According to numerous sources, the ACC has filed a move in Florida to drop or halt Florida State’s lawsuit against the conference. This occurs one week after Florida State submitted a move to dismiss a lawsuit filed by the ACC alleging that the university had broken its agreement with the conference.
A crucial first step toward leaving the conference was taken in December when the Florida State Board of Trustees unanimously decided to sue the ACC, contesting the league’s grant of rights and withdrawal penalties. The lawsuit, filed in Tallahassee Circuit Court, claimed that the ACC had broken Florida’s antitrust laws and breached the contract by failing to set a suitable value for media rights. Along with that, it claimed that the $572 million withdrawal penalty was unenforceable.
When Florida State filed, the ACC promptly defended its right-grant.
ACC commissioner Jim Phillips and ACC board chair Jim Ryan issued a statement saying, “Florida State’s decision to file against the conference is in direct conflict with their longstanding obligations and is a clear violation of their legal commitments to the other members of the conference.” “In 2016, Florida State and all other ACC members resigned the present Grant of Rights, which is fully enforceable and binding through 2036, voluntarily and intentionally. Millions of dollars have been awarded to each university as a result of this deal, and not even Florida State has questioned its validity.
The purpose of the ACC’s right-granting is to bind colleges to the conference until 2036. With a unilateral right to execute a nine-year option that extends through 2036, its media rights arrangement with ESPN is valid through 2027. According to Florida State’s lawsuit, ESPN offered the ACC a “ultimatum” during the 2016 negotiations, meaning that no more discussions would take place until after the current arrangement expired.
Prior to Florida State’s historic absence from the 2023 College Football Playoff, the school declared a wish to look into possibilities outside of the ACC. The Seminoles considered approaching a private equity firm in August 2023 in order to get financing for the enormous buyout cost associated with the grant of rights. Florida State even reached out to Sixth Street and JPMorgan Chase, but it didn’t seem like a deal could be struck.
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Mike has more than 30 years of experience in marketing and public relations. He once owned his own agency and has worked with some of the largest brands in the world.
