Report: Clemson´s dismiss ACC countersuit with potential $140 million exit fee

In Charlotte, N.C., a judge on Wednesday denied Clemson’s motion to dismiss an Atlantic Coast Conference lawsuit. The lawsuit originated from Clemson’s legal challenge against the ACC’s bylaws. In March, Clemson sought to free itself from the ACC’s grant of rights, which includes a hefty $140 million exit fee in case of departure. Clemson filed a lawsuit in South Carolina aiming to invalidate the grant of rights and sidestep the exit fee. In response, the ACC filed a countersuit the following day.

Clemson sought to halt or delay the ACC’s countersuit, arguing that only a North Carolina court could interpret and enforce the conference bylaws. The judge ruled against Clemson’s jurisdictional dispute, stating that the university’s activities within North Carolina, such as participating in league affairs and hosting competitions, implied a waiver of sovereign immunity.

However, the judge did grant Clemson’s motion to dismiss certain claims by the ACC, specifically regarding breach of contract and the validity of the grant of rights. Clemson did not contest the enforceability of these agreements, only their interpretation.

The ACC expressed satisfaction with the ruling, emphasizing that North Carolina courts are appropriate venues for interpreting and upholding the agreements. They reaffirmed their stance that the grant of rights agreements from 2013 and 2016 are valid and binding contracts voluntarily entered into by their member institutions.

Meanwhile, a similar lawsuit by the ACC against Florida State remains on hold pending the school’s appeal to the North Carolina Supreme Court regarding a previous ruling.