Love the Maryland law suit

[Echo Hawk]

Maybe, in the end, Maryland turns out to be our best friend. The suit is nasty.

MD is going to the Big 10 for certain, because they are in a win win situation and anything they pay below 52 million is gravy, so the question is how low can the ACC afford to go to settle the lawsuit? The ACC loses it's biggest market with MD gone and they cannot replace it. The stakes are very high for the ACC because they could lose FSU, Clemson, GT or even VTech. (They should have taken Rutgers long before) Hard to say what the ACC will settle for, but it can't be much below 40-45 million. Could be much less. Or a zilch judgement. ESPN must be a little edgy as well.

FSU wants out as badly as MD and are pulling for MD in the suit.

http://floridastate.247sports.com/Board/36/Maryland-and-ACC-begin-legal-battle-15953544/1#a15953776

The more dominoes the better.

In any case, on behalf of my new favorite school, GO TERPS!

 

[kbdiggity]

The ACC will not settle, and they shouldn't have to.

Maryland was a founding member of the ACC. They have been in the conference for something like 60 years. They had a hand in writing every rule the ACC operates by. They had a hand in writing the rule on how votes work among conference members.

So when the new ACC buyout was passed last year, it was passed under rules that Maryland helped write... rules that Maryland never had a problem with. Every other vote was fine by Maryland for the last 60 years. But this vote, because the outcome did not suit them, is suddenly not ok.

I don't see where Maryland has a leg to stand on in this suit. Sure they are butthurt over the new exit fees. But they have been completely fine with ACC voting rules for the entire existence of the ACC. How can they stand up in front of a judge and say "we suddenly don't like the rules we helped to right because they resulted in a vote passing despite our no vote"?

 

[UConnSwag11]

Idc how it gets done. Get it done so the dominoes start falling

 

[zls44]

Maryland's argument is that the exit fee amount is purely punitive, designed as a restriction on trade. The dollar amount is based solely on trying to keep teams in the league- not to make up for actual lost value.

As a punitive fee, it is, therefore, exorbitant. And potentially illegal.

 

[kyle]

I hate everything about Maryland, hope they have to pay up.

 

[HobokenHusky]

The ACC will not settle, and they shouldn't have to.

Maryland was a founding member of the ACC. They have been in the conference for something like 60 years. They had a hand in writing every rule the ACC operates by. They had a hand in writing the rule on how votes work among conference members.

So when the new ACC buyout was passed last year, it was passed under rules that Maryland helped write... rules that Maryland never had a problem with. Every other vote was fine by Maryland for the last 60 years. But this vote, because the outcome did not suit them, is suddenly not ok.

I don't see where Maryland has a leg to stand on in this suit. Sure they are butthurt over the new exit fees. But they have been completely fine with ACC voting rules for the entire existence of the ACC. How can they stand up in front of a judge and say "we suddenly don't like the rules we helped to right because they resulted in a vote passing despite our no vote"?

In general terms, breach of contract settlements can not be punitive (or viewed as a penalty or excessive). They must only represent what was lost in the breach in order to get the non-breaching party back to where it was before the breach. This is the case EVEN IF THE PARTIES AGREE OTHERWISE BEFOREHAND. The law supersedes the agreement. So basically, the ACC needs to prove that the $50M represents revenue that was lost by them, and is not a penalty. This is also why adding Louisville so quickly was puzzling. They basically strengthened Maryland's case not to pay the fee, because you can argue the the conference will actually gain revenue from the replacement. This is just my general understanding of contract law. It may be different in this case. A little more info here:

"Because they are usually paid in excess of the plaintiff's provable injuries, punitive damages are awarded only in special cases, usually under tort law, where the defendant's conduct was egregiously insidious. Punitive damages cannot generally be awarded in contract disputes. The main exception is in insurance bad faith cases in the United States, where the insurer's breach of contract is alleged to be so egregious as to amount to a breach of the "implied covenant of good faith and fair dealing," and is therefore considered to be a tort cause of action eligible for punitive damages (in excess of the value of the insurance policy).[3]

 

[zls44]

I hate everything about Maryland, hope they have to pay up.

If you are a UConn fan, this is a really, REALLY stupid position to take.

 

[Husky]

Bleed the ACC to the core, take it all Maryland!!!! lol

 

[kbdiggity]

Maryland's argument is that the exit fee amount is purely punitive, designed as a restriction on trade. The dollar amount is based solely on trying to keep teams in the league- not to make up for actual lost value.

As a punitive fee, it is, therefore, exorbitant. And potentially illegal.

It isn't anymore punitive than the GoR that the Big 12 enacted last year.

The facts are that the ACC already had an exit fee that was passed under the conference rules that Maryland was always ok with. They voted to raise the exit fee last year. The vote passed under the rules that Maryland helped to write and never had a problem with. I don't know how a judge could tell the ACC that their longstanding conference rules about voting in new laws suddenly don't matter because one member is angry. Is every other vote that the ACC took suddenly up for judicial review?

 

[kbdiggity]

Idc how it gets done. Get it done so the dominoes start falling

Prepare to be let down.

Maryland unfortunately hired a terrible AD, who basically bankrupted their athletic department, and left in the position that they felt their only quick fix was the short term revenue bump the Big 10 network would give them. In the end, they are going to have to pay the exit fee.

The ACC front office has been proactive in protecting the conference for more than a decade now. They were proactive when they took VT, Miami, and BC in a move no one saw coming. They were proactive when they took Cuse and Pitt. They were proactive when they took ND. They were proactive when they raised the exit fee in a manner that will cause it to continue to increase over the years. Their only reactionary move was to move quickly in replacing Maryland with UofL.

Their next proactive move will once again reaffirm that the borders are secure. Look for news of an ACC network (probably backed by ESPN) to be announced in the coming months, with a financial package for ACC member schools that rivals the Big 10 network. Plus one thing the Big 10 network doesn't have, which is prime placement on basical digital cable packages thanks to ESPN.

 

[uconnbill]

I hate everything about Maryland, hope they have to pay up.

I don't as it will open things for UConn unless your happy in the America 12 conference

 

[HobokenHusky]

It isn't anymore punitive than the GoR that the Big 12 enacted last year.

The facts are that the ACC already had an exit fee that was passed under the conference rules that Maryland was always ok with. They voted to raise the exit fee last year. The vote passed under the rules that Maryland helped to write and never had a problem with. I don't know how a judge could tell the ACC that their longstanding conference rules about voting in new laws suddenly don't matter because one member is angry. Is every other vote that the ACC took suddenly up for judicial review?

Read my post above. The law supersedes the agreement. Contract law is a very strange animal. There are historical cases that set a precedent. The fact that Maryland was "ok" with the exit fees doesn't make them legal. (and I don't think they were, they did not vote for them on the last hike up if I remember correctly). You are not bound by things you agree to in a contract if they are not legal. You can't legally enforce performance on a drug deal.

 

[kbdiggity]

I said they were ok with the previous lesser exit fees, as they voted in favor of those years prior.

I understand that there are often times in which the letter of the law runs completely counter-intuitively to common sense. But when Maryland has been a member institution for 60 years, has helped to write all conference rules, has helped to write the rules on voting, and has abided by every other vote over their 60 years in the conference, I just have a very difficult time believing they are going to get away with saying "we don't want to abide with this conference rule even though we actively participated and enforced everything else for the last 60 years."

Those fools are gonna pay up. In the end I expect them to be as miserable as WVU, who less than a year into their new conference is already complaining about scheduling and travel.

 

[7774]

I said they were ok with the previous lesser exit fees, as they voted in favor of those years prior.

I understand that there are often times in which the letter of the law runs completely counter-intuitively to common sense. But when Maryland has been a member institution for 60 years, has helped to write all conference rules, has helped to write the rules on voting, and has abided by every other vote over their 60 years in the conference, I just have a very difficult time believing they are going to get away with saying "we don't want to abide with this conference rule even though we actively participated and enforced everything else for the last 60 years."

Those fools are gonna pay up. In the end I expect them to be as miserable as WVU, who less than a year into their new conference is already complaining about scheduling and travel.

It's like you cannot grasp that there are U.S. laws about this.

 

[uconnfan68]

It isn't anymore punitive than the GoR that the Big 12 enacted last year.

The facts are that the ACC already had an exit fee that was passed under the conference rules that Maryland was always ok with. They voted to raise the exit fee last year. The vote passed under the rules that Maryland helped to write and never had a problem with. I don't know how a judge could tell the ACC that their longstanding conference rules about voting in new laws suddenly don't matter because one member is angry. Is every other vote that the ACC took suddenly up for judicial review?

IIRC, MD and FSU both voted against the new fees.

 

[BeanTownBob]

The whole case revolves around whether or not the liquidated damages clause (exit fee) is reasonable. Courts will refuse to enforce a liquidated damages provision when the clause goes beyond simply compensating the non-breaching party for its anticipated financial injury and instead unfairly penalizes the breaching party.

This is an interesting case because the damages associated with a departing school is extremely difficult to enumerate. Especially here where the exit fee is over 3x the ACC's annual operating budget.

What makes it more interesting is the fact that the Maryland president previously stated that the exit fee could be legally enforceable (obviously prior to their defection).

Because it is so difficult to actually prove the damages incurred I think they will settle well below the $52mill, especially because it is so significantly higher than any other conference exit fee. Maybe if the ACC had a TV network and a much higher revenue stream as a result it would be different. By that isn't the case here.

 

[uconnfan68]

Their next proactive move will once again reaffirm that the borders are secure. Look for news of an ACC network (probably backed by ESPN) to be announced in the coming months, with a financial package for ACC member schools that rivals the Big 10 network. Plus one thing the Big 10 network doesn't have, which is prime placement on basical digital cable packages thanks to ESPN.

I'm pretty sure this would be ruled against. I shouldn't need to pay the ACC for access to cable. And if I do, good-bye cable.

 

[Echo Hawk]

The ACC will not settle, and they shouldn't have to.

Maryland was a founding member of the ACC. They have been in the conference for something like 60 years. They had a hand in writing every rule the ACC operates by. They had a hand in writing the rule on how votes work among conference members.

So when the new ACC buyout was passed last year, it was passed under rules that Maryland helped write... rules that Maryland never had a problem with. Every other vote was fine by Maryland for the last 60 years. But this vote, because the outcome did not suit them, is suddenly not ok.

I don't see where Maryland has a leg to stand on in this suit. Sure they are butthurt over the new exit fees. But they have been completely fine with ACC voting rules for the entire existence of the ACC. How can they stand up in front of a judge and say "we suddenly don't like the rules we helped to right because they resulted in a vote passing despite our no vote"?

The ACC has withheld $3 Million in MD's share of the initial distribution of 2012-2013 TV gross revenue shares, because they say MD owes the ACC $53 Million. That's what triggered the lawsuit with anti-trust implications. They are also excluding MD from ACC meetings. (They must have learned something
from the departing Big East school's deceptive practices) The ACC is trying mightily, out of North Carolina Courts, to provide a disincentive for UVA, GT, UNC, and FL to leave. Not likely to work given that even if MD pays 53 million, the B10 contract will more than make up for it. The B10 simply bought MD - it's TV market really- and there is really not much the ACC can do about it. MD is win win, ACC is lose lose.

 

[husky210]

I hate everything about Maryland, hope they have to pay up.

Dumbest post ever

 

[Chief00]

I of course want MD to get out cheap and that will trigger more exits - after all is said and done - the ACC will essentially be a collection of former Big East Teams with a different conference name. All this silliness for that result minus MSG.