The Pac-12 and Mountain West conferences reached an agreement in principle on May 18, 2026, to settle their lawsuits over poaching fees and exit fees tied to five schools leaving the Mountain West for the rebuilt Pac-12. The deal, announced the day before a scheduled discovery hearing in federal court, ended nearly two years of litigation in California and Colorado. Financial terms were not disclosed publicly, but reporting indicates the Mountain West received less than half of the roughly $155 million it had originally sought.
Where the Fight Started
The dispute grew out of a December 2023 scheduling agreement. The Pac-12 had just lost 10 of its 12 members to other conferences and needed football games for its two remaining schools, Oregon State and Washington State. The Mountain West agreed to supply six games for each during the 2024 season, at a cost of over $14 million.
Section 7.01 of that contract carried what the Pac-12 later called a “poaching penalty.” If the Pac-12 recruited any Mountain West members before August 2027, it owed escalating fees: $10 million for the first school, rising by $500,000 for each additional school, and reaching $55 million at five departures. The ceiling sat at $137.5 million if all 11 Mountain West members left.
The two sides described the clause differently. The Pac-12 called it “non-negotiable” and said it was imposed while the conference had no leverage. Mountain West Commissioner Gloria Nevarez said the provision was designed to protect the conference from further realignment damage, and the Mountain West maintained that Oregon State and Washington State agreed to the terms without objection.
The Move That Triggered the Fees
On September 12, 2024, the Pac-12 announced membership acceptances from Boise State, Colorado State, Fresno State, and San Diego State. Utah State followed on September 23, becoming the fifth school. All five were set to begin Pac-12 competition in the 2026-27 academic year.
The Mountain West invoked Section 7.01 and demanded $55 million in poaching fees. Separately, it billed each departing school under conference bylaws adopted in April 2021, which required a payment of three times the average annual conference distribution for schools giving at least a year’s notice, and six times that amount for late notice. Depending on the calculation, per-school exit fees ranged from roughly $19 million to $38 million.
The California Antitrust Case
The Pac-12 sued in the U.S. District Court for the Northern District of California on September 24, 2024, case number 5:24-cv-06685. Represented by Keker, Van Nest & Peters, it argued the poaching penalty was “anticompetitive and unlawful” under the Sherman Antitrust Act and California’s Unfair Competition Law, and asked the court to declare it unenforceable.
Senior Judge Claudia Wilken denied the Mountain West’s motion to dismiss on October 1, 2025, letting the antitrust claims proceed. The Mountain West then filed counterclaims seeking a declaration that its fees were valid and adding claims for breach of contract, promissory fraud, tortious interference, and unjust enrichment. On March 27, 2026, Magistrate Judge Susan van Keulen dismissed the promissory fraud claim under the economic loss rule but allowed tortious interference and unjust enrichment to move forward. She also rejected the Pac-12’s argument that Mountain West bylaws were “at-will” contracts, finding the exit-fee provisions enforceable.
The Colorado Exit-Fee Case
In December 2024, three of the departing schools filed a separate lawsuit in Denver District Court (case number 2024CV33874). Boise State, Colorado State, and Utah State challenged the Mountain West’s exit-fee calculations as unlawful and unenforceable.
The complaint grew. An August 2025 amended pleading added Commissioner Nevarez as a personal defendant and expanded the allegations to include the stripping of board seats and voting rights from departing schools, withheld revenue distributions including College Football Playoff payouts and NCAA grants-in-aid, and the accelerated admission of Grand Canyon University to the conference without a vote of the departing members.
San Diego State and Fresno State did not join the Colorado suit. The California State University system, which governs both, declined to have one system member sue another. Both schools were nevertheless represented in the eventual settlement through the CSU Board of Trustees.
How the Settlement Came Together
Discovery in the California case had turned uncomfortable for the Mountain West. On March 31, 2026, Judge van Keulen ordered the conference to produce confidential communications between its university presidents during the relevant period. A follow-up discovery hearing was set for May 19, 2026.
It never took place. On May 18, the parties told the court they had reached an agreement in principle to settle all pending litigation in both states. The court vacated the discovery hearing, stayed the lawsuits, and set June 2 as the deadline for a formal settlement notice, with a hearing to follow on June 9.
What the Settlement Involves
The financial terms have not been made public and are expected to remain sealed. What is known comes from reporting and prior filings.
The Mountain West had sought approximately $150 million altogether: about $20 million per school in exit fees from the five departing members, plus $55 million in poaching penalties from the Pac-12. Columnist John Canzano reported the conference ended up with “less than half” of the roughly $155 million figure. Before the deal, San Diego State athletic director John David Wicker had said he expected exit fees to land near $10 million per school. Earlier mediation had stalled with the Mountain West insisting on no less than $18 million per school and the departing schools offering $9 million to $10 million.
The payout is being shared by the seven schools forming the new Pac-12: Oregon State, Washington State, and the five incoming Mountain West members, each contributing roughly equal shares.
How the Mountain West Distributes the Proceeds
For the six schools remaining in the Mountain West, the settlement money flows through a grant of media rights agreement signed through 2032. Nevada, UNLV, Wyoming, New Mexico, San Jose State, Air Force, and Hawaii negotiated retention bonuses funded by whatever exit and poaching fees the conference collected.
The distribution runs in tiers. On the first $61 million, UNLV and Air Force each receive 24.5 percent, Nevada, New Mexico, San Jose State, and Wyoming each receive 11.5 percent, and Hawaii receives 5 percent. The next $39 million follows the same percentages. Anything above $100 million is split evenly among full members at roughly 15.83 percent each, with Hawaii again at 5 percent. Initial payments are due “as soon as practicable” after July 1, 2026, when the departing schools officially exit the Mountain West.
Where Both Conferences Stand Now
Boise State, Colorado State, Fresno State, San Diego State, and Utah State join the Pac-12 on July 1, 2026, along with Gonzaga and Texas State, giving the rebuilt league nine members. The Pac-12 has a media partnership with CBS through the 2030-31 season, and Commissioner Teresa Gould recently received a five-year contract extension.
The Mountain West has moved to replace its losses by adding UTEP and North Dakota State as full members and Northern Illinois as a football-only member. Its media rights agreement runs through 2032, and the retention bonus structure is meant to keep the remaining schools financially stable through the transition.