guess it will drag on after July 1?

I think the judge stated that the ACC and Maryland must meet with an arbitrator for mediation before July 10.

(06-30-2014 04:07 PM)TIGER-PAUL Wrote:  guess it will drag on after July 1?

I think the judge stated that the ACC and Maryland must meet with an arbitrator for mediation before July 10.

What's the real incentive for the ACC or MD to settle before June 30th?

No incentive at all?

Well we have an answer now... yes the litigation continues.

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Since it's unlikely the ACC collects any more money from Maryland, I'd say it's a good time to go ahead and sit down at the negotiating table. JMO.

In my opinion, I doubt we will see any negotiated settlement. I think this will carry through to the bitter end, and, IMO, the money issue is secondary. All of the ACC schools are committed to the ACC with the signing of the GOR and the forfeiture clause in the bylaws. If a school were to consider a challenge to these provisions in the future, they would be taking a huge gamble from a financial perspective, IMO. Fighting to enforce the exit fee in the MD case to the bitter end - regardless of whether the ACC "wins" or "loses" - will, IMO, send an important impact to any school that might consider leaving the ACC prior to the expiration of the GOR. Specifically, that the ACC will fight to enforce the GOR and forfeiture clause to the bitter end and a school cannot likely expect the prospect of some kind of "negotiated settlement" to materialize down the line. IMO, that is a powerful incentive for any school not to roll the dice.

I think that it will eventually settle, just not right now.

The July 1st date was meaningless to the litigation.

(07-01-2014 12:47 PM)TerryD Wrote:  I think that it will eventually settle, just not right now.

The July 1st date was meaningless to the litigation.

Having withheld payments for the last two academic years, they have already recovered in excess of $30MM. A settlement is probably in order. Maryland will likely have to kick in some more money but at some point, paying the attorneys gets more expensive than settling.

On the one hand, I can see Eagle 78's point:

(07-01-2014 11:18 AM)Eagle78 Wrote:  In my opinion, I doubt we will see any negotiated settlement. I think... the money issue is secondary...

In other words, the ACC may want/need to set a precedent.

On the other hand, I also see HtownOrange's point:

(07-01-2014 01:00 PM)HtownOrange Wrote:  Having withheld payments for the last two academic years, they have already recovered in excess of $30MM... at some point, paying the attorneys gets more expensive than settling.

Until yesterday, the ACC was accumulating more money in the "kitty", but after today, it begins LOSING money on this trial.

Personally, I think "sending a message" is overrated. To me, this is just business - and therefore, I say maximize profit and move on.

If the league is hung up on "the principal of the thing", they can always make Maryland sign some document saying "we agree that we owe the full $52 million [or whatever], but that the ACC agrees to waive [$X] based on our many faithful years... blah, blah, blah".

I understand your point, Mark. But, IMO, the lawyers fees/court costs are chump change compared to what would happen if a school tried to bolt from the ACC in the future. I do think messaging is important - both to the membership of the Conference and, more importantly, to potential would-be poachers from other conferences. Both need to know that any school who considers bolting in the future is going to roll the dice on their finances. No assumptions of some negotiated "safe landing". In some ways, this is not too dissimilar to a "poison pill" strategy that we have seen in the corporate world. All of the conference teams are solidly behind the ACC at this point. A perfect time to adopt such a strategy to deal with any potential changes-of heart from any team in the future.

Just my 2 cents.

At the very least, today illustrates that the ACC exit fee does NOT prevent teams from leaving the conference OR joining the conference.

(07-01-2014 02:25 PM)Hokie Mark Wrote:  On the one hand, I can see Eagle 78's point:

(07-01-2014 11:18 AM)Eagle78 Wrote:  In my opinion, I doubt we will see any negotiated settlement. I think... the money issue is secondary...

In other words, the ACC may want/need to set a precedent.

On the other hand, I also see HtownOrange's point:

(07-01-2014 01:00 PM)HtownOrange Wrote:  Having withheld payments for the last two academic years, they have already recovered in excess of $30MM... at some point, paying the attorneys gets more expensive than settling.

Until yesterday, the ACC was accumulating more money in the "kitty", but after today, it begins LOSING money on this trial.

Personally, I think "sending a message" is overrated. To me, this is just business - and therefore, I say maximize profit and move on.

If the league is hung up on "the principal of the thing", they can always make Maryland sign some document saying "we agree that we owe the full $52 million [or whatever], but that the ACC agrees to waive [$X] based on our many faithful years... blah, blah, blah".

Brilliant.

That ain't the ACC's m.o., though.

(07-01-2014 07:48 PM)Marge Schott Wrote:  

(07-01-2014 02:25 PM)Hokie Mark Wrote:  To me, this is just business - and therefore, I say maximize profit and move on.

If the league is hung up on "the principal of the thing", they can always make Maryland sign some document saying "we agree that we owe the full $52 million [or whatever], but that the ACC agrees to waive [$X] based on our many faithful years... blah, blah, blah".

Brilliant.

That ain't the ACC's m.o., though.

Ha, good point!

(07-01-2014 07:48 PM)Marge Schott Wrote:  

(07-01-2014 02:25 PM)Hokie Mark Wrote:  On the one hand, I can see Eagle 78's point:

(07-01-2014 11:18 AM)Eagle78 Wrote:  In my opinion, I doubt we will see any negotiated settlement. I think... the money issue is secondary...

In other words, the ACC may want/need to set a precedent.

On the other hand, I also see HtownOrange's point:

(07-01-2014 01:00 PM)HtownOrange Wrote:  Having withheld payments for the last two academic years, they have already recovered in excess of $30MM... at some point, paying the attorneys gets more expensive than settling.

Until yesterday, the ACC was accumulating more money in the "kitty", but after today, it begins LOSING money on this trial.

Personally, I think "sending a message" is overrated. To me, this is just business - and therefore, I say maximize profit and move on.

If the league is hung up on "the principal of the thing", they can always make Maryland sign some document saying "we agree that we owe the full $52 million [or whatever], but that the ACC agrees to waive [$X] based on our many faithful years... blah, blah, blah".

Brilliant.

That ain't the ACC's m.o., though.

It takes two to tango and two to settle a lawsuit.

Really, litigation in state court is a long, slow, drawn out process.

The fact that this case has not yet settled is no big surprise to me.

Has anyone heard if the court ordered mediation is even scheduled?

In my view, court ordered mediation is less effective than the two parties getting together and voluntarily setting up a mediation.

When court ordered, sometimes one or both parties just kind of goes through the motions just to satisfy the Judge and obey the order.

This case will likely settle, but it may be quite a while yet.

I think this is less about money now and more about the rights of a conference, the power of their contracts, and a conference's ability to enforce them. The ACC must see this through for the strength of its membership, exit fees, and contracts like GOR.

(07-02-2014 02:38 PM)IceJus10 Wrote:  I think this is less about money now and more about the rights of a conference, the power of their contracts, and a conference's ability to enforce them. The ACC must see this through for the strength of its membership, exit fees, and contracts like GOR.

For the ACC, that may be true. For Maryland, I think it IS about money.

truth.

one thing i don't get is the belief that the acc will somehow be vulnerable if the exit fee is declared punitive. the GOR would still remain intact because it isn't even being litigated. not to mention the fact that all 15 schools willingly signed it, which would tell any intelligent person "they're just not that into you."

(07-02-2014 02:47 PM)Hokie Mark Wrote:  

(07-02-2014 02:38 PM)IceJus10 Wrote:  I think this is less about money now and more about the rights of a conference, the power of their contracts, and a conference's ability to enforce them. The ACC must see this through for the strength of its membership, exit fees, and contracts like GOR.

For the ACC, that may be true. For Maryland, I think it IS about money.

(07-02-2014 02:58 PM)ren.hoek Wrote:  one thing i don't get is the belief that the acc will somehow be vulnerable if the exit fee is declared punitive. the GOR would still remain intact because it isn't even being litigated. not to mention the fact that all 15 schools willingly signed it, which would tell any intelligent person "they're just not that into you."

Right, but if they were to not settle and a judge were to rule a sports conference's contracts can not be enforced on a departed member; ie you withheld their payments for two years and they've left, you cannot further punish a member after exiting -- then that could be used as precedent for another member to announce their departure, have their withholdings held while they wait to exit and then leave... and as they are leaving sue to reclaim their rights under that precedent of ongoing penalty.

No contract is unbreakable, just as the Titanic wasn't unsinkable, despite all the state-of-the-art protections it had.

Has anyone heard if the court ordered mediation is even scheduled?

I thought I saw somewhere they had to schedule a meeting before July 10?

(07-02-2014 10:39 PM)IceJus10 Wrote:  

(07-02-2014 02:58 PM)ren.hoek Wrote:  one thing i don't get is the belief that the acc will somehow be vulnerable if the exit fee is declared punitive. the GOR would still remain intact because it isn't even being litigated. not to mention the fact that all 15 schools willingly signed it, which would tell any intelligent person "they're just not that into you."

Right, but if they were to not settle and a judge were to rule a sports conference's contracts can not be enforced on a departed member; ie you withheld their payments for two years and they've left, you cannot further punish a member after exiting -- then that could be used as precedent for another member to announce their departure, have their withholdings held while they wait to exit and then leave... and as they are leaving sue to reclaim their rights under that precedent of ongoing penalty.

No contract is unbreakable, just as the Titanic wasn't unsinkable, despite all the state-of-the-art protections it had.

I think you are looking at a worst case scenario and it is not likely to happen:

1) Maryland signed a previous exit fee. Although they are claiming that no exit fee is appropriate and that they owe nothing, they did at one point approve and believe that exit fees in and of themselves are valid and enforceable. Hypocrisy is a dangerous thing in court.
2) They signed a GOR to join the B1G. Hypocrisy is a dangerous thing in court.
3) Every team in a P5 conference as well as the lesser 5 conferences has signed a deal with exit fees and/or GOR. All of Maryland's peers believe these deals to be valid. (UNL and Colorado believed exit fees to be valid but there was a legitimate issue on what fee to be paid as the B1g 12's deals provided at least two methods of calculation)
4) If UMD is allowed to jump without penalty, all current deals are invalid.
5) See #4, if so, the BTN is worthless next year when it gets renegotiated.

The issue isn't whether a contract is breakable. The issue is liquidated damages.
The ACC voted in a 3X TV deal liquidated damages clause.
UMD failed to overturn the procedural issue and failed to comply with notification prior to the increased effect.
They are refusing to pay the exit fee and trying to leverage the ACC to negotiate a much lower fee.
The ACC has withheld the last two academic year payouts totaling more than $30MM (close to $38MM if my math is correct).
UMD lost the challenge that the ACC can withhold these payouts.
The ACC has the upper hand at this time and there is no pressure on the ACC to settle unreasonably. As TerryD pointed out, State court is slow. UMD is hurting and will not get a payout until next summer as a new member of the B1G.
The courts are not likely going to wipe away the full exit fee, they may modify it but not wipe it out.