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Contract disputes regarding media rights come to an end

On behalf of Kadish & Associates Law Group posted in Contract Disputes on Friday, April 22, 2016.

Up until Oct. 2014, Arizona State University had a contract with IMG College to handle the university’s media rights. It was then that ASU cited contract disputes with IMG and claimed that it was owed damages over $5 million.  IMG responded by filing a lawsuit against the Arizona Board of Regents, and ASU later on that same year, alleging that an amicable resolution to their differences could not be reached.

In Oct. 2015, a judge with the Maricopa County Superior Court dismissed the lawsuit without prejudice (which means that it could be refiled) ruling that administrative remedies must be pursued before a lawsuit could be filed. This sent the parties back into negotiations in an attempt to come to some sort of resolution. Recently, an agreement was reached.

ASU agreed to withdraw its earlier termination of the contract in lieu of a mutual termination backdated to June 30, 2014. IMG agreed to pay the university for inventory it provided to customers during the 2014-2015 athletic seasons. In addition, ASU agreed to allow IMG to keep funds it was holding that it received from sponsors during that same season.

Many of the contracts signed by Arizona companies also require that the parties attempt to resolve their contract disputes through alternative measures prior to either party filing a lawsuit. This is done, at least in part, in an attempt to keep down the time and costs associated with litigation. Furthermore, the parties might be able to come to an agreement that is mutually beneficial, which might not happen if the parties left the decisions up to the court.

Source:, “ASU, IMG College end lengthy media rights dispute”, Jeff Metcalfe, April 16, 2016

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