Clemson and Florida State File Lawsuits Against ACC Over Grant-of-Rights Contract
ICARO Media Group
In a shocking turn of events, Clemson University has joined Florida State University in filing a lawsuit against the Atlantic Coast Conference (ACC) in an effort to break the grant-of-rights contract that currently binds the conference together. The legal moves by both universities come as they claim that the ACC's actions are infringing on their rights and jeopardizing their ability to compete at the highest level.
According to the lawsuit filed by Clemson, the ACC's actions are not only detrimental to the university's athletic programs but also threaten their overall mission. The school asserts that the ACC's misinterpretation of the grant-of-rights agreements has created uncertainty regarding Clemson's ability to engage in discussions with other conferences and media providers for potential collaborations and revenue-sharing proposals.
Clemson is seeking a declaration from the court regarding the unenforceability of the ACC's withdrawal penalty, which they deem exorbitant and unconscionable. Additionally, Clemson aims to establish that the ACC has no right to claim fiduciary duties from its member institutions when filing a lawsuit. The university argues that these assertions hinder their ability to explore conference membership options, negotiate alternative revenue-sharing proposals, and protect their interests and the interests of their student-athletes.
The lawsuit also highlights the significant discrepancies between the ACC's withdrawal penalty and those of other conferences. While the Big Ten does not charge a penalty, the SEC imposes a penalty of $45 million if no prior notice is given, and the Big 12 requires a departing institution to repay two years' worth of revenues. Clemson argues that the ACC's withdrawal penalty, particularly when imposed on a public university, is in violation of public policy.
Florida State's Board of Trustees previously filed a lawsuit against the ACC in December 2023, signaling their intention to leave the conference. The university's initial filing emphasized the crucial need for Florida State to depart the ACC in order to secure the future of Seminole football and the competitiveness of their athletics programs. Florida State claims that the mismanagement of television rights by the ACC has resulted in substantial financial losses, hindering the university's ability to compete in the increasingly competitive landscape of college athletics.
Florida State's amended complaint further accuses then-ACC Commissioner John Swofford of "self-dealing" by favoring Raycom and thereby causing significant revenue losses. The university points out that ACC schools incurred expenses amounting to $110 million to $120 million in preparation for the launch of the ACC Network, contributing to their mounting athletic debt.
One of the most shocking revelations from Florida State's lawsuit is the uncertainty surrounding the ACC's television deal with ESPN. Contrary to popular belief, the deal is only guaranteed through 2027, with ESPN having the option to extend it through 2025. This dependency on Florida State to maintain a viable television deal has become a focal point in the lawsuit.
As these legal battles unfold, the future of both Clemson and Florida State within the ACC hangs in the balance. The outcome of these lawsuits will have significant implications not just for the universities but also for the landscape of collegiate athletics as a whole.