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2023 ACC News & Discussion
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<blockquote data-quote="RamblinRed" data-source="post: 948307" data-attributes="member: 1776"><p>Interesting write-up on how GoR's have kept (and likely will continue to keep) 2 Power conferences together. Also, how B12 and ACC's GoR's are basically identical.</p><p></p><p>[URL unfurl="true"]https://www.cbssports.com/college-football/news/inside-the-big-12s-ironclad-grant-of-rights-contract-that-helped-keep-the-acc-together-amid-turbulence/[/URL]</p><p></p><p>So ironclad, in fact, that Big 12 legal minds developed the strategy relying on a landmark 115-year old Supreme Court case that traced its roots back to British Common Law in the 1600s. So ironclad that the Big 12 incorporated itself in Delaware, a state so business-friendly that 65% of Fortune 500 companies file their incorporation papers there.</p><p></p><p>So ironclad that the verbiage in these contracts might have saved both conferences from near-extinction.</p><p></p><p>On Wednesday, the ACC stiff-armed rumblings of a mutiny by going to a <a href="https://www.cbssports.com/college-football/news/acc-amends-revenue-distribution-model-incentivizing-postseason-success-for-money-making-sports/" target="_blank">performance-based revenue model</a>. It's seemingly unbreakable grant of rights quelled any talk of a more significant uprising.</p><p></p><p>It would cost a reported $120 million for an ACC school to leave early, not counting a monster negotiation to get out of the grant of rights. But with 13 years to go on that ironclad agreement -- and with little leverage -- the ACC got its schools to fall into line.</p><p></p><p>There was no other choice. Two industry experts with experience valuing media rights told CBS Sports that -- for all the complaining by those seven schools -- it is doubtful they would bring pro rata (equal value) if they were to depart the ACC for the SEC.</p><p></p><p>Those <a href="https://www.cbssports.com/college-football/news/does-florida-state-or-any-acc-power-actually-have-options-revenue-gap-concerns-threaten-to-split-league/" target="_blank">ACC schools seemingly had nowhere to go</a> and lacked the financial will to challenge the grant of rights in court given its ironclad nature.</p><p></p><p>Earlier this year, the <a href="https://www.cbssports.com/college-football/news/texas-oklahoma-leaving-big-12-early-joining-sec-in-2024-season-after-reaching-exit-agreement/" target="_blank">Big 12 announced a deal</a> for the Longhorns and Sooners to leave one year early in 2024, netting the league $100 million.</p><p></p><p>Neither school dared challenge the grant of rights itself.</p><p></p><p>After Texas and Oklahoma declared their intentions two years ago, Bowlsby doubled back and vetted the vulnerability of his grant of rights with a New York litigation firm.</p><p></p><p>"I asked them to tear it apart," Bowlsby said. "They came back and said, 'This is ironclad. You can take it any federal court in the country and win.'"</p><p></p><p>An ACC league source last year told CBS Sports, at that time, <a href="https://www.cbssports.com/college-football/news/conference-realignment-phil-knight-resorts-to-cold-calling-for-oregon-as-pac-12-big-12-acc-seek-lifelines/" target="_blank">it might have cost as much as $500 million total</a> to exit the league, including its grant of rights, as there were then 14 years left on the deal. Other estimates have been lower but still significant.</p></blockquote><p></p>
[QUOTE="RamblinRed, post: 948307, member: 1776"] Interesting write-up on how GoR's have kept (and likely will continue to keep) 2 Power conferences together. Also, how B12 and ACC's GoR's are basically identical. [URL unfurl="true"]https://www.cbssports.com/college-football/news/inside-the-big-12s-ironclad-grant-of-rights-contract-that-helped-keep-the-acc-together-amid-turbulence/[/URL] So ironclad, in fact, that Big 12 legal minds developed the strategy relying on a landmark 115-year old Supreme Court case that traced its roots back to British Common Law in the 1600s. So ironclad that the Big 12 incorporated itself in Delaware, a state so business-friendly that 65% of Fortune 500 companies file their incorporation papers there. So ironclad that the verbiage in these contracts might have saved both conferences from near-extinction. On Wednesday, the ACC stiff-armed rumblings of a mutiny by going to a [URL='https://www.cbssports.com/college-football/news/acc-amends-revenue-distribution-model-incentivizing-postseason-success-for-money-making-sports/']performance-based revenue model[/URL]. It's seemingly unbreakable grant of rights quelled any talk of a more significant uprising. It would cost a reported $120 million for an ACC school to leave early, not counting a monster negotiation to get out of the grant of rights. But with 13 years to go on that ironclad agreement -- and with little leverage -- the ACC got its schools to fall into line. There was no other choice. Two industry experts with experience valuing media rights told CBS Sports that -- for all the complaining by those seven schools -- it is doubtful they would bring pro rata (equal value) if they were to depart the ACC for the SEC. Those [URL='https://www.cbssports.com/college-football/news/does-florida-state-or-any-acc-power-actually-have-options-revenue-gap-concerns-threaten-to-split-league/']ACC schools seemingly had nowhere to go[/URL] and lacked the financial will to challenge the grant of rights in court given its ironclad nature. Earlier this year, the [URL='https://www.cbssports.com/college-football/news/texas-oklahoma-leaving-big-12-early-joining-sec-in-2024-season-after-reaching-exit-agreement/']Big 12 announced a deal[/URL] for the Longhorns and Sooners to leave one year early in 2024, netting the league $100 million. Neither school dared challenge the grant of rights itself. After Texas and Oklahoma declared their intentions two years ago, Bowlsby doubled back and vetted the vulnerability of his grant of rights with a New York litigation firm. "I asked them to tear it apart," Bowlsby said. "They came back and said, 'This is ironclad. You can take it any federal court in the country and win.'" An ACC league source last year told CBS Sports, at that time, [URL='https://www.cbssports.com/college-football/news/conference-realignment-phil-knight-resorts-to-cold-calling-for-oregon-as-pac-12-big-12-acc-seek-lifelines/']it might have cost as much as $500 million total[/URL] to exit the league, including its grant of rights, as there were then 14 years left on the deal. Other estimates have been lower but still significant. [/QUOTE]
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