Why is Florida State suing the ACC? Exploring the legal battle over league's grant of rights and $130 million withdrawal fee
Florida State University has taken legal action against the Atlantic Coast Conference. The university’s Board of Trustees decided to file a lawsuit against ACC on Friday, citing mismanagement. The issue particularly revolves around the conference's multi-year media rights agreement that binds the Seminoles to the league for the next 12 years.
The lawsuit accuses the ACC of coming short on commitments to “generate substantial revenues” and “maximize athletic opportunities” for its member schools.
It alleges that the negotiations with ESPN were unsatisfactory and led to members losing tens of millions in annual revenues. Consequently, this has put Florida State at a disadvantage compared to other Power Four schools.
The ACC signed a media rights agreement with ESPN in 2011, and its subsequent renegotiation in 2012 is central to the dispute. While other conferences secured shorter, more lucrative contracts with ESPN, the ACC granted the network a unilateral option to extend the Tier I contract until 2036 without additional compensation.
If at any point the Florida State University decides to leave the conference, ACC's Grant of Rights provision will leave FSU no choice but to let go of its media rights through 2036.
The provision, implemented to prevent schools from defecting to conferences with more lucrative broadcast contracts, has a significant financial impact, with media rights currently worth at least $442 million.
Leaving the conference will not be a good idea for the Florida State Seminoles, with ACC setting the “severe withdrawal fees” at $130 million or thrice the annual operating budget.
Florida State University facing $572 million in fines
The lawsuit, filed in Leon County Circuit Court, contends that the conference did not take measures to right the wrong but attempted to prevent member schools, including FSU, from leaving by imposing “draconian” penalties of $572 million or more.
Restraint of trade, breach of contract, and a failure to perform are some of the accusations imposed on the ACC. Peter Collins, chairman of the university’s Board of Trustees, said:
“The lawsuit represents the response to a long list of failures by the ACC, and while Florida State has challenged the ACC to be better for its members, the conference has responded with inaction.”
FSU president Richard McCullough emphasized that the legal action was necessary because the ACC's leadership no longer serves the vision and priorities of the school.
The lawsuit points to the College Football Playoff committee's decision to exclude the undefeated Seminoles from the 2024 championship as a culmination of years of ACC failures.