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Clemson Takes Legal Action Against ACC Over Early Exit Fee Penalty, Alleges Unfair Treatment

535 days ago

The Clemson institution has filed a lawsuit against the Atlantic Coast Conference, ACC in Pickens County, South Carolina. The first case against the ACC was filed by Florida State. Clemson is following what Florida argued. 

As per the lawsuit via ESPN, Clemson issues that ACC’s “exit fee and grant of rights” hamper the institution’s capacity to properly explore other options regarding the conference membership. 

According to ESPN, “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.” 

“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.”

“The ACC’s position regarding the Grant of Rights, the exit penalty, and obligations owed by members to the conference, as detailed in its public statements and other court filings, leaves Clemson with no choice but to move forward with this lawsuit. Clemson has not given notice that it is exiting the ACC and remains a member of the conference.”

It further mentions, “Each of these erroneous assertions separately hinders Clemson’s ability to meaningfully explore its options regarding conference membership, to negotiate alternative revenue-sharing proposals among ACC members, and to obtain full value for its future media rights.”

“The ACC’s actions interfere with Clemson’s free exercise of its rights and are fatally detrimental to Clemson’s efforts to ensure that its athletic programs can continue to compete at the highest level which is critically important to Clemson even beyond athletics.”

Clemson has further indicated that one of the main obstacles to Clemson competing at the top-level is the existing ACC media contract, which falls short as compared to SEC and Big Ten arrangements. As per ESPN, Clemson participated in six College Football Playoffs and won titles in both 2016 and 2018. 

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