Sporting News: Realignment far from over, FSU source: If MD reduces exit fee, like "free agency"

[Rumrunner]

Burn ACC, burn.


@Matt_HayesSN
1st and 10: Realignment far from over. #FSU source on FSU if MD reduces $50 mill buyout: "It's almost like free agency." Soon @sportingnews

 

[minidarren]

If FSU bails after blocking UConn because of their football success or lack there of, my head may explode.

At the end if the day this is all extremely sad. Historical rivalries have been destroyed for the all mighty dollar. Its pure greed.

Just a sad time.

Sent from my DROID RAZR using Tapatalk 2

 

[Willy Gee]

what legal basis is there for reducing the exit fee?

 

[specialisthusky]

How long did the bc big east contract dispute last?

 

[Rumrunner]

http://aol.sportingnews.com/ncaa-fo...land-acc-50-million-buyout-sec-big-ten-pac-12

The dismantling of the ACC and strengthening of the Big Four is coming. The only things that can stop it are high-priced lawyers.

...




If that’s true, Maryland is the Curt Flood of college football. And it could lead to the one remaining mega move still out there: Florida State and Clemson to the Big 12.

If that happens, the two crown jewels of the ACC become available. Duke and North Carolina, which an ACC source said have been chased by the SEC for “the last three years,” will choose between the Big Ten and the SEC.

 

[UConn4ever]

what legal basis is there for reducing the exit fee?

Who cares we just need it to happen

 

[Jericho]

Sounds sketchy. Every single school except FSU and Maryland voted FOR the increased exit fees. So that alone would hurt any school's argument to pay less when trying to leave that's not FSU or Maryland. The mere fact these schools voted for the fee increase also suggests to me they don't want to leave. And its not like Maryland leaving should radically alter that. At best Maryland was the 5th or 6th best program in that conference. Louisville is reasonably equal. Until a bigger program leaves, there's no reason for anyone else to leave. Basically, it's up to FSU. And FSU had plenty of overtures BEFORE the fee increase. If they really wanted to leave, and leave under the old exit fee, they could easily have. They either did not want to or did not get an invite worth leaving for.

The article seems based on one random anonymous "FSU official" and his/her isolated quote. If exit fees were truly illegal, then why did TCU, West Virginia, Syracuse, Boston College, Nebraska, Missouri, Texas A &M, Colorado, Rutgers or Louisville pay them? Could none of them find a good lawyer? At best, you're arguing about the amount of the fees. And again, FSU could have left a year ago if they really had better options.

 

[Rumrunner]

Because if FSU leaves, Clemson leaves. It really is as simple as that.

There is no one who thinks Louisville is going to matter at all in FSU's decision-making.

Greed combined with fear are firmly on realignment/chaos's side.

 

[nelsonmuntz]

Sounds sketchy. Every single school except FSU and Maryland voted FOR the increased exit fees. So that alone would hurt any school's argument to pay less when trying to leave that's not FSU or Maryland. The mere fact these schools voted for the fee increase also suggests to me they don't want to leave. And its not like Maryland leaving should radically alter that. At best Maryland was the 5th or 6th best program in that conference. Louisville is reasonably equal. Until a bigger program leaves, there's no reason for anyone else to leave. Basically, it's up to FSU. And FSU had plenty of overtures BEFORE the fee increase. If they really wanted to leave, and leave under the old exit fee, they could easily have. They either did not want to or did not get an invite worth leaving for.

The article seems based on one random anonymous "FSU official" and his/her isolated quote. If exit fees were truly illegal, then why did TCU, West Virginia, Syracuse, Boston College, Nebraska, Missouri, Texas A &M, Colorado, Rutgers or Louisville pay them? Could none of them find a good lawyer? At best, you're arguing about the amount of the fees. And again, FSU could have left a year ago if they really had better options.

No one is saying they are illegal, but exorbitant penalties for contract violations do get beaten in court. Maybe it isn't $50MM, maybe it is $20MM.

I think the Big 10 and SEC have to be the next to move, because they are the only ones that can offer enough money such that a school will be willing to eat the $50MM exit fee if they can't beat it.

 

[uconnforlife]

the ACC, I hope this conference implodes around its own greed.

 

[nelsonmuntz]

The bad news here is if UVa is really waiting to see what happens with this penalty, then expansion is stopped cold for the next year or two.

 

[nelsonmuntz]

The bad news here is if UVa is really waiting to see what happens with this penalty, then expansion is stopped cold for the next year or two.

Scratch this thought. UVa voted for the $50MM. They basically have no case to beat it. They may be able to negotiate it down a little just because that's how these things work, but there is no chance of materially cutting it down.

Point is, either UVa is going to move on their own or they won't. The exit fee will not be changing any time soon, and UVa is unlikely to get it materially reduced.

 

[MattMang23]

what legal basis is there for reducing the exit fee?

Boston College.

 

[Jericho]

No one is saying they are illegal, but exorbitant penalties for contract violations do get beaten in court. Maybe it isn't $50MM, maybe it is $20MM.

I think the Big 10 and SEC have to be the next to move, because they are the only ones that can offer enough money such that a school will be willing to eat the $50MM exit fee if they can't beat it.

I get that. And I don't deny that there's an argument to be made. However, any precedent set would only really apply to FSU or Maryland. Every other school either voted for the fee or accepted the fee when they joined. That info changes the fact pattern and could be used to distinguish that school's legal right to pay from the Maryland case. And let's face it. Courts take time and this will almost certainly settle. So it's all much ado about nothing anyway.

 

[Excalibur]

what legal basis is there for reducing the exit fee?

Unenforceable liquidated damages, on the basis that it is not a reasonable estimate of damages suffered given the availability of replacement schools.

 

[uconnric]

However, any precedent set would only really apply to FSU or Maryland. Every other school either voted for the fee or accepted the fee when they joined.

Not neccessarily. If the exit fee is determined to be a "penalty" and not in line with actual damages (lotsa luck with trying to determine what actual damages would be) it could be reduced even for schools that voted for it.

 

[IthacaMatt]

Because if FSU leaves, Clemson leaves. It really is as simple as that.

There is no one who thinks Louisville is going to matter at all in FSU's decision-making.

Greed combined with fear are firmly on realignment/chaos's side.

Fla state doesn't leave unless its for the sec. The big 12 is not immune & is not that safe either.

 

[caw]

Fla state doesn't leave unless its for the sec. The big 12 is not immune & is not that safe either.

The ACC or Big 12 are the most vulnerable, the question is which (if either) will survive.

 

[IthacaMatt]

Not neccessarily. If the exit fee is determined to be a "penalty" and not in line with actual damages (lotsa luck with trying to determine what actual damages would be) it could be reduced even for schools that voted for it.

With the big 10 paying teams $10m+ compared to the acc per year, plus the impact on acc's stability & future bargaining power, the $50m fee doesn't seem out of line w actual harm. And that's before you add the new tv mkts to the btn

 

[caw]

With the big 10 paying teams $10m+ compared to the acc per year, plus the impact on acc's stability & future bargaining power, the $50m fee doesn't seem out of line w actual harm. And that's before you add the new tv mkts to the btn

But honestly, who knows.

 

[Dann]

md will speed up its talks with the acc as much as possible and pay a few mil more for it. the b10 is behind it so that they can get uva also sooner then later. once the md fee is done that number will give any school a small window time wise to use it as law. remember what cuse and pitt did? once one school makes a deal, the other writes the check for the number. who voted or didn't for the 50mil buyout doesn't matter after md exposes it. one of the no votes had to expose it becuase it gives a hughe chance the number comes way down. once exposed its game on and the acc can then redo its buyout to 50mil again but mus tthis time give its schools a chance to act. they didn't give schools achance to act the first time.

 

[junglehusky]

FWIW:

‏@theuconnblog
Liquidated damages clauses cannot be punitive. Liquidated damages clauses cannot be punitive. Liquidated damages clauses cannot be punitive.

 

[UConn Esq]

How a school actually voted, whether to increase the money or not, will not be an argument in court.

 

[caw]

md will speed up its talks with the acc as much as possible and pay a few mil more for it. the b10 is behind it so that they can get uva also sooner then later. once the md fee is done that number will give any school a small window time wise to use it as law. remember what cuse and pitt did? once one school makes a deal, the other writes the check for the number. who voted or didn't for the 50mil buyout doesn't matter after md exposes it. one of the no votes had to expose it becuase it gives a hughe chance the number comes way down. once exposed its game on and the acc can then redo its buyout to 50mil again but mus tthis time give its schools a chance to act. they didn't give schools achance to act the first time.

IF the B1G pulls UVA and gets the payout at a low cost, the new look ACC may be done before it even started. If they get UVA the B1G will need to pull one other team and that will be either UConn or an ACC team.

1. If UConn goes with UVA, the ACC will need to add one team and hope the football schools stick. They aren't stealing that team from the B12, SEC, PAC-12, or B1G so who is left but Cincy and USF or some other NBE team or Notre Dame (I would be shocked).
2. If not UConn, then it is likely UNC. If that is the case the ACC goes after UConn/Cincy/USF which likely won't appease the football schools.

Good news is that UConn likely ends up in the ACC or B1G but bad news is that it would likely be a very depleted ACC that would be mostly old BE schools but still better than the NBE and at least mostly free of non-football schools.

 

[Dann]

IF the B1G pulls UVA and gets the payout at a low cost, the new look ACC may be done before it even started. If they get UVA the B1G will need to pull one other team and that will be either UConn or an ACC team.

1. If UConn goes with UVA, the ACC will need to add one team and hope the football schools stick. They aren't stealing that team from the B12, SEC, PAC-12, or B1G so who is left but Cincy and USF or some other NBE team or Notre Dame (I would be shocked).
2. If not UConn, then it is likely UNC. If that is the case the ACC goes after UConn/Cincy/USF which likely won't appease the football schools.

Good news is that UConn likely ends up in the ACC or B1G but bad news is that it would likely be a very depleted ACC that would be mostly old BE schools but still better than the NBE and at least mostly free of non-football schools.

i agree. thats why i was waiting for the freak out here but its not worthy as we are in a good position. we still have b10 chances w/e they are % wise and the acc will always be there...