(11-02-2013 07:59 PM)He1nousOne Wrote: So, the ACC school's signed a GoR for this. They did a grant of rights. What is questionable though is whether or not that GoR has wording in it about it's viability should there never be an ACC Network. I have seen no FOIA copies of this GoR, the ACC has done a wonderful job of keeping wraps on it.
Grants of Rights are significant barriers to exit for a school that has signed one because they involve signing over rights. Contrary to your contention, these rights are not inalienable. A school can freely sign away the right to televise its games, and that is what a GoR entails: The teams that sign have signed over to their conference the right to televise their games. In return, they receive a slice of that revenue for as long as they remain in the conference.
For example, if Virginia were to try and leave the ACC for the B1G next year, the ACC would remain the owner of Virginia's home game TV rights through 2026-2027. That's because a school only owns its home game rights. Thus, Virginia would be able to take one set of rights with them to the B1G free and clear, namely their road game rights against B1G opponents, since those rights would be controlled by the B1G. But of course not their road game rights against OOC opponents, because those opponents would own those rights. So imagine if Virginia's 2015 football schedule as a member of the B1G looked like this (and yes I know I'm ignoring B1G division structure but that's irrelevant):
vs East Carolina
vs the Citadel
vs Maryland Eastern-Shore
@ Auburn
@Indiana
vs Michigan
@ Penn State
vs Nebraska
@ Michigan State
vs Ohio State
@ Iowa
vs Purdue
... the B1G would control, free and clear, the rights to those 4 Virginia road games versus B1G opponents. But the rights to the 7 home games would be retained by the ACC (and the SEC would own the rights to the road game at Auburn).
And since the ACC signed over its rights to a TV network, that TV network (or any networks it sub-licenses to) would have the right to air those 7 Virginia home games, and they would pay the ACC for those games. Virginia, since it was no longer a member of the ACC, would no longer get its conference share of that TV revenue. In effect, it would play those games for free, from a TV revenue point of view, through 2026-2027.
The only recourse for Virginia and/or the B1G would be to try and negotiate a settlement with the ACC for those rights, but since the ACC stands to make about $15 million per year for 13 years on that GoR, that settlement would be massive, much more than the $50 million exit fee Maryland and the ACC are currently wrangling over.
That would make a move to the B1G very unprofitable for Virginia.
Also, make no mistake: The Big 12 and ACC "grant of rights" agreements were made precisely with the goal of binding schools to the conference for the stated period of time, in order to extract more money from media partners who are willing to pay more in order to guarantee knowing what they are buying. This was absolutely no secret to anybody. The ACC was threatened with dissolution due to further raids by the B1G and maybe the SEC or Big 12, and the purpose of the GoR was to stop the threat of membership loss by both tying teams to the conference financially in return for their making more money as a result of signing the GoR. THAT is the "consideration" that you keep mentioning as being absent should a team try to leave. Virginia signed over its rights because it realized that without a GOR, the ACC (and hence Virginia) would get significantly less media money than with one. Of course the downside of signing is that you tie yourself financially to that conference for the duration of the GoR.
Everybody understood this at the time the GoR was signed, so it will be extremely hard for Virginia lawyers to argue their way out of the deal they signed.