Florida State motion to dismiss denied against ACC in North Carolina

A judge in North Carolina business court denied the Florida State University Board of Trustees’ motion to dismiss the Atlantic Coast Conference’s lawsuit on Thursday.

The two sides are battling in court over the ACC’s Grant of Rights, which Florida State is trying to get out of to leave the conference. FSU believes that it should be allowed to leave the ACC without penalty, despite agreeing to the grant of rights in 2013.

In a 76-page filing from Chief Business Court Judge Louis A. Bledsoe, the court also denied FSU’s motion to stay. The ACC previously filed a similar motion to dismiss in Leon County, arguing lawsuit should be heard in the state of North Carolina, emphasizing it is where the contract should be decided.

“The court finds this argument without merit,” Bledsoe wrote in his decision. The one notable win for Florida State was the judge dismissed the ACC’s argument the Seminoles breached fiduciary duties to the conference.

The North Carolina court will retain jurisdiction over the dispute, putting all the focus now in Leon County court. The first hearing in Leon County is scheduled for 9:30 a.m. ET on April 9 in front of Judge John C. Cooper.

As part of the dueling lawsuits between the two parties, the first hearing in the battle between FSU and the ACC was held last month in North Carolina.

A grant of rights agreement gives conferences the right to broadcast all member schools’ home games for the duration of the media rights deal. In the ACC’s case, the GOR binds the league, schools and broadcast partners until the rights deal with ESPN expires in 2036. 

Clemson joined the legal battle in March, arguing that the ACC’s Grant of Rights “hinders Clemson’s ability to meaningfully explore its options regarding conference membership.”

Bledsoe disagreed with Florida State’s argument that the ACC didn’t follow its protocols when suing the Seminoles in December. The judge wrote he believed the conference was authorized to take legal action.

In his decision, released Thursday, Bledsoe wrote that he believes a North Carolina court has “a local interest” in resolving the dispute.

“Moreover, while FSU is the only ACC Member Institution involved in this lawsuit, the determination of whether the ACC’s Grant of Rights Agreements are legally enforceable is critically important to all Members of the Conference, and the resolution of that issue is of tremendous consequence to the North Carolina-based ACC since it may directly bear on the Conference’s ability to meet its contractual commitments to ESPN as well the Conference’s future revenues, stability, and long-term viability,” the decision said. “For these reasons, the Court concludes that a North Carolina court has ‘a local interest in resolving the controversy’ that exceeds the local interest of the Florida courts.”

What comes next for Florida State?

Thursday’s decision in the North Carolina business court is a clear win for the ACC, especially looking through the lens of where the lawsuit should play out. Florida State has been battling with its conference for months, starting back in 2023 and highlighted by a heated Board of Trustees meeting in August. The debate reached a new pitch in December when the initial lawsuits were filed.

Settlement talks have always been on the radar. While Thursday’s opinion from Judge Bledsoe gives the advantage to the ACC, the conference can not go to a trial where losing is even a possibility. According to On3’s Andy Staples, a possible buyout number sits somewhere between $150 million and a $572 ceiling.

That does not mean the ACC is eager to settle, however, FSU could make a strong case to bring the league to the table.

“It’s not a matter of if we leave [the ACC], in my opinion. It’s a matter of who and when we leave,” Board of Trustees member and former FSU quarterback Drew Weatherford said in August.

One key aspect of the lawsuit that the North Carolina court did not rule on Thursday is confidentiality. The ACC and ESPN want their contracts sealed to protect trade secrets. Florida State has previously argued those deals are public records.

Tuesday’s hearing in Leon County will be crucial to see where litigation is played out moving forward.