I
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The GoR does not need renegotiated
The GoR doesn't need renegotiated. The media rights sold to ESPN would if ESPN opts out or does not extend.
In a real world example, the ACC cannot tell Virginia Tech you signed a GoR that includes media rights guaranteeing $40 million per year through 2036. But now ESPN bailed on that contract before its 2036 completion and we picked up a new deal but can now only pay you $15 million per year. Sorry about your financial luck. That's not what Virginia Tech signed off on and such would not be enforceable.
ESPN has until February 2025 to extend the ACC contract past the 2026 season. They have not as of yet. The details on how that came about were discovered after FSU filed the lawsuit. Hence, a big part of the Clemson and FSU lawsuits are specifically geared towards not being told about this ESPN extension option. Everyone just assumed the ESPN contract ran through 2036. The GoR was signed back in 2013 and then amended and resigned back in 2016 with the formation of the ACC Network. The ESPN extension option was added in 2021 by then retiring ACC commissioner John Swofford - but no vote by the conference members was taken on that extension - a major legal contention. No lawyer knows how the court will interpret this thing on many levels such as this one.
If ESPN does not extend the contract after the 2026 season is over -- then Clemson/FSU could play in the ACC for 2024 and 2025 - then leave. What they owe the ACC at that point is the exit fee (3 times the league operating expense which is estimated at $130 million) plus one year of media rights payable to ESPN (roughly another $30 million).
As another example, ESPN can bail on the ACC contract for 2024. If that is the case, then Clemson/FSU can leave the next day, pay the $130 million GoR exit fee and that's it.
This is why there is much talk about Clemson and FSU announcing they are leaving for the 2024 season before June 30. If they leave, the league drops below the required 15 teams, which gives ESPN an option to bail. At that point, the only fee to be paid is the exit fee. The courts can fight that one out for another two years but ESPN holds that key. I know...it's an ugly scramble right now.
Thread Replies (45)
SIR: ACC ending sooner than people thought? I started out skeptical, but
-- Stech
Apr 05, 2024 at 09:13 AM ET
Stech
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04/05/24 09:13 AM ET
FSU does not owe a fiduciary duty to the ACC
-- INSIDE99
Apr 06, 2024 at 05:01 PM ET
INSIDE99
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04/06/24 05:01 PM ET
Agreed, people are missing that, details can get after you now!! 🤣🤣**
-- Stech
Apr 06, 2024 at 05:31 PM ET
Stech
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04/06/24 05:31 PM ET
Another incorrect interpretation.......
-- 2hhoop3
Apr 06, 2024 at 05:24 PM ET
2hhoop3
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04/06/24 05:24 PM ET
Depends on who is doing the interpretation
-- INSIDE99
Apr 08, 2024 at 12:25 AM ET
INSIDE99
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04/08/24 12:25 AM ET
Virginia Tech will compete for a 2024 playoff spot on Dec 7
-- INSIDE99
Apr 08, 2024 at 07:49 PM ET
INSIDE99
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04/08/24 07:49 PM ET
2hhoop3, you've been more than patient with this troll, which
-- saret
Apr 08, 2024 at 09:58 PM ET
saret
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04/08/24 09:58 PM ET
the ACC will not make this be played out by half knowing at best
-- VTCALS72
Apr 05, 2024 at 01:19 PM ET
VTCALS72
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04/05/24 01:19 PM ET
I am less and less sure of that
-- VTCALS72
Apr 05, 2024 at 07:10 PM ET
VTCALS72
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04/05/24 07:10 PM ET
Why would the GOR need to be renegotiated?
-- VTCALS72
Apr 05, 2024 at 08:25 PM ET
VTCALS72
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04/05/24 08:25 PM ET
The GoR does not need renegotiated
◄
-- INSIDE99
Apr 05, 2024 at 09:44 PM ET
INSIDE99
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04/05/24 09:44 PM ET
Given that Clemson filed its lawsuit against the ACC in Pickens County, SC,
-- VTHokie2000
Apr 05, 2024 at 09:54 PM ET
VTHokie2000
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04/05/24 09:54 PM ET
Is there a possibility that the right of venue can't be resolved because
-- VTHokie2000
Apr 05, 2024 at 10:58 PM ET
VTHokie2000
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04/05/24 10:58 PM ET
I didn't get too far. Does the GOR agreement "guarantee" a figure?
-- VTCALS72
Apr 05, 2024 at 09:48 PM ET
VTCALS72
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04/05/24 09:48 PM ET
Schools sold their media rights to the ACC until July 1, 2037
-- mrcaniac
Apr 05, 2024 at 09:05 PM ET
mrcaniac
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04/05/24 09:05 PM ET
Yep but FSU wants to make a stew out of the GOR and the ESPN deal.
-- VTCALS72
Apr 05, 2024 at 09:50 PM ET
VTCALS72
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04/05/24 09:50 PM ET
Given that the original GOR defined "ESPN Agreement" and the amended GOR
-- VTHokie2000
Apr 05, 2024 at 10:41 PM ET
VTHokie2000
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04/05/24 10:41 PM ET
I hear you but that is why I said it will have to be determined in court
-- VTCALS72
Apr 05, 2024 at 10:55 PM ET
VTCALS72
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04/05/24 10:55 PM ET
Maybe so, but I thought the original agreement addressed that issue by
-- VTHokie2000
Apr 05, 2024 at 11:03 PM ET
VTHokie2000
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04/05/24 11:03 PM ET
That if for a court to decide
-- VTCALS72
Apr 06, 2024 at 09:02 AM ET
VTCALS72
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04/06/24 09:02 AM ET
Why would it go to federal court? NC case will be final**
-- SpeakToDamien
Apr 05, 2024 at 01:52 PM ET
SpeakToDamien
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04/05/24 01:52 PM ET
The Commerce Clause because it gives the federal government the power to
-- VTHokie2000
Apr 05, 2024 at 02:50 PM ET
VTHokie2000
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04/05/24 02:50 PM ET
No. Go to law school.**
-- SpeakToDamien
Apr 05, 2024 at 09:19 PM ET
SpeakToDamien
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04/05/24 09:19 PM ET
You should take your own advice. I would suggest you take a course on
-- VTHokie2000
Apr 05, 2024 at 09:38 PM ET
VTHokie2000
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04/05/24 09:38 PM ET
I'm not a litigator
-- SpeakToDamien
Apr 05, 2024 at 10:37 PM ET
SpeakToDamien
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04/05/24 10:37 PM ET
Given that the ACC and FSU have 2 cases, they have to settle the right of
-- VTHokie2000
Apr 05, 2024 at 11:09 PM ET
VTHokie2000
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04/05/24 11:09 PM ET
is FSU even making that argument?
-- daveinop
Apr 05, 2024 at 03:29 PM ET
daveinop
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04/05/24 03:29 PM ET
FSU does not want any part of that.**
-- VTCALS72
Apr 05, 2024 at 07:12 PM ET
VTCALS72
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04/05/24 07:12 PM ET
Not yet. There may be a couple things in play that could determine if
-- VTHokie2000
Apr 05, 2024 at 03:55 PM ET
VTHokie2000
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04/05/24 03:55 PM ET
Because, IMHO. FSU threw so much up against the wall
-- VTCALS72
Apr 05, 2024 at 02:28 PM ET
VTCALS72
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04/05/24 02:28 PM ET
I wondered when this video would make it here.
-- DMaroonHokie
Apr 05, 2024 at 11:54 AM ET
DMaroonHokie
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04/05/24 11:54 AM ET
These cases are not getting resolved before June lol**
-- SpeakToDamien
Apr 05, 2024 at 10:29 AM ET
SpeakToDamien
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04/05/24 10:29 AM ET
because the contract terms are proprietary?
-- daveinop
Apr 05, 2024 at 09:23 AM ET
daveinop
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04/05/24 09:23 AM ET