Infographic by Michael Uribes
Fresno State and Nevada have reached an agreement with the Western Athletic Conference regarding the two schools impending departure from the WAC to the Mountain West Conference.
Both schools will stay in the WAC for all sports until June 30, 2012. By doing so, Fresno State and Nevada will now pay a much lower exit fee than first expected.
“We’re pleased to have the process completed,” director of athletics Thomas Boeh said. “We made it clear that we would have preferred to play in the Mountain West Conference for 2011-12 season, but given that we have a highly desirable financial outcome here, we’re in good shape. We’re fine with it.”
Initially, Fresno State and Nevada were penalized $5 million each for leaving the WAC, but after nearly a month of negotiations Fresno State and Nevada reached a settlement and will pay the WAC $900,000 each.
“We’re very pleased that this dollar figure is very manageable for us,” Boeh said.
Fresno State will pay $180,000 per year over the next five years as five separate installments. The first payment to the WAC is due on Aug. 1, 2011.
Boeh said the money that will be used to fund the departure fee would come from additional revenue that Fresno State will generate when it becomes an official member of the MWC.
“Because it’s $180,000, and not the original figure which was $5 million in 60 days, we’ll be able to manage that within our operational cost,” Boeh said. “But also, the most important thing is that we’ll be realizing additional revenue from our participation in the Mountain West Conference. So, we will be able to absorb that in our overall operation.”
The WAC sued both Fresno State and Nevada in September after both universities announced in August that they were leaving the conference to join the MWC. The announcement came just five days after all eight remaining WAC schools agreed to a $5 million buyout clause.
A lawsuit then ensued after Fresno State and Nevada announced their intentions to leave. The WAC felt that the quick and prompt departure of both schools would affect the survival of the conference.
“I think that the parties took a business-like approach to it,” Boeh said. “We felt very strongly that we did not have to pay the kind of financial exit fee that the WAC was looking for and felt very strongly that we needed to stay in the conference for the benefit of their current members.”
“In negotiations, everybody has to give something,” he added. “There’s a little bit of give and take. We arrived at something that was mutually acceptable and we’re both being taken care of.”
With Fresno State and Nevada staying put in the conference until the summer of 2012, that leaves the WAC with eight schools for the 2011-2012 season: Fresno State, Hawaii, Idaho, Louisiana Tech, Nevada, New Mexico State, San Jose State and Utah State.
“What we will probably try to do is utilize the time [we have] by winning WAC Championships as much as we can,” Boeh said. “We been in the league for a long time now and have served the league well. The league has served us [too].”