Oregon State and Washington State have reached an agreement in principle with the 10 outgoing Pac-12 schools to resolve their ongoing legal battle over control of the conference's board and assets, the 12 universities announced Thursday.
The departing schools “have agreed to forego a portion of distributions for the remainder of the 2023-2024 year and provide specific guarantees for potential future liabilities,” said Oregon State President Jayathi Murthy and Washington State President Kirk Schulz , in a joint statement. The conference will also retain its assets and any future revenue, they said.
The 10 withdrawing schools said in a statement that the agreement “allows OSU and WSU to maintain control over the hundreds of millions of dollars flowing into the conference in the coming years, as we have always maintained, while maintaining the vast majority.” “The funds earned in 2023-24 will be distributed equally among the 12 members.” The schools added that final details would be worked out “in the coming days.”
Last week, OSU and WSU regained control of the Pac-12 board and conference assets following a Washington Supreme Court ruling. The court declined to hear an appeal by the University of Washington and the Pac-12 and then lifted a temporary stay that weeks ago had an initial Whitman County (Wash.) Superior Court decision last month granting the two schools the Transferring control had destroyed the conference.
The decision gave OSU and WSU control of the league pending litigation or an agreement between the sides.
OSU and WSU have spent the last few months contemplating their next move following the collapse of the Pac-12. The two schools' original case argued that the 10 departing members forfeited their rights to board membership and conference decisions when they announced their intention to join the Big Ten, Big 12 or ACC. OSU and WSU also feared that the withdrawing schools might vote to dissolve the conference and split assets.
The departing schools, in turn, had expressed concerns that OSU and WSU could retain all 2023-24 conference revenue while they are still part of the league, adding that OSU and WSU would be happy to retain all future revenue and assets following their next elimination could summer.
“Today’s news represents a major victory for our universities and a significant step toward stabilizing the Pac-12 Conference and preserving its 108-year legacy,” Murthy and Schulz said Thursday. “This agreement ensures that the future of the Pac-12 will be decided by the schools that stay, not those that leave.”
Earlier Thursday, the West Coast Conference voted to admit OSU and WSU as affiliate members in most non-football sports for the 2024-25 academic year, a WCC source said – a key step in the schools' work to make short-term landings to manage places for their teams. Earlier this month, OSU and WSU entered into a one-year football scheduling agreement with the Mountain West for next season.
What does this decision mean?
We don't know all the details, but based on what OSU and WSU have said, it's hard not to assume that the two schools essentially got everything they could reasonably have wanted out of this difficult situation. This litigation began when OSU and WSU feared that the withdrawing ten schools might vote to dissolve the league and split assets. Now the two schools retain all future assets, retain a portion of this year's distribution funds from the departing ten schools and have guarantees from them for future liabilities. What more do you want? — Chris Vannini, senior college football writer
What’s next for OSU, WSU?
With this litigation in the rearview mirror, it is finally time for Oregon State and Washington State to move forward. The two schools have gained control of the league's assets and leadership going forward, allowing them to fully explore the idea of replenishing the league and keeping the Pac-12 brand alive. They signed a football schedule agreement with the Mountain West so they have a full football schedule for next fall. They host the majority of their remaining sports in the West Coast Conference and also give the athletes and coaches schedules to look forward to.
These two schools have come a long way since mid-August, alone and abandoned. They have found transitional homes and temporary solutions, giving them the time they need to think about the future. And that is a big win. – Nicole Auerbach, senior college football writer
Required reading
(Photo: Kirby Lee / USA Today)