FSU sues athletic conference over ‘deteriorating’ media deal

TALLAHASSEE, Florida — Florida State University mounted what could be a landmark legal battle Friday by suing the Athletic Coast Conference in an attempt to leave the league and score more cash from a better media deal.

The unanimous decision by FSU’s board comes on the heels of the university missing out on a bid to compete in the College Football Playoff but had been brewing for months as school leaders clamored about getting a better payout or possibly leaving the ACC altogether. With major college programs poised to switch conferences across the country, the lawsuit being brought by FSU in Tallahassee circuit court would be the potential first step in freeing the university to find a new home.

“Today we’ve reached a crossroad in our relationship with the ACC,” Peter Collins, FSU’s board chair, said at a virtual meeting Friday. “We are faced with the fact that the ACC is locked into deteriorating media rights contract at revenues far below other conferences.”

The ACC, however, preemptively sued FSU trustees on Thursday attempting to thwart the university from challenging the grant of rights contract and set North Carolina as the venue for any legal action, according to Mecklenburg County Court documents first reported by WCTV.

FSU’s lawsuit challenges the grant of rights with the ACC outlining the conference media deal, which runs through 2036. It marks the first legal action against a college league’s grant of rights, putting FSU in a unique legal position.

In a 38-page complaint, FSU accuses the ACC of restraint of trade, breach of contract and a failure to perform under Florida law for an alleged “mismanagement” of its media deals with ESPN. Further, it targets “draconian” withdrawal penalties that FSU claims would cost the university $572 million in fees and forfeited revenues to leave the conference.

The ACC’s current media deal, according to FSU, has “deprived” schools millions of dollars in annual revenues and put them behind other athletic conferences in sports and academics.

Conference officials, however, disagree and were quick to slam FSU’s lawsuit.

The decision to sue the ACC “is in direct conflict with their longstanding obligations and is a clear violation of their legal commitments” to other schools, according to the ACC, which noted Friday that FSU “willingly and knowingly” signed its contract.

“We are confident that the Grant of Rights, which has been honored by all other universities who signed similar agreements, will be affirmed by the courts and the Conference’s legal counsel will vigorously enforce the agreement in the best interests of the ACC’s current and incoming members,” ACC Commissioner Jim Phillips and Jim Ryan, chair of the ACC Board of Directors, said in a joint statement.

FSU’s lawsuit comes shortly after the school was snubbed by the College Football Playoff, a move that drew disappointment and rebuke from Florida leaders including Republican Sen. Rick Scott, who demanded answers from the selection committee. Attorney General Ashley Moody also opened an antitrust investigation into CFP’s decision.

While decrying the decision as “absolutely wrong” and a “travesty,” FSU officials claimed the legal challenge was more about the leadership at the ACC and the university’s future.

The lawsuit asks a judge to determine that the ACC’s grant of rights is not enforceable against FSU, upon which the university would issue its formal notice of withdrawal from the conference.

“As the fiduciary for this university, I find that after exploring all options, I feel that we are left with only this option as a way to maximize our potential as an athletics department,” FSU President Richard McCullough said at Friday’s meeting. “It’s best for Florida State University.”