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Inside San Diego State's exit notice to Mountain West

On3 imageby:Andy Wittry06/26/23

AndyWittry

San Diego State President Adela de la Torre wrote in a letter dated June 13 to the Mountain West Conference and its members “to formally notice that San Diego State University (SDSU) intends to resign from the Mountain West Conference (MWC) effective June 30, 2024 or at an agreed upon later date.”

On3 obtained a copy of the letter, as well as three other letters sent between San Diego State and the Mountain West, through a public records request. ESPN first reported earlier this month that San Diego State sent a letter to the Mountain West.

San Diego State asked for a one-month extension “given unforeseen delays involving the other collegiate athletic conferences beyond our control.” A Mountain West bylaw requires notification by June 30 of the year preceding the effective date.

San Diego State has long been speculated as a potential expansion candidate for the Pac-12 Conference, which is in the midst of negotiating a media rights deal. USC and UCLA will officially join the Big Ten Conference in 2024.

Letter asked for potential four-year installments

San Diego State also told the Mountain West and members schools that it would like to discuss its exit fee “with full consideration of the value added from our recent participation in the NCAA Division I basketball championship game, unit revenue from which will continue to come to the Mountain West Conference even after an SDSU exit.”

The letter stated San Diego State athletic director J.D. Wicker was “prepared to discuss in detail.” De la Torre also cited the timing of the exit fee, “such that a four-year installment period may be considered.”

“The big thing for us is we’ve been working on this for a long time,” Wicker told On3 this spring about San Diego State preparing for a potential invitation to a Power 5 conference.

“It has been an absolute joy to collaborate and compete with each of the member universities,” de la Torre wrote. “In order to exit as efficiently and fairly as possible, I would like to respectfully make the following requests for your consideration.”

Later, de la Torre wrote that San Diego State wants to transition “in a manner that is fair and equitable to all involved, recognizing that there have been unanticipated factors triggering the need for these requests.”

Mountain West confirms receipt of letter

Mountain West Commissioner Gloria Nevarez responded to de la Torre the following day.

“I would like to thank you for your consideration and professionalism in discussing the resignation of San Diego State University (“SDSU”) at the Board meeting last week,” Nevarez wrote.

The Mountain West Board of Directors and Jared Bartie, who’s a partner at the Mountain West’s legal counsel Wilkie Farr & Gallagher LLP, also received a copy of Nevarez’s response.

Nevarez wrote in her letter that she confirmed receipt on June 13 of San Diego State’s notice of resignation, effective June 30, 2023.

“Your resignation does not relieve SDSU from any obligations that SDSU may have to the Conference as a result of obligations incurred or commitments made prior to the Effective Date,” Nevarez wrote. She said San Diego State must pay an exit fee equaling three times the average per-member conference distribution for the preceding year.

Additionally, Nevarez wrote that as of the June 13 notice date, all payments due from the Mountain West to San Diego State will be withheld and applied to the exit fee. The Mountain West’s response letter also stated de la Torre is “hereby deemed to have resigned as a member of the Board as of the Notice Date and SDSU is not permitted to appoint a replacement.”

Nevarez also addressed de la Torre’s requests regarding an extension and its exit fee.

“Finally, regarding your requests for a waiver of certain requirements of the Bylaws, I will be convening the Board of Directors to review and provide a response,” Nevarez wrote.

San Diego State tries to clarify its position

On June 15, de la Torre responded to Nevarez’s letter from June 14. Once again, de la Torre wrote to the conference and all of its members.

“This letter is to clarify two important points,” de la Torre wrote. “First, our letter dated June 13, 2023 was not the official notice of resignation from the MWC pursuant to Bylaw 1.04(a). As plainly set forth in that letter, its purpose was twofold: to request a one-month extension of time under which we could formally provide our notice of resignation, and to ask for the opportunity to discuss the exit fee.

“Our goal was and has always been to be transparent about our intentions to give the MWC the opportunity to meet before June 30 to consider our requests, especially our request concerning an extension of the resignation window. As you know, there have been delays outside of our control such that we continue to ask for your special consideration on the deadline.”

De la Torre continued in her letter, discussing the exit fee.

“Second, because SDSU has not yet already resigned from the MWC, the formal Notice Date, as defined in Bylaw 1.04(a), has not yet occurred,” de la Torre wrote. “As such, no payments due to SDSU from the conference for the previous year should yet be withheld and applied to any future exit fee at this time.”

Second Mountain West letter doesn’t ‘express agreement’

Nevarez followed up with the fourth letter in consecutive days between the two parties.

“Please also note that this letter is not intended to express agreement with any interpretation expressed in the Second Notice Letter, including those concerning whether your letter, dated June 13, 2023, constitutes a ‘Notice of Resignation’ under the Bylaws,” Nevarez wrote. “The Conference continues to reserve all rights.”

Nevarez said in the letter that the Mountain West will not approve any waiver of any requirement under the bylaws of the conference.

“For the avoidance of doubt and notwithstanding any decision made in a future meeting of the Board, the Conference expects all members to abide by the terms of the Bylaws, including any applicable notice deadlines.”