Monday, June 11, 2012
Big East sues TCU over $5 million exit fee
TCU was supposed to pay the fee after they jumped to the Big 12, but so far has refused to do so.
The Big East Conference sued the university for $5 million in federal district court Monday saying that TCU reneged its agreement to join the conference this fall.
In October 2011, the university announced it would be joining the Big 12 Conference instead of their previous agreement to join the Big East conference made in November 2010.
According to the lawsuit, in November 2010 when TCU agreed to join the Big East, it "acknowledged and agreed that although damages would be difficult to determine if TCU did not follow through on its agreement to join the Big East on the Effective Date [July 1, 2012], a reasonable estimate of the Conference's damages would be $5,000,000."
In the suit, the Big East said it has demanded the $5 million payment, but TCU has "refused to make payment or acknowledge its obligation to do so."
The $5 million figure has circulated since last fall. In a November interview about tuition with TCU 360, Chancellor Victor Boschini discussed repayment to the Big East saying that the repayment to the Big East would be paid from athletic revenue only.
At the time, Boschini also said that although he hates to plan future revenue, money coming in from being a member of the Big 12 would "exponentially" exceed the $5 million exit fee.
The Big East Conference declined to comment on the lawsuit, said Sara Naggar, director of communications for the conference.
The university issued the following statement: "TCU administrators were surprised by this lawsuit and believe it is premature. The University is hopeful for an amicable resolution of this matter. Because of the pending litigation TCU will have no further comment."
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