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Three Mountain West schools file lawsuit over withheld funds, accelerated Grand Canyon entry

August 8, 2025
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Three Mountain West schools leaving for the Pac-12 have filed an updated lawsuit accusing the conference of improperly withholding tens of millions of dollars and misleading them about a covert plan to fast-track the addition of Grand Canyon University. Boise State, Colorado State and Utah State filed the 37-page complaint Thursday in Colorado federal court, according to documents obtained by The Athletic. 

The lawsuit also names Mountain West commissioner Gloria Nevarez as a defendant. The schools claim the conference and Nevarez “intentionally and fraudulently” deprived them of their membership rights, resulting in significant financial harm and negatively impacting student-athletes’ opportunities during their final season in the Mountain West.

At the heart of the dispute is the withholding of millions in payments, including Boise State’s College Football Playoff revenue from its 2024 appearance in the expanded 12-team field. The complaint also highlights unpaid travel reimbursements and withheld NCAA distributions for financial aid, academic support and athlete welfare programs. 

Although Fresno State — another school leaving the Mountain West — has expressed concern over the withheld NCAA funds, it is not included in the lawsuit.

The schools argue the Mountain West’s exit fees — at least $19 million per institution — are invalid and should not be enforced. Complicating matters, the Mountain West is simultaneously pursuing roughly $55 million in “poaching fees” from the Pac-12 for adding these schools plus Fresno State and San Diego State. Those claims are also contested in a separate ongoing legal battle.

The Mountain West responded that the departing schools were involved in adopting the exit fee bylaws and had previously sought to enforce them against San Diego State when it tried to leave two years ago. According to The Athletic, the conference called it “inconsistent and unjust” for the schools to now refuse to honor the fees and vowed to vigorously defend its position.

Another key issue is the timing of Grand Canyon’s entry into the conference. Initially announced to join in July 2026 — coinciding with the departing schools’ start in the Pac-12 — the Mountain West reportedly accelerated Grand Canyon’s admission to 2025 without informing the departing schools. 

According to the complaint, Nevarez repeatedly denied any change despite rumors, only for the conference to announce Grand Canyon’s early entry shortly after Boise State, Colorado State and Utah State gave their resignation notices, which ended their voting rights.

The rushed addition could disrupt schedules, travel logistics and conference tournament seedings, and potentially impact NCAA Tournament bids. The schools claim they have yet to see Grand Canyon’s membership agreement or understand how its inclusion will affect Mountain West revenue sharing, alleging the move will cost them millions.

Nevarez defended the conference’s actions to The Athletic in July, noting that schools forfeited voting rights upon resigning, saying, “It’s Conference 101.”

This latest lawsuit adds complexity to the broader West Coast realignment drama, with the Pac-12’s near-collapse last year and ongoing legal battles between the two conferences over scheduling agreements and membership fees. A court hearing is expected next month.



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Tags: acceleratedCanyonentryfileFundsGrandLawsuitMountainSchoolsWestwithheld
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