Clemson vs. ACC exit fees lawsuit explained
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David Hale, ESPN Staff Writer
Clemson became the second school to sue the ACC in state court in an effort to extricate itself from onerous exit fees and a grant of rights that runs for another 12 years.
The lawsuit, filed in Pickens County, South Carolina, on Tuesday, follows a similar blueprint to the one filed by Florida State in Tallahassee in December. Both aim to challenge the veracity of the league’s grant of rights, while the ACC’s countersuit in North Carolina looks to uphold the agreement.
So, what does Clemson’s latest legal maneuver mean for the ACC and the future of realignment? ESPN answered some of the key questions.
Read more about the FSU lawsuit here.
Why did Clemson file its lawsuit now?
Whereas Florida State foreshadowed its lawsuit for months and announced it in grand fashion in late December 2023, Clemson’s efforts toward a potential exit have largely happened in the shadows. But make no mistake, Clemson has been essentially in lockstep with Florida State’s thinking all along, and with the recent announcement that future playoff shares to the ACC would be nearly half that of the SEC and Big Ten, it was yet another domino to fall in Clemson’s journey to this point. Florida State and Clemson understand that finding an exit strategy from the ACC will not happen overnight, so both lawsuits are largely about getting a running start toward the door.
What exactly is Clemson arguing?
Clemson is essentially making the same argument as Florida State, which boils down to claiming the financial penalties involved with the ACC’s exit fee (three times the ACC’s operating budget) are exorbitant and unreasonable, and the grant of rights (which gives the ACC ownership of each member’s TV media rights through 2036) unfairly restricts Clemson’s right to maximize its brand value.
According to the lawsuit, Clemson alleges the ACC’s exit fee and grant of rights “hinders Clemson’s ability to meaningfully explore its options regarding conference membership, to negotiate alternative revenue-sharing proposals among ACC members, and to obtain full value for its future media rights.”
In short, Clemson is suggesting that a grant of rights is unenforceable and illegal, a claim that could potentially have massive ripple effects throughout the college sports landscape if a judge agreed. But given the rapidly changing landscape of college sports, Clemson argues prohibiting free movement among schools could be a potential death sentence for its program.
“In this litigation, Clemson seeks confirmation of the plain language found in the Grant of Rights agreements and the related media agreements between the ACC and ESPN — that these agreements, when read together, plainly state that Clemson controls its media rights for games played if it is no longer a member of the ACC,” a statement from Clemson read. “Clemson also seeks a ruling regarding the unenforceability of the severe penalty the ACC is seeking to impose upon exiting members and confirmation that it does not owe a fiduciary duty to the conference as alleged by the ACC.
“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.
“Clemson has not given notice that it is exiting the ACC and remains a member of the conference.”
What is a grant of rights again? And why is it so important?
The grant of rights is a legal document signed by each member of the ACC that transfers ownership of media rights from the school to the conference. What this means is that the ACC, not Clemson — or any other member school — owns the rights to broadcasts of games. Schools signed this in 2013 as a reaction to the departure of Maryland to the Big Ten, under the rationale that the grant of rights acts as an insurance policy that would prevent anyone from leaving the league during the duration of the agreement, which in this case is through 2036, because a school without TV revenue would have little value to any other conference or enough revenue to stand as an independent.
In other realignment scenarios, schools either waited out the grant of rights (the Pac-12’s agreement ends in summer 2024) or paid a hefty buyout to leave early (Texas and Oklahoma paid $50 million each to the Big 12 to leave that agreement just one year early).
For Florida State, Clemson or any other school looking to leave the ACC, the dollars and duration are far more imposing. With 12 seasons remaining on the existing deal after this school year, a member would need to either wait far longer than they feel is acceptable or pay a nearly impossible buyout to get their media rights back. And this is in addition to the exit fee.
Hence, option No. 3: Go to court and hope to find a legal framework for exiting sooner and at a lower cost.
Clemson, however, is alleging the grant of rights only applies to teams in the league and would not carry beyond a school exiting. This, of course, is the exact opposite of what the grant of rights was designed to do, but it’s an interesting legal approach given the school’s reading of its TV agreement and grant of rights, which is redacted in public disclosures.
Should we expect more schools to follow in Clemson’s and FSU’s steps?
There’s a genuine question about why Clemson would do this at all if Florida State was willing to be the canary in the coal mine. While numerous other ADs — both inside the ACC and out — have said they’re keenly watching FSU’s efforts to exit the grant of rights, they’ve all sounded more than happy to let the Seminoles take the heat and, ideally, provide the blueprint for an exit strategy.
Clemson’s lawsuit suggests that the school sees value in helping set that blueprint and, in turn, potentially being among the first out the door. If both FSU and Clemson depart the league, others would surely follow — including, perhaps, North Carolina, Virginia, Miami and NC State.
But there are also two big problems with any departure scenario.
First is the money. These lawsuits are effectively a referendum on the cost of departure. That dollar figure, whatever it ultimately is, could be prohibitively high for schools looking to leave. On the flip side, the high cost could provide an incentive to stay if Clemson and FSU are forced to write sizable checks that would then be distributed among the remaining league members.
On Feb. 29, the University of North Carolina Board of Governors approved a policy change that might make it more difficult for public state schools — including North Carolina and NC State — to jump from one conference to another. Under the new rules, any chancellor of a school wanting to change leagues must provide the system president with advance notice and submit a financial plan. The president has the authority to approve or reject the move, and he must notify the Board of Governors, which could vote on the conference transition as well.
The second issue is where schools might land. Several athletics directors who spoke with ESPN said they did not believe the SEC or Big Ten were eager to expand again at the moment, and even the Big Ten’s most recent additions — Washington and Oregon — came in at a fraction of full value. Leaving the ACC is one thing. Having a home afterward is another.
What happens now?
Clemson’s lawsuit was filed in South Carolina, making it the third different state where some form of litigation is ongoing about the ACC’s grant of rights. Deciding who has jurisdiction is the next big step, and even that is likely months away from a ruling. Once any ruling on venue is made, there are likely to be appeals of that ruling, too. In other words, it’s unlikely we’ll learn anything about the enforceability of the ACC’s exit fees and grant of rights any time soon.
JIM ABBOTT IS sitting at his kitchen table, with his old friend Tim Mead. In the late 1980s and early 1990s, they were partners in an extraordinary exercise — and now, for the first time in decades, they are looking at a stack of letters and photographs from that period of their lives.
The letters are mostly handwritten, by children, from all over the United States and Canada, and beyond.
“Dear Mr. Abbott …”
“I have one hand too. … I don’t know any one with one hand. How do you feel about having one hand? Sometimes I feel sad and sometimes I feel okay about it. Most of the time I feel happy.”
“I am a seventh grader with a leg that is turned inwards. How do you feel about your arm? I would also like to know how you handle your problem? I would like to know, if you don’t mind, what have you been called?”
“I can’t use my right hand and most of my right side is paralyzed. … I want to become a doctor and seeing you makes me think I can be what I want to be.”
For 40 years, Mead worked in communications for the California Angels, eventually becoming vice president of media relations. His position in this department became a job like no other after the Angels drafted Abbott out of the University of Michigan in 1988.
There was a deluge of media requests. Reporters from around the world descended on Anaheim, most hoping to get one-on-one time with the young left-handed pitcher with the scorching fastball. Every Abbott start was a major event — “like the World Series,” Angels scout Bob Fontaine Jr. remembers. Abbott, with his impressive amateur résumé (he won the James E. Sullivan Award for the nation’s best amateur athlete in 1997 and an Olympic gold medal in 1988) and his boyish good looks, had star power.
That spring, he had become only the 16th player to go straight from the draft to the majors without appearing in a single minor league game. And then there was the factor that made him unique. His limb difference, although no one called it that back then. Abbott was born without a right hand, yet had developed into one of the most promising pitchers of his generation. He would go on to play in the majors for ten years, including a stint in the mid ’90s with the Yankees highlighted by a no-hitter in 1993.
Abbott, and Mead, too, knew the media would swarm. That was no surprise. There had been swarms in college, and at the Olympics, wherever and whenever Abbott pitched. Who could resist such an inspirational story? But what they hadn’t anticipated were the letters.
The steady stream of letters. Thousands of letters. So many from kids who, like Abbott, were different. Letters from their parents and grandparents. The kids hoping to connect with someone who reminded them of themselves, the first celebrity they knew of who could understand and appreciate what it was like to be them, someone who had experienced the bullying and the feelings of otherness. The parents and grandparents searching for hope and direction.
“I know you don’t consider yourself limited in what you can do … but you are still an inspiration to my wife and I as parents. Your success helps us when talking to Andy at those times when he’s a little frustrated. I’m able to point to you and assure him there’s no limit to what he can accomplish.”
In his six seasons with the Angels, Abbott was assisted by Mead in the process of organizing his responses to the letters, mailing them, and arranging face-to-face meetings with the families who had written to him. There were scores of such meetings. It was practically a full-time job for both of them.
“Thinking back on these meetings with families — and that’s the way I’d put it, it’s families, not just kids — there was every challenge imaginable,” Abbott, now 57, says. “Some accidents. Some birth defects. Some mental challenges that aren’t always visible to people when you first come across somebody. … They saw something in playing baseball with one hand that related to their own experience. I think the families coming to the ballparks were looking for hopefulness. I think they were looking for what it had been that my parents had told me, what it had been that my coaches had told me. … [With the kids] it was an interaction. It was catch. It was smiling. It was an autograph. It was a picture. With the parents, it ran deeper. With the parents, it was what had your parents said to you? What coaches made a difference? What can we expect? Most of all, I think, what can we expect?”
“It wasn’t asking for autographs,” Mead says of all those letters. “They weren’t asking for pictures. They were asking for his time. He and I had to have a conversation because this was going to be unique. You know, you could set up another player to come down and sign 15 autographs for this group or whatever. But it was people, parents, that had kids, maybe babies, just newborn babies, almost looking for an assurance that this is going to turn out all right, you know. ‘What did your parents do? How did your parents handle this?'”
One of the letters Abbott received came from an 8-year-old girl in Windsor, Ontario.
She wrote, “Dear Jim, My name is Tracey Holgate. I am age 8. I have one hand too. My grandpa gave me a picture of you today. I saw you on TV. I don’t know anyone with one hand. How do you feel about having one hand? Sometimes I feel sad and sometimes I feel okay about it. Most of the time I feel happy. I hope to see you play in Detroit and maybe meet you. Could you please send me a picture of you in uniform? Could you write back please? Here is a picture of me. Love, Tracey.”
Holgate’s letter is one of those that has remained preserved in a folder — and now Abbott is reading it again, at his kitchen table, half a lifetime after receiving it. Time has not diminished the power of the letter, and Abbott is wiping away tears.
Today, Holgate is 44 and goes by her married name, Dupuis. She is married with four children of her own. She is a teacher. When she thinks about the meaning of Jim Abbott in her life, it is about much more than the letter he wrote back to her. Or the autographed picture he sent her. It was Abbott, all those years ago, who made it possible for Tracey to dream.
“There was such a camaraderie there,” she says, “an ability to connect with somebody so far away doing something totally different than my 8-year-old self was doing, but he really allowed me to just feel that connection, to feel that I’m not alone, there’s other people that have differences and have overcome them and been successful and we all have our own crosses, we all have our own things that we’re carrying and it’s important to continue to focus on the gifts that we have, the beauty of it.
“I think sometimes differences, disabilities, all those things can be a gift in a package we would never have wanted, because they allow us to be people that have an empathetic heart, an understanding heart, and to see the pain in the people around us.”
Now, years after Abbott’s career ended, he continues to inspire.
Among those he influenced, there are professional athletes, such as Shaquem Griffin, who in 2018 became the first NFL player with one hand. Griffin, now 29, played three seasons at linebacker for the Seattle Seahawks.
Growing up in Florida, he would watch videos of Abbott pitching and fielding, over and over, on YouTube.
“The only person I really looked up to was Jim Abbott at the time,” Griffin says, “which is crazy, because I didn’t know anybody else to look up to. I didn’t know anybody else who was kind of like me. And it’s funny, because when I was really little, I used to be like, ‘Why me? Why this happen to me?’ And I used to be in my room thinking about that. And I used to think to myself, ‘I wonder if Jim Abbott had that same thought.'”
Carson Pickett was born on Sept. 15, 1993 — 11 days after Abbott’s no-hitter. Missing most of her left arm below the elbow, she became, in 2022, the first player with a limb difference to appear for the U.S. women’s national soccer team.
She, too, says that Abbott made things that others told her were impossible seem attainable.
“I knew I wanted to be a professional soccer player,” says Pickett, who is currently playing for the NWSL’s Orlando Pride. “To be able to see him compete at the highest level it gave me hope, and I think that that kind of helped me throughout my journey. … I think ‘pioneer’ would be the best word for him.”
Longtime professional MMA fighter Nick Newell is 39, old enough to have seen Abbott pitch for the Yankees. In fact, when Newell was a child he met Abbott twice, first at a fan event at the Jacob Javits Center in Manhattan and then on a game day at Yankee Stadium. Newell was one of those kids with a limb difference — like Griffin and Pickett, due to amniotic band syndrome — who idolized Abbott.
“And I didn’t really understand the gravity of what he was doing,” Newell says now, “but for me, I saw someone out there on TV that looked like I did. And I was the only other person I knew that had one hand. And I saw this guy out here playing baseball and it was good to see somebody that looked like me, and I saw him in front of the world.
“He was out there like me and he was just living his life and I think that I owe a lot of my attitude and the success that I have to Jim just going out there and being the example of, ‘Hey, you can do this. Who’s to say you can’t be a professional athlete?’ He’s out there throwing no-hitters against the best baseball players in the world. So, as I got older, ‘Why can’t I wrestle? Why can’t I fight? Why can’t I do this?’ And then it wasn’t until the internet that I heard people tell me I can’t do these things. But by then I had already been doing those things.”
Griffin.
Pickett.
Newell.
Just three of the countless kids who were inspired by Jim Abbott.
When asked if it ever felt like too much, being a role model and a hero, all the letters and face-to-face meetings, Abbott says no — but it wasn’t always easy.
“I had incredible people who helped me send the letters,” he says. “I got a lot more credit sometimes than I deserved for these interactions, to be honest with you. And that happened on every team, particularly with my friend Tim Mead. There was a nice balance to it. There really was. There was a heaviness to it. There’s no denying. There were times I didn’t want to go [to the meetings]. I didn’t want to walk out there. I didn’t want to separate from my teammates. I didn’t want to get up from the card game. I didn’t want to put my book down. I liked where I was at. I was in my environment. I was where I always wanted to be. In a big league clubhouse surrounded by big league teammates. In a big league stadium. And those reminders of being different, I slowly came to realize were never going to go away.”
But being different was the thing that made Abbott more than merely a baseball star. For many people, he has been more than a role model, more than an idol. He is the embodiment of hope and belonging.
“I think more people need to realize and understand the gift of a difference,” Dupuis says. “I think we have to just not box everybody in and allow everybody’s innate light to shine, and for whatever reasons we’ve been created to be here, [let] that light shine in a way that it touches everybody else. Because I think that’s what Jim did. He allowed his light to permeate and that light, in turn, lit all these little children’s lights all over the world, so you have this boom of brightness that’s happening and that’s uncontrollable, that’s beautiful.”
NEW YORK — Chicago Cubs center fielder Pete Crow-Armstrong is projected to receive the largest amount from this season’s $50 million pre-arbitration bonus pool based on his regular-season statistics.
Crow-Armstrong is on track to get $1,091,102, according to WAR calculations through July 8 that Major League Baseball sent to teams, players and agents in a memo Friday that was obtained by The Associated Press.
He earned $342,128 from the pool in 2024.
“I was aware of it after last year, but I have no clue of the numbers,” he said Friday. “I haven’t looked at it one time.”
Pittsburgh pitcher Paul Skenes is second at $961,256, followed by Washington outfielder James Wood ($863,835), Arizona outfielder Corbin Carroll ($798,397), Houston pitcher Hunter Brown ($786,838), Philadelphia pitcher Cristopher Sánchez ($764,854), Cincinnati shortstop Elly De La Cruz ($717,479), Boston catcher Carlos Narváez ($703,007), Red Sox outfielder Ceddanne Rafaela ($685,366) and Detroit outfielder Riley Greene ($665,470).
Crow-Armstrong, Skenes, Wood, Carroll, Brown, De La Cruz and Greene have been picked for Tuesday’s All-Star Game.
A total of 100 players will receive the payments, established as part of the 2022 collective bargaining agreement and aimed to get more money to players without sufficient service time for salary arbitration eligibility. The cutoff for 2025 was 2 years, 132 days of major league service.
Players who signed as foreign professionals are excluded.
Most young players have salaries just above this year’s major league minimum of $760,000. Crow-Armstrong has a $771,000 salary this year, Skenes $875,000, Wood $764,400 and Brown $807,400.
Carroll is in the third season of a $111 million, eight-year contract.
As part of the labor agreement, a management-union committee was established that determined the WAR formula used to allocate the bonuses after awards. (A player may receive only one award bonus per year, the highest one he is eligible for.) The agreement calls for an interim report to be distributed the week before the All-Star Game.
Distribution for awards was $9.85 million last year, down from $11.25 million in 2022 and $9.25 million in 2023.
A player earns $2.5 million for winning an MVP or Cy Young award, $1.75 million for finishing second, $1.5 million for third, $1 million for fourth or fifth or for making the All-MLB first team. A player can get $750,000 for winning Rookie of the Year, $500,000 for second or for making the All-MLB second team, $350,000 for third in the rookie race, $250,000 for fourth or $150,000 for fifth.
Kansas City shortstop Bobby Witt Jr. topped last year’s pre-arbitration bonus pool at $3,077,595, and Skenes was second at $2,152,057 despite not making his big league debut until May 11. Baltimore shortstop Gunnar Henderson was third at $2,007,178.
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