I definitely can’t wait to listen to 365 today!
Interesting.
I’m not that kind of lawyer, but that would be an interesting move to say the least.
@EastCoastCoog , since your area of law is more like this, what say you?
As a recovering corporate and investment banker I’m here for all the smoke!!!
I can’t wait to see what FSU has cooked up!
Apparently, FSU has hired some of the most sophisticated legal minds in all of NY to help do this to avoid the 140 million GOR.
Think Simpson Thatcher, skaden Arps, Sullivan Cromwell type law firms.
Going to be epic!!!
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You are confusing exit fees with GOR
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Ok.
Then we’ll see how the GOR stands up.
I’m sure FSU’s lawyers have a plan there as well.
They appear to be mobilizing for war!
As PeeWee’s friend told him…EVERYTHING is negotiable!
I was at the Peach Bowl in the upper deck surrounded by FSU, the chop got so annoying I told my wife we are going down to the UH bench, and I will stand there if I have to but these people are annoying. After the game was so rewarding, great times.
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Ut and ou negotiated their exit fees. This is a GOR dispute. Sure, people negotiate every day. But people are also held to contract language every day. This is a we’ll see situation, and ut and ou recent negotiation is irrelevant.
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yes…FSU will have to pay closer to the $500-$750 million range to get out of this thing.
Not sure of the Expansion Agreement, but if the 7 leave at THE SAME TIME they may be able to FORMALLY dissolve the conference BEFORE the expansion agreement kicks in
That needs to be a heavily coordinated plan and needs to happen ASAP. I imagine FSU has been bribing the other 6 to go along with it and IF they are serious…those 7 should have invitations IN HAND right now.
That’s just one viable route for FSU to avoid the HUGE buyout + GOR +Media payouts they will not get.
If more than three leave (four blue bloods have been rumored), then according to even the Washington Post, ESPN can renegotiate the ACC’s TV contract.
And without those most valuable brands, it WILL be lower.
That’s why those three new teams were added.
It was feared that if either FSU or Clemson bolted, it’d cost them.
Adding three more means that at least four teams have to bolt.
Unfortunately for the ACC, four blue bloods are rumored to be looking elsewhere, according to several reports.
And people negotiate their way out of those as well.
We’ll see.
The PAC-2 certainly got a contract ruling in their favor against the rest of the PAC recently, but every case is different.
Buying my popcorn, going to be a show
I’m aware of what was negotiated. Keep in mind that the GOR for XII under the former contract expired 2025 and that is much different conservation. ACC memorialized a Long Long Term deal until 2030ish!??
But you’re right, exit fees and ongoing media rights pledged to your conference are two different things.
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FSU and Clemson need to join the Big 12…
Brett Yormark
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Didn’t Boise St. get a larger piece of the pie than other MWC members when they joined that conference? It sounds like that is what Florida St. wants (a larger slice of the ACC pie) as a current member or they are threatening to find a way out. If this works, will schools like Clemson and UNC start asking for the same?
As some above have said…get the popcorn ready.
McMurphy speaks:
Florida State starting process of leaving ACC “will have an ‘Oppenheimer-like’ ripple effect” thru out college landscape, source told
. As one of biggest TV brands, FSU could land in Big Ten or SEC, and if those aren’t options, the Big 12, sources said
Anyone know of a good FSU forum?
Hmm? Interesting.
I have seen Bankruptcy Remote Entities (“BREs”) used in the real estate context. Not as familiar with their use in this context. However, maybe a SPAC or Series LLC?
FSU forms a new company to hold its NIL. Then a series of LLCs to hold each of its media rights deals: one for TV, one for radio, one for streaming, another for 3rd tier rights, or whatever.
If the holding company gets sued, then the media rights may still be protected.
The real key is whether or not the PE boys will be willing to underwrite this sort of structure. The problem is, as a state entity, FSU may not be able to put its assets as leverage, unless the state gives it permission, and even then it would be tough to do. Perhaps it could its stadium or income rights to its NIL (i.e., proceeds from sale of FSU merch) as collateral?
This gets more fun by the minute.
Could they use any part of their $2.17 billion private endowment as leverage?
If FSU is that desperate to leave the ACC, then I wish them all the best paying off 9 figures
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