[The Watcher]

A company claiming it has rights to broadcast athletic contests within the SWAC has threatened to sue the league, claiming it interfered with a potential big-time sponsor.

Full story:
https://hbcugameday.com/2022/04/18/swac-fears-pending-lawsuit-could-impact-deal-with-pepsico/

[bluedog]

Love it!

[soflorattler]

A company claiming it has rights to broadcast athletic contests within the SWAC has threatened to sue the league, claiming it interfered with a potential big-time sponsor.

An attorney representing Urban Edge Networks Inc., parent company of HBCU League Pass +, sent a notice to the SWAC on April 14 that it will be filing suit against the conference. The document, obtained by HBCU Gameday, alleges “improper and illegal interference” with UEN’s “expected business transaction” with PepsiCo by the SWAC.

SWAC Commissioner Dr. Charles McClelland sent a copy of the notice from the attorney to the presidents and chancellors of the conference on Thursday. The letter informed the Council of Presidents that PepsiCo had reached out to him about Urban Edge broadcasting SWAC contests, in which he stated they had no rights to do so. His correspondence read in part:

But any entity that is approaching PepsiCo for media buys and referencing broadcasting SWAC games should be evaluated more closely. It has been brought to my attention that several entities have approached some of our corporate partners and others regarding media buys for SWAC games. Just for your information, SWAC Conference games cannot be streamed or broadcasted on a national basis outside of the Conference agreements. In addition, Member Institutions cannot grant permission to other entities to broadcast games either liner or digitally on a national basis; all Conference games are restricted and can only be negotiated by the Conference Office.

SWAC Commissioner Dr. Charles McClelland
According to his email, his response prompted UEN to send the threat of a suit alleging “tortious interference.”

McClelland expressed concern that the issue could jeopardize the league’s relationship with PepsiCo, who the league is renegotiating with for potential eight-figure payment. He stated it poses a potentially bigger threat to the league’s negotiations with Byron Allen Media Group for secondary broadcast rights. The email states that the total funding jeopardized could potentially be in excess of $100 million.

SWAC BROADCASTING RIGHTS
According to its website, UEN provides media assets for the HBCU League Pass +, which announced deals with multiple SWAC institutions this February. The deals, one with Florida A&M and another with Grambling State, included signage on NASCAR vehicles as well as an app with channels for live streaming.

FAMU was the first to announce a deal with the UEN, posting a release on Feb. 15.

“The network will broadcast all available sports, the Marching 100, and other university-related content with a dedicated channel to FAMU Athletics on HBCU League Pass+,” the release stated. “This allows FAMU to join Urban Edge in this latest black-owned media initiative. The live streaming network is primed to create new revenue streams and ensure fans, students, and alumni can watch their teams play anywhere there is an internet connection and on-demand 24/7.”

A week later, Grambling State announced a similar deal. Shortly thereafter, the SWAC sent leadership a reminder stating that member institutions cannot sign national rights deals in linear or digital form. SWAC institutions can broadcast on their own individual streaming networks, local television and regional television.

McClelland made it clear to the SWAC leadership that he intends to resolve the issue, stating that the league intends to file counterclaims, potentially for fraud or false representation.

“SWAC intends to fight this lawsuit vigorously and aggressively,” McClelland wrote, “we will not stand by and allow 3rd parties to try to take advantage of the SWAC and our institutions.”

https://hbcugameday.com/2022/04/18/swac-fears-pending-lawsuit-could-impact-deal-with-pepsico/

[The Watcher]

Hey mods. can we not put our entire story in here please?

[bluedog]

[Jay_Thomas]

So why is PepsiCo not suing the 2 schools and opting to sue the entire SWAC? Did the SWAC have anything to do with FAMU, Grambling's decisions?

[Warpaint]

So why is PepsiCo not suing the 2 schools and opting to sue the entire SWAC? Did the SWAC have anything to do with FAMU, Grambling's decisions?

Unless I am misreading this, I don't believe Pepsi is suing anybody.  UEN is threatening to sue the SWAC for what they claim is the SWAC interferring with UEN's potential deal with Pepsi.

[bluedog]

So why is PepsiCo not suing the 2 schools and opting to sue the entire SWAC? Did the SWAC have anything to do with FAMU, Grambling's decisions?

It's isn't PesiCo that's threatening to sue. Read it again. It's HBCU league pass

[bluedog]

So why is PepsiCo not suing the 2 schools and opting to sue the entire SWAC? Did the SWAC have anything to do with FAMU, Grambling's decisions?

Gosha may have violated his employment contract with rogue UEN deal

FAMU Athletics Director Kortne Gosha appears to have violated the terms of his contract by engaging the university athletics department in a start-up digital streaming television network.  On February 17th FAMU Athletics announced a multi-year partnership with Urban Edge Networks (UEN) granting the company the broadcast rights to all available FAMU sports, the Marching 100, and other university-related content.

According to sources familiar with the deal, Gosha entered into the agreement without having it reviewed by the university general council or consent from his supervisor. 

On its face, the contract violates the terms of his employment agreement and university regulation 1.019 (sub. 7) which prohibits university employees from creating a legal obligation on the part of the university.  University policy states that, " all agreements, understandings, and contracts must be reviewed by the Office of General Counsel before execution.”

FAMU officials were also blindsided when it learned through the news media that UEN and HBCU League Pass+ had entered a FAMU branded NASCAR race car using the university's official trademarks into the nationally televised Pennzoil 400 race in Las Vegas [font color="#e61a19"]without university approval[/font]. 
 
[font color="#e61a19"]The university was again caught off guard Friday, when it learned, again via news media, that a replica of the racecar was being marketed for pre-sale without university approval.  [/font]
 
At odds with SWAC
FAMU's announcement with UEN, and an earlier one by Grambling State, drew the ire of SWAC Commissioner Charles McClelland.  In an email obtained exclusively by Rattler Nation McClelland reminds the SWAC Council of Presidents of league policy that prohibits member institutions from signing national broadcast rights deals (linear or digital) that involve conference games.

McClellan told presidents that he was aware that UEN was approaching individual schools.
 
As you know, "[font color="#e61a19"]we have a current contract with ESPN, and we are negotiating with television mogul Byron Allen for the remaining broadcast rights," McClellan wrote in his email.  FAMU’s UEN/HBCU League Pass+ deal is in direct conflict with the digital streaming deal the SWAC is negotiating with Allen’s HBCU GO.  According press reports, the SWAC partnership with HBCU GO will begin this fall (2022-23).  [/font]
 
HBCU GO would distribute programming for the conference across all sports in the league, including football, basketball and volleyball — even Olympic sports.
 
According to McClelland, the SWAC/HBCU GO deal could potentially be worth as much as $120 million dollars over the life of the contract.
 
The FAMU Athletics release did not mention the length of its partnership with UEN or affix a dollar value to it.

http://rattlernation.blogspot.com/2022/04/gosha-may-have-violated-his-employment.html?m=1

[Warpaint]

I'm just trying to figure out why FAMU and Grambling thought they could strike solo deals for their game streaming rights.  Unless you are Notre Dame or Texas it's rare for a D1 school to be able to negotiate media rights outside of the conference negotiated deals.

Did the SWAC previously allow schools to neogtiate their own deals?

[Warpaint]

So why is PepsiCo not suing the 2 schools and opting to sue the entire SWAC? Did the SWAC have anything to do with FAMU, Grambling's decisions?

Gosha may have violated his employment contract with rogue UEN deal

FAMU Athletics Director Kortne Gosha appears to have violated the terms of his contract by engaging the university athletics department in a start-up digital streaming television network.  On February 17th FAMU Athletics announced a multi-year partnership with Urban Edge Networks (UEN) granting the company the broadcast rights to all available FAMU sports, the Marching 100, and other university-related content.

According to sources familiar with the deal, Gosha entered into the agreement without having it reviewed by the university general council or consent from his supervisor. 

On its face, the contract violates the terms of his employment agreement and university regulation 1.019 (sub. 7) which prohibits university employees from creating a legal obligation on the part of the university.  University policy states that, " all agreements, understandings, and contracts must be reviewed by the Office of General Counsel before execution.”

FAMU officials were also blindsided when it learned through the news media that UEN and HBCU League Pass+ had entered a FAMU branded NASCAR race car using the university's official trademarks into the nationally televised Pennzoil 400 race in Las Vegas [font color="#e61a19"]without university approval[/font]. 
 
[font color="#e61a19"]The university was again caught off guard Friday, when it learned, again via news media, that a replica of the racecar was being marketed for pre-sale without university approval.  [/font]
 
At odds with SWAC
FAMU's announcement with UEN, and an earlier one by Grambling State, drew the ire of SWAC Commissioner Charles McClelland.  In an email obtained exclusively by Rattler Nation McClelland reminds the SWAC Council of Presidents of league policy that prohibits member institutions from signing national broadcast rights deals (linear or digital) that involve conference games.

McClellan told presidents that he was aware that UEN was approaching individual schools.
 
As you know, "[font color="#e61a19"]we have a current contract with ESPN, and we are negotiating with television mogul Byron Allen for the remaining broadcast rights," McClellan wrote in his email.  FAMU’s UEN/HBCU League Pass+ deal is in direct conflict with the digital streaming deal the SWAC is negotiating with Allen’s HBCU GO.  According press reports, the SWAC partnership with HBCU GO will begin this fall (2022-23).  [/font]
 
HBCU GO would distribute programming for the conference across all sports in the league, including football, basketball and volleyball — even Olympic sports.
 
According to McClelland, the SWAC/HBCU GO deal could potentially be worth as much as $120 million dollars over the life of the contract.
 
The FAMU Athletics release did not mention the length of its partnership with UEN or affix a dollar value to it.

http://rattlernation.blogspot.com/2022/04/gosha-may-have-violated-his-employment.html?m=1

Thanks for the additional information.  Sounds like the AD went rogue.  Even without getting the contract reviewed by the FAMU GC the AD had to know that this violated the current TV contracts the SWAC has in place.

[bluedog]

So why is PepsiCo not suing the 2 schools and opting to sue the entire SWAC? Did the SWAC have anything to do with FAMU, Grambling's decisions?

Gosha may have violated his employment contract with rogue UEN deal

FAMU Athletics Director Kortne Gosha appears to have violated the terms of his contract by engaging the university athletics department in a start-up digital streaming television network.  On February 17th FAMU Athletics announced a multi-year partnership with Urban Edge Networks (UEN) granting the company the broadcast rights to all available FAMU sports, the Marching 100, and other university-related content.

According to sources familiar with the deal, Gosha entered into the agreement without having it reviewed by the university general council or consent from his supervisor. 

On its face, the contract violates the terms of his employment agreement and university regulation 1.019 (sub. 7) which prohibits university employees from creating a legal obligation on the part of the university.  University policy states that, " all agreements, understandings, and contracts must be reviewed by the Office of General Counsel before execution.”

FAMU officials were also blindsided when it learned through the news media that UEN and HBCU League Pass+ had entered a FAMU branded NASCAR race car using the university's official trademarks into the nationally televised Pennzoil 400 race in Las Vegas [font color="#e61a19"]without university approval[/font]. 
 
[font color="#e61a19"]The university was again caught off guard Friday, when it learned, again via news media, that a replica of the racecar was being marketed for pre-sale without university approval.  [/font]
 
At odds with SWAC
FAMU's announcement with UEN, and an earlier one by Grambling State, drew the ire of SWAC Commissioner Charles McClelland.  In an email obtained exclusively by Rattler Nation McClelland reminds the SWAC Council of Presidents of league policy that prohibits member institutions from signing national broadcast rights deals (linear or digital) that involve conference games.

McClellan told presidents that he was aware that UEN was approaching individual schools.
 
As you know, "[font color="#e61a19"]we have a current contract with ESPN, and we are negotiating with television mogul Byron Allen for the remaining broadcast rights," McClellan wrote in his email.  FAMU’s UEN/HBCU League Pass+ deal is in direct conflict with the digital streaming deal the SWAC is negotiating with Allen’s HBCU GO.  According press reports, the SWAC partnership with HBCU GO will begin this fall (2022-23).  [/font]
 
HBCU GO would distribute programming for the conference across all sports in the league, including football, basketball and volleyball — even Olympic sports.
 
According to McClelland, the SWAC/HBCU GO deal could potentially be worth as much as $120 million dollars over the life of the contract.
 
The FAMU Athletics release did not mention the length of its partnership with UEN or affix a dollar value to it.

http://rattlernation.blogspot.com/2022/04/gosha-may-have-violated-his-employment.html?m=1

Thanks for the additional information.  Sounds like the AD went rogue.  Even without getting the contract reviewed by the FAMU GC the AD had to know that this violated the current TV contracts the SWAC has in place.

Personally I can understand FAMU making this mistake because it's their first time having to do anything like this on this level. But Grambling has no such excuse since they have been involved with network negotiations for over four decades involving the Bayou Classic, even though it's Southern officials who take the lead in the negotiations they still have a working knowledge of the do's and don'ts

[Jay_Thomas]

Bluedog, Warpaint, thanks for clearing up that part as I was doing half ass reading 

[bluedog]

Bluedog, Warpaint, thanks for clearing up that part as I was doing half ass reading 

LMAO.....

[bluedog]

Did the SWAC previously allow schools to neogtiate their own deals?

As I'm sure you are aware the Bayou Classic is the only hbcu game that has been broadcast nationally on an annual basis for over four decades. This was done obvious way before all this media and streaming became main stream to college sports as it is today. At that time very few conferences let along hbcu conference knew anything about negotiating such deals so the conference didn't interfere with the schools negotiations since it was their ideal anyway. Since then the deal with the Bayou Classic and  NBC was grandfathered into any new negotiations that the conference has moving forward so that it is exempt from conference interference. But neither school can negotiate  any other conference games national broadcasting or streaming rights .