(04-22-2013 12:10 PM)NJRedMan Wrote: Someone will eventually challenge a GoR and then we'll see how ironclad they are. Until then, none of us know how well it will hold up. We all thought exit fees were enforceable until they weren't.
I think GoR is a sham. Bet a dime to a doughnut the GoR is a brokered deal replacing the $50 million exit fee.
There are three ways around a GoR.
1. Tough it out. The GoR doesn't cover your away games, only the home games so if you are a high value target, the new league goes in knowing that they are getting four (or five) of your road games every year.
2. Buy your way out. Actually not a tough deal. You go to the TV partners and determine what the loss of your school does to the rights fee. If they are cutting the rights fee $2 million per year over 10 years, you pay the league the present value of that as a lump sum or you pay them the missing revenue in annual installments.
3. Breach the contract and let them sue. If that happens you end up having to pay for the reduced value of the contract.
Of course this is not truly arm's length dealing. Right now there are two serious players. ESPN and Fox. If you are leaving the ACC and ESPN is negotiating with the Big 10 to replace the deal that expires in 2016 it is really easy to ask the Big 10 if they will take X offer if they take school 1 and 2 from the ACC and then choose to not lower the rights fee paid to the ACC or reduce it a small amount to make departure affordable.
If you are ESPN, you have everything of notable value from the ACC tied up until 2027 but you don't have any assurance of ANYTHING from the Big 10 after 2016 and they have a partnership with Fox through 2032. It becomes worthwhile to ESPN to tie up those top tier rights for the Big 10 for an extended period by helping them get some ACC schools (or an SEC or a Big XII).
ESPN has much less motivation to help an ACC go to the SEC (where ESPN's control is huge through 2024) or to the Big XII where ESPN holds good rights through 2025.