Pac-12 and Mountain West Reach Settlement in Poaching Fees Lawsuit $55M in Poaching Penalties and up to $100M in Exit Fees

The Pac-12 and Mountain West conferences have agreed in principle to resolve two active federal lawsuits — one over $55 million in so-called poaching penalties and a second over exit fees approaching $100 million. Both cases are now paused while the parties finalize the terms.

The Dispute That Started It All

In 2024, the Pac-12 invited five Mountain West schools — Boise State, Colorado State, Fresno State, San Diego State, and Utah State — to join starting in 2026. After that announcement, the Mountain West sent notice demanding $55 million in termination fees tied to a 2024 scheduling alliance.

The fee structure was written into a football scheduling agreement signed in December 2023. It called for a $10 million payment if one school left for the Pac-12, with an additional $500,000 added for each school after that. With five schools departing, the total reached $55 million.

The Pac-12 sued, arguing the fees were an unlawful restraint on free competition. The Mountain West’s attorneys countered that the Pac-12 had freely agreed to those terms and could have avoided the penalties by joining the Mountain West or executing a reverse merger.

The Second Lawsuit: Exit Fees

A separate lawsuit was filed in Colorado by three of the departing schools — Boise State, Colorado State, and Utah State — seeking to avoid exit fees. Combined with the poaching penalty suit filed in California, more than $100 million was at stake across both cases.

The Mountain West was seeking exit penalties of roughly $20 million per school from the five programs leaving for the Pac-12 on July 1. The exit fees were outlined in the conference’s handbook after being approved by the membership in April 2021.

How the Settlement Happened

An initial two-month mediation between the two sides ran from May to July 2025 but produced no agreement. The parties then met again this week through a virtual meeting and reached a deal.

The settlement announcement came one day before a scheduled discovery hearing in the U.S. District Court for the Northern District of California. A notice of settlement must be filed with that court by June 2.

In a joint statement, both conferences along with Boise State, Utah State, Colorado State, San Diego State, and Fresno State confirmed they had reached an agreement in principle to resolve the pending lawsuits and agreed to stay the proceedings in California and Colorado while they finalize the terms.

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Money on the Table, What the Schools Stand to Receive

The exact settlement figure has not been released and is likely to remain sealed as part of the final agreement.

Remaining Mountain West members — Nevada, New Mexico, San Jose State, Wyoming, UNLV, Air Force, and Hawaii — each signed grants of media rights through 2032 that included retention bonuses tied to the money the Mountain West collected through exit fees and poaching penalties. Nevada, New Mexico, San Jose State, and Wyoming would each receive 11.5 percent of the first $61 million collected. UNLV and Air Force would each receive 24.5 percent, and Hawaii 5 percent. The initial $61 million payment was due no later than July 1, 2026.

What This Means for Both Conferences Going Forward

Colorado State, Utah State, San Diego State, Fresno State, and Boise State are set to leave the Mountain West and join the Pac-12 this fall. The Pac-12 also added Texas State to reach the eight-team minimum required for an automatic College Football Playoff bid.

The Mountain West has responded by adding UTEP, Hawaii, and Northern Illinois for football starting this fall. Both conferences now move into the 2026 season with the legal cloud lifted.

For a deeper look at how conference disputes and antitrust claims have played out in professional sports, see our coverage of the Michael Jordan NASCAR Lawsuit Settled, 23XI Racing Wins Permanent Charters — a case with similar themes of monopoly power, fee structures, and negotiated settlements in organized sports.

Frequently Asked Questions

What were the poaching fees in the Pac-12 vs. Mountain West lawsuit?

 The Mountain West’s scheduling agreement included a clause requiring the Pac-12 to pay $10 million if one school left, plus $500,000 per additional school, totaling $55 million for the five schools that departed.

Were the exit fees different from the poaching penalties?

 Yes. The poaching penalties were owed by the Pac-12 Conference itself under the scheduling alliance. The exit fees — ranging from $19 million to $38 million per school — were separate obligations owed by each departing school under the Mountain West’s membership handbook.

Will the settlement amount be made public? 

The exact figure has not been disclosed and is expected to remain sealed under the settlement agreement.

What happens to the lawsuits now? 

Both conferences agreed to stay the California and Colorado lawsuits while they work to finalize the settlement terms. A formal notice must be filed with the Northern District of California by June 2.

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against verified news sources on May 19, 2026. Last Updated: May 19, 2026

Disclaimer: This article is for general informational and educational purposes only and does not constitute legal advice. Laws vary by state and jurisdiction. For advice about your specific situation, consult a qualified attorney.