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ACC Files Court Document Alleging FSU Breach of Contract, Pursues Damages

The Atlantic Coast Conference (ACC) has intensified its legal battle with Florida State University (FSU) by filing an amended complaint in North Carolina Superior Court on Tuesday. This move seeks damages from FSU for what the ACC describes as “serial breaches of critical legal promises and obligations.” The ACC questions FSU’s eligibility to hold leadership positions within the conference.

The 55-page filing in Mecklenburg County adds a new layer to the ongoing legal dispute between the ACC and FSU, stemming from FSU’s challenge to the ACC’s grant of rights, which extends through 2036. The ACC had initially filed a claim on Dec. 21 to safeguard this grant, and FSU responded the following day in Leon County (Florida), asserting that the ACC restrained trade and breached contracts.

This legal tussle promises to be protracted and aims to scrutinize the legality of the ACC’s grant of rights agreement. The latest ACC filing presents six claims, accusing FSU of breaching its contract, confidentiality in media rights, and fiduciary obligations. It introduces a new claim for “substantial” damages related to alleged contract breaches.

Furthermore, the ACC challenges FSU’s involvement in conference leadership roles, including FSU president Richard McCullough’s positions on the ACC’s board of directors and finance committee. The ACC seeks a “permanent injunction” to prevent FSU from participating in conference affairs when a conflict of interest arises.

The legal process is expected to unfold over years, with the next significant date set for Feb. 16, when both parties are scheduled to respond to the initial filings. The amended complaint outlines the ACC’s strategy, emphasizing FSU’s previous participation in the grant of media rights that it now aims to undo.

FSU has estimated a departure cost exceeding $572 million without a legal win or settlement. The ACC’s amended complaint emphasizes FSU’s acceptance of “hundreds of millions of dollars” from ACC media agreements over a decade. The ACC seeks a declaration affirming the validity and enforceability of the grant of rights, arguing that FSU knowingly executed the agreement and accepted its terms.

A spokesperson for Florida State University acknowledged the ACC filing but offered no further comment. FSU’s initial lawsuit signaled its intentions to potentially depart from the ACC, suggesting an eventual move to the Big Ten or SEC. The initial lawsuit cited “chronic fiduciary mismanagement and bad faith,” echoing a yearlong discussion from FSU officials about leaving the ACC unless significant changes occurred in revenue distribution.

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