Has any school ever broken a GOR?

[CL82]

If one needs to believe, one will. But when reputable people say that the GORs solidy the P5 conferences, I take their word over the speculations of folks with no real information.

Other than our dysfunctional friends in the Big 12 has anyone tipped their hand prior to announcing a change? I could see why you'd want to believe that GORs are iron clad, if they are not the ACC is a likely target given the disparity between the big boys of the P5 and lesser P5 conferences.

So yeah, I guess if one needs to believe, they will.

 

[junglehusky]

 

[CallMeBruce]

Unless you are a sports media lawyer, this isn't "your" industry.

In addition to my prior examples, non-competes are enforced all the time, as are non-solicits. Give me an example anywhere where something is sold, but years later the selling party is able to ask for a "Do over".

As someone who has employees violate non-competes all the time without any recourse, I can tell you that they are rarely enforced.

 

[nelsonmuntz]

As someone who has employees violate non-competes all the time without any recourse, I can tell you that they are rarely enforced.

As someone that has seen the proverbial freight train run over employees that have violated non-competes and non-solicits, back up, and run over them again, and I tell you that when the money is big enough, they are enforced.

 

[HistoryMajor]

Lawyers write unenforceable contracts all the time. The law is a lot more complicated than you seem willing to believe. It's entirely possible that a team tries to walk and the GOR makes it untenable, but we won't know for sure until someone tries. I'm sure that OU would rather get a Big 12 network in an expanded Big 12 than walk to the B1G, where they have no traditional rivalries, more difficult geography, and no exposure in their primary recruiting area. If they feel that they're losing $20+mm/year by staying in the Big 12, then you may see how effective the GOR deals are.

Bruce - I usually like your perspective but in this case, with all due respects, I think you're off base. I have written (perhaps) 200 contracts and my intent was always that they be enforced. That statement probably isn't strong enough as I made CERTAIN they were enforced. In this case I stand with Nelson in that I believe GOR is enforceable and I will continue to believe that until/unless GOR is successfully challenged.

 

[FfldCntyFan]

Bruce - I usually like your perspective but in this case, with all due respects, I think you're off base. I have written (perhaps) 200 contracts and my intent was always that they be enforced. That statement probably isn't strong enough as I made CERTAIN they were enforced. In this case I stand with Nelson in that I believe GOR is enforceable and I will continue to believe that until/unless GOR is successfully challenged.

I don't believe that the ability to enforce the GOR is the issue. The issue is, if a school does accept an offer to leave the ACC or B-12 for the SEC or B1G, will the parties in question remain so stubborn that they will harm themselves to enforce the agreement or will some (large) monetary settlement be reached by businessmen with reasonable minds?

The example I stated earlier, that the departure agreement in place at that time made it impossible for West Virginia (if the contract were to be enforced) to join the B-12 in the time frame necessary. The two sides (after some contentious discussions and threats of litigation in more than one jurisdiction) did reach a settlement. The dollar amount may be far different but the mechanics and results will be similar when a school receives an invitation from the SEC or B1G and does decide to leave the ACC or B-12.

 

[CTMike]

Unless you are a sports media lawyer, this isn't "your" industry.

In addition to my prior examples, non-competes are enforced all the time, as are non-solicits. Give me an example anywhere where something is sold, but years later the selling party is able to ask for a "Do over".

You use the word sold as if there was an exchange of money for a product. Except the money hasn't been paid and the product not produced.

 

[Excalibur]

Promises to deliver something in the future are broken all the time, and the breaching party pays damages. As for my background, I've negotiated sales, transfers and licenses of intellectual property rights of all kinds (including media, broadcast and publicity rights) involving some of the most famous names, companies and brands in the world. No, I don't do sports media. But I know enough to know how why the scenario you're describing is different. I've done my best to explain why the "sale" and music copyright analogies don't work. It's difficult to overcome willful ignorance, and easy to reply that I'm claiming that a GOR "is no big deal" and "easy to break". Of course, I've said neither, but that gets us back to the willful ignorance point.

 

[nelsonmuntz]

I don't believe that the ability to enforce the GOR is the issue. The issue is, if a school does accept an offer to leave the ACC or B-12 for the SEC or B1G, will the parties in question remain so stubborn that they will harm themselves to enforce the agreement or will some (large) monetary settlement be reached by businessmen with reasonable minds?

The example I stated earlier, that the departure agreement in place at that time made it impossible for West Virginia (if the contract were to be enforced) to join the B-12 in the time frame necessary. The two sides (after some contentious discussions and threats of litigation in more than one jurisdiction) did reach a settlement. The dollar amount may be far different but the mechanics and results will be similar when a school receives an invitation from the SEC or B1G and does decide to leave the ACC or B-12.

If it is life or death for the schools left behind, I don't see why they would ever allow any payment for exit, especially when they hold all the legal cards. By granting the broadcast rights to the conference, the conferences also increase the probability of a judge granting an injunction to the conference. The time for Oklahoma or Texas to negotiate softer exit terms was before they left the conference.

The WVU example is telling in that they paid up to get out, but the Big East's best case alternative was to have them leave in 2 years. In this case, the Big 12 has 10 more years of games against Texas and Oklahoma (a bit more interesting that WVU).

 

[nelsonmuntz]

Promises to deliver something in the future are broken all the time, and the breaching party pays damages. As for my background, I've negotiated sales, transfers and licenses of intellectual property rights of all kinds (including media, broadcast and publicity rights) involving some of the most famous names, companies and brands in the world. No, I don't do sports media. But I know enough to know how why the scenario you're describing is different. I've done my best to explain why the "sale" and music copyright analogies don't work. It's difficult to overcome willful ignorance, and easy to reply that I'm claiming that a GOR "is no big deal" and "easy to break". Of course, I've said neither, but that gets us back to the willful ignorance point.

Quite a lawyerly response. One one hand, these deals "are broken all the time", but you aren't saying "they are easy to break". So you are firmly on both sides of the issue. Got it.

If these deals "are broken all the time", can you point to one high profile case or even give a hypothetical example? I have provided 4 specific and about half a dozen hypothetical examples, and you haven't provided one. Maybe I am just being willfully ignorant though.

 

[Excalibur]

Quite a lawyerly response. One one hand, these deals "are broken all the time", but you aren't saying "they are easy to break". So you are firmly on both sides of the issue. Got it.

If these deals "are broken all the time", can you point to one high profile case or even give a hypothetical example? I have provided 4 specific and about half a dozen hypothetical examples, and you haven't provided one. Maybe I am just being willfully ignorant though.

The bank teller struggles with reading comprehension. Go back and read the post again. Did I say that GOR agreements are broken all the time? There is a right and wrong answer.

 

[kyleslamb]

Bruce - I usually like your perspective but in this case, with all due respects, I think you're off base. I have written (perhaps) 200 contracts and my intent was always that they be enforced. That statement probably isn't strong enough as I made CERTAIN they were enforced. In this case I stand with Nelson in that I believe GOR is enforceable and I will continue to believe that until/unless GOR is successfully challenged.

On the other hand, in multiple party contracts, wouldn't you agree that if you're a party that is looking for loopholes for a client, wouldn't you want to leave the door cracked just enough in the event something goes awry?

Let's use a 2-year employment contract with a non-compete clause, as an example. If you're the business, sure, you would want to make the contract as ironclad as you can. But if you're representing a client, wouldn't you want a draft that has some hope of getting out of, just in case the relationship becomes untenable? I can't think of any attorney representing these schools that wouldn't want there to be a slight chance of them leaving if the conference became a cluster ****

 

[The Funster]

By the way, we are at the inflection point of the Grant of Rights. If all of you "the GOR is no big deal" people are right, we should expect Oklahoma to walk away in the next month or two. The President of the University came out against Texas, and there is clearly dissension in the ranks of the Big 12. If All Oklahoma has to do is write a check, they will be gone soon. Right?

Stop with the strawmen. I haven't seen anyone say they can just walk away in a month or two. What people are saying is that it isn't as ironclad as we all thought it was.

 

[nelsonmuntz]

Stop with the strawmen. I haven't seen anyone say they can just walk away in a month or two. What people are saying is that it isn't as ironclad as we all thought it was.

Hedge away.

Unless there is a contractual hole, for which there is no way for any of us to know, I think the Big 12, ACC, Pac 12 and Big 10 are unpoachable for the duration of the current deals.