ACC stabilizes itself - will not be imploding any time soon...

[BME to MD]

The ACC has agreed on Grant of Media Rights which effectively makes it impossible for any team to leave for the next 14 years.  The Big Ten, Pac-12 and Big 12 also have similar agreements.

www.spn.go.com/ncf/story?storyId=9200081

[ChicosBailBonds]

Yup.  Just about to post this.  The claims of the ACC's death should be buried now.

[bradley center bat]

Can't a school get out of this deal, just like Maryland will get out of the 50 million payout?

[Eldon]

I posted this in SuperBar, but I'll ask again here.  This seems WAY too good to be true (if youre an ACC fan)?  Can they do this?

[ChicosBailBonds]

Can't a school get out of this deal, just like Maryland will get out of the 50 million payout?

Maryland hasn't gotten out of the $50 million payout.

Maybe a school can get out of this, but the courts would have to decide.  It's definitely an obstacle to leave because a new conference wouldn't want a school if they can't get their tv rights.  Makes them much less attractive.

[GGGG]

I posted this in SuperBar, but I'll ask again here.  This seems WAY too good to be true (if youre an ACC fan)?  Can they do this?

The schools agreed to do so.  The Big Ten, SEC and I believe Pac 12 have had these deals in place for years.

[bradley center bat]

SEC doesn't do this.

[GGGG]

SEC doesn't do this.

You are correct!  Misread it...thanks.

[Benny B]

Can't a school get out of this deal, just like Maryland will get out of the 50 million payout?

Too many elements to give a definitive answer, but yes, there are plausible scenarios where a school would be able to get out of the deal; however, whether those scenarios would ever materialize (or exist) is completely unknown.

The most likely scenario I could see starts with a school voting against the GMR agreement.  It was interesting that the "source" said that Florida State was onboard; if it turns out that a school is not on-board and perhaps made a demonstrative effort to oppose the GMR on the basis that it was discriminatory, unconscionable, inequitable or any of those other lawyer-terms for "involuntary proctology," then it's possible that someone might try to get out of the deal early.

The other side is whether this is even desirable to enforce.  Let's say you're UNC and you're going to the Big Ten, but the ACC still has your home media rights.  What's to keep UNC from painting "ACC SUCKS" on their basketball court (metaphorically speaking)?  Does the ACC really want to be airing games at an arena/stadium - in the ACC's time slot, no less - that doesn't want them there, or worse, is basically a propaganda outlet for another conference?  Imagine a huge Big Ten Network logo on each side of the court on a game that's airing on ESPN.

That said, having to assume that the vote was unanimous (or at the very least those in the minority are accepting of the majority decision).  

[kryza]

Can't a school get out of this deal, just like Maryland will get out of the 50 million payout?

Yes, the can leave but if they do, all revenue from home games (including media rights) will still stay with the ACC for the next 14 years.

"The ACC's grant of rights makes it untenable financially for a school to leave, guaranteeing in the 14 years of the deal that a school's media rights, including revenue, for all home games would remain with the ACC regardless of the school's affiliation."

http://espn.go.com/college-football/story/_/id/9200081/acc-media-rights-deal-lock-schools-okd-presidents

[Warriors10]

Sucks for Cincy and UConn...oh well not my problem.

[bradley center bat]

Yes, the can leave but if they do, all revenue from home games (including media rights) will still stay with the ACC for the next 14 years.

"The ACC's grant of rights makes it untenable financially for a school to leave, guaranteeing in the 14 years of the deal that a school's media rights, including revenue, for all home games would remain with the ACC regardless of the school's affiliation."

Your missing the point. I can read all of this, but didn't we think that what the exit fee's were for. Those didn't do any good.

[GooooMarquette]

I'd be interested to see what would happen if a school really wanted to get out and challenged this in court.

In the similar context of non-compete agreements - where an employee agrees as a condition of employment not to compete within a certain radius for a certain number of years, or to pay damages if they do - many courts have struck down restrictions that they find "unreasonable"...even where both sides agreed on it.

Seems to me a court might find it "unreasonable" to have a buyout so huge that it would essentially put a school's athletic department out of business if it ever tried to leave.  Not saying they should...just saying it wouldn't surprise me.  I'd bet the end result would be that the departing school would only pay a fraction of the agreed-upon amount.  Kinda like WVU not having to wait anywhere near the full 2 years....

[Sunbelt15]

The ACC has agreed on Grant of Media Rights which effectively makes it impossible for any team to leave for the next 14 years.  The Big Ten, Pac-12 and Big 12 also have similar agreements.

www.spn.go.com/ncf/story?storyId=9200081

This is to all those who thought there was a chance North Carolina would join the Big10. Not! 

[oldwarrior81]

Can't a school get out of this deal, just like Maryland will get out of the 50 million payout?

Last Fall the ACC voted 10-2 to raise the exit fee to what essentially is the $50 million.   With Maryland and Florida State being the two that were not in favor of the increase.
 
I would guess those two would have the best odds of escaping the new ACC exit fees.

[Aughnanure]

Maryland hasn't gotten out of the $50 million payout.

Maybe a school can get out of this, but the courts would have to decide.  It's definitely an obstacle to leave because a new conference wouldn't want a school if they can't get their tv rights.  Makes them much less attractive.

I find it very odd how everyone (not saying you particularly Chicos) acts like a GOR are unbreakable but no one has ever even paid a full exit fee. So how iron-clad are these things. No one knows how these things will be treated and I would be shocked if a team couldnt leave with some settlement.  I've heard rumors that the Big XII's becomes void if a quarter of the league exits (i.e., UT, OU, OSU, and TTech go to Pac-12).

[Aughnanure]

Yes, the can leave but if they do, all revenue from home games (including media rights) will still stay with the ACC for the next 14 years.

"The ACC's grant of rights makes it untenable financially for a school to leave, guaranteeing in the 14 years of the deal that a school's media rights, including revenue, for all home games would remain with the ACC regardless of the school's affiliation."

http://espn.go.com/college-football/story/_/id/9200081/acc-media-rights-deal-lock-schools-okd-presidents

Doubt it.

[Aughnanure]

Last Fall the ACC voted 10-2 to raise the exit fee to what essentially is the $50 million.   With Maryland and Florida State being the two that were not in favor of the increase.
 
I would guess those two would have the best odds of escaping the new ACC exit fees.

No school has ever paid the full exit fees. Why should a GOR be any different?

[Dawson Rental]

Sucks for Cincy and UConn...oh well not my problem.

Actually, it increases UConn's chances with the Big10 and both schools chances with the Big12.

[Dawson Rental]

The ACC has agreed on Grant of Media Rights which effectively makes it impossible for any team to leave for the next 14 years.  The Big Ten, Pac-12 and Big 12 also have similar agreements.

www.spn.go.com/ncf/story?storyId=9200081

Link does not work.

[ChicosBailBonds]

No school has ever paid the full exit fees. Why should a GOR be any different?

I'm not sure that is accurate.


Incidentally, the GOR, the way I understand it, is a stronger deterrent because the exit fees are essentially just liquidated damages.  Courts, at times, have had a hard time with a predetermined number of liquidated damages.

[ChicosBailBonds]

Link does not work.

Looks like the "e" is missing from "ESPN"

[Aughnanure]

I'm not sure that is accurate.


Incidentally, the GOR, the way I understand it, is a stronger deterrent because the exit fees are essentially just liquidated damages.  Courts, at times, have had a hard time with a predetermined number of liquidated damages.

I'll grant you it is a stronger deterrent. But is it stronger cause no one has tried to get out of of it, so it's more of an unknown? Or is it actually legally stronger? Everything is negotiable.

True, West Virginia paid more, but they also got out 2 yrs early - so still didn't abide by the full exit fee agreement.

[Marqevans]

Yes, the can leave but if they do, all revenue from home games (including media rights) will still stay with the ACC for the next 14 years.

"The ACC's grant of rights makes it untenable financially for a school to leave, guaranteeing in the 14 years of the deal that a school's media rights, including revenue, for all home games would remain with the ACC regardless of the school's affiliation."

http://espn.go.com/college-football/story/_/id/9200081/acc-media-rights-deal-lock-schools-okd-presidents

The article says each school gets 17 million a year. Then it goes to 20 million when ND gets added.  Does ND get an equal share with football being independent?

[ChicosBailBonds]

I think Mr. Winter had this called a number of months ago.  He's a pretty sharp cookie.


http://businessofcollegesports.com/2012/12/03/grants-of-television-rights-not-increased-exit-fees-are-the-solution-to-realignment-frenzy/