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<blockquote data-quote="orientalnc" data-source="post: 817123" data-attributes="member: 1199"><p>Penalty clauses are more difficult to enforce than grants of rights. The publishing and entertainment businesses have used grants of rights for a long time. This is not new turf.</p><p></p><p>Here is how it works. The ACC members knew they could negotiate a much better collective deal with ESPN if they negotiated as a group. But the group members wanted to assure that the group would stay together for the life of the media contract. So did ESPN. In the example, FSU was able to get a bigger media payday by allowing the ACC to negotiate on their behalf. But the price of that bigger payday was giving the ACC their media rights for the life of the contract. It's not like FSU did not get something in return for those rights.</p><p></p><p>I think Texas and OU are facing the same problem.</p><p></p><p>Here is the problem. Let's say FSU has $40 million in media distribution from the existing ACC contract with ESPN. They jump to the SEC and their media distribution increases to $60 million. Guess what? That $60 million belongs to the ACC because they own the Seminoles' media rights. The SEC could try to play games with the the definition of the media distribution, but it would not work in court.</p></blockquote><p></p>
[QUOTE="orientalnc, post: 817123, member: 1199"] Penalty clauses are more difficult to enforce than grants of rights. The publishing and entertainment businesses have used grants of rights for a long time. This is not new turf. Here is how it works. The ACC members knew they could negotiate a much better collective deal with ESPN if they negotiated as a group. But the group members wanted to assure that the group would stay together for the life of the media contract. So did ESPN. In the example, FSU was able to get a bigger media payday by allowing the ACC to negotiate on their behalf. But the price of that bigger payday was giving the ACC their media rights for the life of the contract. It's not like FSU did not get something in return for those rights. I think Texas and OU are facing the same problem. Here is the problem. Let's say FSU has $40 million in media distribution from the existing ACC contract with ESPN. They jump to the SEC and their media distribution increases to $60 million. Guess what? That $60 million belongs to the ACC because they own the Seminoles' media rights. The SEC could try to play games with the the definition of the media distribution, but it would not work in court. [/QUOTE]
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