Clemson Seeks Punitive Damages Against ACC

CLEMSON — Clemson University claims the Atlantic Coast Conference made false claims about its scope of the Grant of Rights Agreement (GOR), in an amendment to its original complaint on March 19.  

The school is also seeking punitive damages against the ACC, as the damages incurred as a result of the instant litigation to remedy the damage to Clemson’s intangible property rights caused by the ACC’s misstatements.

“Clemson is entitled to, and the Court should enter judgement in Clemson’s favor and award Clemson damages in an amount to be established at trial for all injuries suffered as a result of the ACC’s slander of title,” the civil suit reads.

Clemson filed an amendment to its original civil suit against the ACC on April 17, saying the ACC created a public misconception regarding Clemson’s media rights. Thus, interfering with the school’s opportunities with other conferences and media providers regarding future collaborations.

“As a result of the ACC’s misstatements, the value of Clemson’s media rights has been diminished in the eyes of these and other third parties,” the civil suit reads. “This diminution in value injures Clemson, impedes its ability to negotiate future media rights agreements, and worsens its negotiating position with potential future collaborators.”

Clemson continued that the ACC’s misstatements were inconsistent with the plain language of the agreements. In essence, Clemson is claiming the ACC slandered its name by using the GOR Agreement to strengthen its position, while devaluing Clemson’s brand. Clemson claims the GOR is narrower than what the league claims it to be.

“Alternatively, 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’ intangible property,” the lawsuit reads.

By making these amendments, Clemson now as a better “standing” position as it continues to go forward with the lawsuit against the ACC.

A state’s statutes will determine what constitutes “standing” in that particular state’s courts. These typically revolve around the requirement that plaintiffs have sustained or will sustain direct injury or harm and that this harm is redressable.

“In this litigation, Clemson seeks confirmation of the plain language found in the Grant of Rights agreements and the related media agreements between the ACC and ESPN – that these agreements, when read together, plainly state that Clemson controls its media rights for games played if it is no longer a member of the ACC,” Clemson said in its March 19 statement. “Clemson also seeks a ruling regarding the unenforceability of the severe penalty the ACC is seeking to impose upon exiting members and confirmation that it does not owe a fiduciary duty to the conference as alleged by the ACC.

“The ACC’s position regarding the Grant of Rights, the exit penalty, and obligations owed by members to the conference, as detailed in its public statements and other court filings, leaves Clemson with no choice but to move forward with this lawsuit.

“Clemson has not given notice that it is exiting the ACC and remains a member of the conference.”

On March 20, the ACC filed its counter suit against Clemson. The league argues Clemson cannot get out of the GOR or the league exit fee.

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