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[QUOTE="IthacaMatt, post: 814206, member: 405"]
You appear to misunderstand the purpose and application of liquidated damages clauses.  They are intended to be a reasonable estimate of what damage might occur if a breach of contract were to occur.  To be upheld, [I]it must be difficult to estimate the actual damage[/I] that would ensue if the breach were to occur.  The whole point is that you can't calculate the damage with specificity, or else you would simply sue for damages.

The use of liquidated damages clauses is to address the harm that [I]might [/I]result from hypothetical situations.  The entire ACC was considered to be at risk of blowing apart just a year ago and turning into the new Big East.

To say that the potential harm from a charter member of the conference leaving is equal to roughly 2 1/2 years' payout from the TV contracts is not punitive, in my opinion, because the contract is something like 18 years in length, and if certain schools left, the value of the revised contract would be substantially less for the remaining schools.
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