https://twitter.com/RossDellenger/status...2760556985

MAN YOUR STATIONS

(12-22-2023 11:24 AM)green Wrote:  

https://twitter.com/RossDellenger/status...2760556985

MAN YOUR STATIONS

Welcome back green.

In 2022, one ACC athletic director told ESPN: "There would be a hell of a court fight, I will tell you that."

https://www.espn.com/college-football/st...ain-future

Let the war begin.

FSU dropped a few bombshells from the ACC/ESPN Media Rights Contract, including this:

Quote:The ACC is not guaranteed any television revenue after 2027 — something that was unable to be known unless members took the time to fly to Charlotte and review the locked-down contract. ESPN has a unilateral right to extend the ACC’s media deal after 2027 but hasn’t exercised that option yet...

Their lawyers will try to show the ACC failed them in some way (which may be true), but I also think this might be something the ACC can point to as evidence that the conference will, in fact, be damaged by FSU pulling out -- thus justifying both the exit fee and any GoR settlement monies.

More on the FSU claims, as well as the ACC's response, here:
https://accfootballrx.blogspot.com/2023/...t-acc.html

This is not a 'declaration of war.' Sheesh. So melodramatic.

It's a settlement of the cost of exit. Florida State is out.

I believe the total was $572 Million?

(12-22-2023 12:58 PM)Gitanole Wrote:  This is not a 'declaration of war.' Sheesh. So melodramatic.

It's a settlement of the cost of exit. Florida State is out.

Wishful thinking by an FSU fan — We sue so they end up settling for some price we can live with and we can go join some other conference and end up making more money and enjoying more football glory.

The ACC has no motivation to settle. Period. Settle at a price FSU can live with and the conference is dead.

What other conference would want a school that just proved that it won’t abide by contracts it signs? Every conference depends upon GORs. The SEC, B10 and B12 don’t want to see a school wriggle out of its GOR because it endangers them as well.

(12-22-2023 01:22 PM)XLance Wrote:  I believe the total was $572 Million?

Not if there's no T1 contract past 2027. That makes the value of the GoR somewhere around $328 million, give or take.

Had Florida State made the playoff, the school would have still challenged the grant of rights at some point in 2024. At its board meeting in August, trustee Justin Roth asked for an exit plan to leave the ACC by August 2024.

How much would leaving the ACC cost?
In the lawsuit, Florida State estimates it would cost $572 million to leave the ACC without a legal victory or settlement. It would forfeit $429 million in media rights through 2036, when the ACC contract with ESPN expires; $13 million in unreimbursed broadcast fees; and an exit fee of $130 million (three times the league's total operating budget)

What happens to the ACC if FSU leaves?
There is one caveat to all of this. The lawsuit claims that the ACC's current deal with ESPN contains a unilateral option for the TV network in 2027 that must be exercised by February 2025 to extend the deal to 2036. So, if that were the case, ESPN could walk away from the deal in 14 months. Although the grant of rights is a separate document from the television contract, the two are tied together. If ESPN walks away, does that mean the grant of rights is no longer valid because there is no longer a multimedia rights deal? Or does the grant of rights carry on through 2036 no matter what? That remains unclear.

What comes next?
Under the Florida rules of civil procedure, the ACC has 20 days to file a response, which could be a motion to dismiss. Because of the holidays, the league could ask for an extension of 30 days. There are several potential outcomes to watch for: a summary judgment motion, in which a judge decides the outcome of the contract; mediation in which the ACC and Florida State work out their differences; a negotiated settlement; or a jury trial, which would happen if both sides continue to litigate with no end in sight. What remains unknown right now is what approach the ACC will take to fight this in court. The league could ask for a judge to dismiss the case with one simple argument: Florida State willingly signed the grant of rights twice: in 2013, and then again in 2016 when the league's long-term deal with ESPN was announced.

Those briefed on the discussions are not expecting this to be resolved quickly.


What is a timeline for an ultimate resolution here?
One ACC AD told ESPN, realignment has ruined the past two summers, and they already told their staff not to let this latest unrest unravel any holiday plans. The takeaway: This is just the start of a very, very long process.

The majority of administrators who spoke with ESPN said they expected it would be at least two to three years before any final resolution, and given the dollar figures at stake and the existential threat FSU's departure presents to the league, neither side has much incentive to roll over without a serious fight.

Where could FSU end up?
One wild-card scenario out there. If a judge rules in favor of Florida State, the school would be forced to withdraw from the ACC and leave the league at the end of that athletic year. If that happens before the SEC or Big Ten is ready to expand, the Big 12 would be the only option remaining.

It is important to note here that the entire reason the ACC pushed for its schools to sign a grant of rights is because Florida State flirted with leaving the league in 2012 for ... the Big 12.

Link
https://www.espn.com/college-football/st...s-answered

(12-22-2023 12:57 PM)Hokie Mark Wrote:  FSU dropped a few bombshells from the ACC/ESPN Media Rights Contract, including this:

Quote:The ACC is not guaranteed any television revenue after 2027 — something that was unable to be known unless members took the time to fly to Charlotte and review the locked-down contract. ESPN has a unilateral right to extend the ACC’s media deal after 2027 but hasn’t exercised that option yet...

It's over if the rights are only until 2027. That's a wrap for the ACC. Hope we make it to a P2. Hope Clemson, VT, FSU, and UNC are coming along if it's GT to the B1G. Hope Boo Corrigan and NCST get left behind. Hope a home for WF as an all-but-FB can be found in the SEC or B1G.

Sent from my Pixel 4a (5G) using CSNbbs mobile app

(12-22-2023 02:10 PM)Hokie Mark Wrote:  

(12-22-2023 01:22 PM)XLance Wrote:  I believe the total was $572 Million?

Not if there's no T1 contract past 2027. That makes the value of the GoR somewhere around $328 million, give or take.

What does Florida State’s lawsuit against the ACC seek?
The suit does not outright say it plans to withdraw from the league but wants the court to essentially wipe out prohibitive penalties the Seminoles would face under the current disputed agreements if they left the ACC now:

∎ A $130 million withdrawal penalty, calculated as three times the ACC's $43.3 million operating budget in 2023.
∎ $429 million in forfeited media rights under its grant-of-rights agreement with the league through 2036, calculated at $33 million per year.

Those penalties and $13 million for unreimbursed broadcast fees add up to a total withdrawal penalty of $572 million, according to the complaint.

Link
https://www.usatoday.com/story/sports/nc...008839007/

(12-22-2023 02:24 PM)GTFletch Wrote:  

(12-22-2023 02:10 PM)Hokie Mark Wrote:  

(12-22-2023 01:22 PM)XLance Wrote:  I believe the total was $572 Million?

Not if there's no T1 contract past 2027. That makes the value of the GoR somewhere around $328 million, give or take.

What does Florida State’s lawsuit against the ACC seek?
The suit does not outright say it plans to withdraw from the league but wants the court to essentially wipe out prohibitive penalties the Seminoles would face under the current disputed agreements if they left the ACC now:

∎ A $130 million withdrawal penalty, calculated as three times the ACC's $43.3 million operating budget in 2023.
∎ $429 million in forfeited media rights under its grant-of-rights agreement with the league through 2036, calculated at $33 million per year.

Those penalties and $13 million for unreimbursed broadcast fees add up to a total withdrawal penalty of $572 million, according to the complaint.

Link
https://www.usatoday.com/story/sports/nc...008839007/

Please Note this number is low that favors FSU (∎ $429 million in forfeited media rights under its grant-of-rights agreement with the league through 2036, calculated at $33 million per year.)

ACC will share Top end Media Value once the lawsuit gets going after figuring out what state will hear the suit (Florida or NC), but know that that ACC's number is going to be higher as the ACC paid out avg of 39M per school in 2021-22... so the ACC number will be 550-750M.

Link
https://richmond.com/sports/college/teel...4f72d.html

Is challenging the GoRs the same as withdrawing from the ACC?

(12-22-2023 02:10 PM)Hokie Mark Wrote:  

(12-22-2023 01:22 PM)XLance Wrote:  I believe the total was $572 Million?

Not if there's no T1 contract past 2027. That makes the value of the GoR somewhere around $328 million, give or take.

An option to extend need not be triggered a decade in advance to be valid and for the existing contract to be the basis for that extension. FSU would have you believe something that is not a normal business practice because explicit language is not in place. Explicit language is necessary. Furthermore, I suspect the binding language is in the ACCN contracts.

FSU teases apart three or four agreements and attempts to beguile you with the individual agreement instead of dealing with the documents as a bundle of contracts that are interconnected. Good luck with that.

(12-22-2023 03:09 PM)Garrettabc Wrote:  Is challenging the GoRs the same as withdrawing from the ACC?

No.

But your behavior and language is the same as attempting to notice an exit and an attempt to devalue the league. Mecklenburg County courts will explain it to you.

Your behavior is under NC law the same as any other horses ass who seeks to disrupt a non-profit with only a personal motivation and not a mission related motivation. As such the other members in good standing will eventually be able to toss you out from the decision making activities of the board.

Your distributions will be headed to a trust to be held and you will find it difficult to get the office to cooperate on your schedules. I can't wait to see the officiating in the future.

(12-22-2023 03:09 PM)Garrettabc Wrote:  Is challenging the GoRs the same as withdrawing from the ACC?

No/Kinda..... The deal is this..120M to withdraw from the ACC. The GOR allow the ACC to keep the media $$ of the departing school through 2036 (maybe 2027?) So to leave the ACC and sign a new media deal (ACC will still get that departing teams media revenue each year through 2036) will require getting out of the GORs via lawsuit or settlement.

So it would make no sense just to withdraw and allow the ACC to keep the media money... So FSU has to pay the exit fee and now the media dollars.

Smells like FSU is going for 200-250M settlement. It will be interesting what the ACC does. (it appears they will fight to the death)

(12-22-2023 02:24 PM)GTFletch Wrote:  

(12-22-2023 02:10 PM)Hokie Mark Wrote:  

(12-22-2023 01:22 PM)XLance Wrote:  I believe the total was $572 Million?

Not if there's no T1 contract past 2027. That makes the value of the GoR somewhere around $328 million, give or take.

What does Florida State’s lawsuit against the ACC seek?
The suit does not outright say it plans to withdraw from the league but wants the court to essentially wipe out prohibitive penalties the Seminoles would face under the current disputed agreements if they left the ACC now:

∎ A $130 million withdrawal penalty, calculated as three times the ACC's $43.3 million operating budget in 2023.
∎ $429 million in forfeited media rights under its grant-of-rights agreement with the league through 2036, calculated at $33 million per year.

Those penalties and $13 million for unreimbursed broadcast fees add up to a total withdrawal penalty of $572 million, according to the complaint.

Link
https://www.usatoday.com/story/sports/nc...008839007/

If FSU wins that case, doesn't that essentially blow up ALL Grant-of-Rights contracts everywhere? In turn, doesn't that mean TV networks can no longer sign with whole conferences? So EVERY team will become... independent? (Terry should love that)

(12-22-2023 02:19 PM)georgia_tech_swagger Wrote:  

(12-22-2023 12:57 PM)Hokie Mark Wrote:  FSU dropped a few bombshells from the ACC/ESPN Media Rights Contract, including this:

Quote:The ACC is not guaranteed any television revenue after 2027 — something that was unable to be known unless members took the time to fly to Charlotte and review the locked-down contract. ESPN has a unilateral right to extend the ACC’s media deal after 2027 but hasn’t exercised that option yet...

It's over if the rights are only until 2027. That's a wrap for the ACC. Hope we make it to a P2. Hope Clemson, VT, FSU, and UNC are coming along if it's GT to the B1G. Hope Boo Corrigan and NCST get left behind. Hope a home for WF as an all-but-FB can be found in the SEC or B1G.

Sent from my Pixel 4a (5G) using CSNbbs mobile app

I guess I'm a glutton for punishment Swagger, but I have to ask: who do you want if it's GT to the SEC (as unrealistic as it may be)?

(12-22-2023 11:11 PM)DawgNBama Wrote:  

(12-22-2023 02:19 PM)georgia_tech_swagger Wrote:  

(12-22-2023 12:57 PM)Hokie Mark Wrote:  FSU dropped a few bombshells from the ACC/ESPN Media Rights Contract, including this:

Quote:The ACC is not guaranteed any television revenue after 2027 — something that was unable to be known unless members took the time to fly to Charlotte and review the locked-down contract. ESPN has a unilateral right to extend the ACC’s media deal after 2027 but hasn’t exercised that option yet...

It's over if the rights are only until 2027. That's a wrap for the ACC. Hope we make it to a P2. Hope Clemson, VT, FSU, and UNC are coming along if it's GT to the B1G. Hope Boo Corrigan and NCST get left behind. Hope a home for WF as an all-but-FB can be found in the SEC or B1G.

Sent from my Pixel 4a (5G) using CSNbbs mobile app

I guess I'm a glutton for punishment Swagger, but I have to ask: who do you want if it's GT to the SEC (as unrealistic as it may be)?

Clemson, VT, FSU, UNC, Duke.

Sent from my Pixel 4a (5G) using CSNbbs mobile app

for post #14 I think it would be a big mistake for the ACC to try any officiating things (I am sure you were being wishful), but that would certainly be in the favor of FSU and against the ACC

for post #15 I would imagine the ACC has a much better contact than the PAC 12 had, but it is an interesting question if suing to leave (while having nowhere to go yet and having not said "we are leaving") means you are removed from decision making....I would think what happened with the PAC 12 sets some precedent

I find it hard to believe that the ACC has an agreement with ESPN that actually ends in 2027 and requires ESPN to exercise the option for the next 9 years and the ACC has no ability to extend anything.....that is certainly a new development

I would say that may well actually work against FSU because now you are looking at a contract that started in 2011-12, was changed on 2016 (with seemingly 100% agreement) that now looks to end in 2027......that is a 15 year contract which is very long, but the Big 12 just got out of a 13 year contract so not unprecedented

more so FSU is making the opposing claims that they are/were "locked in for 20 years" (based on the 2016 extension) with no way to to go to market and get better value like other conferences have.....but yet they are also saying the conference did not look out for them because the contract is really only to 2027 and not to 2036......which means in a couple of more years FSU and the ACC WILL have a chance to "go to market" a few years before the Big 10 and Big 12 and a long time before the SEC SEC SEC has a chance in 2036

so the claim that there is no ability to "go to market" for 20 years from the 2016 contract is in fact false.....and the complaint that the ACC did not look out for the future because ESPN can "opt out" should not be an issue for a program that wants to "go to market sooner than later"

in addition to that if FSU is looking at the SEC SEC SEC as an option why are they not concerned about the length of their contract.....well sure it pays more money NOW, but what if conference networks collapse and the SEC SEC SEC network goes from paying a lot to paying nothing......and does FSU know that ESPN does not have similar language in the SEC SEC SEC contract that requires an option in the future to go until 2036

plus one has to ask how no one in the conference leadership (like all of the university presidents) ever brought up this "option" for ESPN prior to now.....is FSU really claiming that their administration and the other university administrations allowed the conference to negotiate a contract and none of them looked it over or had inside and outside legal counsel look it over.....that sounds like a breach on the part of the presidents and BORs of the various members for their own best interest not "the conference"

that is like people that blame "the NCAA" while ignoring that the NCAA is set up and run by the member universities

this seems like a really poorly thought out and planned move by FSU for many reasons and they are doing a lot of arguing of both sides of an argument to try and pretend they are stuck in the middle and powerless

(12-22-2023 01:29 PM)Hallcity Wrote:  

(12-22-2023 12:58 PM)Gitanole Wrote:  This is not a 'declaration of war.' Sheesh. So melodramatic.

It's a settlement of the cost of exit. Florida State is out.

Wishful thinking by an FSU fan — We sue so they end up settling for some price we can live with and we can go join some other conference and end up making more money and enjoying more football glory.

The ACC has no motivation to settle. Period. Settle at a price FSU can live with and the conference is dead.

What other conference would want a school that just proved that it won’t abide by contracts it signs? Every conference depends upon GORs. The SEC, B10 and B12 don’t want to see a school wriggle out of its GOR because it endangers them as well.

Until a day ago, the idea that any school at all would challenge the GOR was dismissed as 'wishful thinking.' Now it's fact.

Wishful thinking, it turns out, is supposing the magic GOR automatically prevents all departures until 2036.

Reality: the wider the revenue gap, the shakier the lagging conference. A grant of rights doesn't fundamentally alter that reality.

We now know the ACC is on course to lose members well before 2036. And we've got a good idea who the first departure will be.