WAC, Utah Valley still at odds over exit fees taken at Orleans Arena (WAC Tournament)

Rob Gray-Imagn Images

Todd Phillips and Utah Valley will compete in this week's WAC Tournament after the school agreed to place its $1 million exit fee in escrow.

LAS VEGAS — Divorces are rarely amicable. Oftentimes they get downright nasty. And money is usually the root cause.

In the case of the Western Athletic Conference at Utah Valley, it has really gotten contentious.

The WAC, whose postseason basketball tournament tips off Wednesday at the Orleans Arena, is going forward with it’s top-seeded men’s team, that being Utah Valley, after the university and the conference agreed to meet the terms of the agreement that has Utah Valley leaving the WAC for the Big West July 1.

Utah Valley had not paid the $1 million exit fee and it has wound up in court. The WAC demanded that the money be placed in escrow by 4 p.m. PT Tuesday or Utah Valley would be barred from competing in both the men’s and women’s tournaments. Utah Valley’s women are the No. 4 seed.

The deadline came and Utah Valley agreed it would have the money sent to the escrow account before the tournament tips off Wednesday.

It means Utah Valley (24-7), will get to compete after all, assuming the school delivers as it agreed to. The Wolverines are in the midst of the best season in school history as a Division I program. However, their NET ranking is just 85 and it’s unlikely UVU would be given an at-large spot in the field of 68 come Sunday. So it will likely need to win the WAC Tournament in order to get in. The championship game is scheduled for Saturday night at The Orleans.

Wednesday, the school issued a statement on the situation, which read in part:

"UVU and the WAC are involved in litigation over UVU’s impending exit from the WAC as of July 1, 2026, and the WAC’s failure to pay UVU approximately $2.3 million which amount includes NCAA distributions UVU student athletes have earned. These funds are vital to support and administer athletics at the university.  
 
"Based on an agreement reached between the WAC and its members on June 21, 2024, UVU does not believe it is required to pay an exit fee in connection with its departure from the WAC; this is because the university fulfilled its obligation to remain in the conference through June 30, 2026. Nevertheless, the WAC sued UVU in Texas seeking payment of a $1 million exit fee and has attempted on multiple occasions to bar UVU from the WAC post-season tournaments until it was paid. UVU immediately and properly challenged the jurisdiction of a Texas court to decide these critical legal issues for the largest public university in Utah.  
 
"UVU also counter-sued the WAC and successfully secured two injunction orders from Utah’s Fourth Judicial District Court (the “Court”). The first order was a Temporary Restraining Order, issued on January 24, 2026, that lasted for 14 days. The second order, a Preliminary Injunction, was issued on Friday, March 6, 2026.

"To be clear, UVU has not paid a settlement or an exit fee to the WAC. While litigation is pending, and as part of the legal proceedings, UVU has agreed to place $1 million in an escrow account overseen by the Utah Court. If UVU prevails in the litigation, that $1 million will be returned to UVU.
 
"On Tuesday, March 10, 2026, the WAC published a unilateral declaration and self-imposed deadline concerning the aforementioned $1 million payment. The Court had not established a deadline. Moreover, in UVU’s interpretation, the action threatened by the WAC to bar UVU from the related basketball tournaments would have been an overt violation of the Utah Court’s Preliminary Injunction Order.
 
"In an Order issued today, March 11, 2026, the Court stated that “The Utah 4th District Court is in receipt of the escrow funds referenced in this Court’s order granting preliminary injunction issued March 6, 2026. Upon issuance of the March 6th ruling, Utah Valley University was immediately in contact with the Court seeking direction as to how to place funds on account. Once the court properly instructed UVU as to the deposit mechanisms, escrow funds were deposited as soon as practicable.” Despite the WAC’s public misrepresentation, UVU has always been and will remain in compliance with any court’s orders."   

Of course, the WAC isn’t the only conference where change has been contentious. The Mountain West and the Pac-12 have gone to court over exit fees for five schools that are leaving the Mountain West to join the Pac-12. That case is still being sorted out.

And while Gonzaga’s exit from the West Coast Conference appears to be amicable on the surface, there’s still haggling over money between the conference and the university in terms of how much of and exit fee the Bulldogs will pay to leave for the Pac-12.

But with Utah Valley willing to agree to the settlement with the WAC, it gets to win on the court instead of trying to win in court.

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