ALBUQUERQUE, N.M. (AP) - The University of New Mexico has filed a complaint against one of its biggest donors as part of a naming rights dispute, alleging the company breached its contract.
The university confirmed Thursday that it’s seeking arbitration in a dispute with Dreamstyle Remodeling, an Albuquerque-based company owned by Larry Chavez.
The company entered into what was expected to be a 10-year, $9 million agreement in 2017, according to the complaint. The sponsorship agreement included naming rights to University Stadium, home of Lobo football, and University Arena, better known as The Pit.
Chavez paid the university $1.5 million, but there is disagreement over what is owed and if there is a contract in place at all.
Chavez signed the original deal with Learfield IMG College, a multimedia rights company that ended its relationship with the university last year.
At the time, Dreamstyle and the university entered into negotiations to settle the amounts Dreamstyle already owed under the 2017 sponsorship agreement.
The university contends Dreamstyle failed to meet its obligations under the 2019 interim payment schedule and still owes more than $1 million.
While the complaint could set the stage for a potential court battle, athletics department spokesman Frank Mercogliano said the goal is arbitration.
“While the University has made repeated attempts over the past year to enforce the promises made - and contracts agreed upon - and to resolve this matter amicably, Dreamstyle has continued its path of denial, distortion and avoidance of its obligations,” the university said in a statement.
Chavez told the Albuquerque Journal that mediation is all he had been asking of the university for months. Chavez said he proposed a new $8 million deal with the university, but it wouldn’t consider the proposal until previous obligations were fulfilled.
“Bottom line, we’re glad that they finally agreed to mediate,” Chavez said. “We will be quite glad to proceed with that, and we’re quite confident that in the end that they’re wrong and we don’t owe UNM anything, and we want to resume supporting UNM in whatever manner is workable.”
Chavez said Learfield IMG College wrote to him in October 2019 confirming he had a $0 balance and that his payment then of $100,000 would in effect terminate the original 2017 agreement.
Attorneys representing university regents said the letter was one of many draft letters between Learfield and Dreamstyle and that Chavez still owes the university.
“Dreamstyle has since relied on the draft letter as evidence that it has satisfied all of its obligations under the 2017 sponsorship agreement,” the complaint states. “That reliance is misplaced and the representation is untrue.”
Please read our comment policy before commenting.