Clemson seeks damages for ACC's 'willful and malicious conduct' in media-rights court battle By Jon Blau 18 hrs ago CLEMSON — Clemson is seeking damages from the Atlantic Coast Conference as their court battle over the conference's exit penalty continues.
In an amended complaint filed on April 17 in Pickens County, Clemson claims the ACC's statements about the ironclad nature of its grant of rights — which, in theory, tie schools' broadcast rights to the conference through 2036 — were made with "malintent" and were meant to deter Clemson from exiting the ACC.
"When making those statements, the ACC acted in reckless and wanton disregard for Clemson's rights and should have recognized that its statements were likely to result in harm to Clemson's interests and a diminution in the value of Clemson's intangible property," the complaint reads.
Clemson's attorneys are asking the court to award damages "to be determined at trial ... for harm caused by the ACC's misstatements and slander of Clemson's title" to its media rights. The amended complaint also seeks punitive damages for the ACC's "willful and malicious conduct."
Clemson argued in its original complaint, filed on March 19, that the ACC only retains the broadcast rights to the school's games played while it is a member of the conference, and, if Clemson were to leave for another league, the ACC would have no claim to those media dollars.
The ACC is facing lawsuits from both Clemson and Florida State in their respective home states of South Carolina and Florida, while the league has countersued both institutions in North Carolina.
"Clemson has not breached any legal duty owed to the ACC by filing this lawsuit — which does not challenge the validity or enforceability of the grant of media rights but merely seeks a declaratory judgement regarding the scope of the rights granted," Clemson's amended complaint argues.
The complaint also asserted Clemson has not waived its right to "sovereign immunity," which protects public institutions against lawsuits in other states.
In its countersuit in North Carolina, the conference accused Clemson of deceit, expressing a "desire to engage in productive conversations" — presumably about ways to better distribute ACC media dollars — while the school also prepared to file a legal challenge in South Carolina before the ACC could take action.
The ACC has also called out Clemson for voting in favor of the conference's increased exit penalty in 2012, as well as the grant of rights in 2013 and 2016.
In its court filings, Clemson has called the conference's $140 million exit penalty "unconscionable." Factoring in future media rights, it could cost Clemson and FSU upwards of a half-billion dollars apiece to exit the ACC.
The ACC's suggestions to that effect have had a "chilling effect" on Clemson's ability to seek another conference, according to the amended complaint, which had not been made public until May 2.
The court temporarily sealed documents in the case on March 25 at Clemson's request, because portions of the school's original complaint referenced the ACC-ESPN agreement and could include "trade secrets," though large sections of the complaint were already redacted.
In their motion for discovery, Clemson's attorneys requested a copy of the ACC-ESPN agreement, which is only available for review at the conference's headquarters in Charlotte. Member institutions do not possess a full copy.
"The ACC's false statements about the scope of (the grant of rights) have been widely reported, thus perpetuating misconceptions to the detriment of Clemson," the complaint states, adding it has been "mistakenly reported" Clemson has "irrevocably" granted its rights to the ACC through June 30, 2036.
Among Clemson's losses, the complaint says, are the "marketability" of its property, as well as "expenses incurred as a result of taking the measures reasonably necessary to counteract the effects of the ACC's misstatements — including the costs of litigation."
"This public misconception regarding Clemson's media rights — created by the ACC's false statements — interferes with Clemson's pursuit of opportunities with other collegiate conferences and media providers regarding potential future collaborations," the complaint states. "As a result of the ACC's misstatements, the value of Clemson's media rights has been diminished."
Clemson and FSU have taken the ACC to court because of the widening revenue gap between the conference and the "Power 2" of the Big Ten and SEC.
As the complaint lays out, the Big Ten's total media revenue in 2022 was nearly $846 million, while the SEC brought in $802 million. Meanwhile, the ACC totaled $617 million that year.
That meant each Big Ten school collected $58.8 million; each SEC school $49.9 million; and each ACC school between $37.9 and $41.3 million.
"The prospect that a public institution of higher education in South Carolina might possibly be required to pay an unconscionably high withdrawal penalty," the complaint says, "chills Clemson's ability to explore options that are in its best interests and to negotiate to protect the best interests of its students, student-athletes, faculty, and alumni, and diminishes the value of Clemson's media rights and athletic brand."
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