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3,996 Views | 13 Replies | Last: 4 yr ago by revvie
revvie
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I have read several articles saying ESPN after they acquired rights to SEC football initiated discussions of moving OU and tu to SEC and to consolidate their contractual obligations. I am not an attorney, but will this expose them to potential lawsuits from remaining members of Big 12-2
Actual Talking Thermos
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Short answer, no. There's nothing inherently illegal about discussing a potential business deal even if the other party would have to get out of an existing contract to do it. Same reason it's not illegal for a big school to hire away the best coach some G5 program ever had, even though the coach still has years on their contract and the G5 school is in a much worse spot if they have to go out and try to hire a replacement. Any claim the other B12 schools would have against anyone would be based on the terms of the contract with Texas/OU, which has a liquidated damages/buyout provision that says exactly what is owed if this happens.
aggiehawg
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Pennzoil v. Texaco says differently. There could be tortious interference here. I don't know enough about who was talking to whom to say concretely but the possibility exists.
Detmersdislocatedshoulder
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aggiehawg said:

Pennzoil v. Texaco says differently. There could be tortious interference here. I don't know enough about who was talking to whom to say concretely but the possibility exists.


Baylo says" so your saying there's a chance". Calling ken star
PneumAg
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Tortious interference is absolutely a possibility. I think the economic loss rule is only available as a defense if you're a party to the contract at issue. Yes, sip and OU can pay liquidated damages to get out of the contract. But that doesn't mean ESPN's interference did not cause additional consequential damages above and beyond the liquidated amount for which the Big 12 schools could recover.
Ag in Tiger Country
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aggiehawg said:

Pennzoil v. Texaco says differently. There could be tortious interference here. I don't know enough about who was talking to whom to say concretely but the possibility exists.


And when those discussions were initiated &/or finalized (if finalized), as well as if a certain party (ESPN) negotiated agreements in "bad faith."
Actual Talking Thermos
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aggiehawg said:

Pennzoil v. Texaco says differently. There could be tortious interference here. I don't know enough about who was talking to whom to say concretely but the possibility exists.
But doesn't the means of interfering with the business relationship have to be a tort in and of itself (e.g. fraud, blackmail) in order for tortious interference to apply? What tort did ESPN commit that induced OU and Texas to look at joining a different conference?

E: My mistake, that's a requirement for tortious interference with a prospective deal, not an existing one. But I also don't think it's really even a breach of contract if the contract includes the option to pay money to terminate it early and you choose to do that.
Panama Red
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The problem with suing ESPN is that if ESPN induced the schools to do something the schools had a right to do (such as leave the contract at the end of it, or leave early and pay a penalty), that is not actionable. At least in Texas.
BadAggie
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Just change the channel, tbh.
PneumAg
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No, that's only for prospective business relations. Tortious interference itself is the tort. And actually, having sued numerous times for TI with a prospective contract, I can tell you it doesn't even have to be a tort. It just has to be some "unlawful act." Could be a breach of contract, or misappropriation of trade secrets, or some other non-tort.

Edit, just saw your edit. I had this sitting open in my browser and forgot to hit submit.
FL_Ag1998
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What happens to the LHN - in short, where do the profits from whatever they turn it into go to and how is it split - that's the billion dollar question.

If you don't see that question being asked or explained out loud and in the open, then there's something rotten in the state of Denmark.
Flashdiaz
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FL_Ag1998 said:

What happens to the LHN - in short, where do the profits from whatever they turn it into go to and how is it split - that's the billion dollar question.

If you don't see that question being asked or explained out loud and in the open, then there's something rotten in the state of Denmark.


LHN has profits? Figured they'd close it like Pier1
aggiehawg
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Quote:

What tort did ESPN commit that induced OU and Texas to look at joining a different conference?
According to the President of OSU, violations of the Big XII bylaws, breach of contract.

Again, I am not saying there's a great case here, BTW. I don't know enough facts.
AustinAg2K
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As of right now, OU and Texas have only said they don't intend to continue in the Big 12 after their current contract expires in 2025. I don't see how, even if ESPN is encouraging this, that there would be a legal case against them. They are stating they will fulfill their contract and then be gone.

Not a lawyer.
revvie
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Per another thread, The Big 12 has sent a cease and desist order to ESPN.
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