FSU Claims ACC’s Mishandling of Negotiations Has Cost Members Millions
Florida State University (FSU) has filed a lawsuit against the Atlantic Coast Conference (ACC), alleging that the conference’s mishandling of negotiations with ESPN has resulted in the loss of tens of millions in annual revenues for its members. The lawsuit also claims that the ACC’s actions have put its member schools at a disadvantage in terms of educational advancement and participation in elite athletic championships.
Grant of Rights Gives ACC Control Over Media Rights
FSU and other members of the ACC had previously signed a grant of rights agreement through 2036, which grants the conference control over the media rights. However, FSU is challenging the legality of the withdrawal penalties outlined in the agreement, which include a staggering $572 million in fees and forfeited revenues. This amount encompasses a $130 million withdrawal penalty and the forfeiture of media rights until 2036.
ACC Accused of Unfair Practices and Exclusion of Undefeated Football Champion
The lawsuit highlights the underperformance of the ACC in recent years and accuses the conference of unfairly preventing members from exploring their right to withdraw by threatening them with a half-billion-dollar penalty. FSU’s Board of Trustees Chairman, Peter Collins, called the ACC’s actions “simply unconscionable.” The lawsuit also points out the exclusion of the ACC’s undefeated football champion from the 2023-2024 College Football Playoff, in favor of two one-loss teams from other conferences.
ACC Responds Confidently, Stating Commitment to Grant of Rights
In response to the lawsuit, the ACC issued a statement expressing confidence in the enforceability of the Grant of Rights agreement and vowing to vigorously defend it in court. ACC commissioner Jim Phillips and Chair of ACC Board of Directors Jim Ryan emphasized that all ACC members, including FSU, willingly re-signed the agreement in 2016 and have benefited from it financially.
Florida State Considers Leaving ACC
Conversations regarding the possibility of FSU leaving the ACC began in August when FSU President Richard McCullough expressed concerns about the conference’s current situation. McCullough stated that staying in the ACC would be challenging unless there were significant changes in revenue distribution. The university has spent a year exploring options to address the issue but has not found any easy fixes. As a result, FSU may seriously consider leaving the ACC unless there is a radical change to the revenue distribution.
Lawsuit Alleges Restraint of Trade, Breach of Contract, and Failure to Perform
The lawsuit filed by FSU accuses the ACC of restraint of trade, breach of contract, and failure to perform. The university seeks to address the alleged mishandling of negotiations and the financial losses incurred by its members.
It remains to be seen how this legal battle between FSU and the ACC will unfold and what impact it may have on the future of both the university and the conference.