REPORT: Pac-12 and Mountain West Begin Mediation

An albatross hanging over the Pac-12's expansion hopes, lawsuits fighting over $100M in exit fees & poachng fees, may soon be settled.
Mar 7, 2020; Las Vegas, Nevada, USA; A detailed view of the Mountain West logo on the baseline seen before the Conference tournament final between the San Diego State Aztecs and the Utah State Aggies at Thomas and Mack Center. Mandatory Credit: Orlando Ramirez-Imagn Images
Mar 7, 2020; Las Vegas, Nevada, USA; A detailed view of the Mountain West logo on the baseline seen before the Conference tournament final between the San Diego State Aztecs and the Utah State Aggies at Thomas and Mack Center. Mandatory Credit: Orlando Ramirez-Imagn Images | Orlando Ramirez-Imagn Images

One of my all-time favorite television shows, The Simpsons, features a thought-provoking question regarding the legal system. As an added bonus, the question just happens to be funny.

The lawyer Lionel Hutz asks Bart, "Can you imagine a world without lawyers?"

I'm sure many college football fans have pondered the same question. Last Fall, the Pac-12 announced the addition of five Mountain West members - Boise State, Colorado State, Fresno State, San Diego State, and Utah State - who would depart their old conference and join their new one in 2026. Then each side's lawyers got involved.

After a prolonged battle featuring lawsuits and counter-suits, an olive branch has been extended.

Last night, first reported by Ross Dellenger of Yahoo Sports and confirmed by multiple outlets, the Mountain West has invited the Pac-12 to begin mediation over millions of dollars in exit fees owed by the Pac-12's five aforementioned new members.

Below, here are my early takeways from this reporting.

1. Mediation does not guarantee a settlement, or a Pac-12 victory

Before any Pac-12 fans take victory laps, you should know what mediation means, and where these sides are in the legal process. After a lawsuit is filed, but before a suit can be settled, there is an opportunity for mediation: legal counsel sit down with an approved third party mediator, sometimes alongside the clients on each side of the case, and attempt to negotiate a settlement.

Very few cases - ranging from as much as 30% to as little as 3% of cases depending on the type of case - actually go to trial. Lawyers often encourage their clients to mediate and negotiate a settlement before trial, eliminating the risks of a judge throwing the case out, or ruling against their client.

In addition, there is still the chance for unsuccessful mediation, meaning both sides could not reach a settlement, followed by a difficult legal battle in a court of law. The beginning of mediation is only the first step towards a potential settlement.

2. If this case does settle, then the Pac-12 has a path to expansion

As I wrote last week, the Pac-12 has its hands full. There are no doubts that Memphis would improve the conference's football & men's basketball portfolio, but the Tigers would require an expensive buyout from their AAC obligations. Likewise, there is a strong clamoring from Pac-12 fans and Texas State supporters for that university to join the conference, but they're located 15 hours away from the nearest Pac-12 member, which means they would need financial assistance for traveling to games. Before the conference can think about finishing its' expansion, it needs money.

If these sides reach a settlement, the Pac-12's lawyers can step aside for the Pac-12's accountants. Between a joint-lawsuit by the 5 departing Mountain West members challenging their exit fees, and a lawsuit from Pac-12 HQ challenging a poaching fee, potentially $100M could go back to the conference's coffers.

3. Both sides have incentive to settle

Many fans will read the gyst of Ross Dellenger's first report last night, the Mountain West approached the Pac-12, and assume that the Mountain West had the weaker case. That's debatable. Each side has valid reasons to settle instead of taking the case to trial.

The Pac-12 has a hard deadline: they need an 8th full member, meaning a member in all sports including football, by August 1st 2026. If that day comes and goes without an 8th full member, the Pac-12 Conference will not be sanctioned for FBS-level football. That means no bowl games, no College Football Playoff, and certainly no television deal. Simply, the conference will cease to exist if it cannot expand in time, and these lawsuits are a huge hurdle to that expansion.

The Mountain West needs cash: they cannot risk walking away penniless. The five departing members were its pillars - winning each of the last 4 football championships, plus 11 of the last 12 championship games overall - and they outdraw the conference's remaining members in television ratings, ticket sales, and other important factors.

Without those pillars, other conferences circled over the Mountain West like buzzards over roadkill. To fend them off, the Mountain West plied it's two strongest remaining members - UNLV and Air Force - with large shares of the money owed by the departing schools. Without that money, there's nothing stopping UNLV or Air Force from leaving for a better conference. Without UNLV or Air Force, the value of the Mountain West's media rights will plummet.

Here's to hoping cool heads will prevail and the conferences will settle. Till then, there's still plenty to work out.


More Reading Material From Oregon State Beavers On SI


Published | Modified
Matt Bagley
MATT BAGLEY

Matt fell in love with radio during his college days at Oregon Tech, and pursued a nine year career in sports broadcasting with Klamath Falls' and Medford's highest-rated sports radio stations. He currently lives in McMinnville wine country and is excited to talk about the Beavers again.