Maryland Lawsuit

[huskymedic]

http://www.newsobserver.com/2013/05...er-mds-acc-exit-goes.html?utm_medium=referral

The Associated Press

UPPER MARLBORO, Md. — A judge in Prince George's County will hear arguments in a lawsuit over the University of Maryland's withdrawal from the Atlantic Coast Conference.
Maryland announced in November that it will leave the ACC for the Big Ten in 2014. The ACC sued the school in North Carolina to make it pay a $52 million penalty for exiting the conference. Maryland responded by suing the ACC in a Maryland court, calling the penalty illegal.

The ACC is asking Maryland's lawsuit be dismissed or stayed until the lawsuit in North Carolina is concluded. Maryland says the withdrawal penalty would wipe out nearly its entire athletic budget and is illegal under Maryland antitrust law.

Arguments are scheduled for Thursday in Prince George's County Circuit Court.

Read more here: http://www.newsobserver.com/2013/05...t-goes.html?utm_medium=referral#storylink=cpy​

 

[UConnJim]

Here's a dream for all of us: By some strange twist of fate, Maryland decides to stay in the ACC resulting in a 15 team ACC and a 13 team Big 10!

Unfortunately, I just woke up.

 

[huskymedic]

alex_prewitt 4:14pm via Echofon ( University of Maryland writer for @PostSports )
Finished up in court. Arguments presented for both sides. Judge John Davey will provide a written opinion "as soon as possible."

alex_prewitt 4:25pm via Echofon
Assistant attorney general John Kuchno, who represented UMd., said the university still hasn't formally notified the ACC it's leaving.

alex_prewitt 4:25pm via Echofon
According to Kuchno, Maryland isn't required to do so until July 1 of the following year, so July 1, 2013.

 

[UConn Dan]

alex_prewitt 4:25pm via Echofon
Assistant attorney general John Kuchno, who represented UMd., said the university still hasn't formally notified the ACC it's leaving.

Saw that. They have till July 1st most likely. Would be awesome if they changed their mind but that's not going to happen.

 

[CL82]

Saw that. They have till July 1st most likely. Would be awesome if they changed their mind but that's not going to happen.

Yes.....and yes.

 

[juan]

Maybe this is why Calhoun said that we won't find a new conference until this gets settled. Either Maryland goes to B1G and ACC wants to add 16 or Maryland stays and UCONN goes to B1G.

 

[huskymedic]

Jeff Barker (@sunjeffbarker)
5/23/13, 8:04 PM
Here are the punches and counter punches from today's court hearing in the ACC-Maryland dispute.

http://touch.baltimoresun.com/#story/bs-sp-terps-acc-hearing-0523-20130523/

 

[The Funster]

Does anyone else find it fascinating that MD has not officially notified the ACC that it is leaving?

 

[UPitt]

Does anyone else find it fascinating that MD has not officially notified the ACC that it is leaving?

Not really. They will likely notify the ACC on the last possible day. Once notifying the ACC of departure they may lose voting rights, conference payouts, among other benefits of members.

 

[UPitt]

Saw that. They have till July 1st most likely. Would be awesome if they changed their mind but that's not going to happen.

Not going happen because they already committed to the B1G and probably signed the GOR, but equally funny scenario would be if they submitted the paperwork for leaving after the deadline. This could create an awesome legal battle between ACC and B1G with both conferences claiming the rights to Maryland in 2014.

 

[UConn9604]

Not going happen because they already committed to the B1G and probably signed the GOR, but equally funny scenario would be if they submitted the paperwork for leaving after the deadline. This could create an awesome legal battle between ACC and B1G with both conferences claiming the rights to Maryland in 2014.

...and each of its six wins in the last two years.

 

[specialisthusky]

Not really. They will likely notify the ACC on the last possible day. Once notifying the ACC of departure they may lose voting rights, conference payouts, among other benefits of members.

They already lost voting rights, payouts and the ability to attend ACC meetings...

 

[UPitt]

They already lost voting rights, payouts and the ability to attend ACC meetings...

Actually Maryland has attended ACC meetings since announcing they would be joining the B1G. Also, Maryland is owed money that the ACC has been holding hostage until the lawsuit plays out. Assuming Maryland loses the lawsuit, Maryland will be required to pay the $52 Million and the ACC will owe Maryland the money they have been withholding. Although the more likely scenario is a settlement somewhere in between.

 

[specialisthusky]

Actually Maryland has attended ACC meetings since announcing they would be joining the B1G. Also, Maryland is owed money that the ACC has been holding hostage until the lawsuit plays out. Assuming Maryland loses the lawsuit, Maryland will be required to pay the $52 Million and the ACC will owe Maryland the money they have been withholding. Although the more likely scenario is a settlement somewhere in between.

I may have been wrong on the meetings part because I can't find a link and may have been mixing it up with RU and Lville at the AAC meetings but the ACC's MTD specifically states "The ACC, on or around December 2012, exercised its right under Section IV-5 to "offset" UMD's approximately $52 million withdrawal payment by withholding approximately a$3 million distribution that otherwise would have been payable to UMD. See Compl., 11 68." Maryland is not getting paid right now. There is no money being held hostage. The ACC is simply taking Maryland's conference payouts.

 

[UPitt]

I may have been wrong on the meetings part because I can't find a link and may have been mixing it up with RU and Lville at the AAC meetings but the ACC's MTD specifically states "The ACC, on or around December 2012, exercised its right under Section IV-5 to "offset" UMD's approximately $52 million withdrawal payment by withholding approximately a$3 million distribution that otherwise would have been payable to UMD. See Compl., 11 68." Maryland is not getting paid right now. There is no money being held hostage. The ACC is simply taking Maryland's conference payouts.

I'm not sure if Maryland has attended every meeting since they announced departure, but I have read a few articles that mentioned them being at the meetings along with the new members. As for voting rights, I'm not sure how that is playing out. I would think they still have rights to vote if they are a member and have not given official notice of leaving, but not sure. The new members have been allowed to vote on at least some of the decisions. And as for the money, "hostage" is the wrong word to use. Maryland owes the ACC $52 million in exit fees. The ACC owes Maryland its portion of the revenue distribution. The ACC has withheld Marylands revenue distribution to help cover part of the exit fees owed. In the end, a settlement will be reached and it will factor in the $52 million owed by Maryland and the millions owed by the ACC to Maryland. The ACC withholding Marylands revenue was part of yesterdays court hearing.

 

[huskymedic]

They already lost voting rights, payouts and the ability to attend ACC meetings...

Actually Maryland has attended ACC meetings since announcing they would be joining the B1G. Also, Maryland is owed money that the ACC has been holding hostage until the lawsuit plays out. Assuming Maryland loses the lawsuit, Maryland will be required to pay the $52 Million and the ACC will owe Maryland the money they have been withholding. Although the more likely scenario is a settlement somewhere in between.

Not according to the above Sun article: "Maryland, which says it has been excluded from ACC meetings and decisions, has not provided the ACC official notice of its departure."

 

[UPitt]

Not according to the above Sun article: "Maryland, which says it has been excluded from ACC meetings and decisions, has not provided the ACC official notice of its departure."

I am not sure of the spring meetings, but Maryland did attend the winter meetings after announcing departure to the B1G. I'm sure Maryland has been excluded from some meetings within the ACC and Maryland is using this in the lawsuit.

Just a few links that reference Maryland in attendance.
http://espn.go.com/blog/acc/post/_/id/51815/acc-winter-meetings-begin-today
http://accfootballrx.blogspot.com/2.../my-thoughts-on-acc-winter-meetings-2013.html

 

[IthacaMatt]

Here's a dream for all of us: By some strange twist of fate, Maryland decides to stay in the ACC resulting in a 15 team ACC and a 13 team Big 10!

Unfortunately, I just woke up.

I'm getting the sense that's what's going to happen if Maryland can't defeat the exit fee. That would open up UConn to the Big 10. Maryland hasn't actually turned in their papers yet to formally withdraw from the ACC, leaving themselves a back-door back into the conference.

 

[bingethinker]

I'm getting the sense that's what's going to happen if Maryland can't defeat the exit fee. That would open up UConn to the Big 10. Maryland hasn't actually turned in their papers yet to formally withdraw from the ACC, leaving themselves a back-door back into the conference.

Put this on a very short list of things that will never, ever, ever happen. Maryland will be in the Big 10 in 2014 and the ACC chapter of its history will be closed forever.

 

[CL82]

Does anyone else find it fascinating that MD has not officially notified the ACC that it is leaving?

"Maryland has not yet filed an official notice and need not do so before Aug. 15, 2013, in order to join the Big Ten Conference in 2014," Kuchno said in a motion filed recently with the court. "Maryland is not presently subject to the Withdrawal Penalty (regardless of its enforceability) and remains an ACC member with full rights and privileges," the motion said.

Why subject yourself to penalty sooner than necessary?

 

[CL82]

Put this on a very short list of things that will never, ever, ever happen. Maryland will be in the Big 10 in 2014 and the ACC chapter of its history will be closed forever.

I would said that prior to the GOR and subsequent umpteenth ESPN renegotiation of their TV deal. All of a sudden, staying the ACC might not be an unacceptable option. Still think it is very unlikely, however.

 

[WestCoastHusky]

Let's hope the Terps stay in the ACC where they belong. It would be good for us.

 

[btstimpy]

I'm getting the sense that's what's going to happen if Maryland can't defeat the exit fee. That would open up UConn to the Big 10. Maryland hasn't actually turned in their papers yet to formally withdraw from the ACC, leaving themselves a back-door back into the conference.

Why would the ACC want somebody back that they can't trust? Maryland's negotiation with the Big Ten was done under non-disclosure where it came very close to or probably did violate Maryland law. Then Maryland proceeded to publicly say that they did not intend to follow the bylaws of the ACC on their way out. Nothing Maryland did was on the up and up, and the Big Ten was culpable in some of it. I don't see the ACC taking Maryland back. The ACC has already replaced Maryland.

 

[bingethinker]

I would said that prior to the GOR and subsequent umpteenth ESPN renegotiation of their TV deal. All of a sudden, staying the ACC might not be an unacceptable option. Still think it is very unlikely, however.

The ACC is bumbling. Like...look at everything its done since 2003 has been about simply not becoming the old Big East. With the recent revelations about the would-be ACC Network likely not happening due to the stupid digital rights deal Swofford made with Raycom (his son is the Dir. of the New Digital Media department), it's clear that the ACC is still very much the same ole ACC. He's done nothing but made short-sighted decisions that really only impact Duke and Carolina. Fans at Clemson and Florida State, et al have a right to be upset that their school signed onto a GoR that doesn't make very much sense for their schools. As a Maryland fan, I'll miss the old ACC, the 9-member ACC. This new ACC + old Big East conglomerate can kick rocks.

 

[bingethinker]

Why would the ACC want somebody back that they can't trust? Maryland's negotiation with the Big Ten was done under non-disclosure where it came very close to or probably did violate Maryland law. Then Maryland proceeded to publicly say that they did not intend to follow the bylaws of the ACC on their way out. Nothing Maryland did was on the up and up, and the Big Ten was culpable in some of it. I don't see the ACC taking Maryland back. The ACC has already replaced Maryland.

Maryland went through the same process every other university that's switched conferences in the last decade went through. It decided to leave, then said...oh, well we really don't think we owe the ACC over $50mm in damages, so they went to court. What's not on the up and up about that? It's the same process Connecticut would have gone through if it were asked to join another conference.