Clemson sues the Atlantic Coast Conference in initial move to explore exit options |
The process of Clemson leaving the Atlantic Coast began this week with a court filing in which the university is suing the conference over the Grant of Rights, exit fees and media rights fees, hindering the university’s chances to explore other options.
Clemson has filed against the ACC in Pickens County, South Carolina, TigerNet confirmed with a copy of the filing. This is the second lawsuit that the ACC faces, as Florida State and the ACC currently have dueling lawsuits. At the heart of it all? There is a growing monetary disparity between the ACC and conferences like the SEC and the Big Ten. SEC and Big Ten members can expect to receive as much as $50 million for than their ACC counterparts in the next few years. The ACC Grant of Rights, thought to be ironclad, locks schools into the conference through the length of the contract, which runs through 2036. A quick summary of Clemson’s case: *Clemson has filed a declaratory judgment action against the ACC, alleging that the ACC’s public assertions regarding media rights, withdrawal penalties, and fiduciary duties are erroneous and hindering Clemson’s ability to explore its options regarding conference membership. Clemson seeks a declaration of its rights relating specifically to the grant of media rights to the conference, the withdrawal penalty claimed by the ACC, and the alleged fiduciary duties imposed on ACC members. *Clemson argues that the media rights granted to the ACC are limited to games played while Clemson is a member of the ACC, and that the ACC’s claims regarding rights to games played after an exit from the conference are incorrect. Clemson also challenges "the unconscionable and unenforceable withdrawal penalty" equal to three times the ACC’s total operating budget, which the ACC insists members must pay to leave the conference. Additionally, Clemson disputes the existence of fiduciary duties imposed by the ACC Constitution, ACC Bylaws, or any applicable statutory or common law. *The plaintiff seeks a judicial declaration that its media rights do not include games played after leaving the conference, that it is not required to pay the withdrawal penalty, and that it owes no fiduciary duties to the ACC. The lawsuit aims to clarify the rights and obligations of Clemson University in its relationship with the Atlantic Coast Conference, and seeks a resolution to the issues surrounding media rights, withdrawal penalties, and fiduciary duties. *Overall, Clemson’s legal action seeks to protect its interests and ensure clarity regarding its rights and obligations within the ACC. Clemson’s focus appears to be narrower than Florida State – Clemson wants the rights to its games after leaving the ACC. The grant of rights has always been understood that the rights to games stay, even if a team leaves. Clemson also asserts that the ACC's members did not vote for the ACC's lawsuit against FSU and that the school never authorized that lawsuit. A hearing for that ACC suit versus Florida State is scheduled for Friday in Mecklenburg County. Florida State also has a lawsuit versus the ACC and a hearing set for April 9 in Tallahassee.
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