What’s the settlement
- Thread starter kougkurt
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Hard to say. The amount forfeited by the departing members is the key of course.
WSU and OSU are probably best served by paying off debt, IMO.
The other schools staying on the hook for liabilities is huge, assuming the settlement scoped those appropriately, which I hope for and expect. Overall, though, unless WSU and OSU got screwed, which I doubt--I suspect it was a fair settlement for all sides--just getting some certainty on this and being able to move forward in a reasonable way is a huge win for WSU (and OSU). Bear in mind I've never thought WSU or OSU were going to get a big score out of this. Always seemed likely to settle since that is in WSU's and OSU's interest. They can't be dealing with litigation and/or uncertainty on this for years, which is what might otherwise have occurred.
Sounds sort of positive. Interested to hear more.
And By the way Gibby, I am getting skewered in another thread about threatening to kill you. Sorry that in a bad moment I said shit like that, which of course I would never do. Just had had enough of your insults. So feel free to call peace or pile on.
We’ve already set ourselves up for 2024, so let that ride. Besides, if we do something formal it gives the 10 an avenue to come back and renegotiate. After August 1, we can do whatever we want.
Oregon law requires public entity settlements to be public, so details will be seen at some point.
Definitely best to leave the door partially open for possibly reuniting in the future. Cal & Furd will most likely come back with their tails between their legs sooner than later.
Pac-12 legal battle ends as UW, departing schools agree to settlement with WSU, OSU
Jon WilnerDec. 21, 2023 at 5:29 pm Updated Dec. 21, 2023 at 7:44 pm
The fight for control of the Pac-12 is over. The 10 departing schools have agreed in principle to a settlement with Washington State and Oregon State that ends three months of internecine litigation and provides clarity on the future of the conference. Terms were not disclosed.
Announced Thursday afternoon, the deal comes less than one week after the Washington Supreme Court declined to review a lower court’s ruling that had established WSU and OSU as the only members of the governing board.
While the high court’s decision seemingly left the outbound schools with little leverage, the settlement was reached hours before the Supreme Court’s ruling, according to a source familiar with the situation.
As part of the settlement, the 10 schools “have agreed to forfeit a portion of distributions over the remainder of the 2023-2024 year and provide specific guarantees against potential future liabilities,” according to a joint statement issued by WSU and OSU. Additionally, “The conference retains its assets and all future revenues.”
The 10 departing schools also issued a joint public comment:
“This agreement allows OSU and WSU to maintain control of the hundreds of millions of dollars coming into the conference in future years, as we have always maintained they would, while calling for the vast majority of funds earned in 2023-24 to be distributed equally among the 12 members. We will take time in the coming days to work out the final details.”
(The full statements are below.)
The amount forfeited was not revealed but likely is based on the $420 million in revenue the conference is expected to generate in the current competition year. If divided equally, a full share would be $35 million per school.
Estimates during the course of the legal process had pegged a reasonable forfeiture amount between $5 million and $10 million per departing school.
Combine the forfeited revenue with at least $100 million in long-term conference assets — much of that comes from the Rose Bowl contract and the NCAA tournament payouts — the Cougars and Beavers will have a war chest from which to support their athletic departments and compete as a two-team conference in football for the 2024-25 seasons.
(They might have enough to lure schools from other leagues into a rebuilt Pac-12 for the 2026 season.)
The second piece of the settlement — “specific guarantees against potential future liabilities” — is equally significant given that the conference faces a series of lawsuits and has expenses looming.
Those expenses could include commissioner George Kliavkoff’s contract. If terminated without cause sometime this winter, Kliavkoff likely would be owed $8 million or $9 million, based on compensation data in recent Pac-12 tax filings.
The most daunting liability facing the conference is a class-action antitrust lawsuit against the NCAA that could carry billions of dollars in damages — and features the Pac-12 as a named defendant.
WSU and OSU were concerned about having to pay an eight- or nine-figure bill after the 10 schools had left the conference.
However, the settlement does not mean WSU and OSU have been made whole financially following the collapse of the conference.
In a letter to her campus community on Thursday evening, Oregon State president Jayathi Murthy explained that “the loss of the Pac-12 media rights deal means that our financial projections for 2025 and beyond remain the same, and conference revenues alone cannot make up the more than $40 million annual gap in OSU Athletics funding caused by the departing universities.”
— Joint statement from WSU and OSU:
“In September, as the two remaining members of the Pac-12 Conference, Oregon State University and Washington State University were forced to act swiftly to protect the future viability of the Pac-12. Thanks to the determination and strength of Beaver Nation and Cougar Nation and the excellence of our student-athletes, coaches and staff, we are now closer to achieving our goal. Today’s news marks a huge victory for our universities and a significant step toward stabilizing the Pac-12 Conference and preserving its 108-year legacy. The departing schools have agreed to forfeit a portion of distributions over the remainder of the 2023-2024 year and provide specific guarantees against potential future liabilities. The conference retains its assets and all future revenues. This agreement ensures that the future of the Pac-12 will be decided by the schools that are staying, not those that are leaving. We look forward to what the future holds for our universities, our student-athletes, the Pac-12 Conference and millions of fans.”
Gives us a somewhat legit conference schedule over the next 24 months while we transition into New-PAC
“This agreement allows OSU and WSU to maintain control of the hundreds of millions of dollars coming into the conference in future years, as we have always maintained they would, while calling for the vast majority of funds earned in 2023-24 to be distributed equally among the 12 members. We will take time in the coming days to work out the final details."
geezus, why am I surprised that the T10/ UW couldn't even have integrity with their final statement?
geezus, why am I surprised that the T10/ UW couldn't even have integrity with their final statement?
I wonder if MWC offered us something along the lines of football- a bunch of games, not competing for a championship and we pay to play while WCC offered temporary membership. Much better deal if that’s the case.
MWC asked for longer term commitment and $$$, no ability to play in conference tournament. They arent being as considerate as people thought. They are scheduling all tough football game in their stadiums. They are doing everything in their favor. Good business by Narvaez. Better hope things shake out in her favor with this ACC thing, cause we might end up in another conference with Oliver Luck or Brett Yomark at the helm.
We're looking for a rebound relationship, and not a new marriage?
Well you didn't, but saying we don't want to be a glorified G5 league took me to post that. Point being that joining the WCC for other sports, even just for 2 years, does nothing for our stature or anything else.
Getting to the agreement, ESPN (link below) has a more expansive article on this "agreement in principle". Need to get the undisclosed details, but based on what we know I guess I can reluctantly dig it. Forfeiting "some" of the 23=24 distributions and The Pac2 keeping all of the mystery assets sounds OK to me. Now a clause allowing Butch to put his knee into Quackkoff's neck until he can't breathe would have been nice, but I'm mixing threads now. Just kidding! Sorta
Wait - is calling him Quackkoff somehow species racism against ducks? Feel free to attack me guys. I'm just going to keep tooting my horn about the reverse merger with the Mnt West being our ONLY option. A coast to coast conference is complete insanity. No P4 program wants us. Picking up random G5 schools from all over hell's half acre is stupid. We aren't getting the homecoming queen for the prom. Just take the somewhat cute gal from the next desk over and go with it,
Departing Pac-12 schools settle with OSU, WSU
Oregon State and Washington State said Thursday's settlement with the 10 departing Pac-12 schools 'marks a huge victory for our universities and a significant step toward stabilizing the Pac-12 Conference and preserving its 108-year legacy.'
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