The Pac-12 filed a lawsuit against the Mountain West on Tuesday over excessive “pouring fees.” The lawsuit, filed in the Northern District of California, argues that the potential fines are unenforceable under antitrust law.
When the Pac-12 reached a scheduling agreement with the Mountain West last year, the MWC added poaching fees in case the Pac-12 tried to take a school away from the league. As part of the agreement, the Pac-12 must pay liquidated damages of more than $10 million per school, which is in addition to the $17 million withdrawal fee the school must pay.
Last week, the league added five schools from the Mountain West — Boise State, Colorado State, San Diego State, Fresno State and Utah State — in a deal that will leave the Pac-12 with more than $50 million in debt, not even counting the schools’ exit fees.
The poaching fines are set to last until at least Aug. 1, 2027. The timing is unusual, as the Mountain West’s television contract is set to expire in 2026. Additionally, the Pac-12 must increase its membership to at least eight schools by 2026 to be recognized as an FBS conference. The addition of five Mountain West schools would bring the league to seven schools. The Mountain West will also be down to seven schools after the move.
“The MWC imposed this pull penalty at a time when the Pac-12 was frantically scheduling games for its two remaining member teams and had little power to veto this blatant competitive restriction,” the Pac-12 said in the filing. “However, this does not make the pull penalty unlawful. The Pac-12 asks the Court to declare the provision invalid and unenforceable.”
The remaining Pac-12 schools, Oregon State and Washington State, and the Mountain West reached a scheduling agreement before the 2024 season to help craft the schedule for the two underdog teams. The other 10 former members of the Pac-12 eventually joined the Power Conference League. As part of the agreement, the Pac-12 schools paid the Mountain West $14 million for the 12-game fee.
The agreement had a second-year option, but both schools were required to agree to the terms. The extension expired without one. The lawsuit alleges that Oregon State and Washington State signed the agreement under duress, essentially because they believed the poaching fee was unenforceable, since they had little time to put together a complete schedule.
“There is no legitimate basis for a ‘poaching penalty,'” the lawsuit states. “Indeed, the MWC has already attempted to impose tens of millions of dollars in ‘exit fees’ on member schools that withdraw from the MWC, which would more than adequately compensate the MWC for any losses it may incur as a result of a member school’s withdrawal.”
