DJ Pirkle , Nick Slot, Jordan Meyers & Megan Steenhuysen

1. DJ Pirkle, Nick Slot, Jordan Meyers & Megan Steenhuysen V.

2. Maryland has been a member of the ACC since 1954 • As of July 1st Maryland will be newest member of the BIG 10 • Maryland is being sued for $52.3 million for leaving • Maryland countersuing the ACC for $157 million Background

3. CORE ISSUE: $52 million exit fee imposed by ACC • In General • Consumers will be adversely impacted (increase in ticket prices/fees in order to counterbalance exit fee) • May deter/prevent other schools from changing conferences (especially in the midst of budget issues) Secondary Issues

4. ACC withholding $$ • Maryland claims that $16 million in revenue shares has been withheld while the case plays out • An ACC associate was cited in a letter stating that the revenue shares were not being distributed because they were being held as “collateral against the exit fee”. • According to the Washington Post: The ACC withheld well over $3 million in gross television revenues from 2012-2013 • Maryland attorney general’s office perceives this as intimidation and and a reaction to Maryland leaving for the Big Ten Secondary Issues (case specific)

5. ACC/ESPN poaching Big Ten schools • Allegedly, athletic officials from Pittsburgh and Wake Forest made attempts to recruit at least two Big Ten schools to their conference • ESPN supposedly provided specific “counsel and direction” (trying to gain access to certain teams) • ESPN’s involvement with college sports has long been perceived as giving favorable coverage to certain teams/conferences • This is also being viewed as a competitive response to Maryland’s decision to leave the conference for the Big Ten – hypocritical for the ACC to lure schools from the very league to which it is losing Maryland Secondary Issues (case specific)

6. Gansler moves to dismiss lawsuit due to no jurisdiction over Maryland • November 2013, NC Court of Appeals rejects UMD’s bid to escape the $52 million fee • Basis revolved around UMD college park and board of regents sovereign immunity arguments Appeals

7. Directly affects UMD • Other ACC schools are hesitant to leave due to this suit • Conferences witness the stress of this situation and try to avoid it The Issue

8. Rutgers v. The Big East- • $10million exit fee • Accused Big East of holding back funds owed to Rutgers • Boise State v. The Big East • BSU cancelled entry to the conference. • Contractual agreement of $5 million “back-out” fee Similar Cases

9. More conference jumps • Greater divide between the major BCS conferences and the NCAA – Separate entity? • What about the mid-majors? • So much talk, so little resolution What’s To Come

10. Baumgaertner, G. (2012). How Maryland went broke: Inside the athletic department’s decline. • Sports Illustrated. • Dinich, H. (2014). Maryland files countersuit vs. ACC. In ESPN.com. • Heitner, D. (2012). ACC seeks exit fee in lawsuit filed against the university of Maryland. • Sportsmoney. • Lipman, M. (2013). ACC gets OK to seek $52M exit fee. Law 360. • Maryland Seeks to Block ACC Withdrawal Fee with Antitrust Suit (2013). Antitrust Today. • McCann, M. C. (2014). Maryland-ACC suit brings business of college sports to spotlight again. • McMurphy, B. & O’Neil, D. (2012). Maryland accepts Big Ten invite. ESPN.com. • Patterson, C. (2014). Maryland files $157 million countersuit against ACC. CBSsports.com. • Pennington, J. (2013). Court Won't Dismiss the ACC's Lawsuit Against Maryland. • Prewitt, A. (2014). Maryland alleges ACC violated its own rules over exit fee, tried to lure • Big Ten schools away. The Washington Post. • Smith, C. (2014). Maryland sues ACC for $157 million, says conference tried to poach from Big • Ten. Sportsmoney. • Tucker, D. (2013). The state strikes back: A detailed look at Maryland's lawsuit against • the ACC. Testudo Times. • Yoder, M. (2014). Did ESPN try to help recruit Big Ten schools to the ACC?. Awful Announcing. References