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<blockquote data-quote="CEB" data-source="post: 936675" data-attributes="member: 4905"><p>First off, I absolutely agree with you 100%. GOR is valid and here to stay unless and until it’s legally overturned or it sunsets as it was designed to do. FSU agreed to it and must abide by it. </p><p></p><p>BUT</p><p></p><p>I can’t believe they plan to forego 12 +/- years of revenue to jump ship now. I have to believe they see a way around the GOR. That’s where I think the infamous “Agreement” with ESPN provides their window of opportunity. I am 100% speculating, but my guess is that there are metrics in the agreement for increased revenues and this is where they plan to claim ESPN has not held up their end. They are going to file a suit and believe that if nothing else, a seat at the negotiating table is worth the risk. If it actually gets to the negotiating table, ten FSU is probably right. </p><p></p><p>The other alternatives are </p><p>1. FSU is leaving the ACC with virtually no media rights to their credit and will forego up to $400M in ACC payouts over the next 10-12 years to do so. They believe the risk of not solidifying a spot in the BIG/ SEC RIGHT NOW is worth the $400M risk. </p><p>2. FSU is leaving the ACC and has a soft landing spot with BIG / SEC that will allow them to get a partial payout for whatever value their new conference perceives them to be worth outside of the media rights they owe ACC / ESPN. That value is close enough to offset what they are leaving on the table by vacating the ACC until the GOR is gone. </p><p></p><p>I find both scenarios unlikely. I don’t think FSU walks from all of that money and I don’t see how another conference values them enough (without their media rights) to pay them anything approaching what the ACC would pay. </p><p></p><p>Without the details outlined in the ESPN agreement referenced in the GOR, we don’t know for certain what FSU has to do in order to live up to the GOR nor do we know what obligations ESPN has / had on their end. I have a feeling that FSU is setting up a case to say that they entered into the GOR with expectations that are not being met, therefore, they need to be compensated (either by ESPN paying more or by ACC unequal rev sharing) or they must be relieved from the GOR agreement.</p></blockquote><p></p>
[QUOTE="CEB, post: 936675, member: 4905"] First off, I absolutely agree with you 100%. GOR is valid and here to stay unless and until it’s legally overturned or it sunsets as it was designed to do. FSU agreed to it and must abide by it. BUT I can’t believe they plan to forego 12 +/- years of revenue to jump ship now. I have to believe they see a way around the GOR. That’s where I think the infamous “Agreement” with ESPN provides their window of opportunity. I am 100% speculating, but my guess is that there are metrics in the agreement for increased revenues and this is where they plan to claim ESPN has not held up their end. They are going to file a suit and believe that if nothing else, a seat at the negotiating table is worth the risk. If it actually gets to the negotiating table, ten FSU is probably right. The other alternatives are 1. FSU is leaving the ACC with virtually no media rights to their credit and will forego up to $400M in ACC payouts over the next 10-12 years to do so. They believe the risk of not solidifying a spot in the BIG/ SEC RIGHT NOW is worth the $400M risk. 2. FSU is leaving the ACC and has a soft landing spot with BIG / SEC that will allow them to get a partial payout for whatever value their new conference perceives them to be worth outside of the media rights they owe ACC / ESPN. That value is close enough to offset what they are leaving on the table by vacating the ACC until the GOR is gone. I find both scenarios unlikely. I don’t think FSU walks from all of that money and I don’t see how another conference values them enough (without their media rights) to pay them anything approaching what the ACC would pay. Without the details outlined in the ESPN agreement referenced in the GOR, we don’t know for certain what FSU has to do in order to live up to the GOR nor do we know what obligations ESPN has / had on their end. I have a feeling that FSU is setting up a case to say that they entered into the GOR with expectations that are not being met, therefore, they need to be compensated (either by ESPN paying more or by ACC unequal rev sharing) or they must be relieved from the GOR agreement. [/QUOTE]
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