Text Size   Decrease Font SizeIncrease Font Size
int_slide_copy

ACC and Maryland Settle Exit Fee Dispute

Print
Written by Christian Dennie   
Tuesday, 12 August 2014 15:09

In late 2012, the University of Maryland (“Maryland”) announced that it would exit the Atlantic Coast Conference (“ACC”) to join the Big 10 Conference (“Big 10”).   Shortly thereafter, on November 26, 2012, the ACC filed suit against Maryland seeking to enforce the exit fee of the termination procedures as set forth in Section IV-5 of the ACC Bylaws. According to Section IV-5 of the ACC Bylaws, a withdrawing member shall be subject to a withdrawal payment in an amount “equal to three (3) times the total operating budget of the Conference (including any contingency included therein), approved in accordance with Section V-1 of the Conference Bylaws, which is in effect as of the date of the official notice of withdrawal.” In 2012-13, the ACC’s operating budget was $17,422,114.00. According to Section IV-5, Maryland would owe the ACC the total amount of $52,266,342.00.  

After the ACC withheld Maryland’s television and bowl revenue, Maryland filed a countersuit against the ACC claiming the exit fee and associated ACC Bylaws are anticompetitive and “lack any legitimate economic justification.” Accordingly, Maryland sought recovery of the $16 million withheld by the ACC, $156,799,026.00 (i.e., three times the $52.3 million buyout—trebled under antitrust laws), and punitive damages.

On August 8, 2014, the parties announced they agreed to resolve the disputes pending against one another. Instead of paying the $52.3 million buyout, Maryland agreed the ACC is permitted to retain the $31.4 million that had been previously withheld from Maryland by the ACC. Maryland will not owe any additional funds. Maryland officially joined the Big 10 on July 1, 2014 and will compete in the Big 10 this season.

For any questions, feel free to contact Christian Dennie at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

Recent News

All BGS Attorneys Recognized as 2014 Top Attorneys by Fort Worth, Texas Magazine

In Fort Worth, Texas Magaznie's annual list of "Top Attorneys", all Barlow, Garsek & Simon attorneys were recognized by their peers as being among the best ...

[Read More]

Barlow Garsek & Simon, LLP Named "Best Law Firms" by U.S. News - Best Lawyers

Barlow Garsek & Simon, LLP was named a Tier 1 law firm in the rankings of "Best Law Firms" for 2015 as published by U.S. News ...

[Read More]

Recent Publications

Post-Penn State: Protecting Against Sexual Harassment and Misconduct in Athletics, 75 Tex. B.J. 828 (Dec. 2012)

President's Page - Tarrant County Bar Bulletin (July-August 2012)

Conference Realignment: From Backyard Brawls to Cash Cows, 1 Miss. Sports L. Rev.  249 (2012)

[View All Publications]

Contact Us

Barlow Garsek & Simon, LLP
920 Foch Street
Fort Worth, Texas 76107
Phone: 817.731.4500
Fax: 817.731.6200

©2010 - 2013 Barlow Garsek & Simon, LLP
Disclaimer
Law Firm Web Design by The Modern Firm