Mediator assigned in Maryland vs. ACC lawsuit

[B1GALUM]

"The University of Maryland and the Atlantic Coast Conference, in the latest step in their ongoing litigation, have mutually agreed upon a mediator to discuss the possibility of a settlement, according to the latest court filing issued Monday morning." http://www.washingtonpost.com/blogs...maryland-vs-acc-lawsuit/?wpmk=MK0000203&clsrd

 

[Carl Spackler]

"The University of Maryland and the Atlantic Coast Conference, in the latest step in their ongoing litigation, have mutually agreed upon a mediator to discuss the possibility of a settlement, according to the latest court filing issued Monday morning." http://www.washingtonpost.com/blogs...maryland-vs-acc-lawsuit/?wpmk=MK0000203&clsrd

ESPN/Disney not going to want any discovery process to get in full swing. This will settle quick now.

 

[SAMCRO]

ESPN/Disney not going to want any discovery process to get in full swing. This will settle quick now.

Yup. Don't know how quick it will go, but the world wide leader definitely did not want this going to discovery.

My guess is UMd will pay the exit fee amount they agreed to (before the big hike they voted no to), and forfeit whatever has been withheld to date.

 

[CL82]

On a related point, for those who are interested, this article explains the vulnerability in a GOR reasonably well.

 

[CL82]

Yup. Don't know how quick it will go, but the world wide leader definitely did not want this going to discovery.

My guess is UMd will pay the exit fee amount they agreed to (before the big hike they voted no to), and forfeit whatever has been withheld to date.

I doubt it. That number is too close to paying the full nut. I think it will be $20 mil or less. It might well be far less given that there are no actual damages.

 

[Husky92]

On a related point, for those who are interested, this article explains the vulnerability in a GOR reasonably well.

That's a fascinating article that undermines the "GOR is unbreakable" argument. Not sure what it has to do with this thread, specifically, but a great article nonetheless.

 

[bobbyinaz]

I'm sure stimpy will be here any minute telling us that this is a desperate attempt by UMD to avoid paying what they owe

 

[btstimpy]

I'm sure stimpy will be here any minute telling us that this is a desperate attempt by UMD to avoid paying what they owe

The entire case is. There actually isn't anything else to it.

 

[woomba]

Why agree to mediation if there's no risk?

 

[bobbyinaz]

The entire case is. There actually isn't anything else to it.

Go away

 

[Gfunk]

The entire case is. There actually isn't anything else to it.

Just switch the colors & redo your profile picture, this better suits UVa football & hoops.

http://jsportsblogger.files.wordpress.com/2012/07/tampa-bay-buccaneers-old-logo.jpg

 

[Pat125]

I'm sure stimpy will be here any minute telling us that this is a desperate attempt by UMD to avoid paying what they owe

This seems to be a clear indication that the ACC is not going to get the $53 million they are seeking. Big time ACC apologists and Swofford bootlickers appear to be the only ones that still think the ACC is entitled to that amount.

Any president of a college in the same situation who didn't fight the exit fee would have been considered grossly incompetent. It looks like Maryland's efforts are not only far from desperate, but is paying off.

I'm guessing the final settlement will be somewhere between $15 and $25 million.

 

[kyleslamb]

On a related point, for those who are interested, this article explains the vulnerability in a GOR reasonably well.

One of his points I've been making for well over a year with no luck. Basically I've been saying all along that what people don't realize is that a GOR is in place to protect the media partner, not the league. He eloquently points out that ESPN can't really claim damages if they don't lose inventory. If a team goes to another league of which they already own the media rights, there are no damages.

Of course the bigger point here is that if a team leaves a league, they still must be compensated for their rights to fulfill the consideration. But now I have opened the floodgates: here come the Big 12 fans to tell me how ironclad the GOR is.

 

[Seaa Blue]

Of course the bigger point here is that if a team leaves a league, they still must be compensated for their rights to fulfill the consideration. But now I have opened the floodgates: here come the Big 12 fans to tell me how ironclad the GOR is.

Hypothetically, how would one calculate the compensation due to the exiting school?

 

[TerryD]

This seems to be a clear indication that the ACC is not going to get the $53 million they are seeking. Big time ACC apologists and Swofford bootlickers appear to be the only ones that still think the ACC is entitled to that amount.

Any president of a college in the same situation who didn't fight the exit fee would have been considered grossly incompetent. It looks like Maryland's efforts are not only far from desperate, but is paying off.

I'm guessing the final settlement will be somewhere between $15 and $25 million.

I have been predicting $27 million for months now.

 

[CL82]

That's a fascinating article that undermines the "GOR is in breakable" argument. Not sure what it has to do with this thread, specifically, but a great article nonetheless.

The weakness described in enforcing a GOR, is a equally applicable to the (excess) ACC exit fee.

 

[kyleslamb]

Hypothetically, how would one calculate the compensation due to the exiting school?

It basically depends on the bylaws and how the conference media revenue is normally distributed. If the league distributes as a set fee in proportion to the number of units, then it would be based on that. If it's equal shares, then it would continue to be distributed equally even if the Big 12 adds another team.

The Big 12 tweaked the bylaws to say it would not pay out media distribution to non-members, but since it contradicts the grant of rights, which is contingent upon the consideration of retained rights, they're simply hoping leagues would be scared off since the school would have to litigate to receive payment once they're cut off. If they continued paying, it wouldn't deter conferences too much since they could theoretically just deduct the school's share from its old league out of its new league's share.

 

[Stinger92860]

I doubt it. That number is too close to paying the full nut. I think it will be $20 mil or less. It might well be far less given that there are no actual damages.

I wonder how much the legal fees and ediscovery costs are for Maryland. This could also be driving arbitration and potentially settlement.

 

[Stray_Dog]

I have been predicting $27 million for months now.

Typical of ND football, the number is over-inflated!

 

[Willy Gee]

On a related point, for those who are interested, this article explains the vulnerability in a GOR reasonably well.

That "lawyer" does not know what he is talking about. This statement, for instance, comes from fantasy land:

"A grant of rights is a contract between each individual school and the conference pledging the school's media rights to conference for a number of year. Like all contracts, it can be broken. School X, member of Conference A who has granted its media rights to Conference A, thinks it can make more money in Conference B. So School X leaves Conference A for Conference B placing its media rights in Conference B. Now School X's games will be distributed by both confernces. At this point School X has breached the grant of rights agreement, Conference A will sue School X over the media rights under the grant of rights agreement."

Conference B would never accept an institution like Team X which had granted its media rights to another conference. That just aint gonna happen. If anything, Conference B would insist that School X negotiate out of the GOR first.

 

[Da_Aisijimo_Gou]

The entire case is. There actually isn't anything else to it.

What you incorrectly view as Maryland's desperation is far more likely the ACC, ESPN, and their comrades saving face, avoiding discovery, acknowledging they would not win a court case, acquiesing, and accepting a more reasonable decision on a lower mediatiated exit payment.

To believe otherwise requires believing Swofford. ACC presidents, ADs, etc., and ESPN want to undress themselves in court. With respect to discovery, precisely what is it which impedes you from understanding such clarity?

 

[nelsonmuntz]

On a related point, for those who are interested, this article explains the vulnerability in a GOR reasonably well.

This is like having the local guy that handled your refi explain a billion dollar plus media contract. He is mostly missing the point of the GOR. A GOR simply means that the rights to a schools games are sold in return for some amount of money. Revoking a GOR is roughly equivalent to selling your house, and then trying to get it back a couple of years later because someone else will pay you more for it. Once the media right are sold, they are sold. There is no getting them back.

Aerosmith, Boston and George Michael flushed years of the prime of their careers in pissing matches over rights that they ended up losing. Someone on this board once used Prince as an example of an artist that beat his rights contract, but he never beat Warner Brothers. He just rushed a bunch of albums out the door to finish off his contract. Billy Joel got out of his deal only when a larger studio threatened to break Joel's producers' legs. There is no equivalent way to beat a GOR in college athletics to do what Billy Joel or Prince did. The only time the talent wins is when there is a dispute over the accounting (James Garner and the Rockford Files is an example).

Unless there is something inside these particular GOR's that we are not aware of, there is no getting out of them.

 

[Da_Aisijimo_Gou]

I wonder how much the legal fees and ediscovery costs are for Maryland. This could also be driving arbitration and potentially settlement.

Of course, but Maryland's opponents, the ACC, school presidents, ADs, etc, and their ESPN comrades are much more likely to lose in discovery. Maryland cuts their costs, financial and otherwise, and the ACC comrades avoid discovery and potentially broader resulting civil issues at the expense of lower exit fee revenues from the Turtles.

 

[nelsonmuntz]

What you incorrectly view as Maryland's desperation is far more likely the ACC, ESPN, and their comrades saving face, avoiding discovery, acknowledging they would not win a court case, acquiesing, and accepting a more reasonable decision on a lower mediatiated exit payment.

To believe otherwise requires believing Swofford. ACC presidents, ADs, etc., and ESPN want to undress themselves in court. With respect to discovery, precisely what is it which impedes you from understanding such clarity?

I agree. If it wasn't for bad behavior by Swofford, the ACC and ESPN, Maryland would be forking over $53MM or something very close to it based on the contract alone.

 

[CTMike]

This is like having the local guy that handled your refi explain a billion dollar plus media contract. He is mostly missing the point of the GOR. A GOR simply means that the rights to a schools games are sold in return for some amount of money. Revoking a GOR is roughly equivalent to selling your house, and then trying to get it back a couple of years later because someone else will pay you more for it. Once the media right are sold, they are sold. There is no getting them back.

Aerosmith, Boston and George Michael flushed years of the prime of their careers in pissing matches over rights that they ended up losing. Someone on this board once used Prince as an example of an artist that beat his rights contract, but he never beat Warner Brothers. He just rushed a bunch of albums out the door to finish off his contract. Billy Joel got out of his deal only when a larger studio threatened to break Joel's producers' legs. There is no equivalent way to beat a GOR in college athletics to do what Billy Joel or Prince did. The only time the talent wins is when there is a dispute over the accounting (James Garner and the Rockford Files is an example).

Unless there is something inside these particular GOR's that we are not aware of, there is no getting out of them.

If the games haven't been played and the money not yet paid, then your house analogy falls flat.