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Colorado State, Utah State Sue Mountain West Over Punitive Exit Penalties

Mountain West Accused of Violating Bylaws to Punish Departing Members

In a stunning legal move, Colorado State University and Utah State University have filed a lawsuit against the Mountain West Conference, alleging that the league is engaging in “extraordinary and unauthorized actions” to penalize the five member schools set to depart for the Pac-12 Conference in 2026. The complaint, filed Monday in Colorado state court, accuses the Mountain West and Commissioner Gloria Nevarez of disregarding the conference’s bylaws in a “desperate attempt to prevent further membership departures.”

The lawsuit comes on the heels of the September announcement that Colorado State, Utah State, Boise State, Fresno State, and San Diego State plan to leave the Mountain West for the greener pastures of the Pac-12. According to the complaint, the Mountain West is now threatening to withhold tens of millions of dollars owed to the departing members, including reimbursements for travel and other expenses related to postseason football games.

“This flouting of the Bylaws and Colorado law is not new. It is part of the Mountain West’s ongoing efforts to restrict its members’ ability to freely explore the best options in the marketplace for their student-athletes and penalize certain members for announcing their intent to withdraw from the Conference.”

– Excerpt from the complaint filed by Colorado State and Utah State

Hefty Exit Fees and Frozen-Out Board Meetings

The plaintiffs allege that the Mountain West is seeking to impose exit fees ranging from $19 million to $38 million per departing school, an amount that the lawsuit claims “bears no relationship to the purported harm from Plaintiffs’ withdrawal from the Conference.” These fees, according to the complaint, are equal to three to six times the average annual distribution paid to member schools in the preceding year.

Beyond the financial penalties, the lawsuit also accuses Commissioner Nevarez and the Mountain West of freezing out the five departing schools from board meetings and operating in secret to violate their rights as current league members. The law firm representing the plaintiffs, O’Melveny, stated in a press release that the Mountain West has made side agreements promising the seven remaining conference members millions of dollars “earned by and owed to the five departing members.”

A Bitter Breakup in the Wake of the Pac-12’s Implosion

The unraveling of the Mountain West is a direct result of the Pac-12’s near-collapse, which saw every member school except Oregon State and Washington State depart for the Big Ten, Big 12, or Atlantic Coast Conference. As the Pac-12 scrambled to rebuild, it turned to the Mountain West to poach replacement members, setting off a chain reaction of conference realignment.

In the aftermath, seven Mountain West schools—Air Force, Nevada, New Mexico, San Jose State, UNLV, Wyoming, and Hawaii—signed a memorandum of understanding to remain in the conference. However, the lawsuit claims that these remaining members are now colluding with the league leadership to punish the departing schools and deny them their rightful share of conference revenues.

A High-Stakes Legal Battle with Far-Reaching Implications

As the first major legal challenge to arise from the latest wave of conference realignment, the outcome of this lawsuit could have significant ramifications for the future of college sports. If Colorado State and Utah State prevail, it could set a precedent that limits the power of conferences to penalize member schools for seeking greener pastures elsewhere.

On the other hand, a victory for the Mountain West could embolden other leagues to take similarly aggressive actions to deter defections and maintain stability in an increasingly volatile landscape. Regardless of the outcome, this high-stakes legal battle is sure to be closely watched by administrators, coaches, and fans across the country as the fallout from the Pac-12’s implosion continues to reshape the college sports world.

As the lawsuit winds its way through the courts, the eyes of the college sports world will be fixed on Colorado, where the future of the Mountain West—and the broader landscape of conference realignment—may very well be decided. With tens of millions of dollars and the fate of two conferences hanging in the balance, one thing is certain: the reverberations from this legal showdown will be felt far beyond the courtroom walls.