OT: Florida State to sue ACC over GOR

[Rufus]

Greg Flugaur has been spot on with everything conference realignment. I’ll believe every word out of his mouth until he is ever proven wrong.

 

[Sea Goat]

Greg Flugaur has been spot on with everything conference realignment. I’ll believe every word out of his mouth until he is ever proven wrong.

I don't know about "every word" but he has been pretty damn close! And for a long time! He 's been at it for years and I think it might be all he does. What are your thoughts on his latest that FSU is pretty confident about the BIG and with good reason?

 

[Sea Goat]

I read articles.

Amazes me that you're taking the word of FSU's lawyers who are paid to do this kind of mucking around

we'll see... FSU's lawyers are pretty highly regarded (you won't find their pictures on billboards trying to lasso an ambulance...)

 

[PackTheRent]

The

BCU’s day of reckoning is coming. No program deserves it more.

Their victory yesterday vs SMU was a bummer. My neighbor is a a BC alum and is very arrogant that their program is recovering now. They always seem to slither into a secure spot while we are rejected at every turn. Maddening. Our awful season in 2023 came at a vulnerable time

 

[Rufus]

I don't know about "every word" but he has been pretty damn close! And for a long time! He 's been at it for years and I think it might be all he does. What are your thoughts on his latest that FSU is pretty confident about the BIG and with good reason?

That's why I think FSU is as good as gone to the B1G because of what he has been reporting. FSU brings a lot to the B1G and the current FSU President is a former Harvard President trying to raise the academic profile of FSU to AAU status and would love nothing more than to associate with the B1G.

 

[CL82]

Greg Flugaur has been spot on with everything conference realignment. I’ll believe every word out of his mouth until he is ever proven wrong.

Are you Greg Flugar?

 

[Rufus]

Are you Greg Flugar?

I wish I had his connections!

 

[Rufus]

Florida State’s Way Out of ACC? Exit Penalties Could Be Ruled Unenforceable | JD Supra

Last summer, we wrote about the Atlantic Coast Conference’s (“ACC”) “ironclad” Grant of Rights agreement being the only document keeping top schools...

www.jdsupra.com

 

[noeynox]

Florida State’s Way Out of ACC? Exit Penalties Could Be Ruled Unenforceable | JD Supra

Last summer, we wrote about the Atlantic Coast Conference’s (“ACC”) “ironclad” Grant of Rights agreement being the only document keeping top schools...

www.jdsupra.com

I personally, can't get past this part,

The ACC claims that as a result of these media rights agreements, which could not have been achieved without the Grant of Rights, FSU has received hundreds of millions in distributions since 2013, when it executed the Grant of Rights.[viii] The ACC thus seeks a declaration that having accepted the benefits of the Grant of Rights for a decade, FSU is estopped from now challenging its enforceability.[ix

 

[upstater]

we'll see... FSU's lawyers are pretty highly regarded (you won't find their pictures on billboards trying to lasso an ambulance...)

The fact that they're highly regarded reinforces my point. They are doing their best to muddle things!

 

[How Sway?!]

I wish I had his connections!

Greg Flugaur, is this you? Only explanation for all the simping going on by you

 

[Waquoit]

It is a huge stretch for anyone to believe the FSU lawyers just now traveled to NC to undertake this mission when they could've done it at any point.

Sounds like the Yankees and George Brett's bat. They didn't say anything until he hit a home run. Then again, they lost on appeal because they didn't say anything until he hit a home run.

 

[nelsonmuntz]

Florida State’s Way Out of ACC? Exit Penalties Could Be Ruled Unenforceable | JD Supra

Last summer, we wrote about the Atlantic Coast Conference’s (“ACC”) “ironclad” Grant of Rights agreement being the only document keeping top schools...

www.jdsupra.com

A Grant of Rights is essentially a sale of media rights, not any of the items covered in that long, silly column. It does not technically restrict programs from leaving their conference, it just requires them to leave their media rights behind.

The FSU v. ACC question is going to be if their rights were alleged to have been sold until 2036, but they were not actually sold beyond 2027, is the GOR binding beyond 2027?

There is a lot of weird stuff in this case, and anyone claiming to have the answer is talking out their butt, because no one has access to the GOR or media rights agreement, including apparently the parties to the agreement.

 

[upstater]

A Grant of Rights is essentially a sale of media rights, not any of the items covered in that long, silly column. It does not technically restrict programs from leaving their conference, it just requires them to leave their media rights behind.

The FSU v. ACC question is going to be if their rights were alleged to have been sold until 2036, but they were not actually sold beyond 2027, is the GOR binding beyond 2027?

There is a lot of weird stuff in this case, and anyone claiming to have the answer is talking out their butt, because no one has access to the GOR or media rights agreement, including apparently the parties to the agreement.

If I were a lawyer from FSU, I would book a trip to North Carolina so I could read the agreement in person, so I could claim that, just now, FOR THE 1ST TIME EVER, FSU's lawyers have become aware of what a horribly flawed document it is!

 

[B1GEast]

Apparently ACC commissioner Jim Phillips extended an ESPN contract extension deadline on his own without league approval.

This might be the crux that gets FSU out of the GOR, who knows.

 

[Zissou]

My understanding:

GOR: an agreement between the members and the ACC, with the members granting their individual media rights to the ACC through 2036. This is a separate agreement than any media deal, but brings strength and value to any media deal that the ACC negotiates. GOR is a ~$430M issue for FSU, but valuation could be further debated (and litigated).

ACC and ESPN contract. The contract has a unilateral option by ESPN that it has to exercise in early 2025. It will end in 2027 or 2036 on ESPN’s option.

Exit fee to the ACC: ~$130M issue for FSU, subject to negotiation (up or down, based on departure date)

As the GOR and the ESPN are separate agreements, FSUs effort to tie them may be difficult. We shouldn’t assumed that they are one and the same. One year from today ESPN could announce that they are not optioning through 2036 and the agreement ends in 2027. The ACC still has the GOR and can secure an alternate deal with FOX or anyone else, and still has the strength of its ACC network.

It seems to me that FSUs actions now undermine the value of the ACC and its members. The GOR protects the value of the ACC from FSUs actions. This the the purpose of the GOR.

The ESPN contract option does not seem to be the magic loophole. It will still come down to the GOR being legally enforceable (iron clad?), and if the sides want to agree to settle an exit (maybe $130M + $215M) or let the courts decide.

 

[FfldCntyFan]

My understanding:

GOR: an agreement between the members and the ACC, with the members granting their individual media rights to the ACC through 2036. This is a separate agreement than any media deal, but brings strength and value to any media deal that the ACC negotiates. GOR is a ~$430M issue for FSU, but valuation could be further debated (and litigated).

ACC and ESPN contract. The contract has a unilateral option by ESPN that it has to exercise in early 2025. It will end in 2027 or 2036 on ESPN’s option.

Exit fee to the ACC: ~$130M issue for FSU, subject to negotiation (up or down, based on departure date)

As the GOR and the ESPN are separate agreements, FSUs effort to tie them may be difficult. We shouldn’t assumed that they are one and the same. One year from today ESPN could announce that they are not optioning through 2036 and the agreement ends in 2027. The ACC still has the GOR and can secure an alternate deal with FOX or anyone else, and still has the strength of its ACC network.

It seems to me that FSUs actions now undermine the value of the ACC and its members. The GOR protects the value of the ACC from FSUs actions. This the the purpose of the GOR.

The ESPN contract option does not seem to be the magic loophole. It will still come down to the GOR being legally enforceable (iron clad?), and if the sides want to agree to settle an exit (maybe $130M + $215M) or let the courts decide.

I could be wrong but I think FSU's strategy here is to threaten that a document the conference does not want subject to FOI requests (the GOR agreement) would be called into discovery if the suit proceeds, making it available for an FOI request, leading the ACC to settle to avoid this.

 

[upstater]

My understanding:

GOR: an agreement between the members and the ACC, with the members granting their individual media rights to the ACC through 2036. This is a separate agreement than any media deal, but brings strength and value to any media deal that the ACC negotiates. GOR is a ~$430M issue for FSU, but valuation could be further debated (and litigated).

ACC and ESPN contract. The contract has a unilateral option by ESPN that it has to exercise in early 2025. It will end in 2027 or 2036 on ESPN’s option.

Exit fee to the ACC: ~$130M issue for FSU, subject to negotiation (up or down, based on departure date)

As the GOR and the ESPN are separate agreements, FSUs effort to tie them may be difficult. We shouldn’t assumed that they are one and the same. One year from today ESPN could announce that they are not optioning through 2036 and the agreement ends in 2027. The ACC still has the GOR and can secure an alternate deal with FOX or anyone else, and still has the strength of its ACC network.

It seems to me that FSUs actions now undermine the value of the ACC and its members. The GOR protects the value of the ACC from FSUs actions. This the the purpose of the GOR.

The ESPN contract option does not seem to be the magic loophole. It will still come down to the GOR being legally enforceable (iron clad?), and if the sides want to agree to settle an exit (maybe $130M + $215M) or let the courts decide.

Exactly. If anything, the idea that ESPN won't take on the option works against FSU because it allows the ACC to go to market. It works against FSU's argument that the TV deal is undervalued.

 

[Patman]

The ultimate weapon would be sovereign immunity which could render a contract void but that requires political will. As mentioned, if an ugly document comes out that could be the catalyst but that may also be a poison pill for the schools involved

 

[Rufus]

Since ESPN did not extend the contract by the original legal deadline, the monetary damages of breaking the GOR after 2027 is 0. No harm to the ACC when there is no legally binding television contract in place.

I don’t believe ESPN ever intended on extending the contract. Cheaper to pay a few top ACC brands under the SEC umbrella.

 

[upstater]

The ultimate weapon would be sovereign immunity which could render a contract void but that requires political will. As mentioned, if an ugly document comes out that could be the catalyst but that may also be a poison pill for the schools involved

The ACC is located in North Carolina though; that's where the GOR was executed. One state court isn't going to decide this.

 

[upstater]

Since ESPN did not extend the contract by the original legal deadline, the monetary damages of breaking the GOR after 2027 is 0. No harm to the ACC when there is no legally binding television contract in place.

I don’t believe ESPN ever intended on extending the deadline. Cheaper to pay a few top ACC brands under the SEC umbrella.

The ACC network is still in play regardless.

This is the key to everything. If they hold FSU's rights, it doesn't matter if the value of those rights is 50 cents from 2027 through 2036. If they own them, they own them.

FSU can break with them, that's fine. There's no penalty for them breaking the GOR. The problem is they won't be able to sell their TV rights.

 

[Zissou]

Since ESPN did not extend the contract by the original legal deadline, the monetary damages of breaking the GOR after 2027 is 0. No harm to the ACC when there is no legally binding television contract in place.

I don’t believe ESPN ever intended on extending the contract. Cheaper to pay a few top ACC brands under the SEC umbrella.

I think this is incorrect.

The GOR is valuable and is separate from the ESPN contract.

 

[Zissou]

I could be wrong but I think FSU's strategy here is to threaten that a document the conference does not want subject to FOI requests (the GOR agreement) would be called into discovery if the suit proceeds, making it available for an FOI request, leading the ACC to settle to avoid this.

Agree that they prefer to keep it confidential, but at what value / cost?

I believe an earlier version was published by the Athletic.

I’d think the ACC would prefer to keep the document from the press and make it difficult to reach through a info request from a public member institution, but I don’t think it’s confidentiality is worth $100M. I therefore think FSUs leverage is weak on this part.

FSU can damage its peer institutions in the process, but it won’t likely be a gain to FSU.

 

[CL82]

I could be wrong but I think FSU's strategy here is to threaten that a document the conference does not want subject to FOI requests (the GOR agreement) would be called into discovery if the suit proceeds, making it available for an FOI request, leading the ACC to settle to avoid this.

Not so sure that's much of an impetus to settle. Keeping the GOR private he's a tool to make it enforceable. Settling with FSU will provide a template for breaking it.