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ACC vs Maryland in Court Round 1: rejects bid to have $52M dismissed
Posted on 11/20/13 at 9:35 am
Posted on 11/20/13 at 9:35 am
And so the first battle has been fought. Looks like there could be some state court bickering going on as well, but I don't see how this can end well for Maryland. UMd signed a contract (the membership agreement with the ACC) that said any disagreements between the ACC and its member schools are to be decided in the Guilford County, NC, courts using NC contract law. The Prince Georges County, Md, courts are going to be presented with a valid contract under NC law and asked to enforce it. If they don't, there will be serious ramifications beyond this case.
LINK
LINK
quote:
The ACC sued Maryland after the school said in November it is leaving for the Big Ten Conference. That was about two months after the ACC voted to increase the exit penalty to three times the conference's total operating budget, which the appeals court calculated at nearly $52.3 million.
The $52 million fee is the highest penalty ever assessed on a school for leaving an athletic conference and would be nearly equal to the school's yearly athletic budget, Maryland's attorney general's office said in May. The school's athletic department last year cut seven sports teams as it struggled with multimillion-dollar annual losses.
This post was edited on 11/20/13 at 9:40 am
3
Posted on 11/20/13 at 9:39 am to TulaneUVA
Remind me, but didn't Maryland specifically refuse to sign the new exit agreement because they were looking to the door at the time?
Posted on 11/20/13 at 9:41 am to teke184
The first time in 2011, UMd not only voted for the increase penalty fee, they proposed the formula (1.25X conference revenues).
It was the second amendment to 3x conference revenues in September of 2012 that UMd did not vote for. Retrospectively given the timing of their announcement to the Big 10 several weeks later, their vote was very likely the product of ongoing secret talks to leave and thus made on different principles than their 2011 vote.
It was the second amendment to 3x conference revenues in September of 2012 that UMd did not vote for. Retrospectively given the timing of their announcement to the Big 10 several weeks later, their vote was very likely the product of ongoing secret talks to leave and thus made on different principles than their 2011 vote.
quote:
Despite Maryland's negative vote on increasing the exit fee, “each member, including the University of Maryland, has agreed to be bound by the vote of the Council,” Judge Robert N. Hunter Jr. wrote in the appeals court's decision.
This post was edited on 11/20/13 at 9:42 am
Posted on 11/20/13 at 9:43 am to TulaneUVA
What a stupid arse move to sign the contract then then a year later decide to leave. Just terrible AD work.
They deserve to get arse raped in court.
They deserve to get arse raped in court.
Posted on 11/20/13 at 9:43 am to TulaneUVA
UMD better hope that money from the Big Ten network comes soon or that they get a nice loan from someone, then.
Posted on 11/20/13 at 9:44 am to tylercsbn9
quote:
Just terrible AD work.
A terrible AD is how they ended up with their arse in a sling financially to begin with, which is why they made the jump to the Big Ten.
Posted on 11/20/13 at 10:16 am to teke184
Sounds like they need an AD named Bubba
Posted on 11/20/13 at 10:17 am to teke184
quote:
they made the jump to the Big Ten.
biggest goof of all was the B1G accepting these scrubs
Posted on 11/20/13 at 10:23 am to TulaneUVA
quote:
A North Carolina appeals court today preserved a lawsuit that could force the University of Maryland to pay a $52 million fee for leaving the Atlantic Coast Conference.
Big whoop. An appeals court denied a motion to dismiss the suit? No f'n way! The odds of that were about 99.9%.
This is a pretty meaningless step, though of course you try and get it dismissed if you can. I still don't think there's a snowball's chance in hell that Maryland ends up paying anywhere near the full exit fee, as penalty clauses in contracts are almost universally unenforceable. A party can only retrieve their economic losses for a breach of contract. This isn't a tort.
Anyway, here's the important part:
quote:
Maryland's attorneys argued in the North Carolina lawsuit that the ACC's lawsuit should be dismissed because the school is an arm of the state, and Maryland and other states enjoy sovereign immunity that protects them from lawsuits. North Carolina's Court of Appeals rejected that argument.
Yeah, that's a pretty weak argument. But you'll also note that it has nothing to do with the merits of the case. This was a jurisdictional argument. One that of course Maryland was gonna make, but also one that had little hope of succeeding. The idea you can never sue the UMD athletic department is crazy pants. Sovereign immunity doesn't extend that far.
Posted on 11/20/13 at 10:54 am to Baloo
quote:
I still don't think there's a snowball's chance in hell that Maryland ends up paying anywhere near the full exit fee,
I'll agree with that. In the end, I think Maryland pays the exit for the original contract before the fee increase (1.25X)
Posted on 11/20/13 at 11:16 am to teke184
quote:
Remind me, but didn't Maryland specifically refuse to sign the new exit agreement because they were looking to the door at the time?
i think it was them and FSU
Posted on 11/20/13 at 11:39 am to Baloo
Look at the buyouts that have been paid out so far-
Nebraska $9 million to leave the Big12
Colorado $6 million to leave the Big12
A&M $12.4 million to leave the Big12
Mizzou $12.4 million to leave the Big12
West Virginia $20 million to leave the Big East
Boise St. $1 million to leave the Big East
Syracuse $7.5 million to leave the Big East
Pitt $7.5 million to leave the Big East
Nebraska $9 million to leave the Big12
Colorado $6 million to leave the Big12
A&M $12.4 million to leave the Big12
Mizzou $12.4 million to leave the Big12
West Virginia $20 million to leave the Big East
Boise St. $1 million to leave the Big East
Syracuse $7.5 million to leave the Big East
Pitt $7.5 million to leave the Big East
Posted on 11/20/13 at 12:26 pm to TulaneUVA
quote:
UMd signed a contract (the membership agreement with the ACC) that said any disagreements between the ACC and its member schools are to be decided in the Guilford County, NC, courts using NC contract law.
This right there is all you need to know. MD has no chance of winning this legal battle.
Posted on 11/20/13 at 2:52 pm to theGarnetWay
It's worth the fight to get the fee chopped down as much as possible. Plus, I am sure a reasonable payment plan (over many years) will be the end result, as well.
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