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Oregon State, Washington State blocking Pac-12 revenue payments to departing schools

The fight between the 10 departing Pac-12 schools and Oregon State and Washington State reached another level last week after the two remaining schools blocked the distribution of 15 percent of conference revenue, both sides confirmed to The Athletic.

The December distribution has been in place for many years, though it is not explicitly written into the bylaws, a person familiar with the decision said. The decision by Oregon State and Washington State represents the first instance of the two schools preventing the distribution of money from this season amid their legal battle, even if temporarily, and the departing schools believe it could be a precursor to attempting to withhold more. The Mercury News first reported the withheld December distribution.

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Last month, the Whitman County (Wash.) Superior Court gave Oregon State and Washington State control of the Pac-12 board, but the Washington Supreme Court later granted a motion for an emergency stay, meaning the entire Pac-12 Board of Directors cannot take action without unanimous consent.

Oregon State and Washington State recently agreed to a football scheduling arrangement with the Mountain West for 2024. That agreement received unanimous support. The distribution plan was taken to the board but did not receive the support from the two remaining schools, the person familiar with the process said.

“A decision to distribute 15% of the more than $400 million in net revenues to the members now to support student athletes, as the Conference has always done in December, has nothing to do with the future of the Conference,” the 10 departing schools said in a joint statement. “Instead, OSU and WSU’s refusal to agree to it shows that the two schools are abusing their position to injure our programs and athletes in violation of all prior precedents.

“The unanimous support that all of our schools gave for the Mountain West agreement demonstrates that OSU and WSU can successfully plan for their future while all members continue to have a say in Pac-12 decisions impacting the current athletics year. The hundreds of millions of dollars that the Conference will receive from existing contracts during the two years after the other schools depart will support plans with the Mountain West and any future plans of the Conference.”

“As the only two remaining members, OSU and WSU are the only schools committed to the best interest of the Pac-12,” OSU and WSU said in a joint statement. “That means taking responsible steps to protect the assets of the Conference and plan for the future. No member acting in the Pac-12’s best interest would allow departing schools to drain the Conference’s assets on their way out the door, while they refuse to pay their fair share of the liabilities.”

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Those liabilities include various lawsuits against the conference, the NCAA and the Power 5, most notably the House v. NCAA case, which seeks back pay for missed NIL opportunities and was recently granted class-action status.

Throughout this legal battle, Oregon State and Washington State have expressed concern the 10 departing members could dissolve the conference and split up the assets for themselves. The 10 departing members say OSU and WSU are entitled to all conference revenue after this season, but the group is concerned OSU and WSU will withhold money from the 2023-24 academic year. The Whitman County judge, while ruling in favor of OSU and WSU last month to grant them control, said the two schools must still treat the 10 departing schools in a “fair, open manner.”

More updates are expected this week on future legal moves. It’s not yet clear whether this distribution action could become part of that.

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(Photo: Ali Gradischer / Getty Images)

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Abbie Anker

Update: 2024-06-06