IMG College, responding to Arizona State Univ.'s termination of a multimedia-rights agreement through '21, claims that the school "is liable" for damages "of at least" $34M, according to Jeff Matcalfe of the ARIZONA REPUBLIC. IMG last week notified ASU that it "will pursue legal action against the university and the Arizona Board of Regents on Dec. 14 unless an amicable resolution is reached." ASU Senior VP & General Counsel Jose Cardenas yesterday responded to IMG in a letter in which he "disputes IMG's claim for damages, citing an offer by IMG" in March '13 to pay ASU $2.5M to "resolve what IMG now says are minor and immaterial contract breaches." ASU in July '09 signed a 10-year agreement with IMG that later was extended through '21. Documents show that ASU "began questioning IMG's performance" in October '12 and by August '13 "had sent a notice claiming default of contract obligations by IMG." ASU by April '14 claimed that it was "conservatively owed" $5.5M from IMG for "failure to provide sufficient radio coverage, radio advertisements not received and a trade-credit violation." ASU late last month notified IMG that it was "terminating the agreement." This "is the final week that IMG will provide services for ASU." If an agreement is not reached, IMG indicated that it "will seek damages for ASU profits achieved with IMG in excess of those received from its previous media-rights holder, to reimburse IMG for its investment since 2009, for IMG lost profits and for damage to IMG's reputation" (ARIZONA REPUBLIC, 10/23).
