How would the Supreme Court rule?
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Orange Blooded [2951]
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How would the Supreme Court rule?
Aug 4, 2023, 5:21 AM
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If one or two of the current ACC members leaves the conference and therefore breaks the GOR, how would the Supreme Court rule? It would obviously go to court and one side would simply appeal any rulings until ultimately SCOTUS is asked to rule.
Would they go for simplicity and say a contract is a contract, pay up?
Or would they say the leadership at the university(ies) had a fiduciary duty to keep their school(s) competitive and not leave hundreds of millions of dollars on the table?
It seems to me the current makeup of the court would have no bearing on this decision.
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CU Guru [1760]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 6:53 AM
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CEOs have the same duty towards shareholders, but the courts don't reverse every bad decision the CEO makes.
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110%er [5157]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 6:57 AM
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That's a tough one. I think if the conference started to fall apart from teams leaving they would say the contract is dead.
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CU Guru [1046]
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Re: How would the Supreme Court rule?
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Aug 4, 2023, 7:20 AM
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They would rule that you have to pay.
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All-TigerNet [11161]
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Re: How would the Supreme Court rule?
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Aug 4, 2023, 7:45 AM
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The liberal judges would rule to shut you down. At the very least, you have to have an equal number of males, females, and trans players on each team. There would be no score kept. No tackling. Every player must play the same number of minutes. No playoffs. And, every player would get a Juicy-Juice at the end of each quarter.
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CU Guru [1271]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 8:45 AM
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Don't forget the jerseys. Some people are offended by certain colors. This could lead to mental illness, inability to maintain employment, and/or poopy diapers.
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CU Medallion [64621]
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In such circumstances, I believe...
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Aug 4, 2023, 8:42 AM
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the black letter language in the contract would dictate.
However, if the league made certain commitments, either financial or otherwise, as inducements to persuade/convince the member institutions to sign the GOR which later that did not materialize, I think it would be reasonable to assume the court would rule in favor of the schools on that basis.
Clearly John Swofford and the ACC failed to deliver on several of its promises. Those included:
1 - Failure to bring ND in full time
2 - The league didn’t keep pace with the B1G and SEC in terms of medial rights revenue. The revenue projections presented the ACC (John Swofford) were grossly and quite possibly intentionally inaccurate and misleading which could constitute a bad faith representation especially if the ACC knew the projections were unrealistic.
3 - Failure to launch the ACC Newtwork timely (6 years after it was promised). Then, revenues for the conference network were far less than expected, while costs to produce programming, particularly for non-revenue sports, that is funded by the member institutions, exceeded estimates. The delay in launching ACCN was one of many factors that failed to live up to the promises made by Swofford. Revenues for the conference network were far less than expected, while costs to produce programming exceeded estimates.
4 - Then, the TV money that was promised didn't adequately adjust for inflation which would have increased revenue for each team by nearly $50 million annually. The 2.5% inflation rate used was too low. The purchasing power of a dollar decreased by approximately 7% from 2022 to 2023.
The ACC's potential misleading statements, if not outright fraud, certainly opens the door for schools to challenge the GOR and exit without penalty.
The ACC made promises in exchange for its grant of rights and it appears that none of those promises were realized. If the facts were intentionally misrepresented, to coerce schools into approving the grant of rights, I do think these deceptive practiced may nullify the GOR. Do the member schools approve the ACC grant of rights if Swofford's presentation contains accurate revenue projections and assurances of ESPN's interest in a conference network?
There's no doubt schools like FSU and Clemson (among others) simply can't afford to stay in the ACC. Every year we remain in the ACC puts our program at greater disadvantage than the year before, so at what point do we say enough is enough?
No matter what people may think about the possibilities of winning legally in court and getting out from under the GOR albatross, it’s still untenable either way. The question then becomes, are you better off fighting it out through court because remaining in the ACC through 2036 is definitely a no win situation.
There was an article posted earlier in the week were FSU raised all of these issues (effectively deliberate, fraudulent, and misleading statements which lead to a breach of their fiduciary commitments).
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CU Guru [1548]
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Re: In such circumstances, I believe...
Aug 4, 2023, 9:21 AM
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Another juicy topic no one wants to touch is NIL. So somehow showing this revenue gap is directly impacting student athletes ability to profit from NIL. Maybe we can’t give them things like the CAB etc.
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Orange Blooded [2031]
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Re: How would the Supreme Court rule?
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Aug 4, 2023, 8:53 AM
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I doubt the Supreme Court would accept the case and every court would take the side with contract law - schools would have to pay.
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Asst Coach [708]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 11:40 AM
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As a lawyer who does appeals to the Court, you're correct. I think the Fourth Circuit would take the initial appeal (or 11th depending on where it's filed). But it wouldn't go further.
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CU Guru [1514]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 9:09 AM
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It would depend upon the issue that ultimately arrived there. Breach of fiduciary duties is one I've been puzzled hasn't gotten more air time with some of the odd stuff coming out of corporate America over the last few decades and it could well apply here, but yhe focus of such, by itself, would be on ACC executives and not the validity of the contract. That which is used to demonstrate tge breach might well be enough to invalidate the agreement among member schools, but it might not. I'd be almost as happy to see some of the ACC execs truly held accountable as I would to see GOR removed as an impediment.
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Letterman [281]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 9:21 AM
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I think the most likely favorable ruling to the schools would be that they are state institutions. Someone mentioned it in one of the threads i read today/yesterday and i have read it in a few articles. I dont know exactly how it goes. But the school didnt have authority to sign over grant of rights on a state school. It’s something like that. Whether that is a likely outcome, i dont know. But desperate times call for desperate measures.
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CU Medallion [64621]
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Exactly! You pursue every possible option...
Aug 4, 2023, 9:47 AM
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leaving no stone unturned!
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Scout Team [193]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 9:59 AM
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If I understand it correctly (and that's a long shot)...
The "exit fee" is only a small part of the equation. The conference could/would sue if the school failed to pay. But that's not the crux of the issue. The bigger issue is who profits from the broadcasting. The GOR ensures that ESPN owns those rights. If Clemson or FSU or anyone were to leave the conference, that school would have to sue the conference to gain ownership of its broadcast rights. That's where the bulk of the money is, not the exit fee. When it's said that it may cost up to $300 million to leave, that is the lost revenue from the broadcasting, not a fee for which the school would be sued.
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Asst Coach [708]
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Re: How would the Supreme Court rule?
Aug 4, 2023, 11:38 AM
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They wouldn't. The Supreme Court gets about 5-10,000 writs of certiorari every year. They grant about 70. It's very unlikely the Supreme Court would agree to hear the case since it's a contract interpretation issue and not a large-scale Constitutional one. But you are correct about the last line. Each year, the Supreme Court is unanimous or 8-1 in about 80% of cases. People only hear about politically charged decisions though.
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Orange Blooded [4037]
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You may be right, but I doubt the Supreme Court would take that case up
Aug 4, 2023, 1:35 PM
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They don’t take but a fraction of the appeals federal & state courts. It seems pretty cut and dry to me. I’m not sure what the constitutional issue would be
Clemson signed a bad contract. We knew exactly what we were getting into when we did it, and now we have to find some white knight to pay our exit fees and cover 10 years of lost home rights.
It sucks but it’s the truth.
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