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GoingHeels said...
Maryland is goin to have to litigate their way out of the $50M and will have to pay an amount that is close that nber anyway.
ACC put together economic study to show cost of departure on league and that will legally substantiate the exit fee, i.e, exit fee is not putative.
Maryland is not a big loss for ACC. Easily replaceable with Lousiville (with better national appeal). However, if it sets of a chain reaction, it will be very detrimental. Another reason the exit fee will not be forgiven. And, despite what others have posted, exit fee was immediately enforceable upon ND announcement.
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GoingHeels said...
Maryland is goin to have to litigate their way out of the $50M and will have to pay an amount that is close that nber anyway.
ACC put together economic study to show cost of departure on league and that will legally substantiate the exit fee, i.e, exit fee is not putative.
Maryland is not a big loss for ACC. Easily replaceable with Lousiville (with better national appeal). However, if it sets of a chain reaction, it will be very detrimental. Another reason the exit fee will not be forgiven. And, despite what others have posted, exit fee was immediately enforceable upon ND announcement.
This post was edited by Dan86 on 11/17/2012 at 5:01 PM
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Mr. Macintosh said...
No they won't pay anywhere near that amount. FSU has consulted with several lawyers saying the payout won't be anywhere near that amount. It would be punitive damages and that amount would not hold up in court.
Hope like hell FSU gets out while there is still a chance
This post was edited by GoingHeels on 11/17/2012 at 5:40 PM
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GoingHeels said...
You are wrong. Not only can the ACC point to its own economic study, but it also has a contemporary market comparable with the Big East. It will be easy to demonstrate that the exit fee is not in fact punitive, but necessary to make the remaining members, to the extent possible, whole.
I don't think you should be relying on the legal advice of an ambulance chaser like your BOT Chairman, Haggard. J/K, not really.
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Mr. Macintosh said...
Would be closer to the $20 million as Maryland and FSU didn't agree to the buyout. Threw the 2 year time frame out there as it would make the argument in court of the $50 milliion buyout being punitive and negotiating the buyout down than waiting say 5 years and then doing it.
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GoingHeels said...
My understanding, in talking to people connected with the ACC office, is that the exit fee is the same amount as the ACC's annual operating budget, which was determined to be an accurate indicator of damages that would adjust annually to reflect the current market conditions. That number for 2012-13 is just under $50M.
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GoingHeels said...
"The regents were told about the talks this weekend but had not received a written presentation as of early Saturday night."
I don't think Maryland has really started doing their due diligence into their legal position with the exit fee.
I, also, think there is a lot of incorrect information out there surrounding the exit fee.
"In September, Maryland voted against the ACC’s plan to increase its exit fee to about $50 million. Maryland considered such a steep fee to be punitive, but the measure was passed."
Just because Maryland considers it punitive, doesn't make it punitive. Similarly, just as you said, just because the ACC doesn't consider punitive, doesn't make it punitive.
This post was edited by MrWoodson on 11/17/2012 at 6:14 PM
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Maryland, Rutgers in talks to join B1G