The ACC and ESPN have come to terms on their business relationship in a move that could dramatically alter the lawsuits involving Florida State and Clemson.
What It Is
ESPN and the ACC announced what was referred to as a “Long term contract extension,” through 2036. It isn’t actually a contract extension. The contract with ESPN, upon which the conference Grant of Rights contracts are based, already goes to 2036. But ESPN had an opt-out clause that it had until February 1st of this year to exercise. If it had done so, the contract between the ACC and ESPN would have ended in 2027. So the agreement, in reality, is that ESPN is committing to staying through the duration of its already formulated contract.
What They Said
ACC Commissioner Dr. Jim Phillips said the following Thursday in a written statement, “The extension showcases the importance of our long-standing relationship, and I want to personally thank the entire ESPN team for their leadership and dedication to our collective future.”
In the same statement, ESPN Chairman Jimmy Pitaro said, “We are pleased to extend our media rights agreement with the ACC through 2036, continuing our longstanding relationship.”
What Are the Underlying Elements
Both Clemson and Florida State are suing the ACC to try to get out of the Grant of Rights with the conference. The GoR intends to grant ownership of the broadcast rights for all ACC schools through 2036. The ACC is countersuing both schools for breach of contract.
The court cases are all at the appellate stage over preliminary motions and judicial decisions. None of the cases is anywhere near a trial date at this point.
Every ACC school signed an extension of the Grant of Rights deal in 2016. It took the original contract signed in 2013 and extended the conclusion date to 2036.
What Are the Current Legal Fights?
Among the allegations from the schools is that when they signed the extension, they, the schools, were not told that ESPN had an opt-out clause in 2025. Last Word’s review of the Grant of Rights documents in 2022 confirmed that the intent of the contract is to coincide with the length of the ESPN contract. But that no mention of the ESPN opt-out clause exists.
The timing of the announcement is significant. Earlier in the week, the ACC filed a legal brief asking that the Florida state supreme court intervene in the matter of Florida State v. The ACC. The conference had filed a motion to dismiss the school’s lawsuit and based the claim on jurisdiction issues. Because the conference filed its lawsuit first, attorneys for the ACC wrote that the “First to File” principle should come into play in determining where the lawsuit should be heard. That claim has been rejected at the trial court level and the 1st Circuit Court of Appeals in Florida.
What is the Current Legal Status?
The state supreme court in Florida has yet to announce whether it will hear the appeal.
Likewise, Florida State is waiting to be heard by the state supreme court in North Carolina. It also had its motion to dismiss denied by the North Carolina Business Court which handles complex contract cases. Because that court in particular heard it, Florida State was allowed to skip other appellate levels and go straight to the state supreme court.
The FSU arguments for the motion to dismiss differ from the ACC motions in Florida. Attorneys for the school claim that as a public school, FSU functions as part of the state. They argue it is thus entitled to sovereign immunity protections from lawsuits in other states.
The Florida State appeal in North Carolina is not yet on the state supreme court docket. We have been told by attorneys in the case to anticipate that it could come up as early as mid-March.
Last Word reached out to attorneys on all sides of the current legal battles to see if they felt ESPN committing to the Grant of Rights through the duration would have an impact on the status of their cases. We had not heard back from anyone at the time of publication.
Main Image: Jim Dedmon-USA TODAY Sports
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