Florida State University on Friday filed a lawsuit against the Atlantic Coast Conference, alleging the conference has “persistently undermined its members’ revenue opportunities” and damaged FSU.
The lawsuit, approved by the school’s Board of Trustees and filed in Leon County circuit court, could ultimately lead to FSU leaving the conference after more than 30 years as a member. The dispute focuses on a media-rights deal that will run for another 13 years and on steep costs for exiting the conference, including what the lawsuit describes as a “withdrawal penalty” of $130 million.
FSU President Richard McCullough said the lawsuit is the only “way to maximize our potential as an athletics department.”
Trustee Drew Weatherford, who played quarterback at FSU, said the media-rights deal isn’t anything “that fans want, alumni want, or frankly even the conferences want, for that matter.”
“All we’re looking for is an equitable, competitive environment, where teams that are competing for a championship are waking up and playing by the same rules,” Weatherford said. “And, that’s just frankly not the environment that we’re currently in.”
ACC Commissioner Jim Phillips and Jim Ryan, chairman of the ACC Board of Directors, quickly issued a statement that said FSU’s decision “is in direct conflict with their long standing obligations and is a clear violation of their legal commitments to the other members of the conference.”
They said lawyers for the conference “will vigorously enforce the agreement in the best interests of the ACC’s current and incoming members.”
The FSU Board of Trustees met Friday, nearly three weeks after the Seminoles became the first undefeated champion of one of the five major football conferences – known as the Power 5 —to be left out of the College Football Playoff.
The playoff decision angered university and state officials, with Gov. Ron DeSantis recommending the state offer $1 million for any legal action about the snub. Attorney General Ashley Moody also has demanded a wide range of information from the College Football Playoff Selection Committee about FSU’s exclusion from the four-team playoff.
FSU Board of Trustees Chairman Peter Collins said the playoff decision was “a travesty,” but not the reason for the lawsuit. Rumors have long swirled that FSU could try to become a member of the Southeastern Conference or the Big Ten Conference, both of which have far-richer television deals.
Collins said the lawsuit is about ACC leadership over the past decade and over the next 13 years, through the length of the existing media deal. Collins said the deal has left FSU drawing $30 million to $40 million a year less than if it were in another Power 5 conference.
“There should be no debate that our brand media value and competitiveness across all sports are among the very best in collegiate athletics,” Collins said.
The lawsuit involves challenging a “grant of rights” that FSU and other schools in the conference are tied to in an ESPN contract, which runs through 2036.
The contract gives the league control over TV revenue and broadcasts and stipulates schools would have to buy out of the deal if they want to leave early. In addition to the $130 million withdrawal penalty, the lawsuit said FSU would face a $429 million forfeiture of future media rights and $13 million in future unreimbursed broadcast fees.
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ACC members receive roughly $33 million in annual broadcast payments under a deal renegotiated in 2012. According to FSU, the 2012 deal was expected to be renegotiated in 2027, but the ACC extended the contract without getting additional compensation.
David Ashburn, an attorney with the Greenberg Traurig law firm who represents FSU, said the contract violates restraint of trade under Florida law; imposes an “unenforceable” penalty because the conference’s contract with ESPN would remain unchanged with an FSU exit; and fails to provide FSU with the value of its media rights.
Collins said that when FSU joined the ACC in 1991, the gap in revenue between teams in different Power 5 conferences was far smaller than now.
“It’s one thing to fundraise and make up $7 million,” Collins said. “It’s another entirely to annually make up over $30 (million) to $40 million. As an institution, you cannot be expected to sit idly by while this gap grows.”
Phillips and Ryan said in their statement that ACC members, including Florida State, “willingly and knowingly” re-signed the current grant of rights in 2016.
“Each university has benefited from this agreement, receiving millions of dollars in revenue and neither Florida State nor any other institution has ever challenged its legitimacy,” the conference statement said. “As a league, we are proud of the successes of our student-athletes and that the ACC has won the most NCAA national championships over the past two and half years while also achieving the highest graduation success and academic performance rates among all FBS (NCAA Division 1 Football Bowl Subdivision) conferences, so it is especially disappointing that FSU would choose to pursue this unprecedented and overreaching approach.”
The lawsuit came as college football has faced rapid changes during the past few years, with athletes able to be paid through “name, image and likeness” endorsements and schools shopping themselves to other conferences.
The Power 5 conferences are the ACC, Big Ten, Big 12, Pac-12 and Southeastern Conference. But the Pac-12 has been decimated by the upcoming exits of almost all of its members. As part of the changes, the ACC is adding Stanford, California and Southern Methodist University.
Florida State isn’t the only ACC school to question the grant of rights.
Media reports indicate officials with Clemson, Miami, North Carolina, North Carolina State, Virginia and Virginia Tech have made similar overtures.
This year’s college football playoff teams are Alabama, Michigan, Washington and Texas. Initial reports indicated FSU was left out because it had been weakened by the loss of star quarterback Jordan Travis to a season-ending injury.
But College Football Playoff Executive Director Bill Hancock, in responding to an inquiry from U.S. Sen. Rick Scott, questioned the Seminoles’ schedule and labeled the ACC as a “so-called Power 5 conference.”
–Jim Turner, News Service of Florida
JimboXYZ says
Honestly, the ACC is 3rd in the Power 5. I don’t get the draw for the Big 10, it’s a conference of 3 teams on one side and a weaker other side that allowed Iowa to rack up a 10-2 record & be in their B10 CCG. Iowa is barely a top 20 team. Perspective 4-8 Colorado beat Nebraska 36-14, Iowa beat NU 13-10. What a weak CCG. Solution, Ohio state or Michigan needs to be in the weaker side of the B10, maybe even Penn State to give them a credible CCG.
As for the SEC, without Bama & UGA being in their respective sides, that CCG is a lopsided game too. If the timing of Texas to the SEC was this season, Bama wouldn’t have been in the SEC CCG. Texas beat them. And UGA tried to stage their typical fix to get boith themselves & Bama int the playoffs. It backfired and UGA was excluded. Bama should’ve been excluded as Texas beat them.
FSU as undefeated should have been one of the top 3 teams. I would argue #3 Washington beating #5 Oregon should’ve gotten them past Michigan as #1 when UGA lost. Should Michigan even be allowed to compete, with their cheating scandal, beating an overrated Iowa 10 win team. Penn State beat Iowa 31-0, Michigan 26-0, Ohio State didn’t play Iowa. I imagine they would shut out Iowa too.
FSU leaving the ACC, it’s not like they are getting OSU, Michigan or PSU’s money from donors. What’s the TV revenue draw for boring & mediocre football. The scandals of the B10 ? Michigan cheated, Urban Meyer scandal & Penn State had Sandusky pedophile scandal. The SEC same story for money, with more teams, Texas & Oklahoma joining, there’s only one SEC CCG, 2 teams, the rest will just be teams that failed to earn their way into the game.
This lawsuit is kind of sad from a perspective that it was a decision made 32 years ago for FSU to be an ACC member. It’s like an investor that didn’t buy the right stock in the stock market complaining about the millions they never parlayed out of an investment. FSU can’t really sue the CFP, FSU was passed over based upon opinion they were not one of the 4 best teams, even though they went 13-0. The way the 4 team CFP is set up, that’s always been in their outline of the process. They vote based upon what is monetized as the better match up games. When they go to 12 teams, being left out shouldn’t be a problem, not for FSU or even UGA or Ohio State, Even Oregon probably gets in.
Shark says
They had the weakest schedule .
Tony says
Teams they played and their records. They don’t deserve to be playing in a championship game.
Southern Miss. 3-9
Boston College 6-6
Virginia Tech 6-6
Syracuse 6-6
Wake Forest 4-8
Pittsburg 3-9
North Alabama 3-8
Florida 5-7
oldtimer says
Once again someone willingly signs a contract, then wants out when they don’t like the results. Where have we seen this before? Oh right, student loans
Pogo says
@Did somebody shoot off their mouth about student loans?
Read this
https://www.google.com/search?q=private+schools+defrauding+students
And this
https://www.google.com/search?q=va+prosecutes+private+schools+that+cheated+vets
And that
https://www.google.com/search?q=devoss+makes+dept+of+ed+a+collection+agency+for+crooked+private+schools
oldtimer says
I’ve paid all my loans so yeah I did “shoot of my mouth” Merry Christmas Pogo
Pogo says
@oldtimer
Congratulations. Too bad about the results of your purchase.
Your impersonation of rush limbaugh — uncanny. If you were going for some other blowhard, you done good anyway.
The part you skipped:
Read this
https://www.google.com/search?q=private+schools+defrauding+students
And this
https://www.google.com/search?q=va+prosecutes+private+schools+that+cheated+vets
And that
https://www.google.com/search?q=devoss+makes+dept+of+ed+a+collection+agency+for+crooked+private+schools
oldtimer says
They signed the contract. Maybe they should have read that instead of your suggestion
Pogo says
The part you continue to ignore:
Read this
https://www.google.com/search?q=private+schools+defrauding+students
And this
https://www.google.com/search?q=va+prosecutes+private+schools+that+cheated+vets
And that
https://www.google.com/search?q=devoss+makes+dept+of+ed+a+collection+agency+for+crooked+private+schools
Danm says
Highest paid man on campus, the football coach. Your NOT THE PROS.
Tony says
A waste of taxpayer money. Then again, look who is suggesting this lawsuit.
Brian says
The committee did not pick FSU in the top four because they did not want the viewing audience to be subjected to that stupid, annoying indian chant for 3 hours.
DeSantis has it right this time.... says
Just wondering?
Are the people making the decision of leaving an undefeated team out of the series, related to our Flagler County School board Commission, asking for a friend…….
The dude says
$1mil in taxpayer funds returns what for the taxpayers here?
jake says
When FSU gets their ass kicked by Georgia in the Orange Bowl, it will become evident, even to the most ardent football fan, this was a good decision.
Kevin Pittsnogle's Wedding Wieners says
Nobody twisted their arm or held a gun to their head forcing them to sign. Now they don’t like it. Too bad so sad.
The dude says
The thumping that GA is putting on FSU right now just goes to show you what a waste of time and money this whole sour grapes lawsuit thingy is… looking like they got it right by leaving FSU out.
The entire country will be horse laughing the state of Floriduh tomorrow… again.
dave says
What is a proven, this portal crap is killing college sports along with their NOW ability to get paid. They are not paid by their colleges or universities, but they can receive gifts from boosters; make deals with companies to use their names, images and likenesses; and endorse products. FYI, At last count nearly 30 FSU players didn’t play against GA .FSU was without 14 starters in total. So much these days for college dedication or loyalty it’s now all about the money. I fault the FSU players for not playing as their excuse was , not getting hurt, and not happy with the ranking position and snub. Poor whinny players.
Ray W. says
Playing for a national championship ring is one thing. Playing for swag that is gifted to players by the bowl sponsors is another. Many young people base their decisions on what is best for their future. Yes, according to announcers, three Georgia players opted out of the game. 30 FSU players chose to either early announce for NFL draft eligibility or to enter the transfer portal (a decision that could have been made weeks or months before the bowl game) or to simply opt out of playing in a bowl game that was of far lesser meaning to their lives. I am not convinced that such decisions make them “whiny” as opposed to “smart”, but it appears that you are convinced that it does make them whiny, as if you are entitled to watch a demonstration between two lesser teams in a lesser bowl in which all players participate. There exists today a significant amount of turmoil in college football at all levels, from the players all the way up to the conferences’ plans for realignment; who knows what shape college football will take in the future? Will there be a super alignment of 32 or 64 major teams in one conference (mimicking the NFL), complete with uniform TV revenue packages, and the rest will be discarded into a new level of subchampionship football?