the ACC has a set number of tier 1 games. Is the ACC really going to let a B1G conference game take one of their prime TV spots? Technically, it's ESPN's decision, and of course they would. This is why I think they will just settle.

 

[billybud]

No one will test that theory. Too much downside risk. The ACC would attempt to get their pound of flesh from a defecting conference mainstay as a deterrent. And the ACC has control of those rights.

Sure..FSU could play Michigan at a home game and the ACC would just receive the check as if FSU was playing a ACC game per the GOR. The ACC would own the rights to that game. The Big Ten just would not receive any compensation for any FSU home game.

Would ESPN force the ACC's hand? I think that would be dangerous ground for a network.

The likely end is that there will be no movement for near a decade.

 

[Seaa Blue]

ESPN owns the rights, right (purchased from the ACC)? If ESPN continues to write the agreed upon payment to the ACC, the ACC can withhold payment to FSU and put it into the 'Exit Fee Fund', and still call it 'compensation' paid to FSU.

The Big Ten could then schedule Michigan at FSU, and ESPN would theoretically would be free to drop any of the proceeds above and beyond the payment mentioned above into its Big Ten bucket.

ESPN has enough networks that it could select a tier 1 match from its remaining ACC inventory AND have the right to show the FSU vs. Michigan game, perhaps both in prime time.

 

[CL82]

Here's an interesting thought. With a GOR in place is the ACC exit fee uneforceable? The exit fee was established prior to GoR, and thus without consideration of the mitgation of damages of an member institution's GOR. It is hard to articulate damages if the school's rights are still owned by the conferernce.

So in the sceanrio above, does that B1G just give FSU a reduced payout (i.e. slows the buy in) while the ACC owns FSU's home games?

Why would FSU make the move?
- Assures future cash flow,
- Better conference opponents,
- Better academic affiliation,
- Moves the up to the P2 assuring their athletic dept.'s future.

 

[billybud]

The ACC Exit Fee is in the Bylaws and is separate from the GOR...and yes, it is as enforceable as any contract.

FSU received near $28 million from the ACC this year (counting the $800,000 additional champions payout).

The total athletic revenue of FSU was more than that of ten of the Big Ten teams....would an additional $15 million or so be nice?

Sure.

But not necessarily the game changer that you might think. Not if losing the alumni footprint, possibly losing recruits in the traditional southeastern recruiting grounds, etc also play in.

 

[Seaa Blue]

FSU would probably seriously weigh the challenges of the the lost athletic footprint vs. the greatly improved academic footprint of applicants.

"Seriously weigh" meaning... They would probably ask "where do we sign" if given the opportunity. I mean, it's not like FSU is in South Bend, Indiana, and desperately needs the expanded footprint.

 

[CL82]

The ACC Exit Fee is in the Bylaws and is separate from the GOR...and yes, it is as enforceable as any contract.

Kind of the point. If a liquidated damages clause is punative rather than compensatory it won't be enforced.

As the the fee differential, as we know only too well at UConn, the longer you aren't considered one the big boys, the more that the stank of it sticks with you. College football is still in the process of stratifying. It is now the Power 2 (P2- B1G and SEC), the Middling 3 (M3 -PAC12, ACC and Big 12) and the G5. Teams in the M3 will feel the pressure to move up or be left behind.

 

[hexlub]

He would go on to say that theft of fish from supermarkets is totally legal.

 

[billybud]

Kind of the point. If a liquidated damages clause is punative rather than compensatory it won't be enforced.

As the the fee differential, as we know only too well at UConn, the longer you aren't considered one the big boys, the more that the stank of it sticks with you. College football is still in the process of stratifying. It is now the Power 2 (P2- B1G and SEC), the Middling 3 (M3 -PAC12, ACC and Big 12) and the G5. Teams in the M3 will feel the pressure to move up or be left behind.




Well...Right now, FSU is ranked #13 in athletic revenue...higher than 10 of the Big 10, 8 of the SEC, and all but Oklahoma and Texas in the Big 12.

Of the last three title games, FSU or Clemson has played in two, winning one NC and a runner up.

When they start ranking teams on revenue rather than on wins and losses on the field, I'll think it is time to do something drastic. When my team stops being relevant on the center stage, it's time to do something. And, for the next five years or so, I think that relevancy is locked up. Great recruiting classes come on line in 2017...Jimbo thinks that team will be better than this year...and this year's team will start very high...all they need to do is win the games.

RE UConn...it isn't the about money as much as about being seen as relevant. Wake and BC make more on the media front but they aren't relevant. It is about having the chance to play football against some good teams and winning those games.

 

[billybud]

He would go on to say that theft of fish from supermarkets is totally legal.

I took note of your wit.

Great stuff. Like slap fighting and the Three Stooges...a gift.

 

[Seaa Blue]

tick...tick...tick..
Nothing new here, just trying to annoy Billy.

Wes Durham of the ACC Network/Fox Sports South was interviewed by Louisville Sports Live, and according to Durham,
...if there is no ACC Network agreement by July 1st (2016), that 'reportedly' ESPN would owe the ACC $45 million.

That's a $3 million bump per team, per year. It would bring the average ACC media payout above $20 million (so the total conference payout would be around $25 million*).

The total athletic revenue of FSU was more than that of ten of the Big Ten teams....would an additional $15 million or so be nice?.

In part because of a certain transfer of funds from the Big Ten to the ACC.

 

[Pudge]

Kind of the point. If a liquidated damages clause is punative rather than compensatory it won't be enforced.

As the the fee differential, as we know only too well at UConn, the longer you aren't considered one the big boys, the more that the stank of it sticks with you. College football is still in the process of stratifying. It is now the Power 2 (P2- B1G and SEC), the Middling 3 (M3 -PAC12, ACC and Big 12) and the G5. Teams in the M3 will feel the pressure to move up or be left behind.

This is actually the key point.

It's NOT strictly the variance in terms of money; it becomes a compelling argument within the Cartel to separate and get to the top tier. And 126 begat 65 ... and I expect that becomes 24-30 before you know it. The CONFERENCE format - with its embrace for private Northwestern and the smaller Population states (Mississippi etc) - won't be around.

 

[Pudge]

Trolling for page views. GOR is rock solid.

You have no idea.