Law360: Mountain West Conference Hit With New Suit Over Exit Fees

Colorado State University and Utah State University filed a lawsuit against the Mountain West Conference on Monday alleging that its punishing exit fees are stifling their ability to join the rival Pac-12 Conference, along with fellow conference members Boise State University, Fresno State University, and San Diego State University. Colorado State and Utah State’s complaint in Colorado state court contends that the conference changed league bylaws behind the backs of the leaving schools and asked each school to pay “exorbitant and ill-defined ‘exit fees’” ranging from $19 million to $38 million. O'Melveny partner Matt Cowan, who represents Colorado State and Utah State, said that the conference and its commissioner also “promis[ed] the remaining seven members [of the conference] millions of dollars earned by and owed to the five departing universities.” The O’Melveny team also includes partners Steve Olson and Tim Heafner.

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