ACC vs. Florida State Amended Lawsuit
ACC vs. Florida State Amended Lawsuit
ACC vs. Florida State Amended Lawsuit
Plaintiff,
Defendants.
NOW COMES the Plaintiff, the ATLANTIC COAST CONFERENCE (“the ACC” or “the
Conference”), pursuant to N.C. Gen. Stat. § 1A-1, Rule 15(a) and, prior to a responsive pleading
being served, amends its Complaint for Declaratory Judgment and files this First Amended
Complaint against the Board of Trustees of Florida State University (“Florida State”):
Summary of Claims
This case involves Florida State’s serial breaches of critical legal promises and obligations
which it made over the last 13 years to the ACC. In 2013 and 2016, Florida State, along with
every other Member of the ACC, agreed to and executed a “Grant of Rights” in which it transferred
the exclusive media rights to all its “home” games to the Conference (the “Media Rights”) through
2036. By aggregating their collective Media Rights in the Conference, the Members realized more
value from those collective Media Rights than if they had each attempted to market them
separately, and the media partners of the Conference were assured that they would have access to
all home games of the Members throughout the length of the agreements. These aggregated Media
Rights resulted in agreements and contracts between the ACC and ESPN that provided a
predictable source of revenue to the ACC’s Members and which led to the creation of the ACC
Case No.2023CVS40918 ECF No. 12 Filed 01/17/2024 16:16:50 N.C. Business Court
Network. By the time these contracts end, the Conference will have distributed to its Members
Florida State has received more than to date, and will receive
In signing the Grant of Rights and its amendment, Florida State promised that its Grant
was “irrevocable” and “exclusive” through 2036. It further explicitly agreed that it would not
“take any action, or permit any action to be taken by others subject to its control . . . that would
affect the validity and enforcement” of the Grant of Rights. Moreover, Florida State, the
Now, nearly 13 years after entering into the Grant of Rights, and after receiving more than
in distributions from media contracts, Florida State has chosen to breach its
contractual obligations. It has violated its contractual promise not to challenge the validity or
enforceability of the Grant of Rights. It has breached its promise that its Grant was “irrevocable”
and “exclusive.” And it has deliberately released confidential information to the public from those
agreements, something which it also agreed not to do. Put simply, Florida State takes the position
Despite its actions and clear, direct, and material conflict of interest, Florida State
continued and continues to participate in the management of the Conference. Thus, Florida State
participates in deciding fundamental policy questions for the Conference, even as it breaches its
contracts and seeks to undermine the Conference’s objectives and purpose. Florida State’s actions,
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and its continued participation in the governance of the Conference, violate its fiduciary
Consequently, the ACC seeks a declaration that its Grant of Rights, which Florida State
agreed to on two separate occasions, is valid and enforceable. It also seeks a declaration that
Florida State is equitably estopped from challenging the validity or enforceability of the Grant of
Rights or, alternatively, has waived the right to do so by knowingly executing the Grant of Rights
and then accepting hundreds of millions of dollars in benefits for more than a decade. The
Conference further seeks damages for the multiple breaches of contract that Florida State has
committed and all necessary injunctive relief to prevent future breaches. Finally, the Conference
seeks permanent injunctive relief to prevent Florida State from continuing to disclose confidential
information and to prevent Florida State from continuing to breach its fiduciary obligations to the
Conference under the ACC Constitution and Bylaws and North Carolina law.
A. The Parties
1. The ACC is an unincorporated nonprofit association under North Carolina law. The
ACC currently has 15 Member Institutions: Boston College, Clemson University, Duke
University of Miami, University of North Carolina at Chapel Hill, North Carolina State University,
University of Notre Dame (except for Football), University of Pittsburgh, Syracuse University,
University of Virginia, Virginia Polytechnic Institute & State University, and Wake Forest
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University. 1 The ACC’s Board of Directors has 15 voting members, including the President of
Florida State University. Its headquarters and principal place of business is in Charlotte,
Mecklenburg County, North Carolina. Since its inception over 70 years ago, the ACC’s principal
2. As an unincorporated nonprofit association under North Carolina law, the ACC can
to sue in its own name and enter into contracts. N.C. Gen. Stat. § 59B-8. As an unincorporated
nonprofit association, the ACC is a legal entity “separate from its members for the purpose of
determining and enforcing rights, duties, and liabilities.” N.C. Gen. Stat. § 59B-7(a).
Consequently, the Conference may, acting on its own behalf, enforce its contractual obligations
with one or more of its Member Institutions. N.C. Gen. Stat. § 59B-7(e).
3. The Conference is a party to the written contracts that form the subject-matter of
this Complaint and is therefore entitled to seek a declaration of its rights and other legal relations
4. The Florida State University Board of Trustees is governed by the laws of the State
of Florida. The Board of Trustees of Florida State (“Board of Trustees”) oversees and manages
the operations and affairs of Florida State University. According to its Mission Statement, Florida
State University is an institution of higher education which aims to “preserve, expand, and
disseminate knowledge in the sciences, technology, arts, humanities, and professions, while
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The ACC refers to its members as “Member Institutions,” while its agreements with ESPN refer
to the members as “Conference Institutions.” “Member,” “Member Institution,” and “Conference
Institution” will be used interchangeably in this Complaint.
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embracing a philosophy of learning strongly rooted in the traditions of the liberal arts and critical
thinking.”
5. Florida State is an ACC Member Institution. The Board of Trustees ratified and
6. In accordance with the laws of the State of Florida, the Board of Trustees has the
authority “to contract and be contracted with, to sue and be sued, to plead and be impleaded in all
courts of law or equity.” Fla. Stat. § 1001.72(1) (emphasis added). Moreover, by choosing to be
a member of the ACC, a North Carolina unincorporated nonprofit association, Florida State
consented and agreed that the ACC could sue it for its claims. N.C. Gen. Stat. § 59B-7(e)
explicitly provides that an unincorporated association “may assert a claim against a member or a
B. Personal Jurisdiction
7. Florida State is subject to the jurisdiction of the State of North Carolina in matters
involving the ACC as a result of its continuous and systematic membership and governance
activities within the ACC. These specific continuous and systematic actions in North Carolina
arise out of its membership in and management of the Conference, and are the subject of this
Amended Complaint. Consequently, this Court may exercise personal jurisdiction over Florida
8. Since 1991, Florida State has been an ACC Member Institution. Throughout this
time, Florida State has regularly attended ACC meetings held in the State of North Carolina.
its Member Institutions is responsible for managing and overseeing its operations. Florida State
has played an active role in the administration of ACC affairs. The President of Florida State is a
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Member of the Board of Directors, while Florida State’s Athletic Director, like the Athletic
Directors of all Member Institutions, attends Athletic Director meetings and serves on the Football
and Basketball Committees. Each of Florida State’s Head Coaches serves on the committee for
his or her respective sport. Currently, Florida State officers or representatives serve on at least 11
committees governing and advancing the mission of the ACC. In the past decade. Florida State
officers and employees have served on the following notable committees and in the following
positions:
10. The Conference generally holds two meetings of the Board of Directors per month,
with three of these meetings held in person annually, often in North Carolina. Three of the four
most recent in-person Board of Directors meetings were held in North Carolina: Durham, North
Carolina (September 2022), and Charlotte, North Carolina (February 2023 and May 2023); Florida
State’s President attended each of these meetings either via Zoom or in person.
11. The ACC’s Board of Directors is responsible for selecting the ACC’s headquarters.
In 2022, the Board, including Florida State’s President, voted unanimously to relocate the ACC’s
headquarters and principal place of business from Greensboro to Charlotte, North Carolina. In
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doing so, the ACC, through its Board of Directors, accepted a financial incentive of $15 Million
created by the State of North Carolina, paid for by North Carolina taxpayers, and made available
to an athletic conference that established or maintained its headquarters in North Carolina and held
at least four men’s and four women’s basketball tournaments in North Carolina over the next ten
years, and twenty other Championship events in North Carolina over the next twenty years.
Session Law 2022-74, HB 103, Section 11.8(a). Thus, Florida State voted to accept benefits from
North Carolina taxpayers through its role as a Member Institution of the Conference.
12. The contracts that Florida State is contesting, the Grant of Rights and amended
Grant of Rights, are North Carolina contracts that arose out of Florida State’s membership in the
Conference. Florida State executed the Grant of Rights and transmitted its signature pages to the
ACC in North Carolina. As set forth in this Amended Complaint and its exhibits, the
Commissioner of the ACC did not execute the Grant of Rights or amended Grant of Rights until
after each of the Member Institutions had signed. This final execution in North Carolina was the
last act necessary for the formation of this contract and means that the Grant of Rights and amended
13. Between 2014 and 2016, the ACC entered into multiple agreements with ESPN2
for the Media Rights ceded by the Grant of Rights. These agreements were not possible without
was superseded by a Restated and Amended Multimedia Agreement in 2016), and an agreement
establishing the ACC Network as a joint venture. Under these agreements, ESPN has paid and
2
“ESPN” refers to ESPN, Inc. and ESPN Enterprises, Inc.
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Conference then allocates these to its Member Institutions, including Florida
State. Since signing the Grant of Rights agreement, Florida State has accepted more than
15. The Member Institutions of the Conference, including Florida State, specifically
16. Four ACC Member Institutions are located in North Carolina, and Florida State
events and athletic competitions against these four North Carolina Member Institutions.
Additionally, many of the ACC’s championships are conducted, held, and administered in North
Carolina. For reference, the ACC Football Championship Game has been held in Charlotte, North
Carolina, 13 times since its inception in 2005, and Florida State has competed in this
Championship five times, the last time occurring on December 2, 2023. Since 1991, the ACC’s
Men’s and Women’s Basketball Tournaments, in which Florida State regularly competes, have
been held 25 times in North Carolina, including most recently in March 2023.
a claim against a member or a person referred to as a ‘member.’” N.C. Gen. Stat. § 59B-7(e). By
being a Member Institution in the Conference and engaging in the activities of participating as a
Member Institution and managing the Conference, Florida State consented to jurisdiction in the
North Carolina courts for claims that the Conference had against it.
18. To the extent relevant, the Conference further adopts by reference and incorporates
the remaining paragraphs and attached Exhibits of this Amended Complaint as evidence of Florida
State’s specific consistent and systematic contacts with North Carolina arising out of its
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C. Subject-Matter Jurisdiction
19. This Court has subject matter jurisdiction under N.C. Gen. Stat. §§ 7A-240 and 1-
253 et seq.
20. This Court is authorized to declare the parties’ rights and legal obligations and
interpret the terms of the various contracts that are the subject of this Complaint.
21. Under the laws of the State of Florida, Florida State has waived sovereign immunity
and consented to be sued when entering into contracts: the Florida State Board of Trustees has the
authority “to contract and be contracted with, to sue and be sued, to plead and be impleaded in all
courts of law or equity.” Fla. Stat. § 1001.72(1) (emphasis added). Florida State has thus waived
sovereign immunity for the claims set forth in this Amended Complaint.
22. Florida State further consented to be sued in the State of North Carolina through its
membership and leadership in the ACC, an unincorporated nonprofit association under North
Carolina law, and under the plain language of Florida Statute § 1001.72(1), which permits Florida
23. Under the Uniform Unincorporated Nonprofit Association Act, each Member
Institution of the Conference is responsible for oversight and administration of the Conference.
N.C. Gen. Stat. § 59B-1, et seq. Section 59B-7(e) further provides that each Member Institution
has standing to assert a claim by the Conference in its own name and sue on the Conference’s
behalf. In addition, the Conference is given the statutory right to make claims against any of its
to be sued by the unincorporated association for any claims against it by the unincorporated
nonprofit association. Florida State, in exchange for its Membership in the Conference, was
granted the right to sue in North Carolina courts on behalf of the Conference. The Conference was
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also given the explicit right to sue Florida State for any claims which it had arising out of Florida
State’s membership. Thus, the Conference has the right to make claims against Florida State in the
courts of North Carolina. See Farmer v. Troy University, 382 N.C. 366, 370–71 (2022) cert.
denied (No. 22-787 May 30, 2023) (state university consented to sue and be sued in the courts of
North Carolina by registering as a nonprofit corporation where the North Carolina Act provided
D. Venue
24. As of August 1, 2023, the ACC’s headquarters and principal place of business are
located in Charlotte, North Carolina. According to N.C. Gen. Stat. § 59B-13, for purposes of
25. This matter involves a dispute over whether the Grant of Rights and amended Grant
of Rights entered into by Florida State and the Conference in 2013 and amended in 2016 is a valid
contract which granted Florida State’s Media Rights to the ACC. Media rights are a form of
26. This matter further involves a dispute that will necessitate reference to and
27. The amount in dispute that is the subject of this request for declaratory exceeds
$5,000,000, as the total Media Rights subject to the ESPN contracts and agreements that Florida
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II. Factual Background
28. The ACC is the country’s most successful collegiate academic and athletic
conference.
29. The ACC has led the Football Bowl Subdivision conferences in the best average
rank in the U.S. News and World Report rankings for the past 17 years.3 It has a graduation success
rate of 96% for all of its sports, and 147 of the teams in the ACC had a 100% graduation success
rate. Seven of its 15 present Members have graduation rates of more than 91% for Football.
30. In the past two years and across all sports, ACC athletic teams have won 20 NCAA
championships (including 14 championships in 2023), more than any other conference. The
Conference has placed the second highest number of teams in the College Football Playoff and
won the second most national championships in Football over the past decade. In Men’s
Basketball, ACC teams appear in the Final Four on a consistent basis, and its programs have won
more national championships than any other Conference over the past 30 years. In 2023, 24 ACC
teams advanced to the finals or semi-finals of NCAA championships, and both the Men’s Lacrosse
and Women’s Tennis Championships featured all-ACC finals. Eighteen ACC teams finished 2023
ranked first or second in the final 2023 polls, more than any other conference. The ACC sponsors
15 women’s sports, the highest number among major conferences, and 28 sports overall.
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In the most recent survey, 6 of the soon-to-be 18 Members of the Conference were ranked among
the top 25 Universities in the country. No other FBS Conference had more than 3 universities in
the top 25.
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31. There are approximately 10,000 student-athletes participating in ACC-sponsored
sports.4 More than 100 current or former ACC athletes from 15 sports are currently training on
U.S. National Teams in an effort to qualify for the 2024 Olympics. At the 2023 FINA World
Championships, 11 different ACC swimmers participated. Twenty-nine current and former ACC
athletes represented nine countries at the 2023 Women’s World Cup, five of whom played for the
United States.
32. The ACC was founded on May 8, 1953, at the Sedgefield Inn near Greensboro,
North Carolina. It consisted of seven Member Institutions: Clemson University, Duke University,
the University of Maryland, the University of North Carolina, North Carolina State University, the
33. On June 14, 1953, the charter members adopted the first set of bylaws and a
constitution. The current ACC Constitution is attached as Exhibit 1 to this Amended Complaint.
34. On December 4, 1953, the University of Virginia became the eighth Member
Institution of the ACC. On May 28, 1954, the ACC elected its first commissioner and on July 1,
35. The ACC operated with eight Member Institutions until June 30, 1971, when the
36. Subsequently, the ACC expanded, adding the Georgia Institute of Technology in
1978, Florida State University in 1991, the University of Miami and Virginia Polytechnic Institute
and State University in 2004, Boston College in 2005, the University of Notre Dame (except for
4
Beginning August 2, 2024, and with the addition of Stanford University, the University of
California Berkeley, and Southern Methodist University, the ACC will have more than 12,000
student athletes.
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Football), the University of Pittsburgh, and Syracuse University in 2013, and the University of
Louisville in 2014.
37. Since August 1, 2023, the ACC’s headquarters and principal place of business have
38. The General Purpose for the ACC is set forth in its Constitution:
39. One of the ACC’s governing principles is the concept of “Institutional Control.”
Through its governing body, each Member Institution must conduct its athletic programs in
accordance with ACC and NCAA rules and regulations. ACC Constitution § 1.3. Exhibit 1 at p.
10. Therefore, each Member Institution is subject to the ACC’s rules and regulations.
chancellors of each Member Institution. A Chair and Vice-Chair are elected for two-year terms
from among the Board of Directors’ members. The Conference also has non-Board officers,
including the Commissioner (who serves as President), a Secretary, a Treasurer, and such
additional officers as the Board of Directors may designate from time to time. ACC Constitution
with notice by August 15th for an effective withdrawal date of June 30th of the following year.
Upon receiving notice of withdrawal, the Member Institution may be removed from the Board of
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Directors and all committees if the Conference determines that a conflict of interest exists. In
addition, the withdrawing Member Institution must make a payment equal to three times the total
operating budget of the Conference as of the date of the official withdrawal notice. The withdrawal
payment may be deducted from distributions received by the withdrawing institution, but any
B. The ACC’s 2010 Multi-Media Agreement with ESPN and the 2012 Amendment to
the 2010 Multi-Media Agreement
42. On July 8, 2010, the ACC entered into its first Multi-Media Agreement with ESPN
(“2010 Multi-Media Agreement”) with the unanimous approval of its Member Institutions
(including Florida State). Under the 2010 Multi-Media Agreement, the ACC granted ESPN the
44. In 2012, through an Amendment and Extension Agreement, the ACC and ESPN
agreed to extend the term of the 2010 Multi-Media Agreement until 2027, increasing the
to be paid such that, by the end of the term, ESPN would pay the ACC (for distribution to its
45. Florida State’s President was authorized to vote for and approve the 2010 Multi-
46. Florida State authorized, ratified, and otherwise approved the 2010 Multi-Media
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C. The Withdrawal Payment and Alternative Performance
47. Following the approval of the 2010 Multi-Media Agreement, the Conference
revised the withdrawal payment and alternative performance that a withdrawing Member must
September 11-12, 2012, there was extensive discussion concerning whether the withdrawal
payment and alternative performance should be increased to better protect the Conference from
the potential negative impact that a withdrawal of a Member could cause, as well as to more
49. During this meeting, a media consultant provided information concerning the
potential lost revenue to the Conference in the event a Member withdrew. That assessment
indicated that the lost revenue in 2012 could range from $6 Million to $18 Million per year
depending on the identity of the withdrawing Member - - and that these losses would occur over
then 12-year life of the Media agreement, for a total of $72 Million to over $200 Million. These
projected losses only reflected the loss of certain Media Rights payments.
50. The Council of Presidents further discussed the fact that other losses would also
occur if a Member withdrew, ranging from NCAA Men’s Basketball Tournament revenues (which
are distributed over time on a unit basis), the potential inability to honor bowl agreements, lost
revenues on individual campuses from ticket sales, and the harm to the Conference’s reputation,
51. Given the extent of potential loss if a Member withdrew, and while a
recommendation was made to increase the amount of the withdrawal payment from 1 ¼ to 3
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times the Conference’s annual operating budget, this increase was still insufficient to address the
52. As a result of these discussions, the Council of Presidents voted to increase the
53. Thus, the withdrawal payment is simply a vehicle through which a Member may
choose to terminate its membership in the Conference by meeting the payment obligations rather
than continuing to meet the obligations of a Member. It thus constitutes a form of alternate
performance under the ACC Constitution and Bylaws and represents a fraction of the losses that
54. In 2012, the University of Maryland announced its withdrawal from the ACC. In
the same year, the ACC elected to add the University of Notre Dame (except for Football), the
Institutions. Concurrently with these membership modifications, the ACC and ESPN began
55. During this time period, other collegiate athletic conferences began to experience
significant instability and realignment, which continues to this day. At this time, the Southeastern
Conference (“SEC”) added the University of Missouri and Texas A&M University (from the Big
12 Conference), while the Big Ten Conference added the University of Maryland (from the ACC),
Rutgers University (from the Big East Conference) and the University of Nebraska (from the Big
12 Conference). The Pac-12 Conference and the Big 12 Conference were undergoing a similar
realignment.
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56. The instability and realignments in other college athletic conferences necessitated
that, in order to secure a long-term media rights agreement and thus ensure the payment of
predictable sums over time, the media rights granted had to be stable and constant over the same
period of time. This stability provides ESPN with certainty regarding the games (and their
participants) it has a right to broadcast, and it provides each of the Conference’s Member
Institutions with certainty regarding the annual revenue that it can anticipate throughout the term
of the agreement.
57. To facilitate this stability and certainty, each Member Institution that remained in
or intended to join the ACC, including Florida State, entered into a written Grant of Rights
agreement. Florida State did so on April 19, 2013. This Grant of Rights agreement is attached as
58. The Grant of Rights agreement is a written contract between the Member
Institutions and the Conference in which each Member Institution granted the Conference its
Media Rights5 and, in exchange, on behalf of the collective Member Institutions, the Conference
59. The Grant of Rights was intended to provide the necessary commitments for long-
term agreements with ESPN by providing an assurance that the collection of Media Rights ceded
to ESPN would remain unchanged if a Member Institution left the Conference. This thus bound
the Member Institutions to one another, to the Conference, and ultimately to ESPN in a partnership.
5
These rights are for “home” games. A “home” game is any game which is either played at a
Member’s home location or in which the Member is designated as the “home” team.
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60. By aggregating the Media Rights from each Member Institution, the Conference
was able to increase the total value of those rights as opposed to the situation in which each
Member, individually, was forced to negotiate and enter into individual agreements to broadcast
those rights.
61. As set forth in the Grant of Rights agreement, in order to negotiate for increased
payments for the Media Rights to be granted to ESPN, “each of the Member Institutions [including
Florida State] is required to, and desires to, irrevocably grant to the Conference, and the
Conference desires to accept from each of the Member Institutions, those rights granted herein.”
Exhibit 2 at p. 1.
62. The Grant of Rights further stipulated that it was irrevocable and exclusive for the
duration of the ESPN agreement, regardless of whether a Member Institution withdrew from the
Conference:
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63. The rights granted under the Grant of Rights by each Member Institution of the
ACC included “the right to produce and distribute all events of such Member Institution that are
subject to the ESPN Agreement,” with each Member Institution acknowledging that the
Conference “owns or will own the copyrights” associated with the rights granted to the
Conference. Exhibit 2 at p. 2 ¶¶ 1, 2.
64. The Grant of Rights further provided that each Member Institution “covenants and
agrees that . . . it will not take any action, or permit any action to be taken by others subject to its
control, . . . or fail to take any action, that would affect the validity and enforcement of the Rights
65. In short, each Member Institution agreed (1) to grant its athletic Media Rights to
the Conference, (2) to make this grant irrevocable for the duration of the term of Grant of Rights,
and (3) not to take any action that would affect the validity of the Grant of Rights or otherwise
66. Florida State agreed to and executed the Grant of Rights on April 19, 2013.
67. Florida State’s President was authorized to agree to and execute the Grant of Rights
68. The Grant of Rights contains a specific acknowledgement and warranty that the
President of Florida State was authorized to agree to and execute the Grant of Rights:
Exhibit 2 at p.3 ¶ 6.
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73. Following the ACC’s acceptance of Florida State’s Grant of Rights in 2013 and the
implementation of the Second Amendment to the 2010 Multi-Media Agreement in 2014, Florida
State received its pro rata share of the payments from ESPN, totaling of dollars.
At no point did Florida State reject the distributions it received or contest the legality of the Grant
of Rights it executed that made the Second Amendment to the 2010 Multi-Media Agreement
possible.
74. Indeed, at this time, one member of the Board of Trustees of Florida State
commented, “I was in concert with [Florida State] President Barron that this was the best thing
that could happen. . . . It ensures that we don’t lose any members. Nobody can afford to leave
now.”6
What is on the minds of a lot of people is, is the ACC the conference
that gives us the best opportunity to compete over the long term? . .
. At the end of the day, I think the ACC negotiated a good deal with
ESPN and levels the playing field with the rest of the conferences.7
6
“Anatomy of One School’s Role in ACC Media Rights Deal,” USA Today (April 25, 2013),
available at https://www.usatoday.com/story/sports/college/2013/04/25/acc-commissioner-john-
swofford-lobbies-florida-state-grant-of-rights/2113527/.
7
Id.
8
“ACC Schools Agree to Grant TV Rights to League,” AP News (April 22, 2013) ), available at
https://apnews.com/acc-schools-agree-to-grant-tv-rights-to-league-
fd6dae3c385d4b2bbe2dce53757a6971.
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76. In addition to entering into the Grant of Rights, the ACC’s Member Institutions
voted unanimously to amend the ACC’s Bylaws to confirm that, pursuant to the Grant of Rights,
the Member Institutions granted the ACC the right to market the Member Institutions’ media and
related rights. The ACC Bylaws as amended are attached to this Amended Complaint as Exhibit
77. In the years following, and into 2016, the ACC sought to generate additional
revenue for its Members through a network partnership with ESPN. Because the Conference had
already granted ESPN its Media Rights, the Conference sought a partnership with ESPN to
establish the ACC Network, broadcast more ACC events, and share in the revenues from this new
network.
78. As part of these agreements, ESPN agreed to extend and increase the
until the establishment and launch of the ACC Network, which ultimately took place
in 2019. On July 21, 2016, the parties executed an Amended and Restated ACC-ESPN Multi-
(“ACC Network Agreement”) (together “the ESPN Agreements”). Throughout the duration of
these agreements, the ACC will receive to distribute to its Members in the form of
payments, Media Rights payments, and revenues from the ACC Network.
79. Similar to the Second Amendment to the 2010 Multi-Media Agreement, the 2016
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A copy of the ACC
83. In preparation for entry into the ESPN Agreements, on July 18, 2016, each Member
(“Amended Grant of Rights”). A copy of the Amended Grant of Rights is attached to this
84. As a condition for entering into the 2016 Multi-Media Agreement and the
agreement establishing the ACC Network, the Amended Grant of Rights states, “ESPN has
informed the Conference that it will enter into the Prospective Agreements only if each of the
Member Institutions agrees to amend the Original Grant Agreement to extend the term thereof.”
Exhibit 7 at p. 1.
85. The Amended Grant of Rights stipulates that the terms and conditions of the Grant
of Rights “remain in full force and effect” unless “specifically modified by this Amendment.”
86. The Amended Grant of Rights did not modify the Grant of Rights provisions in
which each Member Institution irrevocably assigned its Media Rights to the Conference,
regardless of whether it remained a Member of the Conference, and agreed not to take any action
87. The Amended Grant of Rights did extend the “Term” of the Grant of Rights from
88. This extension was necessary in order to establish and operate the ACC Network
through 2036.
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89. The Grant of Rights was further necessary to provide content to the ACC Network
for as long as that Network operated. Absent certainty as to the duration of the Grant of Rights,
the ACC and ESPN could not establish the ACC Network, nor market it to cable providers.
Consequently, the term of the Grant of Rights was extended to be coterminous with the life of the
90. As part of the extension of the Grant of Rights necessary to implement the 2016
91. Before the execution of the Amended Grant of Rights and the ESPN Agreements,
the Conference held a number of meetings with legal counsel for its Members, with the Presidents,
with the Athletic Directors, and with the Faculty Athletics Representatives (“FAR”).
92. These meetings were in addition to on-campus meetings with various Presidents,
campus stakeholders, and conference calls with attorneys for the Members.
93. For example, on June 22, 2016, the Conference held a meeting of the FARs
including the FAR for Florida State, who chaired the meeting. After being briefed on the
provisions of the ESPN Agreements, the FARs (including Florida State’s FAR) voted unanimously
to move forward with the Agreements. The FARs were further advised that counsel for the ACC
would be leading a call on June 24, 2016, with counsel for each Member to review the Amended
Grant of Rights.
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94. On June 23, 2016, the Council of Presidents met to discuss the Amendment to the
Grant of Rights and the ESPN Agreements. Florida State’s then-President attended that meeting.
95. The then-President of ESPN also attended the June 23 meeting and described
96. The Conference’s media consultant also gave the Presidents a review of the terms
97. During the same meeting, the Presidents were advised that their attorneys would be
holding a conference call with the counsel for the Conference to discuss the Amended Grant of
98. On June 24, 2016, counsel for the Conference held conference calls with the
99. On June 28, 2016, Florida State accepted and executed the Amended Grant of
Rights, extending the term of the Grant of Rights until June 30, 2036.
100. Florida State’s President was authorized to enter into and accept the Amended
101. On July 11 and 12, 2016, and before the Conference accepted the Amended Grant
of Rights, a series of additional meetings were held to discuss the details of the ESPN Agreements.
These included a meeting of the Council of Presidents that was attended by Florida State’s then-
President, and a meeting of the Conference’s Television Committee attended by Florida State’s
102. At these meetings, the general terms of the agreements were reviewed with each
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103. Subsequently, each Member Institution, including Florida State, ratified the 2016
104. Florida State’s then-President was authorized to ratify and otherwise enter into and
approve the 2016 Multi-Media Agreement and the ACC Network Agreement on behalf of Florida
State.
105. After each Member Institution agreed to and executed the Amended Grant of
Rights, the ACC accepted the amendment on July 18, 2016, in Greensboro, North Carolina,
106. The terms and conditions of the 2016 Multi-Media Agreement and the ACC
Network Agreement are confidential. Both agreements stipulate that their terms and conditions
cannot be disclosed to the public and impose a confidentiality obligation on the Conference.
107. Thus, the 2016 Multi-Media Agreement and ACC Network Agreement provide that
“each party shall maintain the confidentiality of this Agreement and its terms.” 2016 Multi-Media
Agreement ¶ 25.11; ACC Network Agreement ¶ 18.11. This portion of these agreements is
108. The ESPN Agreements further permit disclosure of the Agreements to each
“Conference Institution, provided that each Conference Institution shall agree to maintain the
109. The increased fees received by the Conference in connection with the ACC
to its Members, is good and valuable consideration in support of the Amended Grant of Rights.
27
G. Under the Grant of Rights, Amended Grant of Rights, and ESPN Agreements,
Florida State Athletics Experiences Unprecedented Success
110. Since the execution of the Amended Grant of Rights, the entry into the 2016 Multi-
Media Agreement (and extension of the option), the establishment of the ACC Network, and the
111. Florida State’s distributions from the ACC more than doubled over the 9-year
period between its agreement to enter into the Grant of Rights and June 30, 2023. Over the past
year alone, Florida State’s distributions increased by nearly 20% over the prior year.
112. Since the 2013 execution of the Grant of Rights, and as a direct result of the stability
provided by the ESPN Agreements under the Grant of Rights and Amended Grant of Rights,
Florida State has prospered both financially and on the field. Florida State currently has 20 athletic
teams with 530 student-athletes. Since 2013, Florida State (1) won a national championship in
Football, (2) won four national championships in Women’s Soccer, (3) won a national
championship in Softball, (4) participated in the College Football Playoff, (5) made three “Sweet
Sixteens” and one “Elite Eight” appearances in Men’s Basketball, (6) made three “Sweet Sixteens”
and two “Elite Eight” appearances in Women’s Basketball, (7) finished as the national runner-up
in Softball, (8) finished as the national runner-up two times and made the national quarterfinals six
other times in Women’s Soccer, (9) made two College World Series appearances in baseball, and
(10) made three “Sweet Sixteen” appearances in Women’s Volleyball. Upon information and
belief, in 2022, Florida State’s athletic department ranked 15th in the nation among public
9
NCAA Finances: Revenue and Expenses by School, https://sports.usatoday.com/ncaa/finances
28
H. Florida State Seeks Unequal Revenue Distribution
113. In July 2021, both the University of Texas and the University of Oklahoma
announced their plans to withdraw from the Big 12 Conference to join the SEC beginning in
2025.10 The date of their noticed withdrawal coincided with the termination of the Grant of Rights
agreement for the Big 12, leaving the University of Texas and the University of Oklahoma free to
114. Neither of these schools sued the Big 12 nor sought to breach their legal obligations
115. In July 2022, both the University of California at Los Angeles (“UCLA”) and the
University of Southern California (“USC”) announced their plans to withdraw from the Pac 12
Conference to join the Big Ten Conference effective August 2024. The date of their withdrawal
coincided with the termination of the Pac-12’s rights agreements, leaving UCLA and USC free to
116. In August 2022, Florida State’s President, “comment[ing] on where the Seminoles
stand in conference realignment,” said: “It’s something I’m spending a lot of time on and we’re
getting a lot of help. . . . We’re trying to do anything we can to think about how we remain
10
Each subsequently negotiated an earlier withdrawal date from the Conference.
11
FSU President says Seminoles will be “very aggressive” in conference realignment,”
NOLEGAMEDAY (Aug. 21, 2022), available at https://www.si.com/college/fsu/football/fsu-
president-says-seminoles-will-be-very-aggressive-in-conference-realignment.
29
117. At a meeting of the Board of Trustees on February 24, 2023, Florida State’s Board
openly discussed withdrawing from the Conference and the cost of the withdrawal payment in
118. During that meeting, Florida State’s Athletic Director expressed concern about the
“revenue gap” that would develop between Florida State and members of the SEC and Big Ten.
He stated: “At the end of the day for Florida State to compete nationally, something has to change
moving forward.”12
119. In response, one member of the Board of Trustees inquired about withdrawing from
One trustee questioned whether or not a buyout to leave the ACC was “even feasible.”
“That is an excellent question,” Carolyn Egan, FSU’s vice president for legal affairs
and general counsel, responded.
According to Egan, the ACC’s exit fee is three times its annual operating budget.
That equals $120 million.
If FSU could make up $30 million per year,” a trustee asked, “does that mean the
Seminoles would break even in about four years?
12
FSU fires warning shot to ACC: “Something has to change”, TAMPA BAY TIMES (Feb. 24,
2023), available at https://www.tampabay.com/sports/seminoles/2023/02/24/fsu-football-florida-
state-acc-conference-
realignment/#:~:text=A%20trustee%20asked%20whether%20a,wasn't%20%E2%80%9Cno.%E2
%80%9D&text=Florida%20State's%20board%20of%20trustees,and%20Big%20Ten%2C%20or
%20else.
13
Id.
30
120. As a result of this meeting, Florida State’s Athletic Director began to advocate for
more money for the university through unequal sharing of revenue. “We have to do something,”
he said, after previously claiming that Florida State’s “brand” entitled it to more revenue.14
121. At the same time, Florida State advocated for unequal payments for it as a
122. In response, on May 17, 2023, the Conference endorsed the concept of distributing
a larger share of post-season revenues to the Members that generated those revenues, rather than
equally among all Members. This was the first time in the Conference’s 70-year history that it had
123. Following this change, Florida State’s Athletic Director stated: “I’m thrilled with
the work and the direction that it’s going. . . . Step in the right direction. We’re not going to ever
cover the entire gap, but it will allow you to be competitive.”15 He then claimed: “We’re thrilled
124. However, shortly after its Athletic Director’s public remarks, Florida State began
to demand more, advocating for an unequal share of all Conference revenue, not just revenue
generated by athletic success: “If you have success, you are rewarded for it. At the same time, I
14
FSU, Clemson, Pushing for New ACC Revenue Model, THE STUART NEWS (May 16, 2023).
15
ACC leadership touts progress in trying to address financial gap with the Big Ten and the SEC,
AP NEWS (May 17, 2023), available at https://apnews.com/article/acc-revenue-sec-big-ten-
0801204ef4a928cc89348af081b2d1d7.
16
After exploring situation, UM, FSU, others expected to stay in ACC, with new revenue deal,
MIAMI HERALD (May 17, 2023), available at https://www.aol.com/exploring-situation-um-fsu-
others-210328299.html.
31
believe the media value should also be changed and divided differently, and right now, that’s not
125. Despite the Conference’s willingness to explore new revenue distribution models
to reward success, Florida State sought to claim the largest share of revenue, asserting that “We’re
one of the best media value teams in the United States. We in many ways . . . help to carry the
I. Florida State Creates a Plan to Breach its Agreements and Disclose Confidential
Information
126. Upon information and belief, and before the filing of a Complaint in Florida, Board
of Trustees had decided on a course of action in which Florida State would leave the Conference.
127. Florida State has a right to withdraw from the Conference under the ACC
Constitution provided that it meets certain obligations. The ACC Constitution requires that a
withdrawing Member notify the Conference on or before August 15 to make a withdrawal effective
128. One of the purposes of this notice period is to permit scheduling changes among
129. The Board of Trustees held a regularly scheduled meeting on August 2, 2023.
130. The last hour of this meeting was dominated by a discussion on Florida State’s
17
AD Alford Cautiously Optimistic on ACC Plan for Revenue, ORLANDO SENTINEL (May 27,
2023).
32
131. At this meeting, the President of Florida State informed the Board of Trustees that
the university would “consider very seriously leaving the ACC unless there is a radical change to
132. During this same meeting, another trustee claimed that “[u]nless something drastic
changes on the revenue side at the ACC, it’s not a matter of if we leave. In my opinion, it’s a
matter of how and when we leave.” For Florida State, “[s]ports is no longer an extracurricular
activity at the university level. It’s big business. So if you want to participate in big business, you
134. By this time, Florida State had either already created or was in the process of
135. The day before the Board of Trustees meeting on August 2, the Chair of the Board
stated in an interview that with regard to the Grant of Rights, “[W]e have a very good handle on
what our risks are under that document, what our opportunities are under that document. And
that’s the least of my worries. . . . We have gotten a lot of counsel on that document and that will
not be the document that keeps us from taking action.” A copy of a transcript of this interview is
136. In short, before filing its Complaint in Florida, Florida State had determined that it
would not be bound by its promises and obligations in the Grant of Rights or Amended Grant of
Rights, or the promises and obligations in any agreement based on the Grant of Rights or Amended
18
Remarks of President McCullough to Board of Trustees, August 2, 2023.
33
137. Upon information and belief, as part of this plan, Florida State further determined
that it would not be bound by the withdrawal provisions of the ACC Constitution, and in particular,
138. In preparation for the actions set forth in this Complaint, Florida State, through
counsel, reviewed the Multi-Media Agreement and the ACC Network Agreement at the ACC’s
headquarters in North Carolina on October 7, 2022, January 4, 2023, and August 1 and 2, 2023.
139. On each of these occasions, Florida State was provided access to the ESPN
agreements. But before being provided access, and as a condition for such access, Florida State
was advised that the information in the ESPN Agreements was confidential.
140. For example, on August 2, 2023, the General Counsel for the ACC informed a
member of Florida State’s legal team, that the documents provided for review “must be kept
confidential according to the terms of those agreements, particularly the ESPN agreements.” A
141. Florida State did not provide any notice of withdrawal from the Conference for the
142. Notwithstanding its plan to breach its agreements, during this time Florida State
certified through a vote of its Board of Trustees that it had the mandate and support of the Board
of Trustees “to operate a program of integrity in full compliance with NCAA, Conference and all
other relevant rules and regulations.” A copy of this is attached as Exhibit 13 to this Amended
Complaint.
34
J. Florida State Carries Out Its Plan to Breach Its Agreements, Interfere with the
Conference’s ESPN Agreements, and Reveal Confidential Information that is a
Trade Secret.
143. On December 21, 2023, the Board of Trustees notified the public of a Board
144. Under Florida State University Policy 1-1 “BOT Operating Procedures,” the Board
is required to provide the public with one week notice of Board meetings. Policy 1-1, § 202 (b).
145. However, the Policy also provides that a notice of an “emergency meeting” need
only be posted “as early as practicable prior to the meeting.” Policy 1-1, § 202(b).
146. Policy 1-1 further provides that “[m]eetings of the Board may be held for the
purpose of acting on emergency matters affecting the university.” Policy 1-1, § 201(e).
147. In violation of its legal obligations, the Board of Trustees did not specify the
“emergency matter[ ] affecting the university” that necessitated a meeting on the last business day
148. In fact, there was no “emergency,” but only Florida State’s desire to file a
preemptive lawsuit against the ACC in Leon County, Florida, Florida State’s home county.
149. With the knowledge of Florida State’s clear intention to breach the Grant of Rights
and Amended Grant of Rights, and being under an obligation to take all commercially reasonable
measures to protect those rights, the Conference filed its Complaint on December 21, 2023, after
150. The “emergency” Board meeting took place at 10:00 am on December 22, 2023.
151. During the course of the “emergency” Board meeting, neither the Board of
Trustees, the officers of Florida State, nor its counsel informed the public of the nature of the
“emergency” that had necessitated giving less than the statutorily required notice.
35
152. Remarks made at the meeting by Members revealed that Florida State had already
decided it would breach its agreements and reveal confidential information from the ESPN
Agreements.
153. For example, the Board Chairman revealed that a Complaint to be filed by Florida
154. The Board Chairman further revealed that each of the Board Members had been
155. The Board Chairman also revealed that he had spoken individually with all Board
Members for the purpose of securing the necessary votes to proceed to litigation.
156. Upon information and belief, these actions were intended for the purpose of
157. A private attorney representing Florida State also revealed that a member of his
firm was prepared to electronically file the Complaint once the Board formally voted to execute
its scheme.
158. In furtherance of its litigation, Florida State misrepresented basic facts during the
159. For example, multiple members of the Board claimed that the Conference treated
the Grant of Rights and Amended Grant of Rights as a confidential document and would not allow
160. Florida State retained an executed copy of the Grant of Rights after its execution
and, in fact, provided it to the public. In 2016, the Associate Director of Athletics for Florida State,
informed the Conference that the General Counsel for Florida State had provided a fully executed
36
copy of the Grant of Rights to a blogger named “AllNoles” who had posted it on the website
161. Throughout 2022 and 2023, Florida State was repeatedly informed that the ESPN
Agreements were confidential, that the ESPN Agreements required the Conference to maintain
their confidentiality, and that a condition for disclosure of the ESPN Agreements to Florida State
162. Each time Florida State reviewed the ESPN Agreements, it had access to the
163. Notwithstanding these repeated warnings, and the language of the ESPN
Agreements, Florida State chose to deliberately and publicly disclosed or authorize the disclosure
164. For example, during the December 22, 2023, meeting, counsel for Florida State
discussed at length the future media rights to be paid under the ESPN Agreements.
165. While counsel “cherry picked” the numbers to make it appear that Florida State
would receive less than was actually projected, counsel did disclose various confidential terms and
167. The Board of Trustees authorized the disclosure of this confidential information.
37
168. At the conclusion of the “emergency” Meeting, the Board of Trustees authorized
169. Before a Complaint was filed, however, Florida State disclosed or authorized others
to disclose the allegations of the Complaint, including the allegations disclosing confidential
information in the ESPN Agreements. An unfiled copy of the cover-page of Complaint that
170. Counsel for Florida State, and at the direction of the Board, filed a Complaint in
the Circuit Court of Leon County at approximately 11:26 AM (“the Florida Action”).
171. The Complaint filed by Florida State in the Florida Action did not seek to protect
this confidential information in the ESPN Agreements. Instead, the Complaint disclosed this
172. Shortly after the release of the unfiled copy of the Complaint in the Florida Action,
on December 22, 2023, ESPN notified Florida State that it had disclosed confidential information.
Subsequently, on January 9, 2024, the Conference notified Florida State that it had disclosed
confidential information.
First Claim for Relief: Request for Declaratory Judgment that the Grant of Rights and
Amended Grant of Rights are Valid and Enforceable Contracts
173. The ACC adopts by reference and incorporates the allegations of paragraphs 1
174. In the Grant of Rights and the Amended Grant of Rights, Florida State agreed to
grant its athletic Media Rights “irrevocably” and “exclusively” to the Conference for the term.
38
175. In the Grant of Rights and Amended Grant of Rights, Florida State transferred its
Media Rights to the Conference “regardless” of whether it remained a Member Institution during
176. In the Grant of Rights and Amended Grant of Rights, Florida State transferred its
Media Rights to the Conference through 2036 and specifically acknowledged that the transfer was
177. In exchange for the Grant of Rights and Amended Grant of Rights, the ACC entered
into contracts and agreements with ESPN which significantly increased the revenues paid to the
Conference and distributed to its Member Institutions, including Florida State. The increase in
178. Florida State’s Media Rights, a form of intellectual property, are worth in excess of
$5 Million. Florida State has received more than under the Grant of Rights since
2013.
179. The Grant of Rights and amended Grant of Rights between Florida State on the one
hand, and the ACC on the other, was and is supported by good and valuable consideration.
180. The ACC has not breached the Grant of Rights or Amended Grant of Rights. To
the contrary, at all times relevant to the Complaint, the ACC has abided by the terms of the Grant
181. Florida State has breached, ignored, or otherwise violated terms of the Grant of
Rights and Amended Grant of Rights, and further indicated an intent to violate these agreements
in their entirety notwithstanding the ACC’s ownership of the rights through June 30, 2036.
39
182. Florida State’s challenge to the Grant of Rights and Amended Grant of Rights
further constituted a breach of its warranties to ESPN arising out of the ESPN Agreements. The
ACC was an intended beneficiary of those warranties and has been damaged by these breaches.
183. Under the ESPN Agreements, the Conference is obligated to take all commercially
reasonable actions to defend the Grant of Rights and Amended Grant of Rights and the rights
184. The Conference is entitled to a declaration by this Court that the Grant of Rights
and Amended Grant of Rights are valid and binding contracts, supported by good and adequate
consideration, and that the Conference is and will remain the owner of the rights transferred by
Florida State under the Grants of Rights through June 30, 2036.
Second Claim for Relief: Florida State is Estopped by Its Acceptance of Benefits (Quasi-
Estoppel) or Has Waived by Its Conduct Any Challenge to the Grant of Rights and Amended
Grant of Rights
185. The ACC adopts by reference and incorporates the allegations set forth in
186. The purpose of the Grant of Rights and Amended Grant of Rights was to permit the
ACC to negotiate various agreements with ESPN and provide ESPN the Media Rights for its
Member Institutions, including Florida State, in exchange for Rights Fees and other good and
valuable consideration.
187. Since 2013, Florida State has received more than in distributions from
Grant of Rights and Amended Grant of Rights and transferring its Media Rights exclusively and
40
188. Florida State had the option of accepting or rejecting the benefits resulting from the
189. Florida State had the right not to enter into and execute the Grant of Rights or
190. By accepting and retaining the benefits of the Grant of Rights and Amended Grant
of Rights, Florida State ratified the validity and enforceability of the Grant of Rights and Amended
Grant of Rights.
191. Florida State substantially and materially benefitted from the Grant of Rights and
192. Florida State never objected to its share of the distributions generated by the Grant
of Rights and Amended Grant of Rights, including payments specifically for the Grant of Rights
and Amended Grant of Rights. It accepted all benefits derived from and made possible by the
ACC Constitution and the Grant of Rights and Amended Grant of Rights.
193. By accepting the substantial benefits made possible by the Grants of Right and
Amended Grant of Rights over a ten-year period, Florida State is equitably estopped from
challenging the validity or enforceability of the Grants of Right and Amended Grant of Rights.
194. Having entered into the Grant of Rights and Amended Grant of Rights, accepted
the benefits generated by the Grant of Rights and Amended Grant of Rights, and retained the
benefits generated by the Grant of Rights and Amended Grant of Rights, Florida State is now
estopped from contesting the validity or enforceability of the Grant of Rights and Amended Grant
of Rights.
195. Florida State made a deliberate choice to transfer its Media Rights to the ACC for
a specific term in order to negotiate different and increasingly lucrative multi-media agreements
41
with ESPN, knowing that the transfer of these rights for a specific term would continue even if it
196. In the Grant of Rights and Amended Grant of Rights, Florida State expressly and
voluntarily relinquished its Media Rights to the ACC, with the understanding that the transfer of
rights to the ACC would continue through June 30, 2036, regardless of whether it remained a
Member Institution.
197. Florida State knowingly and voluntarily agreed in the Grant of Rights and Amended
Grant of Rights to transfer ownership of its Media Rights to the ACC through June 30, 2036,
knowing that the transfer and ownership would continue regardless of whether it remained a
198. Florida State had full knowledge, actual or constructive, of the rights it transferred
to the Conference in the Grant of Rights and Amended Grant of Rights, as well as the benefits that
199. Florida State intended to transfer the rights covered by these agreements to the
Conference when it executed the Grant of Rights and Amended Grant of Rights, with the
expectation of receiving the benefits of different and enhanced agreements between the
200. Florida State intended for the Grant of Rights and Amended Grant of Rights to be
enforceable and valid for the purpose of receiving the benefits generated by these contracts.
201. Florida State, through its conduct in accepting the benefits under the Grant of
Rights and Amended Grant of Rights for more than a decade, led the ACC to reasonably
understand that Florida State did not contest the validity or enforceability of the Grant of Rights
42
202. By accepting the substantial benefits made possible by the Grant of Rights and
Amended Grant of Rights over a ten-year period, Florida State has waived its right to contest the
203. The ACC is entitled to a declaration that Florida State is estopped from challenging
the validity or enforceability of the Grant of Rights or Amended Grant of Rights, or has waived its
right to contest the validity or enforceability of the terms and conditions of these contracts as a
result of its conduct, including its acceptance of benefits under these agreements, over nearly a
decade.
Third Claim for Relief: Florida State Has Breached Its Promises in the Grant of Rights and
Amended Grant of Rights Agreements
204. The ACC adopts by reference and incorporates the allegations of paragraphs 1
205. The Grant of Rights and the Amended Grant of Rights are a valid, enforceable
206. In the Grant of Rights and Amended Grant of Rights, Florida State “covenants and
agrees that . . . it will not take any action, or permit any action to be taken by others subject to its
control, . . . or fail to take any action, that would affect the validity and enforcement of the Rights
207. In the Grant of Rights and Amended Grant of Rights, Florida State also
“irrevocably and exclusively grant[ed] [its Media Rights] to the Conference during the Term” of
208. Under North Carolina law, each contract has an implied duty of good faith and fair
dealing. Thus, the Grant of Rights and Amended Grant of Rights require Florida State to act in
good faith and on principles of fair dealing to accomplish the purpose of the contracts.
43
209. By instituting the Florida Action, Florida State took direct action that affects the
validity and enforcement of the Grant of Rights and Amended Grant of Rights, and breached its
210. By instituting the Florida Action, Florida State has taken direct action that affects
the irrevocability and exclusivity of the Grant of Rights and Amended Grant of Rights, and has
211. By filing the Florida Action, and taking the other actions set forth in this Amended
Complaint, Florida State breached its obligation of good faith and fair dealing under the Grant of
Rights and Amended Grant of Rights. In particular, rather than act in good faith and deal fairly
with the Conference to accomplish the ends of the Grant of Rights and Amended Grant of Rights,
Florida State has actively breached and sought to prevent the goals of those contracts.
212. The Conference has been damaged by these breaches in an amount yet to be
Fourth Claim for Relief: Florida State Has Breached Its Obligation to Protect Confidential
Information
213. The ACC adopts by reference and incorporates the allegations set forth in
214. In the 2016 Multi-Media Agreement, ESPN and the ACC agreed that “[e]ach party
shall maintain the confidentiality of this Agreement and its terms, and any other Confidential
215. Disclosure of the confidentiality of the 2016 Multi-Media Agreement and all
Confidential Information under the 2016 Multi-Media Agreement was permitted “to each
Conference Institution, provided that each Conference Institution shall agree to maintain the
44
confidentiality of this Agreement, subject to the law applicable to each such Conference
216. As of December 22, 2023, Florida State was aware and had been aware of the
217. In the ACC Network Agreement, ESPN and the ACC agreed that “[e]ach party
shall maintain the confidentiality of this Agreement and its terms, and any other Confidential
218. Disclosure of the confidentiality of the ACC Network Agreement and all
Confidential Information under the ACC Network Agreement was permitted “to each Conference
Institution, provided that each Conference Institution shall agree to maintain the confidentiality of
this Agreement, subject to the law applicable to each such Conference Institution.” ACC Network
219. As of December 22, 2023, Florida State was aware and had been aware of the
220. In an effort to preserve the confidentiality of the ESPN Agreements, the Conference
limits access to the Agreements. They are maintained at its Headquarters in North Carolina.
Access is limited amongst Conference staff. Prior to voting to approve the Agreements in 2016,
and at other meetings where the Agreements are discussed, the Members are verbally briefed on
the provisions of the ESPN Agreements, each time reminded of the confidential nature of the
Agreements. The ESPN Agreements are not shared electronically with Members.
221. In an effort to preserve the confidentiality of the ESPN Agreements, the Conference
permits its Members to inspect and review the ESPN Agreements on request at its Headquarters
45
but only on agreement that the Member would not copy or reproduce the provisions of the ESPN
222. In preparation for the actions set forth in this Amended Complaint, Florida State,
through counsel, reviewed the 2016 Multi-Media Agreement and the ACC Network Agreement at
the ACC’s Headquarters in North Carolina on October 7, 2022, January 4, 2023, and August 1 and
2, 2023.
223. Before each inspection of the ESPN Agreements, the ACC informed Florida State
of the confidentiality requirements and that its review was conditioned upon protecting the
confidential information contained in the ESPN Agreements and not disclosing that information
to the public.
224. As a result of these reviews, Florida State was provided with and learned the
225. Florida State violated these conditions of confidentiality when it authorized and
permitted disclosure of confidential information from the ESPN Agreements during the course of
226. Florida State violated these conditions of confidentiality when it authorized and
permitted disclosure of confidential information from the ESPN Agreements in the release of an
227. Florida State violated these conditions of confidentiality when it authorized and
permitted the disclosure of confidential information from the ESPN Agreements in the Complaint
228. The material outlined in the Complaint constitutes confidential information under
the terms of the 2016 Multi-Media Agreement and ACC Network Agreement.
46
229. Florida State has breached its obligation to treat the information in the 2016 Multi-
Media Agreement and the ACC Network Agreement as confidential and, instead, has disclosed
230. The Conference has been damaged by Florida State’s breach of its obligation in an
amount to be determined but which the Conference reasonably believes will be substantial.
231. The Conference is further entitled to permanent injunctive relief barring Florida
State from disclosing the confidential information in the ESPN Agreements that was disclosed to
it by the Conference.
Fifth Claim for Relief: Florida State Has Breached and Continues to Breach Its Fiduciary
Obligations to the Conference Under the ACC Constitution and Bylaws and North Carolina
Law
232. The ACC adopts by reference and incorporates the allegations set forth in
233. The ACC is an unincorporated nonprofit association under North Carolina law and
is governed by its Constitution and Bylaws. The Constitution and Bylaws are a contract by and
234. In 1991, Florida State requested to be permitted to join the Conference as a Member
Institution. Each year, Florida State certifies that it has the mandate and support of the Board of
Trustees “to operate a program of integrity in full compliance with NCAA, Conference and all
235. The ACC Constitution and Bylaws give Florida State the right to participate in the
management of the affairs of the Conference and, since joining the Conference in 1991, Florida
47
State, its employees, and its Presidents have actively participated in the management of the affairs
of the Conference.
Florida State had the right to participate in the management of the affairs of the Conference. N.C.
237. As a Member Institution, Florida State has the right to participate in and select
individuals authorized to manage the Conference’s affairs and develop policies. N.C. Gen. Stat.
§ 59B-2(1).
238. As a Member Institution, Florida State has the authority to assert claims on behalf
under North Carolina law are further supplemented by principles of law and equity. N.C. Gen.
Stat. § 59B-3.
240. Upon joining the ACC as a Member Institution, Florida State entered into a
common and joint venture with the other Member Institutions, as expressed in the ACC’s
Constitution. As a member of a common and joint venture, Florida State has a fiduciary obligation
to the other members of the common and joint venture, as well as to the Conference, to act in ways
that advance the common and joint venture’s goals and not act in ways that undermine or frustrate
those goals.
241. The ACC Constitution and Bylaws, as well as the statutory and common law of
North Carolina, impose a duty on Florida State to act in good faith, with due care, and in a manner
that is in the best interests of the Conference while it is a Member of the Conference and charged
48
242. Under North Carolina law, when a member of a common and joint venture can no
longer support the goals of the joint venture, it has an obligation to withdraw from the joint venture
and not act in ways the frustrate the goals of the joint venture.
243. The Conference has adopted the method and form of governance of an incorporated
body.
244. As a Member Institution, Florida State designated its President as a Member of the
Board of Directors.
245. At all times relevant to this Amended Complaint, the President of Florida State was
acting under the direction and pursuant to the authority of Florida State. His actions are the actions
of Florida State.
246. Members of the Board of Directors of the Conference owe a fiduciary duty under
the ACC Constitution and Bylaws, as well as principles of statutory and common law in North
Carolina, to the Conference and its Member Institutions to act for the benefit of the Conference in
247. Members of the Board of Directors of the Conference owe a fiduciary duty to the
Conference and its Member Institutions under the ACC Constitution and Bylaws, as well as
principles of statutory and common law in North Carolina, not to undermine or frustrate the goals
248. Under the ACC Constitution and Bylaws, as well as principles of statutory and
common law in North Carolina, when a Member of the Board of Directors of a joint venture
contemplates and then authorizes actions that undermine or are designed to frustrate the stability
of the joint venture or its goals, he has an obligation to resign from the Board of Directors.
49
249. One of the Conference’s common goals, and part of the joint and common venture
into which Florida State has entered as a Member Institution, is to create a viable collegiate athletic
conference that, through its activities, enhances and funds college athletics for its Members.
250. By challenging the validity of the Grant of Rights and Amended Grant of Rights
through the Florida Action, Florida State seeks to undermine or destroy the contracts and
agreements that enable the Conference to create a viable collegiate athletic conference that,
through its activities, enhances and funds college athletics for its Members.
251. By challenging the validity of the Grant of Rights and Amended Grant of Rights
through the Florida Action, Florida State has further challenged the right of the Conference
established under the Bylaws to market the Media Rights of the Member Institutions collectively,
252. Florida State’s actions as set forth in this Amended Complaint and in filing the
Florida Action have been for its own benefit, with no regard for the best interests of the
Conference.
253. Florida State’s actions as set forth in this Amended Complaint and in filing the
Florida Action were taken without due care and in breach of its obligation of good faith.
254. None of the actions taken by Florida State as set forth in this Amended Complaint
and in filing the Florida Action were for the benefit of or in the best interest of the Conference.
255. Florida State actions set forth in this Amended Complaint and in filing the Florida
256. The actions of Florida State have caused actual damage to the Conference and will
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257. Among the requests for relief sought by Florida State in the Florida Action is a
request by Florida State that it be deemed to have retroactively withdrawn from the Conference as
258. To be clear, a decision by Florida State to withdraw from the Conference does not
constitute a breach of its President’s fiduciary obligations as a member of the Board of Directors
if appropriate notice is given under the ACC Constitution and Bylaws so that the Conference can
259. Under the ACC Constitution and Bylaws, in order to withdraw, a Member is
260. Once a Member has indicated an intention to withdraw, the ACC Constitution and
Bylaws further provide that as a consequence of a conflict of interest, the Conference may withhold
meetings for the Member and its Chief Executive or other representative(s):
During the period between delivery of a notice of . . . withdrawal and the effective
date . . . the Board, the Executive Committee and any other Committee may
withhold any information from, and exclude from any meeting (or portion thereof)
any/or any vote, the Director . . . of the . . . withdrawing member, if the Board
determines that (i) the relevant matter relates primarily to any period after the
effective date . . . (ii) such information is proprietary or confidential or (iii) such
attendance, access to information or voting could present a conflict of interest . . . .
261. As of the date of this Amended Complaint, Florida State claims that it has not
262. By this claim, Florida State seeks to avoid exclusion from meetings or a bar on
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263. By seeking retroactive withdrawal in the Florida Action, Florida State has a clear,
direct, and material conflict of interest with the management of the Conference.
264. By continuing to act in disregard of this clear, direct, and material conflict of
interest, Florida State breaches their obligations under the ACC Constitution and Bylaws, and the
265. The ACC requests that this Court grant permanent injunctive relief barring Florida
State from acting in breach of its fiduciary obligations under the ACC Constitution and Bylaws,
as well as principles of statutory and common law in North Carolina, by barring it and its President
and other representatives from participating in the management of the affairs of the Conference
while it has a direct and material conflict with the purposes and objectives of the Conference.
Sixth Claim for Relief: Florida State Has Breached Its Obligation of Good Faith and Fair
Dealing Under the ACC Constitution and Bylaws
266. The ACC adopts by reference and incorporates the allegations set forth in
267. The ACC Constitution and Bylaws is a valid and enforceable contract between the
268. Under North Carolina law, it is a basic principle of contract law that a party to a
contract must act in good faith and on principles of fair dealing to accomplish the purpose of the
contract.
269. Thus, in North Carolina, each contract has an implied duty of good faith and fair
dealing.
270. Under the ACC Constitution and Bylaws, the Commissioner is charged with the
duty to negotiate Media Rights agreements on behalf of the Conference. Exhibit 1 at p. 13 §2.3.1.q
and p. 39 §2.10.3. Florida State further agreed under the Bylaws that it had “granted to the
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Conference the right to exploit certain media and related rights” under the Grant of Rights. Id.
§2.10.1. Florida State further agreed under the Bylaws that it had “granted to the Conference the
right to exploit certain media and related rights” under the Grant of Rights. Id. §2.10.1.
271. Florida State’s actions as detailed in this Amended Complaint violate its duty to act
272. To the contrary, and in violation of its obligations of good faith and fair dealing,
Florida State has not acted in good faith and has not dealt fairly with the Conference.
273. The Conference has been damaged by Florida State’s violation of is contractual
obligations of good faith and fair dealing in an amount to be determined, but which the Conference
1. The Court issue a Declaration that the Grant of Rights and amended Grant of Rights
is a valid and enforceable contract between Florida State and the ACC and issue all necessary
2. The Court issue a Declaration that Florida State is estopped from challenging the
validity of the Grant of Rights and amended Grant of Rights under the doctrine of equitable
3. The Court issue a Declaration that Florida State is barred from challenging the
validity of the Grant of Rights and amended Grant of Rights and has waived its right to do so.
4. The Conference have and recover of Florida State damages for its breaches of the
Grant of Rights and Amended Grant of Rights in an amount to be proven at trial but which the
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5. The Conference have and recover of Florida State damages for the breach of its
6. This Court issue a permanent injunction barring Florida State from disclosing
7. This Court issue a permanent injunction barring Florida State from participating in
the management of the affairs of the Conference while it has a direct and material conflict of
8. The Conference have and recover of Florida State damages for its breach of the
ACC Constitution and Bylaws in an amount to be proven at trial but which the Conference believes
will be substantial;
9. This Court order such further relief as it deems just and appropriate.
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CERTIFICATE OF SERVICE
I hereby certify that the foregoing was electronically filed using the N.C. Business Court’s
electronic filing system, which will automatically and electronically notify all counsel of record as
follows:
Christopher C. Lam
C. Bailey King, Jr.
BRADLEY ARANT BOULT CUMMINGS, LLP
214 North Tryon Street, Suite 3700
Charlotte, NC 28202
Telephone: (704) 338-6000
Facsimile: (704) 332-8858
[email protected]
[email protected]
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