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USD business law expert provides insight to Holiday Bowl lawsuit

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SAN DIEGO (KGTV) – Bowl season in college football is known for high pressure, big crowds, and lots of money to be made.

Money is the crux of a recently filed lawsuit by organizers of the Holiday Bowl in San Diego against the Pac-12 Conference and UCLA relating to the 2021 game.

As previously reported, UCLA bowed out of the 2021 game due to COVID-19 protocols within the team which led to the game’s cancellation.

“They made a decision, which they were entitled to make. But that decision had financial implications; there was a contract in play, and the contract is going to control this situation,” said Craig Barkacs, a business law expert and business law professor at the University of San Diego’s Knauss School of Business.

ABC 10News obtained the 10-page lawsuit and asked Barkacs for his insight.

“This lawsuit, in my opinion, will survive any attempts early on to remove it by motion,” Barkacs said.

Holiday Bowl officials claim they lost more than $3 million through refunding fans and advertisers. The organizers are seeking compensation from UCLA and the Pac-12.

Regarding the lawsuit, the Pac-12 told ABC 10News in a statement:

“Despite the Pac-12’s good faith efforts to find an amicable and fair resolution, the Holiday Bowl filed a lawsuit this week seeking to leverage for its own financial gain the global COVID-19 pandemic which led to the cancellation of the 2021 Holiday Bowl. The Holiday Bowl is now also refusing to pay the fees it owes the Pac-12 for our member institution’s participation in the 2022 Holiday Bowl, in clear breach of our agreement. The Pac-12 plans to vigorously defend against the lawsuit, which is wholly without merit, and to seek the monies owed by the Holiday Bowl under our agreement."

The CEO of Sports San Diego Mark Neville also issued his statement on the situation:

“Late yesterday the non-profit Holiday Bowl effort filed a complaint in San Diego County Superior Court against the Pac-12 Conference and UCLA for the damages we incurred when UCLA elected not to play the game in 2021. In honor of our decades-long partnership with the Pac-12, we diligently tried to resolve the matter privately and out of the public eye. We were unsuccessful. We are, of course, disappointed this is how we must now resolve the dispute. That said, we believe strongly in our position and will continue to work towards a positive resolution for our organization and community. Concurrently, we continue with planning for what surely will be another incredible Holiday Bowl experience at Petco Park this December!”

Barkacs told ABC 10News there is one thing that would surprise him with this dispute coming into public light.

“This could motivate the parties to go back to the negotiating table and hash this out. Quite frankly, I’d be quite surprised if this thing goes to trial. That doesn’t mean it won’t be litigated for a while; that there aren’t hard feelings upfront,” Barkacs said.

ABC 10News asked Barkacs what this suit could mean for future Holiday Bowls.

“You have to worry about the impression that it’s going to give. And the last thing that the Holiday Bowl and San Diego want is to scare potential suitors away,” Barkacs said.

Barkacs also feels this lawsuit won’t deter schools from accepting a bid from playing in future Holiday Bowls.

“I understand the concern that this might cause some concern for some schools to be apprehensive or it might cast a pall over the Holiday Bowl. But I’m quite sanguine about San Diego and the Holiday Bowl,” Barkacs said. “We live in a beautiful city. The Holiday Bowl has had remarkable success. I think this might end up being just a glitch along the way.”