The Atlantic Coast Conference in Pickens County has been slapped with a lawsuit over the vexed question of the media rights deal, in what is being dubbed as the first step by the Tigers of exiting from the conference.
Clemson University Takes Legal Action Against ACC for Media Rights Issues
The lawsuit, which was filed in the Pickens County court by Clemson University, allegedly targets the exclusive media rights of the member institutions until the year 2036, even if the member is not a part of the institution.
The lawsuit also alleges that the members have to pay an astronomical sum of $140 million penalty to leave the Conference.
The lawsuit also alleges that the present setup effectively closes the doors for Clemson University to explore other avenues of Conference membership and also the ability to negotiate other routes for revenue sharing among the ACC members as well as the full value for its future media rights.
Describing the present arrangement as vague and there is a lack of clarity on a number of issues. Neither could Clemson University advance its or its student-athletes in the present state of negotiations with the Conference or its existing media partners, ESPN. The present position of the ACC leaves Clemson University with no other option but to bring forth the lawsuit. However, Clemson University has not given a notice that it is exiting the ACC and still remains associated with the Conference.
On its part, the chair of the ACC board of directors, Jim Ryan, and ACC commissioner Jim Phillips reiterated that the agreement between it and the members will be upheld by the court. The agreement was signed voluntarily by the members repeatedly in 2013 and then in 2016 Grant of Right, which is binding through 2036. The ACC will ensure that the agreement is followed in the best interests of ACC’s current and incoming members.
On its part, Clemson University is alleging that the present setup is hindering the chance to explore an exit from the conference. It also alleges that even if Clemson University left the Conference, it will still retain the media rights agreement with ESPN. Clemson University in its lawsuit has also asked for the broadcasting Rights.
The lawsuit also alleges that there is a huge disparity in revenues between the Power 2 conferences and SEC as compared to Big Ten and the ACC. The lawsuit alleges that SEC and Big Ten’s revenues will continue to surge to $30 million per member institution per year. Also, it is alleged that the Big Ten has no withdrawal penalty.
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