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Florida State University Sues ACC Over Exit Fee, ACC Countersues

Legal Battle Could Reshape College Sports Landscape as FSU Explores Private Equity Funding

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FILE - Florida State players pose after defeating Louisville in the Atlantic Coast Conference championship NCAA college football game Saturday, Dec. 2, 2023, in Charlotte, N.C. Florida State announced it will hold a Board of Trustees meeting on Friday, Dec. 22, and a person with knowledge of the situation told The Associated Press the future of the athletic department and its affiliation with the Atlantic Coast Conference will be discussed.(AP Photo/Erik Verduzco, File)
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Overview

  • Florida State University (FSU) has filed a lawsuit against the Atlantic Coast Conference (ACC), seeking to leave the conference without paying a hefty withdrawal fee, which FSU's legal counsel estimates at $572 million.
  • The ACC has responded with its own lawsuit, asserting that FSU willingly agreed to the terms of the conference's Grant of Rights with ESPN, which binds the university to the conference until 2036.
  • FSU accuses the ACC of mishandling its media rights arrangements with ESPN, devaluing FSU's broadcasts, and failing to protect the position of its undefeated football conference champion.
  • FSU is also reportedly exploring raising capital from institutional firms, such as private equity, to bridge the funding gap between the ACC and other conferences like the SEC and Big Ten.
  • The outcome of the legal battle could have significant implications for the future of college sports, potentially triggering further conference realignment and consolidation of power.