SBD/July 15, 2013/Colleges

Rutgers Claims American Athletic Conference Withheld $2.5M Payment In Exit Fee Dispute

Hermann said that Rutgers did not consent to the withholding
Rutgers Univ. on Friday said that $2.5M of the school's $10M exit fee due to the American Athletic Conference, formerly the Big East, was "unilaterally withheld by the conference last month out of the annual revenue distribution it was supposed to pay Rutgers," according to Ted Sherman of the Newark STAR-LEDGER. Rutgers AD Julie Hermann in a federal court filing said the school "did not consent to this withholding, nor would it have if asked." She added, "The conference’s withholding caused budgeting complications for Rutgers, as it unexpectedly came in the last week of Rutgers’ fiscal year, and less than a week before a massive restructuring of New Jersey’s public universities.” Sherman noted Rutgers is challenging the exit fee, and the $2.5M was “withheld two months before it was even due.” Rutgers in accusing the AAC "of breach of contract" also charged the conference with "holding back millions of dollars owed to the university -- claiming the conference never gave Rutgers its share" of the $39M in exit fees paid by other schools (Newark STAR-LEDGER, 7/13).
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