Athletic conference is being sued by FSU over a “deteriorating” advertising deal.
Florida State University sued the Athletic Coastal Conference on Friday in what might turn into a landmark case. They want to leave the league and get more money from a better media deal, so they are fighting.
The board of directors at FSU made the choice unanimously. This comes after the university missed out on the opportunity to play in the NCAA Football Playoff. Talks about leaving the ACC or getting a better payout had been going on for months.
Since many big college sports teams are planning to switch conferences throughout the country, FSU’s lawsuit in Tallahassee Circuit Court could be the first step toward letting the school find a new home.
“Today we’ve reached a crossroads to our relationship with the ACC,” FSU’s board chair, Peter Collins, said at a meeting Friday that was held virtually.
“We have to face the fact that the ACC is stuck in a poorly negotiated media rights deal that pays much less than other conferences.”
According to papers first reported by WCTV, the ACC sued FSU trustees on Thursday before the university could challenge the grant of rights contract. They did this to make North Carolina the location of any legal action.
The case from FSU questions the ACC’s grant of rights that spells out the conference media deal that lasts until 2036.
For FSU, this is the first case in which a court has ruled against a college league’s gift of rights.
There is a 38-page lawsuit from FSU that the ACC is “mismanaging” its media deals with ESPN, which is seen as a trade restriction, a breach of contract, and failure to perform beneath Florida law.
It also goes after “draconian” penalties for leaving the conference, which FSU says would cost the institution $572 million in fees and lost income.
FSU says that the current media deal between the ACC and schools has “deprived” them of millions of dollars in yearly income and put them behind greater athletic conferences in both sports and academics.
The ACC said that FSU’s choice to sue “is in direct conflict of their longstanding obligations and is an unambiguous breach of their legal commitments” to other schools. The ACC also said that FSU “willingly and knowingly” signed its contract on Friday.
Florida’s Sunshine Law says that meetings of public boards or commissions must be “open to the public at all times.” The board meeting was opened to the public 24 hours before the official meeting.
Tens of thousands of people from all over the country watched the emergency meeting live on YouTube. It lasted less than an hour.
FSU is being fought for by a group of lawyers at Greenberg Traurig, LLP, consisting of David Ashburn, who is the managing shareholder of the firm’s Tallahassee office.
Ashburn laid out the case for the lawsuit. He had seven points against the ACC and explained why FSU should be allowed to leave without being punished.
But people in charge of the conference didn’t agree and were quick to criticize FSU’s case.
The lawsuit from FSU comes soon after the school was turned down by the College Football Playoff. This caused sadness and criticism from Florida leaders, which includes Republican Sen.
Rick Scott, who asked the selection group to explain themselves. The choice made by CFP was also looked into by General Attorney Ashley Moody for antitrust violations.
The FSU called the decision “absolutely wrong” and a “travesty,” and they said the court challenge raised issues about the ACC’s leadership and the future of the university.
In the case, FSU is asking a judge to rule that the ACC’s grant of permission is not binding on the university. If the judge agrees, FSU will formally withdraw from the conference.
As the leader of this university, I believe that this is the only way for us to reach our full athletics potential, having looked at all other choices.
This was what FSU President Richard McCullough said at Friday’s meeting. “We want what’s best for Florida State University.”