Three departing members of Mountain West initiating legal action against the conference for allegedly withholding substantial financial sums
In a significant turn of events, three schools from the Mountain West Conference (MWC) - Boise State, Colorado State, and Utah State - have filed a lawsuit against the conference and Commissioner Gloria Nevarez, claiming that the MWC unlawfully withheld tens of millions of dollars from them and misled them about a secret plan to accelerate Grand Canyon University's membership to the 2025-26 season without informing the departing members.
The schools are all headed to the Pac-12 after the 2025-26 school year. The lawsuit, filed in the District Court of Denver, alleges that the MWC violated its bylaws by "intentionally and fraudulently" depriving them of membership rights and improperly imposing exit fees ranging from $19 million to $38 million, which the schools argue are unlawful and unenforceable.
The withheld funds include Boise State’s revenue from the 2024 College Football Playoff, travel reimbursements, and NCAA distributions related to financial aid, academic support, and athlete welfare. The schools also accuse the MWC of concealing and delaying formal votes on the advancement of Grand Canyon’s membership until after the schools had submitted their resignation notices.
Steve Olson, partner and litigation department co-chair for the O'Melveny law firm, continues to state that the Mountain West continues to improperly retaliate against the departing members and their student athletes. The Mountain West denies wrongdoing and claims the exit fees were adopted with the involvement of the departing schools; it is also seeking $55 million in “poaching fees” from the Pac-12 for the loss of five schools.
The Mountain West Conference declined further comment outside of a statement released last week. Mediation between the parties has failed, and the dispute is headed for court. The schools are seeking damages for millions of dollars of alleged harm caused by the Mountain West, including the withholding of money earned by Boise State for playing in last year's College Football Playoff.
The two sides are headed back to court after mediation that expired last month failed to reach a resolution. The Mountain West Conference remains confident in its legal position and will vigorously defend it. The lawsuit also claims the Mountain West concealed a plan to move up Grand Canyon University's membership a year to 2022-23 without informing the departing schools. The Mountain West is allegedly seeking these fees for the loss of five schools, including San Diego State and Fresno State, starting in 2026.
The schools contend that the MWC violated its bylaws by improperly imposing exit fees and depriving them of membership rights. The Mountain West denies these allegations, stating that the exit fees were adopted with the involvement of the departing schools. The dispute between the three schools and the Mountain West Conference is a significant one, with potential implications for the future of the conference and its relationships with its member schools.
In summary:
- Lawsuit Plaintiffs: Boise State, Colorado State, Utah State
- Defendants: Mountain West Conference, Commissioner Gloria Nevarez
- Allegations:
- Improper withholding of millions in funds (CFP revenue, reimbursements, NCAA distributions)
- Fraudulent concealment of plan to move up Grand Canyon U’s membership to 2025-26 season
- Imposition of unlawful and excessive exit fees ($19-38 million per school)
- Violation of conference bylaws and membership rights
- Context: Schools departing for the Pac-12 starting 2026
- Mountain West’s stance: Confident in legal position; countersuing Pac-12 for poaching fees
- Current status: Litigation ongoing after failed mediation.
The three schools, Boise State, Colorado State, and Utah State, have filed a lawsuit alleging that the Mountain West Conference unlawfully withheld funds and concealed a plan to accelerate Grand Canyon University's membership to the 2025-26 season. Their allegations include the improper imposition of exit fees, the violation of membership rights, and the withholding of funds such as CFP revenue, travel reimbursements, and NCAA distributions. The Mountain West Conference denies wrongdoing, stating that the exit fees were adopted with the involvement of the departing schools. The dispute is currently ongoing after failed mediation, with the schools seeking damages for alleged harm and the Mountain West seeking poaching fees from the Pac-12. The future of the conference and its relationships with member schools may be affected by this significant lawsuit.
