FSU vs The ACC

[Shrmdougluvr]

Never negotiate with terrorists. That’s who FSU is.

I wonder where that comes from? People negotiate with terrorists all the time.

Also, I agree about FSU. They can eat a big back of poo.

 

[qdawgg]

What did FSU’s little puppet say?

 

[kcsu]

To be clear, FSU can leave. The debate is not about whether they can leave, they can. The issue for FSU is that they have no TV rights to bring with them. The TV rights are what makes FSU attractive to other conferences, or so FSU believes. Their recent behavior is more likely to be viewed as a negative than a positive. The SEC and the B1G for all of their greed, have core teams that keep the conference balanced. If FSU is not a good fit, they may not get the offer they think they will receive.

Back to the issue. The ACC has an agreement that states the withdrawal fee is 3X the annual TV conference payment to the teams. UMD did not vote for the increase and was able to negotiate a lower amount. Juxtapose this with FSU's behavior wherein they agreed to and demanded the increase in the withdrawal fee to 3X the TX payout, actively pushing the increase. It is likely that even a biased crooked Florida court cannot explain that away and grant a decrease in the withdrawal fee.

Then, the issue is the buyback of their TV rights. While the deal in hindsight is a bad deal, it was hailed as a great deal when it was signed. That said, the schools, including FSU granted the TV rights to the ACC for the purpose of the receiving the ACCN. The ACC sold the rights to ESPN and received the ACCN, as was agreed to. Payouts are exceeding the minimum guaranteed payout, thus everyone is making more money than originally bargained for.

FSU willingly obligated their TV rights until 2036. ESPN holds those rights as long as they keep the ACCN up and running. Since everyone is making more money than guaranteed, it is hard to see any breach of the agreement. The present value of the rights are approximately $500MM at face value (I hold that the rights are actually worth more, but that is too complicated to explain in an already long post). Thus, neither ESPN nor the ACC has incentive to accommodate FSU with allowing them to buy back their rights for less than their present value.

FSU can refuse to play ACC schools. FSU's home games belong to the ACCN and ESPN with the ACC receiving payment. FSU will not receive any monies for home games. Before anyone gets a bright idea that FSU can agree to play all games away from home until 2036. recall they FSU obligated themselves to provide at least half of their schedule as home games for use by ESPN; if FSU is stupid enough to do this, then FSU is in a clear breach and can be forced to pay damages to ESPN and the ACC (through the ESPN payout). This is why there is no way anyone will offer FSU a landing spot until FSU can acquire their TV rights.

Recall that USC and UCLA waited out their contractual obligations. UT and OU looked into getting out of their GOR but decided otherwise. Then the opportunity to get out a year early arose and they took it. FSU is on the hook to ESPN and the ACC until 2036. FSU can buy back their rights; however, FSU has no money.

FSU having no resources makes everything they are doing a farce. They floated an offer of about about $100MM in the summer to see if anyone would fall for it. No one blinked. They floated the idea of having venture capital pay for the $100MM, aside from the legal questions, again, no one blinked.

This lawsuit is an attempt to scare people with a lawsuit. A decent general counsel to FSU would refuse to file the case because it is frivolous. The complaint is written well, but there is no substance to the claims and arguments. Plus, every ACC school has top lawyers on their side. Most ACC schools have decent to elite law schools, to boot. And let's not forget that ESPN (and ABC, Disney) have excellent lawyers. No one is scared. This is just a show for FSU idiot managers and idiot fans.

Which brings us full circle. While FSU "can" leave the ACC, there is no functional method for FSU leaving unless ESPN and and the ACC agree to give up hundreds of millions of dollars for no reason. IF any school voted to do so, their president/chancellor and their respective boards would be immediately sued for failing to handle the fiduciary responsibilities to the individual schools. So yes, FSU "can" leave, but doing so kills off their program, in reality they cannot leave. There remain reasonable basis for the ACC or ESPN to allow FSU out of the deal. When FSU has resources and the will to leave, then the matter becomes feasible, until then, nobody wants to play games. FSU needs to come to the table with no less than $600MM before the ACC and ESPN will listen.

As a bonus, recall that UNC and UVA both decided it was not worth the costs to get out and both can write a check tomorrow to cover the withdrawal fee and the TV rights buyback. In other words, they don have guaranteed landing spots right now. FSU likely does not, either. If they did, then there would be lawsuits against the leaving schools (not dealing in good faith) and the receiving conferences (tortious interference). That is why the SEC would not actually assist UT and OU in leaving early, the SEC was not going to involve themselves in any legal matters that could cause a problem.*

*The SEC originally agreed with UT and OU to join the SEC AFTER completing the Big 12 deal.

Please stop making sense

 

[orange44]

It would be a mistake to negotiate.

Absolutely correct!

 

[David332]

Should be interesting to see what ESPN allows the commentators to mention in regard to the lawsuits.

 

[Cusefan0307]

End of day I’m a bit contrarian on this stupidity. Syracuse will play football no matter if FSU gets out of jail next year or 2030.

I’d argue that we let them out now because it’s obvious where this is all going. They will pay the largest exit to do it along w Clemson and UNC and UVA (it’s inevitable) and then with our dividend we can reform where Syracuse situates itself in college football 2.0

I hear all the legal arguments and agree fsu is swimming upstream w 99% of them. It won’t matter because it’s inevitable. They want to leave and nothing will stop them. It’s just timing. I would gather espn will figure out how to offset the Gor For another property they own (sec?).

FWIW FSU and Clemson are the two poorest schools in the league. Not sure where you think they are getting money from, but you’ve been repeating the same take for 5 years so maybe one year you’ll be right .

 

[swish7]

I want GA to beat the snot out of FSU.

 

[elimunelson]

FWIW FSU and Clemson are the two poorest schools in the league. Not sure where you think they are getting money from, but you’ve been repeating the same take for 5 years so maybe one year you’ll be right .

I just want the inevitable pushed forward. I’m not privy to their finances except what I read here.

I hate what they are doing since they are suing SU. Crazy people act. I just think the clock has started now. And at some point they will leave for a number less than 500mm because it goes down yearly due to one less year left on the GOR.

 

[dasher]

I just want the inevitable pushed forward. I’m not privy to their finances except what I read here.

I hate what they are doing since they are suing SU. Crazy people act. I just think the clock has started now. And at some point they will leave for a number less than 500mm because it goes down yearly due to one less year left on the GOR.

It would have to be a lot less because they can't afford a big hit.

 

[dasher]

Which is why I was hoping there was a way to apply a fine to FSU from the league. I would think there would be. FSU is attempting a nuclear resolution to the other ACC schools. They should be fined for conduct detrimental or something. FSU cannot get a free pass from the ACC for this behavior once they lose their court case.

I agree 100% At the very least, and I mean the least, they have to pay the ACC's lawyers and court cost.

 

[GoSU96]

I just want the inevitable pushed forward. I’m not privy to their finances except what I read here.

I hate what they are doing since they are suing SU. Crazy people act. I just think the clock has started now. And at some point they will leave for a number less than 500mm because it goes down yearly due to one less year left on the GOR.

That’s just stupid,

 

[CanadianSU]

I want GA to beat the snot out of FSU.

It’s beautiful

 

[wfschrec]

Can the ACC counter sue for failure to put a football team in the Orange Bowl?

 

[swish7]

63-3, and only $.7 billion from irrelevance in the SEC

 

[NKR1978]

56-3, and only $.7 billion from irrelevance in the SEC

Wish I bet more on UGA.

 

[swish7]

Wish I bet more on UGA.

Easy money

 

[OburgOrange]

I’m not mad

 

[elimunelson]

That’s just stupid,

Go, what do you think is going to happen here. Everyone is a tough guy litigator until everyone realizes it’s not going to get everyone everything they want.

I guarantee there is a deal struck btw the ACC and FSU (and who ever else is leaving). Conferences are made up of teams and 5 teams want out. 1 is just being vocal

 

[Moontan]

Go, what do you think is going to happen here. Everyone is a tough guy litigator until everyone realizes it’s not going to get everyone everything they want.

I guarantee there is a deal struck btw the ACC and FSU (and who ever else is leaving). Conferences are made up of teams and 5 teams want out. 1 is just being vocal

They’ll cut it to $500M.
5x$500M = $2.5B.

Let’s do it.

 

[CU44SE]

I heard what Thamel said today in gameday. Sounds like a forgone conclusion that they are gone no matter what. I don’t understand it. Or how it works out financially. But he makes it sound one way or another, they will be moving on.

 

[richmondcuse03]

Go, what do you think is going to happen here. Everyone is a tough guy litigator until everyone realizes it’s not going to get everyone everything they want.

I guarantee there is a deal struck btw the ACC and FSU (and who ever else is leaving). Conferences are made up of teams and 5 teams want out. 1 is just being vocal

They ain’t cutting a deal. FSU knows the cost. So does the rest of the conference. ACC has no reason to negotiate and the rest of the schools won’t either. I know SU ain’t approving a reduced fee.

I have no doubt many of the players in college football will screw up a good thing - there are many ways they could have gotten together and shared the wealth. The growing divide will cause issues and fans will ultimately suffer. But FSU doesn’t have much to go on here besides screaming and yelling. This is their Hail Mary pass.

 

[hungrychuck]

I feel disappointed that Georgia didn’t hang 70.

Feel like they would have with Fran.

Realize he coached DBs.

 

[IthacaMatt]

So being in the bottom 20% must be a good thing...

My school is in the Top 10-15 every year in everybody's list, so I've got no dog in this fight.

 

[longtimefan]

I heard what Thamel said today in gameday. Sounds like a forgone conclusion that they are gone no matter what. I don’t understand it. Or how it works out financially. But he makes it sound one way or another, they will be moving on.

Of course they'll be leaving.

But 2 questions remain--

1.) When?
2.) How much will it cost?

The answer to the first will in large part determine the answer to the second.

 

[dan7800]

When did "higher" graduation rate become a good thing? Doesn't that mean that your school is easy, if everybody graduates?

The 6 year graduation rate is a major major measuring stick. Basically, off the record faculty are encouraged to dumb down and pass all students to keep this rate high.