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Interesting tidbit on Big 12 GOR from David Ubben (Link)
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CardinalJim Offline
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Post: #1
Interesting tidbit on Big 12 GOR from David Ubben (Link)
Interesting....
Looks like even Big 12 media is beginning to come around.
CJ


Daniel La Frankie in Temple, Texas, writes: Dave, enjoy your columns very much.Quick question. Always hear about the "Grant of rights" like it's cement.If people can sue to get out of exit fees of 10, 20, 25, now maybe 50 million dollars, and lawyer it down to a lesser fee...............why couldn't a school sue to get out of "Grant of rights"???Thanks, Dan

DU: I'm not a lawyer, but it seems highly, highly unlikely. I'll explain. The "exit fees" are, in theory, based on recouping a conference the money that it would lose if a team left the conference. That's why the supposed $50 million exit fee in the ACC may not stand up in court. Granted, we don't know that yet. We'll see. That's only a small part of it, but that's my understanding on why some schools have gotten out of paying the full fees.

The grant of rights, however, isn't based on any losses. It's an agreement to hand over your media rights to the conference for "X" period of time. In the Big 12's case, it's 13 years. I suppose, in theory, you could sue to get out of that, but there's no doubt that those "handcuffs" are going to be a lot more strict than the Big 12's weak exit fees that Nebraska, Colorado, Missouri and Texas A&M left in the dust.

David Ubben Blog 12/21/12
12-22-2012 10:07 AM
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CardFan1 Offline
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Post: #2
RE: Interesting tidbit on Big 12 GOR from David Ubben (Link)
And losing those 4 schools is one reason the Big12 isn't as interesting a conference as They once were.If OU or UT were to bail for the PAC or SEC They would have a very hard time back filling with any other conference schools outside the regional footprint They already have.
12-24-2012 03:25 PM
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ndlutz Offline
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RE: Interesting tidbit on Big 12 GOR from David Ubben (Link)
Here's a legal argument to chew on:

If the GOR is a contract in and of itself (separate from the governing agreement(s) of the conference) then what do the schools gain from giving away their rights?

The question is what consideration is there for the schools to give up this right? If there is none, then there is no consideration and it is not a contract.

I'm sure there is something, but I thought this was interesting.
12-26-2012 04:22 PM
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omniorange Offline
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RE: Interesting tidbit on Big 12 GOR from David Ubben (Link)
(12-26-2012 04:22 PM)ndlutz Wrote:  Here's a legal argument to chew on:

If the GOR is a contract in and of itself (separate from the governing agreement(s) of the conference) then what do the schools gain from giving away their rights?

The question is what consideration is there for the schools to give up this right? If there is none, then there is no consideration and it is not a contract.

I'm sure there is something, but I thought this was interesting.

The contract is the conference has to air those games that TV chooses and that the conference has to pay that school their rightful share of the TV rights fees.

Which is why a GOR isn't the almighty thing some believe.

If Texas goes to the BiG, is the Big 12 conference really going to want to have to televise Michigan State @ Texas with the announcers talking about the BiG during that entire broadcast, meanwhile the Oklahoma State @ TTU doesn't get televised at all because TV felt that MSU @ UT was the more compelling TV match-up between the two?

Like that is going to happen. 01-wingedeagle

Cheers,
Neil
12-26-2012 08:12 PM
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ndlutz Offline
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RE: Interesting tidbit on Big 12 GOR from David Ubben (Link)
That may be correct, Omni. From another perspective, though, you don't have a valid contract where one party simply agrees to do what they are already legally obligated to do.

In this case, though, if I understand your post correctly:

The Big XII has to allow (not air - the networks air the games) the games to be aired that the networks want aired and then pay the schools accordingly.

Since the Big XII has accepted this duty, there is perhaps a valid contract in this because the Big XII wasn't legally obligated to do this prior to signing and so this forms the consideration necessary to have a valid contract.

Also, the Big XII choosing NOT to exercise a right they have (in this case, possibly choosing which games are aired on TV) by offering it as consideration for the GOR could be seen as the key to a valid contract here.

Interesting discussion. I wish I was more up on contract law.
12-29-2012 11:43 AM
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