OT: Florida State to sue ACC over GOR

[KryHavok]

Didn't the original complaint say that it was not a withdrawal notice and they were actually looking for clarification of the withdrawal rules?

If so, this seems like an attempt by council to get a Mulligan on that decision.

 

[Excalibur]

Didn't the original complaint say that it was not a withdrawal notice and they were actually looking for clarification of the withdrawal rules?

If so, this seems like an attempt by council to get a Mulligan on that decision.

They won't get it. Whatever their exit date, the "irrevocable" language basically means that the ACC owns rights to all of their home games through 2027 (4 more football seasons).

If this is about a damages number, what is the value of FSU's games during that period ? Is it their share under the contract (roughly $140 Million), or is it what they would be paid in the market now? FSU will be in a strange position, arguing that "we're being short-changed under the ACC contract" at the same time they're trying to establish the lowest possible value of their broadcast rights for the purposes of a damages calculation.

Seems that their absolute best case scenario is payment of their share for each of the 4 years.

 

[JohnFSilver]

They won't get it. Whatever their exit date, the "irrevocable" language basically means that the ACC owns rights to all of their home games through 2027 (4 more football seasons).

If this is about a damages number, what is the value of FSU's games during that period ? Is it their share under the contract (roughly $140 Million), or is it what they would be paid in the market now? FSU will be in a strange position, arguing that "we're being short-changed under the ACC contract" at the same time they're trying to establish the lowest possible value of their broadcast rights for the purposes of a damages calculation.

Seems that their absolute best case scenario is payment of their share for each of the 4 years.

Seems likely it is something like this.

Damages have to be actual, not punitive. You can’t sign a $1 billion exit free.

FSU can buy out their ACC portion, and pay it with their sec funds.

Key isn’t the withdrawal, it is getting into a place with more money.

 

[Excalibur]

Seems likely it is something like this.

Damages have to be actual, not punitive. You can’t sign a $1 billion exit free.

FSU can buy out their ACC portion, and pay it with their sec funds.

Key isn’t the withdrawal, it is getting into a place with more money.

To be clear, I don't think the best case scenario is the likely scenario. But even if that is what happens, how many years would it take to make back $140 million? That of course depends on how much more they can make in another conference.

 

[huskymedic]

Interesting commentary by an Intellectual Property Attorney (in reality could just be another ambulance chaser for all I know but as he points out… billable hours for the win):

 

[billybud]

David McKenzie, a Dookie in North Carolina, can be counted on to be an ACC rah rah guy.

He disregards anything not favorable to the ACC.

 

[freescooter]

Note that the deadline has past for FSU and Clemson to withdraw for 2025.

 

[CL82]

Interesting commentary by an Intellectual Property Attorney (in reality could just be another ambulance chaser for all I know but as he points out… billable hours for the win):

FSU has yet to present a credible argument against the #GOR’s validity, despite having signed it twice and having received hundreds of millions of dollars under its terms.

 

[billybud]

Actually…if you have read FSU’s suit, they have asked the courts to recognize August 2023 as the date of notice.

I think that 2026, and the new CFP, is more likely the date that will be agreed upon.

 

[Kolumbo]

FSU has yet to present a credible argument against the #GOR’s validity, despite having signed it twice and having received hundreds of millions of dollars under its terms.

FSU has signed it and received hundreds of millions of dollars, while the ACC and other members have also received hundreds of millions of dollars. It has been all good for everyone, in the past. I don't think that has anything to do with whether FSU has a credible argument against the GOR.

I think David McKenzie's post is a good summary of how mediation works.

 

[CL82]

FSU has signed it and received hundreds of millions of dollars. I don't think that has anything to do with whether FSU has a credible argument against the GOR.

Disagree.

 

[CTFAN4LIFE]

Disagree.

It seems like both parties could have benefitted even though how the GOR was signed/agreed to went against ACC by-laws/state laws. I'm not saying that's the case, but seems generally plausible.

 

[CL82]

It seems like both parties could have benefitted even though how the GOR was signed/agreed to went against ACC by-laws/state laws. I'm not saying that's the case, but seems generally plausible.

Yeah, there's been a lot of discussion on this, to the point that it seems like wheel spinning, but FSU's claim, such as it is, would be dramatically better if they took immediate action upon "discovery" of the purported procedural lapses. To the extent that they were aware of the supposed procedural lapses, made no complaint about them and took no action to correct it for years, all while cashing 10 of millions of dollars from the agreements that they currently suggest were unauthorized dramatically weakens their claim.

Not much point in debating it, and re-debating it, here though. We'll see what the court say.

 

[Kolumbo]

Disagree.

Yet you "quoted" me and excluded key text. hmmm

 

[CL82]

Yet you "quoted" me and excluded key text. hmmm

 

[NE Football]

So far FSU’s lawsuit has been a total loss for them. Both the SEC and the B1G want nothing to do with them and neither conference needs them. It takes a 75% vote to get into those conferences and the middle to bottom teams don’t need another annual loss on their schedule.

The Big 12 is the least attractive of the P4 conferences and without their own TV network they are in serious danger of losing teams not to just the B1G who probably wants to get into Texas and the SEC who might want to get into Phoenix market, but also the ACC due to ESPN owning 50% of the ACCN. They also own 50% of the SECN. It’s simple math that ESPN makes more money moving Big 12 teams into either the SECN or ACCN.

 

[UConnJim]

The Big 12 is the least attractive of the P4 conferences and without their own TV network they are in serious danger of losing teams not to just the B1G who probably wants to get into Texas and the SEC who might want to get into Phoenix market, but also the ACC due to ESPN owning 50% of the ACCN. They also own 50% of the SECN. It’s simple math that ESPN makes more money moving Big 12 teams into either the SECN or ACCN.

The ACCN revenues have peaked as cable cord cutting will erode subscribers. The additions of Cal/Stanford/SMU have given the ACCN a ST bump in revenues, but the cord cutting trend is not their friend. LT, all conference networks will go streaming and the ACC has the weakest fan base among the 3 conferences with networks, so revenues could materially decline when viewers have to directly pay for the ACCN instead of being forced to take it with a cable bundle.

 

[CL82]

So far FSU’s lawsuit has been a total loss for them. Both the SEC and the B1G want nothing to do with them and neither conference needs them. It takes a 75% vote to get into those conferences and the middle to bottom teams don’t need another annual loss on their schedule.

The Big 12 is the least attractive of the P4 conferences and without their own TV network they are in serious danger of losing teams not to just the B1G who probably wants to get into Texas and the SEC who might want to get into Phoenix market, but also the ACC due to ESPN owning 50% of the ACCN. They also own 50% of the SECN. It’s simple math that ESPN makes more money moving Big 12 teams into either the SECN or ACCN.

Still, it is fascinating how desperate teams are to leave the ACC. It reminds me of the old big east in how it no longer is a group of teams united by geography and a common vision. Instead it is a temporary way stop for anyone who has the ability to leave. It certainly makes 1 think that it's not going to last past 2036, or perhaps that's 20 $.27 ESPN has not an exercised its option yet.

 

[billybud]

ESPN has a contract with the ACC which expires in 2027. They did not renew their option when it was called for by contracts. It may be over for the ACC after the 2026 football season. Maybe ESPN is going to P12 them.

Maybe the move to “super conferences” may end up with three. SEC, B12, Big Ten

 

[huskymedic]

 

[billybud]

This a notification to the court of compliance. They also tell the court that they are still in discussions

 

[NE Football]

The ACCN revenues have peaked as cable cord cutting will erode subscribers. The additions of Cal/Stanford/SMU have given the ACCN a ST bump in revenues, but the cord cutting trend is not their friend. LT, all conference networks will go streaming and the ACC has the weakest fan base among the 3 conferences with networks, so revenues could materially decline when viewers have to directly pay for the ACCN instead of being forced to take it with a cable bundle.

Yes, the ACCN is the weakest of the 3 and we could very well end up with just two conferences and a total of 48-64 teams.

 

[Sea Goat]

Seems that the biggest risk is for the schools that bring nothing to the table - BC, Syracuse etc.

 

[NJHusky]

ESPN has a contract with the ACC which expires in 2027. They did not renew their option when it was called for by contracts. It may be over for the ACC after the 2026 football season. Maybe ESPN is going to P12 them.

Maybe the move to “super conferences” may end up with three. SEC, B12, Big Ten

I thought the extension went until 2036 for the GOR? Whether espn exercises their option to televise seems irrelevant to the GOR

 

[NJHusky]

Seems that the biggest risk is for the schools that bring nothing to the table - BC, Syracuse etc.

Would love to see BC end up in a conf with Washington st and Oregon st.