(San Bruno, CA) The West Coast Conference filed a breach of contract lawsuit against Grand Canyon University today in the U.S. District Court for the Northern District of California. The lawsuit is the result of GCU’s refusal to satisfy and then deny its financial obligation with regards to substantial amounts owed to the Conference in both entrance and withdrawal fees, each were due within 30 days of its withdrawal notice.
Brian E. Mueller, who serves simultaneously as the President of Grand Canyon University and Chief Executive Officer and Chairman of the Board of Grand Canyon Education, Inc., executed a binding agreement on May 9, 2024, for Grand Canyon University to join the West Coast Conference as a member effective July 1, 2025 but with prior participation and related rights, and informed the Western Athletic Conference of its departure as a member. Grand Canyon University is a non-profit affiliate of publicly-traded Grand Canyon Education, Inc., which trades under the ticker symbol LOPE.
The Constitution of the West Coast Conference establishes that its Presidents’ Council determines the amount of the equity buy-in for a new member dependent on many criteria, including financial ability and academic standing and results. Funds from the entrance fee are utilized for conference support services, including those directly benefiting student-athletes. The entrance fee established for Grand Canyon University was the result of many discussions considering a variety of factors including the financial status of the institution and its affiliate. Shortly after execution of the membership agreement, the Phoenix-based institution made the first payment of its entrance fee as required by the May 9 agreement.
Less than six months later, GCU provided written notification to the West Coast Conference of its withdrawal as a member of the WCC to seek membership in another conference. As part of the terms of the agreement signed by Mueller, GCU was required to pay the remaining balance of its entrance fee, and the membership withdrawal fee outlined in the Conference’s Constitution, each within 30 days of its written notification of membership withdrawal.
Grand Canyon University has indicated to the West Coast Conference that it does not intend to pay the remainder of its entrance fee or the withdrawal fee.
“The purpose of a legal contract is to put the force of law behind agreements between parties,” West Coast Conference Commissioner, Stu Jackson, said. “We have a fully executed legally binding agreement between the West Coast Conference and Grand Canyon University that outlines its financial terms and obligations. By redefining their position, Grand Canyon University attempts to avoid their obligations in the contract.”
The WCC’s lawsuit against Grand Canyon University was filed on its behalf by the law firm of Womble Bond Dickinson (US) LLP.
Press Release courtesy of Sun Devil Athletics
JjuClick on Logo
