ACC and Maryland going back to court

[CuseLegacy]

http://www.charlotteobserver.com/2013/09/14/4313821/acc-terps-prepare-to-fight-in.html#.UjcsFGLD-1t


ACC and MD going back to court on 9/26/13 in NC over exit fee.

 

[44PRIDE]

The article seems to believe both parties will settle out of court.

Splitting the difference between the ACC $52M exit fee and the established low water mark of $20M (WVU's Big East exit fee), I could see a settled fee of $35M...or a bit over $2m per school.

 

[Toga]

The article seems to believe both parties will settle out of court.

Splitting the difference between the ACC $52M exit fee and the established low water mark of $20M (WVU's Big East exit fee), I could see a settled fee of $35M...or a bit over $2m per school.

I've predicted $37.5M

 

[DoctorBombay]

 

[Scooch]

This seems to matter a lot less now that the ACC has a Grant of Rights.

 

[ImperialOrange]

Can Maryland leave the ACC before this is settled?

 

[HtownOrange]

The article seems to believe both parties will settle out of court.

Splitting the difference between the ACC $52M exit fee and the established low water mark of $20M (WVU's Big East exit fee), I could see a settled fee of $35M...or a bit over $2m per school.

Under the prior agreement, the exit fee was tied ti the TV deal and that would be Maryland's baseline. WVU's settlement would have no bearing on a settlement, though it is close to what Maryland's starting point is.

Essentially, Maryland is claiming the new exit fee is not valid so the default is the former exit fee, which Maryland agreed to.

Maryland will have to prove why the new agreement is not valid. Any interference via the Big Ten may taint any claim by Maryland.

 

[HtownOrange]

Can Maryland leave the ACC before this is settled?

Yes. Constructive notice and formal notice have been given by Maryland and its leaving is within the league agreements. The real issue is the exit fee.

 

[Hoo's That]

Yes. Constructive notice and formal notice have been given by Maryland and its leaving is within the league agreements. The real issue is the exit fee.

Exactly. They're gone as of July 1, 2014, and Louisville replaces them on everyone's schedules. Whenever/however the money payments are decided doesn't affect the date. The one-for-one replacement isn't supposed to affect home and away rotations.

 

[CuseLegacy]

http://sports.yahoo.com/news/acc-maryland-exit-lawsuit-nc-083408178--spt.html
Next round in the lawsuit battle started back up yesterday. Not much new except one feisty judge on the NC panel.

"There is some forum shopping between the state of Maryland and the ACC and they beat you to the courthouse,'' Hunter said. ''You seem to think that Maryland judges have some superior ability to North Carolina judges to resolve this matter.''

 

[HtownOrange]

Not much to see. However, Maryland has to walk a tight rope here in that they are arguing that the exit fee is illegal yet the voted for exit fees in the past so they already agreed it was legal, not an easy stance to defend. Also, if exit fees are abolished, then conference TV deals will not be the way we know them now.

I still don't see a court overthrowing the concept of contracts. NO one forced UM to join the ACC or to vote for the exit fees so this is voluntary and it is likely that an exit fee will be enforced. Then the issue becomes the amount. But don't worry, I have faith that UM lawyers will raise so many more roadblocks that there will be a settlement sometime.

 

[Hoo's That]

Not much to see. However, Maryland has to walk a tight rope here in that they are arguing that the exit fee is illegal yet the voted for exit fees in the past so they already agreed it was legal, not an easy stance to defend. Also, if exit fees are abolished, then conference TV deals will not be the way we know them now.

I still don't see a court overthrowing the concept of contracts. NO one forced UM to join the ACC or to vote for the exit fees so this is voluntary and it is likely that an exit fee will be enforced. Then the issue becomes the amount. But don't worry, I have faith that UM lawyers will raise so many more roadblocks that there will be a settlement sometime.

On a GTech board, the speculation was that the ACC's strategy is to go to court in NC, per the conference by-laws, and get a ruling that the ACC's contract with UMd is valid and then go to the court in MD with the valid contract and demand that it be enforced. The court will have to uphold the terms of the contract or no out-of-state entity will ever enter into a contract with a MD government entity because they couldn't be sure of receiving any payment that is due.

 

[HtownOrange]

On a GTech board, the speculation was that the ACC's strategy is to go to court in NC, per the conference by-laws, and get a ruling that the ACC's contract with UMd is valid and then go to the court in MD with the valid contract and demand that it be enforced. The court will have to uphold the terms of the contract or no out-of-state entity will ever enter into a contract with a MD government entity because they couldn't be sure of receiving any payment that is due.

I'm not sure the State of Maryland will take it that far. Contracts are enforceable and you are correct, if the State of Maryland can void a contract, then no one will contract with Maryland, probably even the B1G. I think the process will play out in the NC courts until it gets close to crunch time or UM gets tired of fighting and losing, then the tow will settle out of court, well north of what UM wants to pay.

However, if UM goes all the way through the NC courts and loses, I agree that the ACC will likely take the decision to the MD courts, which is on hold to see what happens in the NC courts, and seek enforcement, as you suggest.

 

[Crusty]

The real issue is the liquidated damages and whether or not the NC Court views it as a penalty, which NC does not enforce.