Locked On ACC - Daily College Football & Basketball Podcast - The Moment FSU Knew Their CFP SNUB Was Coming | ACC Lawsuit UPDATE | Miami Lands Tyler Baron

Starting point is 00:00:00 Well, we now know the exact moment that Florida State realized that college football playoff snub was coming. You are Locked on ACC, your daily podcast on the Atlantic Coast Conference. Part of the Locked on Podcast Network, your team every day. Shout out to the everydayers for making Locked on ACC your first listen and your first watch each and every day. We're available free wherever you get your podcast. We're free on YouTube. of the Lockdown Podcast Network, your team every day. I am Alex Dono from Locked on Cains.

Starting point is 00:00:42 He is Kenton Gibbs from Locked on Wolfpack. So Kenton, I, it was unfathomable to me what happened when the selection committee gave out their top four and a 13 and 0 undefeated conference champion of a Power 5 conference, I should add, did not make that playoff. And this was a, this was a funny story. that was just shared within the past couple of days by Florida State Athletic Director Michael Alford. He was on Sirius XM College Sports Radio, and he shared the moment that he realized they were going to get left out. He insinuated that ESPN knew before the rankings were released

Starting point is 00:01:27 that Florida State wasn't going to get in. So according to Michael Alford, the fix was it. I mean, they're already suing people. Maybe they should sue ESPN as well. I mean, they're doing lawsuits left and right, but this comment was hilarious. He said, quote, when I get to Florida State selection event and look up to see who's covering us, which was Harry Liles Jr., and I see Marty Smith is in Tuscaloosa, that hit me. We're not in. I did not get really worried until I saw that. Now, two things here. Number one, he's probably right about that. I would have had that same reaction because Marty Smith, much bigger reporter. If he's someplace else, that's not a good sign.

Starting point is 00:02:06 But then number two, why is Harry Lyle's got to be catching strays here? I feel bad for that man. Harry Liles woke up like 50 cent when Floyd Mayweather was disson. What did he say F me for? I did nothing. I just, I went to the assignment they told me to go to.

Starting point is 00:02:23 But if you don't think that Florida State, or I'm sorry, if you don't think that ESPN knew who was in and who was out beforehand, I have oceanfront property to sell you in Raleigh, North Carolina. Don't ask me which ocean it's off of. Don't ask me how I'm selling you ocean front property in the landlocked city. Just give me the money first. We'll discuss the details later.

Starting point is 00:02:46 The reality is as many sources, as many insiders, as many people who have the access and the information to the higher-ups, to the decision-makers, to the people who make these things happen and who are basically in the room when it happens. There is no way that ESPN didn't know. It's part of their jobs too, though. You know, like that's part of the deal. So while I am sure that ESPN knew, again, it's incumbent upon Florida State to prove that there was something for Loney is here, unless this is like a court of public opinion thing, which unfairly to Florida State, which this is extremely unfair to Florida State. They've already lost that battle.

Starting point is 00:03:23 The 63 to 6th thing lost it. On top of that, the fact that- 63-3. I'm sorry, 63-3. My bad. My fault. I tried to throw a little laying y'all up on top of what they had. But 63 to 3 lost it.

Starting point is 00:03:36 And the fact that it's been so long, lost it. And this is the very unfair part to Florida State. The fact that there were teams that people just wanted to see, lost it. That's what lost it. We all know nine times out of 10 is not really about who you are, as much as it is, who are you going against as well? And when you look at the brands of Texas and Bama, who were the one lost teams that got in,

Starting point is 00:04:03 you're looking at a very, very different situation than you're looking at with Florida State. And that's no disrespect to Florida State. Florida State is a very powerful brand in and of their own right. It's not the same as a Texas or Alabama. And people can argue, well, it's only because we're in ACC. And if we're in the SEC, we're ifs and butts, we're bears and nuts, squirrels never star.

Starting point is 00:04:25 We live in the real world. And with that being said, you know, that's kind of part of it. ESPN knew and Florida State still got jobbed. I still agree with that. I still have no holds or no reservations about saying that Florida State was very unfairly targeted and taken out of the playoff because, again, you can only play who's in front of you with who you have. And I don't think that it's fair at all to have a third string quarterback that was not going to be playing in a bowl game and what he could do offensively. Again, true freshman as well as a representative of what your offense could do overall. it's not fair. It's not right.

Starting point is 00:05:03 It was unjust. Could you imagine? Like, like, what I would compare it to is if, you know, the Kansas City Chiefs go 14 and 3, but Patrick Mahomes suffers a season-ending injury right before the playoffs. And then the NFL is like, well, we can't let you in the playoff now. Yeah. I'm sorry, you won your conference in the division, but if you're, if you're nothing without your star quarterback, we can't, like, it's, the whole thing's ridiculous. And, uh, yeah. And then meanwhile, um, We have another court update, Florida State versus the ACC. Remember, there's two consecutive court cases going on.

Starting point is 00:05:38 Well, really three, if you include the Florida Attorney General, who's suing the ACC. But you've got the ACC versus FSU in North Carolina. You've got Florida State versus the ACC in Florida. There's an update on that side of it. So the next hearing has been scheduled for June 18th at 9 a.m. in Leon County. The big issues here being the sovereign immunity issue for Florida State, whether they as an institution of the state of Florida can be sued in a different state and forum shopping,

Starting point is 00:06:12 right, where, you know, the judge in Florida, Judge Cooper has ruled saying that, hey, he believes the ACC counter-suit Florida State before Florida State got a chance to sue them because they wanted things to move forward in North Carolina. and so here is per Knowles game day on Sports Illustrated, here's part of the amended complaint because Florida State, they filed that amended complaint that we talked about, and that's why the judge said a new hearing, because the amended complaint is in.

Starting point is 00:06:39 This is a quote from that amended complaint. FSU and the ACC argue this dispute is now very simple. The court need only construe two contract provisions from two separate contracts to resolve it. First, under the grant of rights, whether the media rights to FSU's home games after it leaves the ACC are quote unquote necessary for the ACC to perform its contractual obligations under the ESPN agreement. So if Florida State is out, do they need to keep those TV rights even though they're out? Second, under Article 1.4.5 of the

Starting point is 00:07:15 ACC Constitution, whether the self-described liquidated damages withdrawal payment of 140 million is a penalty. Fortunately, the ACC concedes both the amendment begins. So Florida State has basically accused the ACC of admitting that Florida State is right in past hearings and basically giving Florida State a loophole. So it goes on to mention the ACC stated on April 9th, and I had to do some brushing up on where this quote actually came from, but on April night, the ACC or the ACC allegedly said ESPN doesn't have the right to broadcast anything once FSU leaves the conference. Therefore, Florida State argues because ESPN has no right to FSU's home games after FSU leaves the ACC, those media rights are not necessary to perform the ESPN agreements.

Starting point is 00:08:04 Hence, the media rights to FSU's home games after it leaves the ACC never transferred to the ACC in the first place. So that, obviously it's up for, it's up to a judge and, you know, I guess potentially a jury down the road if they don't settle first, of course, to determine whether Florida State really found that gotcha moment. And a quick counterpoint, Kenton, and this comes from a lawyer. I'm not saying I agree with this person, but this is David McKenzie, who's a sports attorney, who's very much on the ACC side of things. Like, he's very much into that trench. So take this with a grain of salt, but this is a legal opinion that counters what Florida a state is saying, he says FSU's argument presents a circular logic that misinterprets the

Starting point is 00:08:50 contractual obligations and rights established by the grant of rights. FSU uses a single brief remark made during an eight-hour hearing that, quote, ESPN doesn't have the right to broadcast anything regarding FSU games post-departure and misguidingly treats it as if it were a definitive contractual provision. This approach wrongly equates the end of FSU's ACC membership with an automatic termination of ESPN's broadcasting rights as established by the plain language of the existing agreement. So Florida state lawyers interpret it one way, a lawyer, and this is not the ACC's lawyer, but he's a lawyer that is pro-ACC interprets it a completely different way. We'll see what the judge has to stay about it on June 18th.

Starting point is 00:09:35 Absolutely. I mean, that's all we can say at this point. And, you know, I have a way that I think that this will go. But again, you nor I have law degrees. We don't have JD by our name. It's not Alex Dono Esquire, nor is it Kim Gibbs Esquire. So, you know, it'll be very interesting to see how this thing plays out. Again, we both have our feelings on this. Everybody knows where I've still on this from the beginning in terms of what I think has legs and what doesn't. We'll see. We'll see if Florida State fans are happy with the resolution here. We'll see if the ACC is happy with the resolution here. We'll see if everybody walks away a little pissy with what the outcome is.

Starting point is 00:10:13 And, you know, at the end of the day, this is, again, this is, I feel like this isn't the beginning, but I don't even feel like we're at the middle of this thing yet. Yeah, well, also on this episode, we're going to talk about private equity. Looking like private equity is going to get into college athletics and also how that could tie in to Florida State, because there's a couple very clear tie-ins. there. And when we come back, the ACC has voted in favor of the NCAA's landmark settlement in that antitrust case. By the way, the Big Ten and Big 12 have also voted in favor of that. So it looks like this thing is going to move forward and what that means for the ACC and for college

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Starting point is 00:11:58 Exclusions apply. eBay guaranteed fit, only available to U.S. customers. Thank you so much for making this episode of Locked on ACC, your first listen and your first watch today. Hey, are you watching Fox Sports or ESPN on your TV all day? Hept's turn down the volume with all that shouting. Make the switch to Locked On Sports Today. A free 24-7 sports streaming channel program for you every day to bring you the biggest stories without all the screaming.

Starting point is 00:12:26 Locked-on Sports Today brings you can't-miss analysis, opinions and news streaming 24-7 on YouTube or the free Amazon Fire TV channels app, part of the Lockdown Podcast Network. Your team every day. Alex Dono and Kenton Gibbs with you on this brand new episode of Lockdown ACC. So the Big 12 approved it first, and then the ACC was the second to jump aboard. The Big Ten jumped aboard today. ACC presidents, they voted in person in Charlotte on Tuesday evening, and they voted in favor of this landmark settlement in that House versus NCAA antitrust case. Now, the key parts of that settlement per ESPN include the NCAA paying for more than 2.6.7,000,

Starting point is 00:13:12 billion in back damages over a decade, about 1.6 billion of which will be withheld from schools. There's also roughly 20 million in permissive revenue sharing that is expected to begin in fall 2025. This revenue sharing will give athletic departments the direct ability to pay the players a massive paradigm shift. No kidding, they write for college athletics. The point of this is, the point of school settling is to avoid even bigger damages down the road, which legal experts consider a likelihood considering the NCAA's poor. record in court cases. Now, first of all, Kenton, this is, and this is why we're going to be talking about private equity, right? Because schools are going to be looking at private equity to help

Starting point is 00:13:50 put the bill for a lot of this when you talk about the $20 million revenue sharing. So I guess let's start with that, Kenton, because schools are, and these are the power for conference schools are going to be the ones paying out this revenue sharing money. A lot of these, as we've heard about North Carolina this past week, a lot of these athletic departments are, they're, you know, in the red or borderline in the red, because remember, they have to carry all those non-revenue sports as well to go along with football and basketball. Just, you know, making $20 million for revenue sharing appear as if from nowhere, it's not going to be an easy task here.

Starting point is 00:14:26 However bad you think you are handling your money, however bad you think your books are balanced now, you bring private equity in, it will get worse. Yeah. It will get worse. I'm going to read to you a short excerpt from a story that is chronicling the downfall of one of my favorite restaurants. I'm sure it's one of your favorite restaurants, Donnell. It was one of America's favorite restaurants, Red Lobster. I love Red Lobster.

Starting point is 00:14:55 Endless shrimp? Oh. Who could beat it? And here's the fun thing. Inless shrimp was taking a wrap for it. But this article is a bit of a defense saying, court column. It wasn't just endless shrimp. Red Lobster's corporate bankruptcy,

Starting point is 00:15:10 Red Lobster's corporate owners drove it to bankruptcy. Here we go, Donnell. All righty. So, if one is looking for the original sin in Red Lobsters decline, however, a good candidate would be the deal that bought it under Golden Gate Capitals ownership. The private equity firm bought the chain from Darden for $2.1 billion. Here's the fun party, kids. Here's the mousquet tool that you'll need.

Starting point is 00:15:38 Financing the sale in part by selling real estate underlying 500 restaurants to the real estate firm American Realty Capital. Isn't it interesting how all of those companies have capital on its name except Darden? Yeah. Which when you look into them, they're also a capital company. Hmm. It's something interesting is going on there. But now, let's get back into these sales, shall we? this was a sale lease back transaction in which Red Lobster was instantly converted from the owner of its property to a tenant of the same property.

Starting point is 00:16:16 So in essence, Red Lobster property was sold from private equity to private equity and Red Lobster had to pay private equity for the property it used to own. So they had to pay rent. Oh, but wait, there's more. The leases were typically long term as long as 25 years with annual rent increases of $2.5.000. percent baked in. Here's the fun part where here's the fun part where it cooks it the worst. They were triple net leases. For those of you who work in a restaurant industry or who work in the real estate industry, you know why that's concerning. But let's explain to everybody else. Meaning the restaurants were responsible for paying operating costs, property taxes, and insurance

Starting point is 00:16:57 from land that they no longer own. That's so wow. Keep private equity away from college sport. If you think that everybody being out for the money is bad now, you're going to realize it when it's too late and all the sports your schools have is football, basketball, women's basketball, and they got to have a track team because they got to somehow balance out all of those players on the football route. So they probably do track and like maybe feel hockey or something like that, depending on what region you're in. They might throw in women's hockey, who knows, maybe soccer. But the reality is private equity needs to stay the hell away from college sports. Yeah. But then it's like, how do you keep it away from college sports when, you know, you've got to be cut.

Starting point is 00:17:40 You're right. You're right. You said, I completely agree. But then these university presidents and chancellors are going to say, hey, like all of a sudden operating, you know, especially if we want to keep our non-revenue sports and we want to stay compliant with Title IX. It's getting very expensive. We could use, you know, cash flow that comes from the liquidity of private equity coming in. So it's, I don't know if you ever watch the show Billions, but you know, I think about whatever Bobby Axelrod, it was a great character, but if he was buying into your company, that's, you're in trouble. You're done. You're done. But here's the thing. I agree with you and that these teams are going to need influxes of cash immediately.

Starting point is 00:18:23 You have to find another way. You have to find another way. Because, again, there are very few things in this world that are. certain. Okay. But there are three of them. Death, taxes, and private equity leading to death via stripping taxes. No, I'm joking. But very seriously, that's, that's part of what's going to happen here. And I really don't wish that on these programs. I hope they find another way. Most of these programs are public institutions. If you got to raise taxes by a little bit, as much as we hate to hear taxes going up, if that is the way to fund this and pay this player. I think I hate that more than private equity,

Starting point is 00:18:59 to be honest. And here's the thing. Here's the thing. I'm not. I'm not. I'm not. I'm not. I'm not. I'm not. I'm not. I'm I'm added to there. I understand. Trust me. As somebody who looks at their check and I realize that it's called gross pay because it's gross, how much leaves before it actually hits your wallet, I understand. I understand. But with that in mind, if private equity gets their hands on these universities, I fear the worst. And I hope that I'm wrong if that does happen. I really do. I hope that I'm wrong. I hope that they make college sports and have this amazing continued run. I just, there's, just a very airy sinking in my stomach because every time private equity generally takes something over, it's just fire, fire, fire, cut down, consolidate, consolidate, you cannot do that with college sports. Most departments in college sports are already stretched their limit, especially for schools that don't have the huge funding that some of the top brands do. I don't want to know what happens to a Wake Forest in a situation where private equity gets their hands over. I don't want to know.

Starting point is 00:20:01 I really don't. Well, I want to circle back to the private equity in college sports because there's a Florida state tie-in there, which will bring us back to the ACC. But there's another thing, Kent, when I'm reading up on this House versus NCAA settlement, right, there's a couple things because everybody brings up the fact that this settlement is going to basically keep the NCAA and the member institutions. they're going to keep them from being sued again in the future. It not only settles this one particular antitrust case,

Starting point is 00:20:35 it also settles to others simultaneously and preemptively settles any others that are going to come up. But there's another consequence that's going to come from this, though, Kent, when I was reading the fine print in this settlement, and I'm sure the schools are happy about this, and so is the NCAA. This is going to make it very hard, if not virtually impossible, for unionization. to happen because so so this this settlement it mainly it covers current NCAA student athletes so then you might think well you know what about the ones who are in high school middle school right now so in the future anyone who who you know signs a scholarship becomes a student athlete is going

Starting point is 00:21:17 to have to opt in to this you can opt in or opt out now if you opt out it means you're not going to get me settlement payments. So you're going to be hard to find high school kids. You're going to say, yeah, you know what? I don't want settlement money. I'm going to opt out. Therefore, I am eligible to sue the NCAA in the future. So it's going to be very difficult to opt out. And then it's going to be very difficult for a lot of these attorneys. And some of these attorneys are very shady people who are trying to build these unionization cases and form these class action lawsuits. I'm not saying these lawyers are good people. Some of them probably, most of them probably aren't. Okay. But, you know, this settlement,

Starting point is 00:21:54 does make it not impossible, but close to impossible for unionization to happen, which is a very good thing for the NCAA. So that's one of the side effects here. Oh, absolutely. But I will say this. I will say this. It's really hard to preemptively put people in a position where they cannot legally unionize. States all around the country are figuring that out the hard way. A lot of these at-will states where they're seeing unionization pop up all of a sudden, they're starting to have that same way, we did all the things. We legally, I mean, we didn't, we didn't union bust. We just fired everybody at that place when they were talking about unionizing.

Starting point is 00:22:35 You know, they were all late. They all had marks on there. But very seriously, this is one of those moments where I wonder how well that holds up in court in the future. Because this is the ruling right now. But remember, there was a ruling at one point in time that players were student athletes. And players could not get paid. And now all of a sudden there seems to be a new day. How long before the new day of unionization hits?

Starting point is 00:22:59 Because ultimately, with situations like the Jalen Rashada, the Jaden Proctors, all of those things, there will be something that comes along to where it's like, hey, we need some collective bargaining here. We need a very clear and defined route for this is what payment looks like. This is what the rules of engagement are in payment, in talking, in all these things. So I see it as very difficult to stop unionization. But we'll see. Well, I want to go back to revenue sharing on the other side.

Starting point is 00:23:29 Also, there have been some transfer portal updates in the ACC as well. So you guys want to keep it locked right here. We're not done yet on this brand new episode of Locked on ACC. Thank you so much for making Locked on ACC your first listen and your first watch today. We're available free wherever you get your podcast. We are free on YouTube. We're part of the Lockdown Podcast Network, your team every day. Alex Dono from Lockdown Keynes, Kenton Gibbs from Lockdown Wolfpack.

Starting point is 00:23:57 So Kenton, you know, Miami, the team that I cover, scored another transfer portal player, Tyler Barron, who was technically a former Louisville edge rusher, never actually played for Louisville. He was one of those players that transferred in, transferred right out. Most recently, a Tennessee volunteer. That's where he spent all four years of his career to this point, had a career high six sacks this past season. And, you know, there are some good defensive lines in the ACC, right? I've talked about Florida State and Clemson having good D-lines. I think Miami is now getting up there as well, especially when you consider the edge rusher rotation.

Starting point is 00:24:39 Miami's most experienced four edge rushers combined for 26 and a half sacks last season. I had to go 22 for Akeem Mezzador because he was hurt last year. But with now adding Tyler Barron to a group that includes Ruben Bain, who had seven and a half sacks last year as a true freshman. Akeem Mesidor, who had, I think, 10 sacks a couple of years ago. He was hurt all of last year. He's healthy now. And Elijah Alston, who transferred in from Marshall and had a really good year.

Starting point is 00:25:08 It should be a pretty vaunted defensive front. Miami's definitely going all in, right? There are all those wild cards we talk about, right? Because there has been hype behind Miami before, and they usually do not live up to that. But they are definitely going all in when it comes to trying to build the best possible roster. Mario Cristobal is looking at Jerry Jones saying, take notes. This is what All In looks like.

Starting point is 00:25:30 When you say all in, you push all your chips in middle, but I want to touch on something you said there. Miami is getting into the conversation of Best Defensive Lines? Oh, no, they were already there. They were already firmly in that conversation. And I'll tell you,

Starting point is 00:25:44 they're starting to potentially separate themselves from the pack a little bit because their additions this offseason have been phenomenal. The fact that C.J. Clark is one of the, the lesser talked about guys in this rotation is if anybody, if you talk to anybody who's watched NC State over the past few years and you asked them about C.J. Clark, they will tell you how special he is when healthy. They will tell you, yes, Brandon Cleveland may be more of a up-to-field, you know, guy who creates penetration, knockback, reestablishes the line of scrimmage. But in terms of a guy who lets your linebackers run sideline to sideline, C.J. Clark does that at a high,

Starting point is 00:26:24 high, high level. So when you're looking at a linebacking core that is going to be good, but not necessarily like, hey, this is going to be the strength. You need a guy like him to help them out and keep guys from getting to the defensive backfield where that may be the biggest question for Miami. You know, that's important. This is a group that could be special next year. Again, to me, it's all about chemistry.

Starting point is 00:26:49 It's all about how they jail because people who don't, who haven't played football, they think that defensive lines a position that you don't need chemistry to play. You just go out and do your thing. There is an art and a beauty to a natural text game. That means tackle over end. And, you know, when that defensive end feels the defensive tackle rushing past, and he's like, ah, I can come underneath and collect the sack here. There's a certain chemistry that goes into that.

Starting point is 00:27:16 If they can grow together and fill each other out on the fly very quickly, they could be a problem. They could be a problem. Because in terms of talent, in terms of just sheer talent, I don't think that there's anybody that is as good as them. And I would say Florida State is the only one in their stratosphere. I don't think Clinton is in that stratosphere. I don't.

Starting point is 00:27:34 I just don't. I think NC State's top guys are there. But when you talk about death, like their second and third guy, they're not in there. I don't think anybody is in there in terms of defensive line talent, top to bottom, in with Miami. So it'll be very interesting to see how these pieces come together. because again, Miami's never had a talent issue. I've never seen Miami and I thought to myself,

Starting point is 00:27:55 oh, what a bunch of bombs this coach has to glue together. I do think in 2022, the talent was pretty bad. But last year, they should have been better than seven and six. So last thing here on private equity coming in, one of the driving forces in this and this push for private equity in college football is actually a former Florida state quarterback, Drew Weatherford. of Weatherford Capital. So Weatherford Capital and Redbird Capital, Redbird Capital,

Starting point is 00:28:25 Redbird Capital are, you know, they have their hands in several professional sports teams, the Boston Red Sox, Liverpool, over in England, among those. So Weatherford Capital and Redbird Capital partners have combined their powers and billions in cash to create college athletic solutions, a dedicated campaign and business building platform

Starting point is 00:28:46 for investing capital and college athletic departments at the most transformational time in history. Now, in part of this story, Weatherford had said that, like, there are, you know, like three or four different universities he's been talking to, didn't reveal who they are, you know, for obvious, you know, reasons until those deals are sealed. But Kent, I've got to imagine, given who this is,

Starting point is 00:29:09 I've got to imagine Florida State's got to be one of those, right? Especially since Florida State at some point, they're either going to have to buy their way out of the ACC, whether that is paying full price or paying a settlement price, they're going to have to pay, I don't think they're going to get out for free. Maybe I'm wrong, but I don't think they're going to get out for free.

Starting point is 00:29:27 I think there's going to be some kind of a settlement. Maybe a little liquidity that comes from private equity could be their, you know, at least their cash ticket to get out of the ACC. Private equity may be Florida State saving grace because the person running the private equity has a personal connection to it. Right. Generally. He's not going to want to do them dirty.

Starting point is 00:29:48 Yeah. Exactly. The horses that they're pulling for somehow end up having success in the end more often than not. Any other school that goes and takes that money, good luck. Good luck. Best of luck to you, friend. I hope that the initial surge that you get is worth it. And that's, I'll leave it there. Yeah, well, we will leave it here because this was a fun episode. Make sure if you're watching us on YouTube, you smash that like button, subscribe to Locked-on ACC. If you're listening to the audio version, make sure you subscribe on Apple Podcasts,

Starting point is 00:30:18 wherever you get your pods. We'll talk a little bit more about now that like the transfer portal really feels kind of done now. You know, we talked about it last week when it wasn't really done. We'll talk more about that tomorrow. Plus a really interesting piece on the NIL valuations for every position in college football. So for the NIL heads out there, you're going to want to tune in tomorrow on a brand new episode of Lockdown ACC. We are part of the Lockdown Podcast Network, your team every day. Thank you.

Locked On ACC - Daily College Football & Basketball Podcast - The Moment FSU Knew Their CFP SNUB Was Coming | ACC Lawsuit UPDATE | Miami Lands Tyler Baron

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