Three schools sue Mountain West alleging withheld money, ‘fraud’ in Grand Canyon move

The Mountain West’s conference realignment legal fight gained a new layer Thursday when three departing schools accused the league of improperly withholding tens of millions of dollars — including Boise State’s College Football Playoff money — and misleading them about a covert plan to speed up the addition of Grand Canyon University as a member.

Those complaints are from an updated Colorado district court lawsuit filed against the Mountain West by members Boise State, Colorado State and Utah State. All three are among the schools leaving for the Pac-12 next year.

The 37-page filing also adds Mountain West commissioner Gloria Nevarez as a defendant. The suit said the league and commissioner “intentionally and fraudulently” deprived the schools of their membership rights and caused millions of dollars in harm while “impacting the rights and opportunities of Plaintiffs’ student-athletes for their last year in the Conference.” The schools are now seeking damages in the latest complaint.

“We are disappointed that the Mountain West continues to improperly retaliate against the departing members and their student-athletes,” said Steve Olson, one of the schools’ outside attorneys and a partner and legal department co-chair at the O’Melveny law firm.

The Mountain West declined to comment, deferring to a statement from last week. It said, in part, “We remain confident in our legal position, which we will vigorously defend.”

The millions of dollars in dispute include CFP money earned through Boise State’s appearance in the inaugural 12-team field last season. The schools’ complaint said travel reimbursements have been unpaid, as have NCAA payments for financial aid, academic programs and athlete welfare. Fresno State athletic director Garrett Klassy told The Athletic last month that the lack of NCAA pass-through payments was “disappointing” and “very unexpected” because of the potential impact on players’ mental health. Though Fresno State is also moving from the Mountain West to the Pac-12, it is not a part of the lawsuit.

Boise State, Colorado State and Utah State argue the conference should not be withholding the money because its exit fees — at least $19 million per school — are unlawful and unenforceable. One argument why: The Mountain West is separately seeking an additional $55 million in poaching fees from the Pac-12 for adding those three schools plus Fresno State and San Diego State. But those payments are also in dispute because of a different, ongoing lawsuit between the conferences.

The Mountain West has countered that the Broncos, Rams and Aggies not only helped adopt the exit fee bylaws but tried to enforce them against San Diego State two years ago when the Aztecs were pursuing an exit.

“It is, therefore, inconsistent and unjust for these same institutions to now attempt to evade their responsibilities,” the league said in its statement last week.

Thursday’s updated complaint also explains some of the drama surrounding the Mountain West’s addition of Grand Canyon. The departing schools’ suit labels it “fraud.”

In November, the league announced the Antelopes would join on July 1, 2026 — the same day Boise State, Colorado State and Utah State will start in the Pac-12. But this spring, the Mountain West’s departing schools heard rumors, including from Grand Canyon coaches, that the Antelopes would join a year earlier. Nevarez repeatedly denied the claim, according to the suit.

The three departing schools eventually concluded Nevarez and the Mountain West were lying and had a “plan to covertly admit” Grand Canyon for the 2025-26 school year. When Boise State, Colorado State and Utah State gave their resignation notices to the league in late May, they relinquished their voting rights and could no longer try to block a move. On July 8, the Mountain West announced that Grand Canyon would, in fact, join immediately.

The early addition of the Antelopes carries multiple potential impacts on the Mountain West’s departing schools. Some schedules, travel, logistics and budgets had already been finalized. A new member could affect conference tournament seeding and NCAA Tournament bids. The financial impact is unknown because the schools haven’t seen Grand Canyon’s agreement with the Mountain West and how it affects conference payouts. But the suit said the move will cost the departing schools millions in damages.

“I would point to our bylaws,” Nevarez told The Athletic last month about the complaints. “When you give your notice (to leave), you give up your board seat and your vote. It’s Conference 101.”

In a joint statement Thursday evening, the schools said they’ve been trying to resolve the issues for months but actions by the conference and Nevarez “have raised serious concerns regarding their fairness and transparency.”

“These developments have had a serious financial impact on the departing institutions and raise important questions about governance and accountability within the Conference,” the schools’ statement said.

The filing was the latest update in a complicated legal situation involving the future of West Coast football. In late 2023, the Pac-12 was effectively becoming the Pac-2 as everyone but Washington State and Oregon State left for the Big Ten, Big 12 or ACC. The Mountain West offered a lifeline through a scheduling agreement with the crumbling league. The Pac-12 survived, but those terms are at the heart of the ongoing federal lawsuit between that conference and the Mountain West. The leagues have asked for a hearing next month.

The Athletic’s Chris Vannini contributed reporting.

(Photo: Candice Ward / Getty Images)