Mountain West pushes back in fight over exit fees from schools leaving for Pac-12

League cites SDSU’s situation in 2023

The Mountain West conference logo on the field at Allegiant Stadium. | Kirby Lee-Imagn Images

With five of its schools leaving for the new-look Pac-12, the Mountain West Conference is defending its legal position in seeking more than $150 million in exit fees and poaching penalties, citing the situation San Diego State found itself in when it considered leaving the conference two years ago.

Boise State, Colorado State and Utah State are suing the MWC over exit fees, a standard process in conference realignment. The Pac-12 is also suing the MWC over a poaching penalty that was included in a scheduling agreement between the two conferences. 

Those three schools, plus San Diego State and Fresno State, will join the reconfigured Pac-12 effective next July 1.

The Pac-12 and MWC began a mediation process in May that expired in July without a resolution. The two sides will head back to court in September for a motion to dismiss hearing. 

The MWC, which is seeking more than $150 million in exit fees and poaching penalties, released a statement on Thursday defending its legal position. 

“The Mountain West and the departing institutions engaged in an additional mediation session earlier this month that did not result in resolution,” the MWC said in a statement. “This litigation centers on the obligation of these institutions to pay the exit fees clearly defined in the Mountain West Conference bylaws — policies they not only helped develop and adopt, but also sought to enforce against San Diego State in the summer of 2023. It is, therefore, inconsistent and unjust for these same institutions to now attempt to evade their responsibilities. In fact, the departing schools have agreed to similar exit fee provisions as part of their membership in the Pac-12. 

“The Mountain West is prepared to respond to whatever assertions may be included in the Second Amended Complaint. We remain confident in our legal position, which we will vigorously defend.”

In 2023, SDSU was hoping for an invitation from the Pac-12 or Big 12 and gave formal notice that it intended to leave the MW, to avoid having its exit fees double from $18 million to $36 million. However, the Aztecs weren’t invited to join another conference and remained with the MW.

The Pac-12 fell apart literally overnight later that summer. 

The two survivors, Washington State and Oregon State, will join with the five MW schools, plus Texas State and Gonzaga, to form the new Pac-12.

The MWC’s statement did not mention the $55 million in poaching penalties the conference is seeking from the Pac-12. 

The Pac-12 believes the poaching penalties are illegal and invalid. 

“The Pac-12 remains committed to moving forward with legal action in response to the Mountain West’s attempt to impose so-called ‘poaching penalties,’ provisions we believe are unlawful and intended to obstruct our ability to act in the best interests of our student-athletes and member institutions,” the conference said in a statement last month. “We are confident in the strength of our position.”