Pac-12, Mountain West settle lawsuit over exit and poaching fees

Key Points:

• The Pac-12 and Mountain West conferences have reached a settlement in principle to resolve their 20-month-long civil lawsuit over exit and poaching fees, leading to the cancellation of a scheduled court hearing.
• Although specific terms were not disclosed, exit and poaching fees are expected to be significantly reduced from the initial $150 million-plus amount, with exit fees possibly around $10 million per school for the five Mountain West schools that left.
• The lawsuit involved disputes over exit fees estimated at $20 million per school and $55 million in poaching fees tied to a 2024 football scheduling agreement, with both sides accusing each other of unfair practices.
• Financial pressures, including depleted Pac-12 funds and ongoing legal costs, motivated both conferences to settle, as the Pac-12 prepares to relaunch with a new membership lineup for the 2026-27 academic year.
• The Mountain West faces challenges in distributing the settlement funds to its members while maintaining media rights fee levels and fulfilling grant of rights agreements, raising concerns about potential future conference realignments.