In late November 2012, Rutgers announced that it would join the Big Ten Conference and at the same time filed a lawsuit in Middlesex County Court in New Jersey seeking to leave the Big East Conference (“Big East”) without abiding by the waiting period or paying the withdrawal fee.  According to Big East bylaws, withdrawing institutions must pay a $10 million buyout fee and abide by a twenty-seven month waiting period prior to exiting the conference.  Rutgers argues that the exit fee and waiting period is arbitrarily applied to some, but not all, Big East institutions competing in football.  Rutgers points to litigation and settlements involving Syracuse, Pittsburgh, TCU and West Virginia that allowed each institution to exit the conference prior to the required exit period.  Additionally, Rutgers argues that the Big East failed to collect $39.5 million in withdrawal fees from withdrawing institutions.  Accordingly, Rutgers requests the Court to declare that Big East bylaws are “void and of no effect as between the parties, permitting Rutgers to withdraw from The Big East prior to July 1, 2015, or in alternative, declaring that The Big East has waived Rutgers’ obligation to abide by the 27 months notice provision and the requirement of a withdrawal fee.”

For any questions, feel free to contact Christian Dennie at cdennie@bgsfirm.com.