Now, Clemson Suing ACC Over Media Rights, 'Exorbitant' Exit Fee, Following FSU
Spring football may be in the air, but lawsuits continue to fly toward the Atlantic Coast Conference headquarters in Charlotte, North Carolina, too.
Clemson, which is in the midst of spring practice, followed in Florida State's footsteps on Tuesday by suing the ACC over media rights in Pickens County, South Carolina.
"The ACC has publicly asserted that it irrevocably owns the media rights of member institutions to home football games through 2036, even if the institution ceases to be a member of the conference," states the lawsuit filed by plaintiff Clemson through the Nelson, Mullins, Riley & Scarborough law firm based in Columbia, South Carolina.
"The ACC has also claimed that member institutions must pay an exorbitant $140 million penalty to leave," the lawsuit says. "Each of these erroneous assertions hinders Clemson's ability to meaningfully explore its options regarding conference membership, to negotiate alternative revenue-sharing proposals among ACC members, and to obtain full value for its future media rights."
As the widespread conference exits hit college football in recent years, programs like Clemson and Florida State, among others, have considered joining new conferences. Florida State tried to leave last summer, but did not get much interest from potential takers and is in the midst of a similar lawsuit against the ACC.
Texas and Oklahoma left the Big 12 and will begin play in the Southeastern Conference this season. The Pac-12 was left with two schools last summer as Washington, Oregon, USC and UCLA are headed to the Big Ten, Arizona, Arizona State, Colorado and Utah to the Big 12 and California and Stanford to the ACC. Only Washington State and Oregon State remain.
College Football Remains At Major Crossroads
"College athletics is at a crossroads," Clemson's lawsuit says. "Without clarity as to its legal rights and obligations, Clemson cannot protect and advance its interests, or the interests of its student-athletes, in negotiations within the conference, with the conference's existing media partner ESPN and in collegiate athletics more generally."
Florida State sued the ACC last December under the same grounds, and the ACC counter sued. Those lawsuits remain active. Clemson's lawsuit mentions that the ACC never asked for a vote from other conference members before it sued Florida State, which goes against conference policy.
"The ACC's lawsuit against Florida State was filed in response to Florida State's efforts to explore leaving the ACC without paying the exit fee," Clemson's lawsuit says. "The ACC alleges that seeking a declaratory judgment related to the grant of rights violated fiduciary duties the conference now clams Florida State and all other ACC members owe to the ACC. The ACC's erroneous assertions and related actions concerning media rights, the withdrawal penalty, and non-existent fiduciary duties diminish the value of Clemson's future media rights. They have a chilling effect on Clemson's ability to explore and pursue an exit from the ACC."
Later Tuesday, ACC Board of Directors chairman Jim Ryan and ACC commissioner Jim Phillips responded to Clemson's lawsuit with a pointed statement:
"The ACC remains confident that its agreements with all its members will be affirmed by the courts. Clemson, along with all ACC members, voluntarily signed and resigned the 2013 and 2016 Grant of Rights (media rights), which is binding through 2036. In addition, Clemson agreed to the process and procedures for withdrawal. The conference's legal counsel will vigorously enforce the agreement and bylaws in the best interests of the ACC's current and incoming members."
Clemson Lawsuit Asks For A Final Four
The lawsuit concludes by asking for the following rulings against the ACC:
1. Enter a judgment declaring that the media rights agreements are limited to only those rights needed for ESPN's agreements and do not include Clemson's games after it leaves the conference.
2. Enter a judgment declaring that the withdrawal penalty is void as an unconscionable and unenforceable penalty, the enforcement of which would violate public policy, and Clemson is not required to pay the $140 million.
3. Enter a judgment declaring that Clemson does not owe any fiduciary duties to the ACC and has not breached any legal duty or obligation it might owe to the ACC by filing this lawsuit.
4. Award the costs of this action to Clemson and award such other and further relief in Clemson's favor as the Court deems necessary or proper.