CHARLOTTE, N.C. — Clemson University filed a lawsuit against the Atlantic Coast Conference on Tuesday, challenging the conference's exit fee and grant of rights that could keep the school in the conference for another decade.
The lawsuit was filed in Pickens County, South Carolina. Attorneys representing Clemson argue that the ACC's grant of rights should only be applied to member institutions and not carry over after they leave the conference.
Clemson's attorneys filed the suit Tuesday, arguing Clemson should keep its rights after leaving the ACC. Details of the lawsuit were first reported by ESPN college football insider Pete Thamel.
"The ACC's actions interfere with Clemson's free exercise of its rights and are fatally detrimental to Clemson's efforts to ensure that its athletic programs can continue to compete at the highest level, which is critically important to Clemson even beyond athletics," the lawsuit states.
The lawsuit differs from that filed by Florida State University, which claims the grant of rights violates antitrust laws and imposes "draconian" exit fees. Like Florida State, Clemson is seeking to avoid the $140 million exit fee the ACC says member schools must pay if they leave the conference.
ACC member schools signed an amended grant of rights in 2016 after Maryland left for the Big Ten. The agreement, which runs through 2036, is aligned with ESPN. However, Clemson's attorneys argued the $140 million exit fee is "plainly disproportionate" to actual damages that would come from the school leaving the league.
A Clemson spokesperson issued a statement to WCNC Charlotte on Tuesday saying the school has not given notice that it is exiting the ACC and it remains a member conference.
"The ACC's position regarding the Grant of Rights, the exit penalty, and obligations owed by members to the conference, as detailed in its public statements and other court filings, leaves Clemson with no choice but to move forward with this lawsuit," the statement said in part.
In the suit, Clemson's attorneys say the ACC's exit fee increased from $20.75 million in 2012 to $51.9 million and now $140 million, more than seven times the exit fee first adopted in 2011. Attorneys also compared the ACC's exit fee to that of the Big Ten, Big 12 and SEC. The ACC's $140 million is significantly higher than each, with the SEC's penalty of $45 million with no notice being the largest exit fee stated in the suit.
"The withdrawal penalty that the ACC insists a member institution must pay to leave the conference today has ballooned to a point that was unimaginable in 2012, and is unconscionable, unenforceable, and in violation of public policy, especially when sought to be imposed on a public university like Clemson," the suit states.
A countersuit was filed in Mecklenburg County by the ACC against Florida State. It's unclear how the league will respond to Clemson's lawsuit. The conference argued that FSU's claims against the grant of rights should be decided in the ACC's home state of North Carolina. Clemson claims the ACC did not hold a vote requesting members approve the lawsuit against Florida State, saying the school never authorized the league's legal action against Florida State.
As for Clemson's future in the ACC, the filing states the ACC's "wrongful interpretation" of its own grant of rights prevents Clemson from doing what's best for the school, with attorneys claiming the ACC's grant of rights is more limited than the ACC has maintained publicly.
"The ACC's misinterpretation of the scope of the grant of rights impairs Clemson's rights, including its right to negotiate now for a more favorable treatment of its future media rights, either with ESPN, other conference members, or even other athletic conferences beyond the ACC."
The ACC issued the following statement in response to Clemson's lawsuit:
“The ACC remains confident that its agreements with all its members will be affirmed by the courts. Clemson, along with all ACC members, voluntarily signed and re-signed the 2013 and 2016 Grant of Rights, which is binding through 2036. In addition, Clemson agreed to the process and procedures for withdrawal. The Conference’s legal counsel will vigorously enforce the agreement and bylaws in the best interests of the ACC’s current and incoming members.”
The ACC's future has been up in the air for months with speculation that some of its members, namely Clemson, Florida State and North Carolina, could take legal action to find a new conference. Those moves would come in the wake for massive TV contracts for both the Big Ten and SEC, which will pay member institutions nearly double that of the ACC's current deal with ESPN.