Pac-12 Sues Mountain West Over $43 Million 'Poaching' Penalties

The Pac-12 has filed a federal lawsuit against the Mountain West, contesting what it describes as unlawful “poaching penalties” amounting to over $40 million for its recent additions of Boise State, Fresno State, Colorado State, and San Diego State. The suit, lodged in the U.S. District Court of the Northern District of California, seeks a declaratory judgment against what the Pac-12 claims is an anticompetitive measure designed to inhibit competition for member schools in collegiate athletics.

The Mountain West has established exit fees exceeding $17 million for departing members, which are not the focus of this lawsuit. Instead, the Pac-12 is challenging fees instituted in the Mountain West’s football scheduling agreement that includes Oregon State and Washington State, the only current members of the Pac-12. These penalties begin at $10 million and increase by $500,000 for each additional school the Pac-12 adds from the Mountain West. With four schools already onboard, the total penalty could reach $43 million.

Mountain West Commissioner Gloria Nevarez stated that the Pac-12 had agreed to these fees, emphasizing their necessity for the Mountain West’s future viability. She noted that the fees were implemented to protect the conference against scenarios like the Pac-12’s current expansion efforts.

In a move to further expand, the Pac-12 recently extended invitations to Utah State and UNLV, with Utah State officially joining the conference. Adding these schools could cost the Pac-12 an additional $24.5 million and reduce the Mountain West to six members, two short of the NCAA’s requirement for conference recognition.

The Pac-12 argues that the existing exit fees already provide sufficient compensation for lost members and contends that the poaching penalties do not align with the terms of the agreement between the Mountain West and the two remaining Pac-12 schools. They assert that these penalties serve only to enhance the Mountain West’s profits by restricting member movement.

With the Pac-12 aiming to secure at least eight members by 2026 to maintain NCAA recognition, the conflict over these penalties adds another layer of uncertainty to the future of both conferences.