ACC files lawsuit against Maryland
This is going to be fun!
The ACC filed a lawsuit against Maryland in North Carolina state court after the Terrapins announced last week their intentions to join the Big Ten conference. The case was filed in the Greensboro courthouse Monday, a state court clerk confirmed to The Chronicle.
The lawsuit, which the clerk said is a contract suit, is likely regarding the payment of the $50 million required to leave the ACC. The exit fee was raised to that figure when the conference announced the addition of Notre Dame as a partial member in September. Maryland and Florida State were the only two schools to vote against the increase.
Mike Schoenfeld, vice president for public affairs and government relations, referred comment on the lawsuit to the ACC.
The ACC did not respond to requests for comment on the suit in time for publication.
This suit is no surprise. Before announcing their move to the B1G last week, Maryland’s lawyers advised the school that the ACC was vulnerable on this $50 million exit fee. The ACC disagrees.
If Maryland didn’t have any money to begin with, it will be interesting to see how much money they have to mount a significant legal defense. Maybe they aren’t so broke, after all?
19 Responses to “ACC files lawsuit against Maryland”
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I was wondering when the first lawsuit would be filed.
Count on many more.
Oh, the irony. The ACC suing Maryland over leaving after a decade of raiding the Big East.
Which schools make up the council of presidents? I can only find that Richard Brodhead (Duke) chairs it. Interesting to know since the council was the one who voted to pursue the legal action. Hardly surprising that Duke would want to put teeth in the exit fee.
I can only presume that neither the FSU or the Clemson president is on the council. Doubt they would vote to pursue the suit if they want out.
“Maryland and Florida State were the only two schools to vote against the increase.”
Hmmm… are you implying that FSU is next? I’m shocked!
Interesting:
“The complaint alleges Maryland President Wallace Loh proposed raising the exit fee in 2011 before voting against the increase at the beginning of this fall.”
If he did propose raising the fee, that might come back to bite him.
This will be ugly
Not as ugly as the ACC will look after all the conference re-alignments are over.
I thought they had to a date certain in the future to pay the exit fee. If so, where is the standing to bring suit until this date passes and payment is not made? Im no contracts attorney so maybe one of you other counselors can enlighten me.
“Dykes generated immediate success at Louisiana Tech with a 22-15 overall record in three years as head coach.”
TOB is 24-14 the past three years.
An iteresting scenario if UM’s president suggested the biyout in the first place would be if other members felt obligated to sign, coerced so to say. Now UM bolts first. The ACC starts deteriorating and ultimately implodes due to maryland’s shady two sided dealings. We have an obligation to mitigate our damages during breach so we bolt to SEC. When we get sued for nonpayment we bring maryland in as third oarty defendant because we would have never breached the K without maryland “making us” to avoid certain disaster they put in motion. maryland has to pay their 50 mil and ours too!
Yay. Problem solved. Meet you guys over at the SEC for a celebratory beer!
^Lawyered
^Lawyers. *shaking head*
They left because of North Carolina bias… the suit was filed in North Carolina. Gotta be icing on the cake.
Per ESPN (HD), all the ACC school presidents/chancellors (except UMd, of course) AND those of the three incoming schools voted in favor of the law suit. That includes FSU and CU.
http://espn.go.com/blog/acc/post/_/id/48994/acc-lawsuit-against-maryland-a-sign-of-solidarity
Cool scenario there, GaWolf…Can we tack on some punitive damages for UnC cheating and lying and creating a culture of corruption??
Swofford’s related party relationship with the Holes could be brought into question.
“The complaint alleges Maryland President Wallace Loh proposed raising the exit fee in 2011 before voting against the increase at the beginning of this fall.”
The old John Kerry playbook
“Per ESPN (HD), all the ACC school presidents/chancellors (except UMd, of course) AND those of the three incoming schools voted in favor of the law suit. That includes FSU and CU”
All that proves is that everyone hates Maryland; even schools not in the conference yet.
UM sold out to the highest bidder.
Settle for $35M. sorta like that
TV show Pawn Stars.
35…i’m calling it now.
I wonder when that $50 million is due and when. If it’s distributed to the other schools immediately its a big difference than if it’s held out there for awhile. Payout timing could influence when the next school bolts.