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ACC, Maryland reach mediated agreement

Maryland Announces Move to Big Ten Conference Getty Images

In the end, Maryland will “save” $20 million as it heads into its first season in the Big Ten.

In a press release, the university and the ACC announced that the two sides had “reached a mediated agreement that ends all litigation between both parties.” The school and the conference had entered into the mediation phase of the process back in April.

The release went on to state that “Maryland has agreed that the ACC will keep the sum of $31,361,788 previously withheld in order to resolve the lawsuits, and the ACC has agreed that Maryland will have no obligation to make any other payments to the ACC.” Additionally, the lawsuits filed in the states of North Carolina and Maryland will be dismissed.

“On behalf of the ACC’s Council of Presidents, I am pleased that all parties can move forward, returning our focus where it belongs – on our student-athletes, intercollegiate athletic programs and institutions of higher learning,” said Donna Shalala, ACC Council of Presidents chairperson and president of Miami, in a statement. “There is great excitement surrounding the ACC and its 15 member institutions and we extend our best wishes to our colleagues at Maryland as we all look ahead to the upcoming academic year.”

Maryland announced in January of this year that it had filed a $157 million counterclaim against the ACC in which it’s alleged the conference “is confiscating NCAA monies that belong to Maryland when it has no right to do so.”  At that time, the ACC had withheld over $16 million in league revenue from Maryland because of the school’s intended move to a new conference.

The $157 million figure represents “three times the amount of compensatory damages for the ACC’s violation of Maryland antitrust laws.”  The ACC was attempting to assess Maryland a $52.3 million exit fee prior to its departure, hence the $20 million in “savings.”

The counterclaim also alleged that the ACC in general and Wake Forest and new member Pittsburgh specifically recruited two unnamed Big Ten schools for membership in the conference.  It’s also alleged that the ACC received “counsel and direction… from ESPN” in its attempt to poach Big Ten schools, which remain anonymous for now but is suspected to include Penn State.

In February of this year, Rutgers, which is also moving to the Big Ten this year, reached an agreement with the American Athletic Conference over its departure.

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15 Responses to “ACC, Maryland reach mediated agreement”
  1. drummerhoff says: Aug 8, 2014 1:51 PM

    $31mil is cheap. Katy bar the door.

  2. smokybandit says: Aug 8, 2014 1:56 PM

    In related news, the Big Ten just filed a $31 million lawsuit to give Maryland back to the ACC.

  3. marlon12560 says: Aug 8, 2014 2:03 PM

    Posted by John Taylor on August 8, 2014, 1:47 PM EDT
    Maryland Announces Move to Big Ten Conference
    In the end, Maryland will “save” $20 million as it heads into its first season in the Big 12.

    I didn’t know that Maryland was in the Big 12

  4. drummerhoff says: Aug 8, 2014 2:04 PM

    Now UVA & UNC know what it costs to join the SEC. I know, there’s a GOR, but clearly everything is negotiable and that includes GORs and buyouts.

  5. John Taylor says: Aug 8, 2014 2:05 PM

    Oops. Corrected. Thanks for the gentle heads up.

  6. givemeglenn says: Aug 8, 2014 2:31 PM

    Actually, the ACC has passed a “Grant of Rights” Agreement for all of their members, meaning they have all agreed that ANY revenue due to members from any media outlet would be forfeited to the ACC, and be split amongst all the other schools, in the event the School opted to transfer to another Conference. This would mean even if they changed Conferences, any potential revenues they might see there could have claims made against by the ACC if I read the agreement correctly.

    Therefore, I highly doubt any team will leave te Conference until this Agreement is amended or expires.

  7. mzim2756 says: Aug 8, 2014 2:50 PM

    Shouldn’t the headline be: ACC, Under Armour reach mediated agreement

  8. deadeye says: Aug 8, 2014 3:49 PM

    This is a win for the ACC. Maryland got out-maneuvered by the ACC’s lawsuits and ending up paying probably double what they should have. The downside for the ACC is that 31 million is nowhere near the 52 million they were demanding.

    So now everyone knows, it’ll cost 31 million to leave the ACC, assuming the GOR is somehow “breakable”.

  9. drummerhoff says: Aug 8, 2014 4:32 PM

    ACC Buy-out was $52million
    Maryland paid $31mil

    Maryland got what they want and they got it at a discount, a 40% discount from the asking price. Maryland wins twice: go to a better conference & they got out cheap.

  10. musketmaniac says: Aug 8, 2014 5:29 PM

    can anyone remember the last time Maryland, Pittsburgh, Syracuse or Boston college contributed to college football. These programs died in the ACC. Good move Terps.

  11. classyjacklambert says: Aug 9, 2014 8:51 AM

    @drummerhoff
    Maryland didn’t go to a better conference, they went to a conference which was easier to win.

  12. brownsmakemecrazy says: Aug 9, 2014 9:05 AM

    When is the BigTen going to learn how to count? New name for the conference should be the Little 14, at least during football season. Basketball they are respectable, football is a joke.

    When your best team would finish middle of the pack in the SEC and Pac 12, you are not good.

  13. corvusrex96 says: Aug 9, 2014 9:56 AM

    As I understood it the B1G pays out about 5 mil more a year than the ACC. So it won’t be until year 2020 that this move is considered break even for Maryland.

  14. deadeye says: Aug 9, 2014 10:21 AM

    “As I understood it the B1G pays out about 5 mil more a year than the ACC. So it won’t be until year 2020 that this move is considered break even for Maryland.”

    ==========================

    The BIG10 payouts are about to go up dramatically. After their new tv contract is negotiated for 2017, they’ll be making 10-15 million more per university per year.

  15. deadeye says: Aug 9, 2014 10:24 AM

    ACC Buy-out was $52million
    Maryland paid $31mil

    Maryland got what they want and they got it at a discount, a 40% discount from the asking price. Maryland wins twice: go to a better conference & they got out cheap.

    ===========================

    Maryland didn’t vote for 52 million, both them and FSU voted against that amount. What they did agree to was a 20 million exit fee. 31 million is 11 million more than to what they agreed to pay, so the ACC won by 11 million. And more importantly, if any university wants to leave the ACC, the 31 million exit fee will be a big deterrent.

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