OT: ACC sues Maryland

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November 27th, 2012 at 5:01 PM
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MaizeAndBlueWahoo
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OT: ACC sues Maryland

The ACC isn't going quietly.  Looks as though they decided to be proactive and collect their $52 million.  Here is the lawsuit document:

http://apps.washingtonpost.com/g/documents/sports/acc-vs-university-of-maryland-college-park/154/

The document establishes the buyout at a little over $52.2 million, actually.  Likely filed first so as to be able to file in North Carolina instead of Maryland, maybe bring some of that Dukie refereeing to the table.  Strong case in that regard as the lawsuit points out the ACC operates under North Carolina law.

As someone who prefers the ACC stay together, I'm happy to see the conference being proactive here, and IME, the uglier this gets, the better.

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

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November 27th, 2012 at 5:05 PM | It will also be interesting to note... (Score:3 Normal)
Voltron Blue
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...where the North Carolinas, Virginias (maybe you have insight), and Georgia Techs - basically the AAU institutions rumored to be candidates for the #15 and #16 slots in the B1G - come out on collecting the penalty.  If they staunchly defend, then it would certainly quell speculation that they have one foot out the door.  If they're all "yeah....don't worry about it, Maryland" then they are probably trying to set a precedent.

November 27th, 2012 at 5:09 PM | The vote to file was (Score:3 Informative)
MaizeAndBlueWahoo
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The vote to file was supposedly unanimous among the presidents.

I would consider some of the speculation quelled as of yesterday, as UVA's president issued a statement emphatically denying there'd been any B1G talks, and in fact told the BOV as much.  I'm personally more concerned about FSU, Clemson, and ND.  If the ACC is to break up, it won't be led by UVA and UNC, it'll be led by those three. 

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

November 27th, 2012 at 5:26 PM | Interesting (Score:2)
Voltron Blue
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So, B1G needs B12 or SEC to poach other members, then pilfer the remaining jewels?  Very interesting, indeed.  May cause concern for greater instability down the road if those schools back into the B1G rather than join proactively.

November 27th, 2012 at 5:30 PM | UVA President (Score:5 Normal)
funkywolve
Joined: 10/08/2008
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Not saying what you posted is incorrect, but do you really think the UVA President would come out and say they were looking at possibly joining the Big Ten before anything was official?

November 27th, 2012 at 5:38 PM | Yes - UVA is not going w/o VA Tech (Score:2 Normal)
robpollard
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In one of the earlier rounds of confernece-realignment roulette, the government of the state of Virginia got involved to make sure VA Tech got in the same conference as Virginia.  Plus, with UVA recently going through a VERY messy, poltically-charged breakup (then makeup) with its president (a former provost from U of M, coincidentally), I'm sure UVA wants to keep upheaval to a minimum.

If the B1G goes to 16, the more likely targets are GA Tech and someone else not in the ACC. I can't see UNC - as good a 'fit' as they might be for the B1G - going away from Duke, NC State and Wake Forest unless there really is no other option, which might be the case if the ACC completely implodes. But we're a long ways from that - they have Pitt, Syracuse, Uconn coming in soon. It's the Big East that has caved in, not the ACC (regardless of Maryland and its poorly run athletic dept leaving it)

It only ends once. Anything that happens before that, is just progress.

November 27th, 2012 at 5:47 PM | If I recall the 2003 (Score:2)
ShockFX
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If I recall the 2003 business, the VA Legislature wasn't forcing them together so much saying that UVA had a responsibility to use its influence to prevent VPISU from being left behind in a dying conference the ACC was raiding. Since UNC and Duke were steadfast nos to everyone, UVA added a third no to Syracuse -preventing them from having enough votes to join, and then didn't object to VPISU, allowing them in.

I don't think the VA legislature would force them together if UVA to B1G and VPISU to SEC were on the table. UVA simply can't abandon VT to the wild, which given the current state of the sports world, would be unlikely as VT is more valuable to the SEC than UVA is.

November 27th, 2012 at 6:38 PM | True, but that would require coordination btw B1G and SEC (Score:1 Overrated)
robpollard
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I agree that if, somehow, UVA got an offer from the B1G and at essentially the same time VA Tech got an offer from the SEC, that would be fine with the VA legislature. I mean, the SEC is the most powerful football conference (and thus the most powerful conference, period).  But the SEC is already at 14 and has bigger fish to fry, such as trying to get FSU, so the timing of that UVA/VA Tech dispersal would be really tough.

More to the point, though, is that now that B1G has the Terps, the B1G doesn't need either of the Virginia schools as much - the DC market is now claimed.  Since this expansion was just about money, as opposed to academics or sports-skills, that means future expansions would also be about money & claiming new markets, such as Atlanta or Miami.

In short, I would be shocked if we added UVA.. Then again, I was shocked we added Rutgers, so what do I know.

It only ends once. Anything that happens before that, is just progress.

November 27th, 2012 at 6:49 PM | The SEC might win the most (Score:4 Normal)
ShockFX
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The SEC might win the most games, but the B1G has the biggest TV contracts, I think for all sports, and also the best conference network. It's also the biggest academic research consortium via the CIC. The B1G is the most powerful conference, not the SEC. Once oversigning stops being allowed (cough Saban, Miles cough) and the B1G returns to being able to compete with Hoke, Meyer, and O'Brien (in 8 years), then it'll even out on the field. I left off Nebraska because Pellini sucks and they don't recruit at a high enough level.

November 27th, 2012 at 7:17 PM | True, but you're looking at the present, not the near future (Score:1 Overrated)
robpollard
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The whole reason for Delaney (in my mind, misguided in terms of the schools) overreach is that the B1G isn't where the population, and thus the money, is growing fastest. 

Also, TV contracts being the biggest is a matter of timing. Once someone's comes up, there's is the biggest for the next year or three, than when the rights come up for another conference, that competitor jumps into the lead.

Look at this story for an example:

http://www.dailypress.com/sports/teel-blog/dp-teel-time-acc-sec-finances...

To summarize it: for much of last 5 years, the ACC actually had bigger TV money than the SEC. In 2009, the SEC went ahead.  Then, just recently, the ACC moved back up, but now the SEC is renogtiating due to Texas A&M being added, so they'll jump back in front, likely even in ahead of the B1G. But of course, the B1G will likely jump back in front in 2016 (or whenever) for the next contract. And so on.

I love academics, but this expansion has nothing to do with that - as long as the schools are pretty good, we're bringing them on board.

So, with the money essentially being sky high for everyone, it comes down to results on the field. And as much as I hate the SEC, they've won a bunch of titles in a row, and they're going to have another team in the title game again.  I sure hope it gets turned around on the field for the B1G soon, but I'll believe it when I see it.

It only ends once. Anything that happens before that, is just progress.

November 27th, 2012 at 7:05 PM | Florida, Georgia, and (Score:1)
gopoohgo
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Florida, Georgia, and S.Carolina will vote en bloc to exclude Florida State, G,Tech, and Clemson respectively.

Florida, Georgia, and S.Car do not want to share the SEC limelight with their in-state rivals.

Thus, the talk of FSU and Clemson to the Big12, as opposed to the SEC last summer.

November 27th, 2012 at 8:56 PM | I hope Florida, Georgia and (Score:3 Normal)
ghost
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I hope Florida, Georgia and S. Carolina do that.  It will make the Big12 stronger instead of the SEC and open up those states at least to some degree to the Big12 schools, thus weakening the SEC.

November 27th, 2012 at 8:25 PM | Florida St doubtful to SEC (Score:2)
funkywolve
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The SEC, like the Big Ten, is looking to break into new markets.  FSU adds nothing in that regard.  FSU would love to make the move to the SEC but has not made the cut the previous times the SEC has expanded.  The SEC would more than likely look to the North Carolina and Virginia schools if they were to expand.

November 27th, 2012 at 5:41 PM | No, but considering what went (Score:0 Flamebait)
November 27th, 2012 at 6:06 PM | Fair enough (Score:3 Normal)
909Dewey
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Fair enough, but after UV announces they are joining the SEC or the B1G, will you then admit that everything official IS, in fact, a coverup? 

November 27th, 2012 at 7:46 PM | I support the conspiracy theorist... (Score:1 Normal)
jdon
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especially when it come to the 'truth'... I would speculate 90-95% of what you here are lies and manipulations of the truth...

 

We are the dead.

November 27th, 2012 at 6:29 PM | Can't wait to watch this unfold on Judge Judy (Score:1)
iawolve
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I bet she will be a hard ass on the penalty for leaving the conference

November 27th, 2012 at 5:08 PM | Drops . . . (Score:1)
A2Fan
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is Ambiguous

Those Who Blog, Will Be Champions

November 27th, 2012 at 5:11 PM | True. (Score:2)
MaizeAndBlueWahoo
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True.  Fixed.

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

November 27th, 2012 at 5:11 PM | Maryland voted against it, (Score:2)
ShockFX
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Maryland voted against it, then swiftly left the conference. No one wants this actually litigated, it's Pandora's box. If you're in a group voluntarily, how can the group impose a $50M breakup fee on you? My bet is that Maryland argues they never consented, this never goes to discovery, and Maryland settles for about $17.5M.

November 27th, 2012 at 5:17 PM | Because your membership in (Score:2)
MaizeAndBlueWahoo
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Because your membership in a conference like this implies a pre-emptive agreement to abide by that group's decisions.  If Maryland tries to make the argument you made, the ACC will probably point to any number of decisions that the ACC made where Maryland voted yes and benefited despite a handful of no votes.

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

November 27th, 2012 at 5:23 PM | I wouldn't disagree with (Score:2)
ShockFX
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I wouldn't disagree with that, I'm just saying that I believe Maryland has the upper hand here since absolutely no one wants this to go to trial, and the conferences can't really risk a finding for Maryland.

If I had to guess, I'd see the settlement being at what the prior amount was, assuming Maryland voted yes on that, as the logical argument would be that it is what Maryland agreed to, and then the rest of the conference voted to raise it over Maryland's dissent, who promptly left.

While I realize I'm playing amateur lawyer and this is baseless, I can't imagine a jury finding for the ACC for the full amount. Analogously, if your condo association feared you were going to move and put in a $20k penalty, which you voted down but was put into the bylaws, then you moved, would it hold up in court? I doubt a jury would uphold it.

I'm a big ACC guy as well, though I think they signed their death warrant when they signed the deal with ND. A big thing in the past kerfluffles was the ACC telling Texas that it's an everything is shared conference where all members are the same, like the B1G. Then they give ND preferential, partial treatment. Oops. Swafford. Dude. STUPID.

November 27th, 2012 at 5:37 PM | Oh I dunno....I think the ACC (Score:2)
MaizeAndBlueWahoo
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Oh I dunno....I think the ACC would love for this to go to trial.  I think it's in the ACC's best interest to band together and fight for every penny of the buyout.

I also disagree with the ND thing; a Texas/ACC marriage was never anything but internet speculation.  ND allows the conference to weather a potential southern-teams departure.  ND isn't really getting preferential treatment because they had to meet the ACC more than halfway, and the ACC is going to get real, actual benefits from ND's presence, as opposed to the Big East where ND gave the BE nothing and got free rides on their bowl affiliations.

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

November 27th, 2012 at 6:00 PM | It's not in the ACC's best (Score:3 Normal)
ShockFX
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It's not in the ACC's best interest in my mind. You're talking about <$2M a school in going for the full buyout against the chance that a court voids the whole thing. 

Did ESPN up the value of the ACC contract for the existing members after ND was announced as a partial member? I don't believe they did. So now they get ND's non-rev sports for basically nothing back. The ACC doesn't need exposure via ND, it needed FSU, VT, and Miami to win some damn non-con and bowl games after 2001. It also needed UNC to wake the hell up and be useful, and maybe Clemson to stop climping.

ND is not a team player. They voted against the deal that would have increased BE tv contract, and then it fell through, BE fell apart, ND bolted. ND prizes it's football independence over everything. The ACC and B1G don't need ND. They should tell them to screw off and see how well ND can schedule against the SEC and Big12 going forward.

November 27th, 2012 at 6:23 PM | It's closer to $4 million a (Score:2)
MaizeAndBlueWahoo
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It's closer to $4 million a school, but that's the wrong way to look at it.  Settling is the same as nothing, because a settlement is likely to encourage defections.  If you believe the conventional wisdom that the conference's future hinges on whether or not Maryland pays the full fee, then there's no difference at all between settling and losing.  Settling is losing.

As for ND, no, ESPN did not boost the contract immediately because ND is not joining immediately.  They will when ND starts their ACC schedule.  Of course you're right that the ACC needed its big-time acquisitions to not suck, but that's obviously water under the bridge now.  Now what they need is enough TV money to compete at the big table.

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

November 27th, 2012 at 6:44 PM | $2M being the difference (Score:2)
ShockFX
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$2M being the difference between full and partial buyout, but I feel ya on the rest. Maryland isn't going to pay the full fee though, that never happens. The lawsuit needed to happen, but only because it'll set the benchmark for what, if any, the fee for leaving really is.

As for TV money, I think the ACC, already behind the B10, and behind the SEC by $10M (I think?) and locked until 2027, is only going to be falling farther and farther away. The SEC Network, which is modeled after the BTN (I think, again) will only up the SEC money, the B1G is looking at a record breaking contract with ESPN in 2016, and the BTN may print money if it gets on the Philly, DC, and NYC DMAs with Rutgers and Maryland.

The ACC just might be in a world of hurt, without its own network, with the already big gap (to grow) between the SEC and B1G on the east. It's also not in the Sugar/Champions or Rose Bowl, which relegates them to 2nd tier status as well. It's stupid, but as long as football is being relied on to drive the bus for all non-revenue sports, then schools are going to look to leave if the B1G or SEC call and they can afford the buyout.

The whole thing is stupid, but since they aren't going to be able to effectively be able to bar schools from leaving, what can you do?

November 28th, 2012 at 9:20 AM | Question for someone who (Score:2)
bluebyyou
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Question for someone who knows more law than I about the court which will hear the case - the suit was filed in a North Carolina court.  I appreciate that the ACC is incorporated in NC, but could Maryland get the case moved to a Federal district court based upon diversity (obviously the amount in contention is adequate for the Federal courts).?

The only thing I can think of why a state court would be binding would be some mandatory provision in the ACC's member agreement.

November 27th, 2012 at 5:14 PM | Much . . . (Score:1)
A2Fan
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Obliged

Those Who Blog, Will Be Champions

November 27th, 2012 at 5:15 PM | Location of Suit (Score:2)
cseeman
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Not that I am a legal scholar - but I do not believe you can sue a state entity (such as a giant state school) in the courts of another state.  So you essentially cannot sue Maryland in NC.  That is certainly the case with Michigan.  When we sign a contract for library resources at Michigan, the only laws that can apply are those in the great state of Michigan.  I suspect the case will be moved - but that they will be sued in another court. 

November 27th, 2012 at 6:33 PM | It's been a while (Score:2)
NotMarkMessmer
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Since I had civil procedure, but I imagine that this case will be removed to a federal court upon Maryland's move.  Unless the ACC had agreed to make NC the situs for all litigation.

November 27th, 2012 at 5:16 PM | Virginia (Score:2)
funkywolve
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Been reading some stuff that the Virginia BOT is going to be meeting to discuss a possible move to the Big Ten.

November 27th, 2012 at 5:19 PM | You are probably referring to (Score:1 Overrated)
MaizeAndBlueWahoo
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You are probably referring to yesterday's meeting, called expressly for a different purpose, which everyone assumed was for discussing the B1G, which they denied, and at which the president told the BOV she had not had and did not plan to have talks with the B1G.

But none of that stopped everyone from believing what they wanted to.

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

November 27th, 2012 at 5:23 PM | If they were to join, that (Score:1)
TIMMMAAY
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If they were to join, that would make for an interesting situation for you...

not just "douchey" MGoBlog user, but now TRUSTED MGoBlog user

November 27th, 2012 at 5:38 PM | I would hate every minute of (Score:2)
MaizeAndBlueWahoo
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I would hate every minute of that.  The only consolation is that the circumstances under which UVA would join the B1G would probably preserve the three rivalries we care most about.  Otherwise, boo.

"We've beaten Michigan the last four years.  So where's the threat?"

- Mark Dantonio

Blogging the Virginia Cavaliers at http://fromoldvirginia.blogspot.com/<

November 27th, 2012 at 8:29 PM | If Va joining means Tech (Score:2 Normal)
Craze for Maize
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If Va joining means Tech joins, I'd like it.

November 27th, 2012 at 5:22 PM | How this plays out (Score:1)
ndscott50
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How this plays out will have a big impact on who fills out the Big Ten.  I would agree that Florida State and Clemson would be first to bolt if a settlement with Maryland comes in low.  At that point you probably have ND looking towards the big 12 and then North Carolina and Virginia become targets of both the SEC and Big Ten. Gorrgia Tech would be ours for the taking as the SEC is not interested in adding teams in exisiting markets.  

November 27th, 2012 at 5:23 PM | For those interested, NC is a (Score:1)
profitgoblue
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For those interested, NC is a unique state in that jury trial waivers in contracts are unenforceable.  I assume all the ACC documents contain such waivers and it the lawsuit ever got near trial (most definitely will not) the ACC would be in an interesting situation.  Not sure which side would benefit from a jury trial more . . .

 

Disgruntled former moderator.  I got a lot of problems with you people!

November 27th, 2012 at 5:25 PM | As much as I'd like to see (Score:2)
CRex
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As much as I'd like to see the ACC lawsuit stop this terrible expansion from occuring, there is no way the B1G is going to lose to face by letting the ACC win.  It seems more likely this ends with the B1G fronting some amount of money to make this go away, so in the end it just means we pay more more mediocrity.  

November 27th, 2012 at 5:28 PM | B1G won't front it, Under (Score:3 Normal)
ShockFX
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B1G won't front it, Under Armor guy will.

November 27th, 2012 at 5:55 PM | Kevin Plank (Score:2)
LSAClassOf2000
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I remember that Forbes had published a piece about Kevin Plank selling 1.3 million shares of Under Armour for what was termed as "asset diversification, tax, estate planning and charitable purposes", or something in the neighborhood of $56 million, but the Baltimore Business Journal reports that he will not contribute financially to his alma mater's exit fee, although it should be noted that Plank has only said things through other people about this. Whether he ultimately contributes in any way is probably yet to be seen, I imagine. If he doesn't give anything, I have to wonder where a deficit-ridden athletic department gets $52.3 million.

 

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November 27th, 2012 at 6:02 PM | Edit: Nvm, forgot what the (Score:2)
ShockFX
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Edit: Nvm, forgot what the Maryland president had said.

November 27th, 2012 at 6:00 PM | This is what I believe as (Score:1)
Tauro
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This is what I believe as well.  The Maryland president was adamant that no school funds would be used to pay any buyout amount.  I doubt the B1G is fronting much cash in this move.  If they are, it will be paid out Maryland's future earnings from the conference.  I think the Under Armour guy will see it as an investment to gain access to other schools - he may be able to swing future contracts for Under Armour gear with other B1G schools.

November 28th, 2012 at 2:23 AM | I heard the big ten is (Score:1)
ak47
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I heard the big ten is providing maryland interest free loans to be paid back later but who knows if that is official

November 28th, 2012 at 1:33 AM | That sounds eerily (Score:2)
FrankMurphy
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That sounds eerily familiar...

November 27th, 2012 at 5:24 PM | Everyone knew this was coming (Score:3 Normal)
ak47
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Everyone knew this was coming so its not a surprise, if the acc loses this case fsu is most likely gone to the big 12 and the acc falls apart so they have no choice but to sue.  At this point i'm hoping the acc falls apart and duke winds up boned, if somehow unc could go down too that would be ideal the all carolina conference is getting dropped by a bunch of schools that never had an equal say and know it.  Also if l'ville joins there will be more big east teams than original acc teams, the acc is already dead, they just haven't admitted yet.

November 27th, 2012 at 6:42 PM | As disappointing as the ACC's (Score:2)
FrankMurphy
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As disappointing as the ACC's 2003 expansion has been, I don't see the league falling apart anytime soon. FSU and Clemson will leave to join the SEC or the Big 12, and the ACC will add UConn to get back to 12 and return to its roots as a basketball conference.  

November 27th, 2012 at 8:58 PM | Uconn being a basketball (Score:1)
ghost
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Uconn being a basketball power without Calhoun is no sure thing.  They weren't before him and they may not be after.

November 27th, 2012 at 5:56 PM | Hopefully they can sue them (Score:2)
jsquigg
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Hopefully they can sue them out of joining.  I thought Delaney was a traditionalist, but these moves are horrid.

Hail to the Victors!

November 27th, 2012 at 5:56 PM | My bet would be on MD winning (Score:1)
EQ RC Blue
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At least, i doubt MD will have to pay the full exit fee of nearly $53 million.  It looks like a penalty clause, and those generally are not enforced.    

November 27th, 2012 at 5:56 PM | I thin FSU is gone (Score:1)
ghost
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I thin FSU is gone regardless.  They are just waiting to see how much money they will have to pay to get out.  

November 27th, 2012 at 6:26 PM | What a shame (Score:2 Normal)
Tater
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All that money, but a player can't accept a free pizza without violating NCAA rules.

 

 

 

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