The Pac-12 has filed a lawsuit against the Mountain West conference over what it deems an unlawful and unenforceable 'poaching penalty' that could cost the Pac-12 more than $40 million. The lawsuit, filed in federal court, challenges the penalty imposed by the Mountain West for adding Boise State, Fresno State, Colorado State, and San Diego State to the Pac-12.
The Mountain West has exit fees exceeding $17 million for departing schools, with additional poaching fees that increase based on the number of schools the Pac-12 adds from the Mountain West. The total poaching penalty for the four schools already added stands at $43 million.
The Pac-12 recently extended invitations to Utah State and UNLV, with Utah State reportedly accepting the invitation. Adding these schools would incur an additional $24.5 million in fees for the Pac-12 and leave the Mountain West with only six members, falling short of the NCAA and College Football Playoff requirements.
The Pac-12 argues that the existing exit fees in the Mountain West already compensate for the loss of departing members and that the poaching penalty serves to increase the Mountain West's profits by preventing member schools from leaving for a competitor.
The scheduling agreement between Oregon State, Washington State, and the Mountain West, which aimed to provide six football opponents for a payment of $14 million, did not renew for the next year. The Pac-12 is in the process of expansion, having recently added four Mountain West schools and targeting others before the lawsuit was filed.
With the lawsuit now in play, the future of both conferences remains uncertain as they navigate the legal implications of the dispute. The Pac-12 needs at least eight members by 2026 to maintain its conference status, while the Mountain West is working on a grant of rights agreement to bind its remaining members together.
