Maryland’s $157 million counterclaim: ACC recruited B1G schools

[btstimpy]

How many schools were required to impose that comical exit fee on schools that wants no part of it?

If you're talking about Maryland, the fee is in place by motion of Dr. Wallace Loh of Maryland in 2010. He made the motion personally to set the Exit Fee at $20 million. He then voted against raising it in 2011 because he was probably already talking to the Big Ten. Maryland originally very much wanted part of it, and they voted when becoming members of the conference to abide by the bylaws of the conference which determines how many votes are required by the Council of Presidents to pass bylaws, change bylaws, and conduct business.

I don't want any part of Obamacare. Why is this comical thing imposed on me? But I understand how legislation is passed. Same difference.

 

[kingdobbs]

I just remembered that Pitt was public... I always forget that since everything with them screams small time.

Pitt is semi-public.

It receives public funding as part of the state's Commonwealth System, but is managed by is board of trustees without operational oversight from the state government.

They are still definitively exempt from PA's open records laws, though.

 

[btstimpy]

And WVU, Pitt and Syracuse all had 27 month waiting periods before they could leave. It was clearly written in a contract they voted for and without debate... oh... wait....rats.... I guess contracts aren't always ironclad.

All three negotiated with the Big East to pay more money to the Big East to shorten the 27 months. The ACC isn't actually asking Maryland to pay more than the bylaws state. Maryland didn't try to leave early.

Now I think Rutgers is suing the AAC to pay less than is specified in the AAC bylaws. Louisville has already negotiated their exit, but I think Rutgers is trying to get out of their obligations to the AAC. I haven't looked at that lawsuit in a while.

 

[The Viking]

If you're talking about Maryland, the fee is in place by motion of Dr. Wallace Loh of Maryland in 2010. He made the motion personally to set the Exit Fee at $20 million. He then voted against raising it in 2011 because he was probably already talking to the Big Ten. Maryland originally very much wanted part of it, and they voted when becoming members of the conference to abide by the bylaws of the conference which determines how many votes are required by the Council of Presidents to pass bylaws, change bylaws, and conduct business.

I don't want any part of Obamacare. Why is this comical thing imposed on me? But I understand how legislation is passed. Same difference.

Why are you talking about 20 million when I'm talking 52 million?
I'm just curious how many schools it take to impose a incredibly hefty exit fee on those who disagree.

 

[btstimpy]

Yes, but Maryland is arguing 1) that other conferences don't have exit fees (and doesn't even mention grant of rights whatsoever) or have minimal exit fees (old Big East) and that the ACC's are punitive/damaging, and 2) that the new exit fee was not properly implemented according to the ACC Constitution (read the lawsuit for detail).

Maryland is trying to settle and they make valid points. Ultimately this will settle. Not sure what it means for the ACC exit fee or the grant of rights.

The major thing I am taking away from this whole thing is that the ACC is still looking to add. More movement/chaos will eventually be good for UConn because nothing has been good for UConn to-date.

What motivation is there for this to settle? The ACC's lawsuit in North Carolina is about having the North Carolina Judiciary uphold the bylaws of the ACC under North Carolina law as binding. Collecting any money is beside the point. The ACC may choose not to try to collect any money past the $30+ million offset that the ACC will have collected from Maryland's share by July, 2014. That may be determined later. But the ACC still wants the Supreme Court of North Carolina to declare the ACC bylaws binding. I don't see a motivation to settle.

This new Maryland lawsuit is a side show.

 

[huskymedic]

I'm just curious how many schools it take to impose a incredibly hefty exit fee on those who disagree.

It was a 10-2 vote by the ACC Council of Presidents to raise the exit fee. FSU was the other dissenter.

 

[CL82]

If their entire basis of collusion claim is Mean gene's quote...that's not gonna do it.

Maybe not, but it opens the door to some interesting discovery.

 

[SubbaBub]

I agree - that's the meatiest thing in there, there were some non-specific mentions of ESPN providing counsel on what additions would benefit the ACC, but I think that's typical. If I were looking to add schools to my conference, I would discuss with my TV partner on what schools would raise the payout too.

No, but if you had access to Flippy's email, I am sure there'd be more than enough info.

 

[CL82]

Rut Roh ACC.

 

[The Viking]

It was a 10-2 vote by the ACC Council of Presidents to raise the exit fee. FSU was the other dissenter.

What is required, 2/3? 3/4?
Is part of Maryland's suit that the exit fee has to be reasonable in nature

 

[CL82]

Well what do you know? HFD was right we did turn down the ACC.

 

[specialisthusky]

Will all the ACC fans use GDF's line when this is settled...."TV-ESPN - is the one who told us what to do."

This thing will be resolved in 6 months. No way ESPN is going to allow the ACC to drag its feet and allow UMD to depose anyone there. Whether illegal or not, I think ESPN has secrets in this CR saga that they do not want exposed.

Didn't the ACC withhold 20 something million of UMD's tv revenue this season?

I am calling a mutual walk away with ACC holding on to those funds within 6 months.

 

[CL82]

Knew this was coming:

 

[CL82]

But I don't like this at all for obvious reasons:

 

[CL82]

It is bad for Connecticut, if this issue is decided in Maryland's favor, although maybe not since the Big East's withholding was pursuant to a settlement agreement and in lieu of exit fees.

 

[businesslawyer]

If their entire basis of collusion claim is Mean gene's quote...that's not gonna do it.

As I've said for years, that quote itself is admissable as an admission against interest and gets you past summary judgment. What you can get a jury to believe at trial, who knows. Who ever knows.

 

[CL82]

I'll go through the rest tonight, but as far as I've gotten, Maryland has made a solid case for itself. IMO

 

[TRest]

As I've said for years, that quote itself is admissable as an admission against interest and gets you past summary judgment. What you can get a jury to believe at trial, who knows. Who ever knows.

It is also the door to all sorts of discovery, even if it results in no further evidence. As others have noted, not a door Swofford and ESPN would wish to open.

 

[UConn Dan]

View attachment 4765

It is bad for Connecticut, if this issue is decided in Maryland's favor, although maybe not since the Big East's withholding was pursuant to a settlement agreement and in lieu of exit fees.

I'm no lawyer, but I think the Big East (er American) is safe since this was negotiated as part of the early exit and those schools retaining the rights to the Big East name, etc.

Either way, I would imagine this won't go to trial and there will be a settlement in 20 minutes (er 6 months).

 

[The Viking]

Agree with others, Espn and the Acc know that they can't allow this to get far. It will be settled pretty quickly although I'd love for Maryland to go through with this.
It sickens me that espn is sitting in our backyard as a campus 45 minutes away burns like no other in the CR blaze

 

[huskymedic]

It was a 10-2 vote by the ACC Council of Presidents to raise the exit fee. FSU was the other dissenter.

What is required, 2/3? 3/4?
Is part of Maryland's suit that the exit fee has to be reasonable in nature

2/3 from what I read.

 

[Vowelguy]

NW and Penn St are my guess for the 2 B1G targets. We had heard about PSU in the past. NW from a smaill private school pov that fits with other ACC schools and gets them a local team for ND to play in all other sports (no way they're getting OSU, UM, MSU to come, and no way would their targets be IU, PU, UI or anyother B1G schools this side of the Mississippi.

Definitely Penn St, and thus explains the B1Gs move to add MD and RU to shore up its eastern flank.
ND surely has interest in Chicago, and I could see the ACC as well, thus making NW seem like a distinct possibility. I can't see any other school being viable.

 

[Husky92]

All three negotiated with the Big East to pay more money to the Big East to shorten the 27 months. The ACC isn't actually asking Maryland to pay more than the bylaws state. Maryland didn't try to leave early.

Now I think Rutgers is suing the AAC to pay less than is specified in the AAC bylaws. Louisville has already negotiated their exit, but I think Rutgers is trying to get out of their obligations to the AAC. I haven't looked at that lawsuit in a while.

What I'm saying is that even in a contract, all things are negotiable. The Big East negotiated with the three leaving schools because there was no way WVU was going to honor its contract. Just as there is no way Maryland is going to end up paying the full exit fee.

We screamed 'til we were blue in the face, "but the contract clearly states...!" just like you are. In the end, it didn't matter then and it wont now. Right or wrong, Maryland will get out for much less.

 

[UConn Dan]

What I'm saying is that even in a contract, all things are negotiable. The Big East negotiated with the three leaving schools because there was no way WVU was going to honor its contract. Just as there is no way Maryland is going to end up paying the full exit fee.

We screamed 'til we were blue in the face, "but the contract clearly states...!" just like you are. In the end, it didn't matter then and it wont now. Right or wrong, Maryland will get out for much less.

Yes. I think $25 million is the number.

 

[Stinger92860]

If their entire basis of collusion claim is Mean gene's quote...that's not gonna do it.

True, but it will be interesting to see what surfaces in discovery.