Pac-12, Mountain West Conferences Finalize ‘Poaching’ and Exit Fees Settlement
Summary
The Pac‑12 and Mountain West conferences reached a final settlement on Tuesday that resolves all pending litigation over the “poaching” clause and exit fees that had been contested by several schools. The agreement, announced after an agreement in principle in May, includes Boise State, Colorado State, Utah State, and the Board of Trustees of the California State University on behalf of San Diego State and Fresno State, and it allows the conferences and institutions to move forward with certainty and focus on serving their student‑athletes, campuses, fans, and communities. The dispute stemmed from a scheduling agreement that required the Pac‑12 to pay the Mountain West $10 million for the first departing team, increasing by $500,000 for each subsequent exit, up to $55 million, and from separate lawsuits filed by Colorado State, Utah State, and Boise State seeking to avoid exit fees ranging from $19 million to $38 million. With the settlement in place, Colorado State, Utah State, San Diego State, Fresno State, and Boise State are set to leave the Mountain West and join the Pac‑12 this fall, while the Mountain West has added UTEP, Hawaii, and Northern Illinois for football. The Pac‑12 also added Texas State last year to meet the eight‑team minimum for an automatic College Football Playoff bid, and Gonzaga will join as a non‑football member. The resolution ends a prolonged legal battle that had threatened the stability of both conferences and allows them to focus on future scheduling and competition.
(Source:Insurance Journal)