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Orange Blooded [2951]
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Can the ACC sue ESPN under anti-trust legislation?
May 24, 2023, 12:00 AM
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ESPN has made 2 conferences so much wealthier than the other conferences/schools. And the only way out is to break current contracts and hope to get an invite to one of the 2. Seems like they have created an anti-competitive environment for the ACC and PAC-12 for sure and others who will get left in the dust if they don't find a home.
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CU Guru [1018]
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Dunno, but it's worth a shot.
May 24, 2023, 2:42 AM
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Look what happened to NIL when the athletes sued the NCAA for anti trust.
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110%er [5572]
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I'm sure they could
May 24, 2023, 5:07 AM
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But that doesn't mean the ACC would have a winnable case.
I'm pretty sure the schools in serious discussions to leave the ACC would want no part of it if they think they have a way out of the ACC. Maybe afterwards, if they got stuck, but not at present.
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CU Medallion [64519]
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One thing I have learned about litigation...
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May 24, 2023, 7:56 AM
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is that having a winnable case is rarely a relevant consideration. More often than not, it boils down to who has the better attorney.
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Team Captain [495]
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Re: I'm sure they could
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May 24, 2023, 8:21 AM
[ in reply to I'm sure they could ] |
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I am not sure this is true. If the ACC could get a competitive contract, I think the Magnificent 7 would strongly consider staying. Though it has been portrayed many times as a ESPN/ACC means to prevent schools from leaving, I believe the GOR was fully endorsed by the schools to keep the conference in tact. Maryland leaving made the remaining schools nervous that others would leave too and this was their solution to that. It just worked out catastrophically when the contract quickly became dwarfed by the big 2’s new contracts and the ACC could not renegotiate.
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Letterman [278]
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Re: I'm sure they could
May 24, 2023, 11:48 AM
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This is 💯. I remember an interview with coach K. a day or two after Maryland announced they were leaving. He said something along the lines of we have to circle the wagons and make sure everyone is committed to the ACC. He had a somewhat shocked look on his face. This is one of the times that people reacted to something and, in the long run, may have made the situation worse. What would have happened to the ACC if they hadnt extended the tv contract and GOR with ESPeNis to get the ACC network?
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Head Coach [760]
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Re: Can the ACC sue ESPN under anti-trust legislation?
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May 24, 2023, 5:33 AM
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I’m not an attorney but it seems unlikely. The ACC willingly entered into this godawful agreement. There are market forces at work. The demand for ACC football is not as high as the demand for SEC football or Big Ten football, therefore the price is lower. Except for Clemson, FSU, and perhaps Miami no one moves the needle in a national sense. For a long time we have wanted to see our ACC brethren improve in football but most of them have been unwilling (or unable) to make the necessary investments needed to make that improvement.
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Standout [340]
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it's not anti-trust that's the issue - Fox, NBC, Amazon, etc
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May 24, 2023, 6:45 AM
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all offer competitive access similar to ESPN as alternatives. ESPN is powerful, but it's not a monopoly.
The basis for any suit against ESPN would seem to be that it violated its fiduciary duty to the ACC when it helped the SEC reel in Oklahoma and Texas.
Because ESPN is a contractual business partner with the ACC, it has a duty to protect the viability and the value of the contract it holds with the ACC. In helping the SEC attract the two new cornerstone schools, it tilted the balance of power heavily in the favor of the SEC. Up until then the ACC had a reasonably competitive product to compare to the SEC. After the new expansion, not so much.
So if ESPN played a role in helping attract the new schools to the SEC, the ACC could say that it violated its duty to protect the ACC's contract value.
That ESPN played such a role seems obvious. That such expansion reduced the comparative value of the ACC contract seems obvious as well.
Given the incredible projected reduction in Brand value of Clemson's (and FSU's) Football program over the remaining years of the ESPN contract, it doesn't seem possible that this line of thought couldn't be litigated.
Basically, ESPN stuck it to the ACC's competitive brand value, all the while it held the ACC hostage. Kind of a neat trick if you can get away with it - which it seems they will.
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Asst Coach [707]
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Re: it's not anti-trust that's the issue - Fox, NBC, Amazon, etc
May 24, 2023, 9:57 AM
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This claim would be instantly dismissed
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Standout [340]
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I’m no lawyer, so I believe you
May 24, 2023, 11:25 AM
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Some expansion of thought process might be nice though.
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Orange Blooded [2377]
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Re: Can the ACC sue ESPN under anti-trust legislation?
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May 24, 2023, 7:06 AM
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Well, you can sue for anything these days.
Would they win a suit? I don't think so. We (the reps for the ACC) freely and willingly signed this contract.
But what do I know? I hear radio ads all the time: "Stuck in your timeshare? We can help." Maybe we need to get the timeshare lawyers to help us.
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Orange Blooded [2961]
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Are we stuck in timeshare?
May 24, 2023, 8:02 AM
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you should call one of them ads that I pass out to.
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110%er [7459]
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not sure how you could say that when B1G contracts are with
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May 24, 2023, 8:46 AM
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Fox, CBS and NBC and won't be on ESPN.
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Asst Coach [707]
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Re: Can the ACC sue ESPN under anti-trust legislation?
May 24, 2023, 9:53 AM
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The answer is no. The ACC wouldn't have standing to sue, even if the rest of this idea wasn't ridiculous.
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All-TigerNet [13425]
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Re: Can the ACC sue ESPN under anti-trust legislation?
May 24, 2023, 10:06 AM
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The market contracts for media rights increase pretty dramatically every year. When the ACC entered into the agreement with ESPN, the contract was competitive with other conference contracts, all things being equal. Newer contracts are getting more lucrative than those signed in the past and now the ACC contract looks less competitive in comparison. The ACC did this to themselves by signing on and locking in for such a long period.
One can sue for just about anything but I would not like our chances in court unless they could show proof of some sort of malfeasance at the time the contract was signed, such as information that was not disclosed that would have been material to the terms negotiated in good faith.
The bottom line, the ACC and university ADs made a bad deal and now they are paying for it.
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Letterman [278]
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Re: Can the ACC sue ESPN under anti-trust legislation?
May 24, 2023, 11:59 AM
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My wife is an attorney, not involving corporate law or contracts law, and I am shocked at how many baseless demands are sent to her just trying to get some money. My wife does medical malpractice law, defending doctors, hospitals, etc. a lot of attorneys file suit just because they know there is a good chance of a settlement or some money will be thrown their way just to go away. Maybe the ACC can try suing ESPeNis in the hopes that they will renegotiate the contract with more favorable terms for the ACC. ESPeNis might even know they would win in court and still renegotiate the deal. It depends on how much the suit would cost to defend, how much ill will they would get from a lawsuit involving the ACC, and how much it may reduce the public’s image of them to be involved in this suit. What does the ACC have to lose?
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Standout [345]
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Re: Can the ACC sue ESPN under anti-trust legislation?
May 24, 2023, 12:45 PM
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ESPN has made 2 conferences so much wealthier than the other conferences/schools. And the only way out is to break current contracts and hope to get an invite to one of the 2. Seems like they have created an anti-competitive environment for the ACC and PAC-12 for sure and others who will get left in the dust if they don't find a home.
Its amazing how folks want to blame someone else because their worth isn't as much. You're in a basketball conference for crying out loud. Look at your tv viewership compared to the top two conferences. Way, way off. How about attendance at football games? A shadow of a comparison. The ACC can't come within a whisper of the Power 2, and, rightfully so.
I understand the frustration but the ACC wanted to tie you to their conference for a long, long time. They were able to do that because someone was stupid enough at Clemson to tie their school to the ACC for over a decade. Why don't you blame your school officials and the ACC for getting in bed together for a long time?
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Standout [340]
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as usual, UT bringing the arrogance quota all by
May 24, 2023, 1:12 PM
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themselves.
I think the issue here is not that anyone misunderstands who signed the contract originally.
What is wrong is that ESPN was in contract with both the SEC and the ACC (as well the Big XII). They had every responsibility to try to protect the value of the contracts, and thus the underlying value fo the Brands they represented. Every. contractual. responsibility.
And yet, when they went out with the SEC and helped lure Oklahoma and Texas to the SEC, they overtly assisted the SEC create different leverage, and at the ultimate expense of its business "partner", the ACC.
1. The SEC contract went up in value, not just because contracts are getting more valuable as content, but more so because new properties were added to the SEC lineup. That is the fulcrum point of significant value change.
2. Thus the ACC's contract was primarily damaged, not because of competitive issues, but instead because their contract presumed a continued level playing field with the SEC, with no overt actions by ESPn to the contrary. The ACC was behind the SEC in value, but not anywhere near like it is today because of the new fulcrum point.
3. Had they continued down the path that each conference was on, the ACC would have suffered continually as the SEC brought in more dollars each year. That's a "competitive disadvantage". Values of the contracts appropriately reflected this.
4. However what's happening now is that ESPN holding the ACC hostage is actually destroying the Brand values of the very ACC properties they represent.
5. ESPN is actively trying to destroy the Brand values of schools who are party to a contract with ESPN itself.
This isn't "good business" - no, it's ESPN helping the SEC destroy the Brands of other State schools. So F*ck Off UT.
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Freshman [-95]
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No.
May 24, 2023, 1:19 PM
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I'm not a lawyer, but I did sleep with one last night. She was awesome.
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Orange Blooded [2951]
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Creating a monopoly?
May 24, 2023, 6:19 PM
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I understand the GOR was signed and agreed upon in good faith. And, obviously, that is a huge factor in anything the ACC decides to pursue. However, when the market changes so significantly because of new hugely lucrative contracts such that
1. Non-members of the conferences included in the new deals will be put at a huge competitive disadvantage, especially after a few years and
2. There is nothing a non-member can really do to improve their competitive position
then, in effect, a monopoly has been created. That is the test that is always applied when companies merge or one buys out another.
In my opinion, all this will end up in court and it may take years to sort.
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