College football is basically a courtroom drama now. If you've been following the Mountain West exit fee lawsuit, you know it's less about touchdowns and more about "liquidated damages" and "antitrust violations." Honestly, it’s a mess.
It all started when the Pac-12—or what was left of it—decided to raid the Mountain West to rebuild its ranks. Boise State, San Diego State, Colorado State, Fresno State, and eventually Utah State all raised their hands to leave.
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But leaving isn't free.
The Mountain West Conference (MWC) pointed to its rulebook and a very specific scheduling agreement, essentially telling the departing schools and the Pac-12: "That’ll be $150 million, please."
Naturally, nobody wanted to pay.
The Mountain West Exit Fee Lawsuit and the Poaching Problem
There are actually two separate legal fires burning here. First, you have the individual schools—specifically Colorado State and Utah State—fighting the MWC over the standard exit fees. Then, you have the Pac-12 itself suing to stop the "poaching fees."
What are poaching fees?
Back in late 2023, when Oregon State and Washington State were desperate for a 2024 schedule, they signed a deal with the Mountain West. MWC Commissioner Gloria Nevarez included a "poison pill" in that contract. It stated that if the Pac-12 took one MWC team, they’d owe $10 million. Two teams? $20.5 million. By the time the Pac-12 grabbed five schools, the bill hit $55 million.
The Pac-12's argument is that this was a "naked restraint on competition." They claim they were under duress. Basically, they’re saying, "We had to sign it to survive, but it’s illegal, so we aren't paying."
In October 2025, a federal judge in California, Susan van Keulen, denied the Mountain West’s motion to dismiss this part of the case. That was a massive win for the Pac-12. It means the "poaching fee" fight is headed for discovery and likely a trial in late 2026 unless they settle.
Why $18 Million is the Magic (and Contentious) Number
While the Pac-12 fights the poaching penalties, the schools are fighting the base exit fees. According to MWC bylaws, schools leaving with at least a year's notice owe roughly $17 million to $18 million. If they give less notice, that number doubles to somewhere around $34 million.
Utah State and Colorado State filed their own lawsuit in Colorado, calling these fees "retaliatory" and "punitive."
- The MWC's Stance: "You signed the bylaws. You helped write them. Now pay up."
- The Schools' Stance: "The conference is withholding our media distributions and postseason money to cover these fees. That's illegal."
Mediation happened in August 2025. It went nowhere. Reportedly, the schools offered about $10 million each. The MWC wouldn't budge below $18 million. It’s like a high-stakes game of chicken where both cars are made of billable hours.
The "Secret Meetings" and the GCU Factor
This is where it gets spicy. Colorado State and Utah State allege that Commissioner Nevarez held "secret meetings" without the departing members. They claim the MWC amended its bylaws behind their backs to strip them of their voting rights and board seats the second they announced they were leaving.
There's also the weirdness with Grand Canyon University (GCU). The MWC invited GCU to join, but the departing schools claim the conference misled them about the timeline to fast-track the move and use GCU's entry to stabilize the conference at the departing schools' expense.
It feels personal. Because it is.
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Nevarez is trying to protect the "leftover" schools like UNLV and Air Force. To keep them from jumping to the AAC or following the others to the Pac-12, she promised them big payouts. Those payouts are supposed to come directly from the exit fees of the departing schools.
If the MWC loses the lawsuit, they can’t pay UNLV. If they can’t pay UNLV, the whole conference might finally collapse.
What This Means for the 2026 Season
Despite all the legal posturing, the move is happening. Boise State, Fresno State, San Diego State, Colorado State, and Utah State will officially join the Pac-12 in July 2026. They'll be joined by Gonzaga (for non-football) and Texas State.
The legal battle is just about who writes the check.
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The Pac-12 has some cash. They walked away with a $65 million settlement from the schools that left for the Big Ten and Big 12, plus they have future revenue and a brand that still carries some weight. But $55 million in poaching fees plus $90 million in total exit fees is a lot of money to set on fire before you even play a game.
Current Legal Status (As of Early 2026)
- Poaching Fee Case: Discovery is underway. Trial is expected late this year.
- Exit Fee Case: Still tied up in Colorado state courts.
- Distributions: The MWC is still withholding tens of millions in revenue from the departing schools, which is causing massive budget headaches for those athletic departments.
Actionable Insights for Fans and Stakeholders
If you're a fan of these schools, the "off-field" news matters as much as the recruiting trail right now.
- Watch the Settlements: Most experts believe a "global settlement" is the only way out. Look for a number around $12–$14 million per school for exit fees and a significantly reduced poaching fee (maybe $25 million total).
- Budget Tightening: Expect the departing schools to be conservative with coaching buyouts or facility upgrades until the revenue distribution freeze is lifted.
- Schedule Shifts: The legal animosity has effectively killed any hope of "friendly" non-conference scheduling between the MWC and the new Pac-12 for the foreseeable future.
The Mountain West exit fee lawsuit isn't just a boring contract dispute. It's the final stand of a conference trying to survive in a world where the "big guys" keep changing the rules. Whether the MWC gets its $150 million or the Pac-12 wins on antitrust grounds, the map of Western college sports has changed forever.