ACC media documents at center of Florida State legal battle show ESPN can end contract in 2027
Documents released by Florida Attorney General Ashley Moody appear to show an “option” for ESPN to end the ACC’s media rights deal in 2027. The contract, which is at the center of Florida State’s legal battle with the league, came out Thursday after a protective order said the conference had seven days to turn the ESPN contracts and related documents over to the school.
Section 14 of the Multi-Media Agreement, a heavily redacted document, is about an extension option. The rest of the title was redacted. Section 14.1 details the option, which is where the year 2027 comes up. That’s a central date in Florida State’s challenge of the conference’s grant of rights – an agreement that gives conferences the right to broadcast all member schools’ home games for the duration of the media rights deal.
The document cites the need for written notice to the ACC “no later than two (2) years after the launch of date of the ACC-ESPN Network” about ESPN’s plans to pick up the option. The ACC and ESPN launched ACC Network in 2019.
“ESPN has the exclusive, revocable option (the “Extension Option”), but not the obligation, to extend this Agreement until [redacted] subject to the remainder of this paragraph (such extended term of July 1, 2027 to [redacted]) the “Extension Term”) by providing written notice to the conference no later than two (2) years after the launch date of the ACC-ESPN Network.”
However, in August 2021, ACC commissioner Jim Phillips signed an amendment regarding the extension option. The specifics of the amendment are redacted, but as On3 and Warchant’s Ira Schoffel wrote, that’s where Florida State argued the new date is February 2025.
“It is a widely repeated misconception that the ACC’s multi-media rights agreement expires in 2036,” FSU’s lawsuit read. “As explained below, in truth, the multi-media rights agreement expires in 2027 unless ESPN chooses to exercise its unilateral option through 2036.”
The complaint went on to say, “ACC Commissioner gratuitously extended that option exercise deadline for four additional years, or until February 2025.”
Inside the Florida State, ACC legal battle
Florida State filed a lawsuit against the ACC as it weighs its options about leaving the league. The conference’s grant of rights came together in 2010 and is now binding through 2036.
While the ACC plays out its media agreement, payouts soared across college sports. The Big Ten agreed to a lucrative seven-year, $7 billion deal with FOX, CBS and NBC that fully kicks in this year. That came after the SEC agreed to a 10-year, $3 billion agreement with ESPN and ABC. The Big 12 also signed an extension of its contract with FOX and ESPN, which is effective July 2025 and worth $2.28 billion.
All the while, the ACC is paying its member schools $30 million per year. That figure was a catalyst in Florida State’s decision to file suit and challenge the grant of rights in search of a bigger payday.
As the school weighed its options, though, the Board of Trustees also made its thoughts clear. One member of the board, former FSU quarterback Drew Weatherford, said the school plans on leaving at some point.
“It’s not a matter of if we leave [the ACC], in my opinion,” Weatherford said. “It’s a matter of how and when we leave.”
Clemson is also challenging grant of rights
Florida State isn’t the only ACC school challenging the grant of rights. Clemson also filed a suit with a similar goal: leaving the league without paying a penalty. On3’s Andy Staples previously reported a buyout sits between $150 million and $572 million.
Clemson was not part of the protective order which told the ACC to share media documents with Florida State. The school filed an appeal after it came down, On3’s Pete Nakos reported.
In its lawsuit, Clemson is trying to see if it controls broadcast rights if it leaves the conference. A statement from the university said the Tigers are still ACC members, but is looking for a ruling regarding the penalty.
“In this litigation, Clemson seeks confirmation of the plain language found in the Grant of Rights agreements and the related media agreements between the ACC and ESPN – that these agreements, when read together, plainly state that Clemson controls its media rights for games played if it is no longer a member of the ACC,” the statement reads.
“Clemson also seeks a ruling regarding the unenforceability of the severe penalty the ACC is seeking to impose upon exiting members and confirmation that it does not owe a fiduciary duty to the conference as alleged by the ACC. … Clemson has not given notice that it is exiting the ACC and remains a member of the conference.”