Pac-12 takes legal action against the Mountain West

The Pac-12 officially initiated legal action against the Mountain West on a Tuesday, challenging a hefty "poaching fee" deemed unlawful under antitrust regulations. This lawsuit was lodged in the Northern District of California, asserting that the anticipated penalty is unenforceable according to antitrust legislation.

The contention arises from a scheduling agreement established between the Pac-12 and Mountain West the previous year, where the Mountain West introduced the contested poaching fee as a deterrent against the Pac-12 attempting to acquire schools from the league. As per the agreement, the Pac-12 is obligated to remit over $10 million per school in damages, in addition to the $17 million exit fee stipulated for the departing schools.

Recent developments saw the Pac-12 inviting five institutions from the Mountain West, namely Boise State, Colorado State, San Diego State, Fresno State, and Utah State. Consequently, the financial burden on the Pac-12 escalates to over $50 million, not accounting for the exit fees for each institution.

In its legal filing, the Pac-12 criticized the timing of the imposition, asserting, "The MWC imposed this poaching penalty at a time when the Pac-12 was desperate to schedule football games for its two remaining members and had little leverage to reject this naked restraint on competition." The Pac-12 seeks a judicial pronouncement to declare the poaching penalty as invalid and unenforceable.

Implications of the Legal Action

The duration of the poaching penalty is set to extend until at least August 1, 2027, a timeline seen as unusual given that the Mountain West's television contracts are due to expire in 2026. Furthermore, for the Pac-12 to retain recognition as a FBS conference by 2026, it must augment its participating schools to a minimum of eight, a task made more challenging as the current count stands at seven, following the inclusion of the five Mountain West entities.

The legal dispute transcends monetary implications, encompassing strategic considerations as well. The unfolding realignment scenario hinges on UNLV's decision, whether to remain in the Mountain West or transition to the Pac-12. The Pac-12 is poised to offer a more favorable stance by engaging in legal proceedings rather than finding itself on the receiving end of a lawsuit.

UNLV's Position and Poaching Fees

Initially inclined to solidify its allegiance with the Mountain West, UNLV's plans have been necessitated to adapt following Utah State's exodus, leaving the league with only seven continuing members. This turn of events has reopened discussions regarding UNLV's potential course of action, with experts suggesting that the Rebels may find more advantageous prospects by aligning with the party initiating the legal challenge.

In the event of a transition to the Pac-12, UNLV would be entitled to a compensation of $12.5 million for being the sixth institution relocated from the Mountain West. Moreover, the penalties associated with the pac-12/MWC agreement escalate incrementally with each successive school, imposing significant financial burdens contingent upon realignment decisions.