AAC Planning To Withhold Rutgers' Bowl Payout Until Exit Fee Dispute Is Settled
The "acrimony between Rutgers and the American Athletic Conference ratcheted up Saturday when the league told school officials it intends to withhold the $1.5 million Pinstripe Bowl payment because of the ongoing legal dispute" over the school's exit fee, according to a source cited by Tom Luicci of the Newark STAR-LEDGER. Rutgers has "filed suit against the AAC ... contesting the exit fee of $10 million the league says the school owes for leaving for the Big Ten next fall." The suit was "transferred in November to Rhode Island, where the league is based." The threat of withholding $1.5M "could become moot if the two sides reach a settlement on Rutgers’ lawsuit against the league in the next few months, since bowl payments are not made to schools until the spring." Rutgers also is "suing the league for lost revenue because of a canceled home game against TCU, which was scheduled to join the Big East but never did." Rutgers has "estimated that loss of revenue" at $1.3M. In addition, the school claims it has not received its share of $39M "that was collected from various exit fees" (Newark STAR-LEDGER, 12/29).