Colorado State and Utah State filed a lawsuit on Monday against the Mountain West for the exit fees that five schools have to pay to leave the conference for the Pac-12 in 2026.
While Fresno State is not a plaintiff in the lawsuit, the university signed a letter with the other four departing universities that is included in the complaint, which states that all five schools think the exit fees are invalid.
The big picture: According to a report from Yahoo Sports, Colorado State and Utah State claim the exit fee is “invalid and unenforceable.”
- The universities also claim the Mountain West secretly amended the conference’s bylaws during meetings that were held without the five departing universities.
- Further, the schools claim Mountain West Commissioner Gloria Nevarez made deals on the side to funnel exit fee money to the remaining conference members, including UNLV and Air Force, which reportedly received millions of dollars in deals to remain in the conference.
- The lawsuit claims that the Mountain West is demanding an exit fee ranging from $19 million per school to $38 million.
Zoom in: Along with Colorado State and Utah State, Fresno State, Boise State and San Diego State penned a letter to Nevarez in November arguing that the exit fees are invalid. That letter was included in the lawsuit.
- “The Conference’s attempt to impose the Exit Fee on the Five Institutions is improper and unenforceable,” the letter reads, according to Yahoo Sports. “The exit fee, which is completely untethered to any harm to the Conference from a member’s departure, is clearly designed to punish departing members and is therefore invalid as a matter of law.”
- Colorado State and Utah State also argue in the lawsuit that they have a right to be part of current Mountain West meetings since they have not provided formal notification of exit, even though they have publicly stated their intent to join the Pac-12 in 2026. They claim the Mountain West has met without proper notice and has not provided meeting minutes to the departing members.
Flashback: This is the second lawsuit filed against the Mountain West over the exit fees.
- The Pac-12 filed a lawsuit against the conference in September specifically over the so-called “poaching penalty.”
- Along with the exit fees, the Pac-12 is required to pay a poaching fee of over $50 million for the five departing schools. The poaching fees were part of the scheduling agreement that the Pac-12 signed with the Mountain West for the 2024 football season.
- The Pac-12 argued that the exit fees already injure the universities and that the poaching fees are excessive and unreasonable.
