INSIDE COMPLIANCE

In December 2023, Florida State University’s Board of Trustees filed suit against the Atlantic Coast Conference (ACC) challenging the ACC’s grant of rights and “draconian” exit penalties. About three months later in March 2024, Clemson University filed a complaint against the conference challenging those same exit penalties and grant of rights issues. In response, the ACC filed legal challenges against both schools, arguing they agreed to the contract terms and were not  allowed to leave the conference or challenge those agreements. Courts will have to look to the ACC’s grant of rights agreement, Article 2 of the Uniform Commercial Code, and State antitrust laws in determining who will succeed in this lawsuit. Several other schools have gotten around their conference’s grant of rights agreements in the Big 10, and Pac-12. However, unlike those conferences’ grants of rights agreements expiring in 2024 and 2025, the ACC’s agreement lasts until June 2036. Regardless, it is going to be difficult for these schools to succeed in challenging the agreements in court.