Mountain West sued by 2 departing schools over exit fees

Two schools that have announced their intention to leave the Mountain West have sued the conference over what they call “invalid and unenforceable” exit fees.

Colorado State and Utah State filed suit Monday in Denver, months after they were part of a contingent of five teams that decided to leave the Mountain West to help reform the Pac-12.

The lawsuit claims the schools never agreed to pay the fees, which would be at least $18 million from each institution.

Steve Olson, one of the lawyers who filed the suit on behalf of the two schools, doesn’t believe the contracts that spelled out the exit fees are enforceable, calling the actions of the league “extraordinary and illicit.”

“The Conference and its Commissioner, Gloria Nevarez, willfully disregarded Conference bylaws and governance procedures and have threatened to withhold tens of millions of dollars — including this season’s College Football Playoff revenues and post-season travel cost reimbursement — from the members,” Olson said in a statement.

At issue are millions of dollars in fees the schools from the Mountain West and the leftovers of the Pac-12 agreed to as part of a scheduling agreement that allowed Oregon State and Washington State to play games against Mountain West teams.

The agreements were supposedly put in place to prevent the Pac-12 from using those games as a springboard to rebuild its ranks from the Mountain West, which is what eventually happened.

The Pac-12 is also subject to $55 million in poaching fees for bringing in the schools from the Mountain West. Those fees are already part of a separate lawsuit.

UNLV was pursued by the Pac-12, but ultimately decided to stay in the Mountain West. Part of the decision to remain was the promise of a significant percentage of the money that would be flowing into the conference’s coffers as a result of the exodus.

Matt Cowan, another lawyer who is part of Colorado State and Utah State’s suit, accused the Mountain West of deceptive practices throughout the realignment process.

“The Conference and Commissioner held secret meetings and entered into side agreements promising the remaining seven members millions of dollars earned by and owed to the five departing Universities,” Cowan said. “While it is unfortunate that the Conference and its Commissioner have taken actions designed to penalize the departing members, all five departing members stand united in their duty to protect the rights and interests of their institutions, student-athletes, and fans.”

Cowan and Olson have previously advised Stanford, UCLA and Fresno State on their conference moves.

A Mountain West spokesperson called Colorado State and Utah State’s lawsuit “an inappropriate attempt to circumvent their clear financial obligations as departing members.”

“The Mountain West rules pertaining to withdrawal from the Conference are long-standing and were developed and codified by the current member institutions — including Colorado State and Utah State,” the statement read.

“We look forward to responding to the lawsuit to refute several inaccurate and specious assertions included in the filing.”

Contact Adam Hill at ahill@reviewjournal.com. Follow @AdamHillLVRJ on X.