What does the Mountain West, Pac-12 settlement mean for Nevada, UNLV and other MW schools?
The 20-month saga between the Mountain West, its departing members and the Pac-12 will soon come to a close with the sides reaching a settlement agreement to end two lawsuits.
The news was first reported by the San Diego Union-Tribune’s Mark Zeigler, who added the finalized terms must be filed with the court by June 2. Those terms are undisclosed and will likely remain so, which makes assigning winners and losers tough.
With the MW facing discovery of internal emails and the Pac-12 finances being released and its so-called war chest not as robust as assumed, it made sense for both sides to cut a deal, which they were unable to do during mediation last year. The final resolution for these things almost always end with a settlement, although this one took longer than most, which underscored the animosity between the sides. Without a settlement, this would have dragged into 2027.
On the line was up to $155 million for the MW, which was contractually owed five exit fees of roughly $20 million each — one from Boise State, San Diego State, Colorado State, Fresno State and Utah State, which will join the Pac-12 on July 1 — plus the $55 million poaching penalty outlined in the MW’s scheduling agreement with the Pac-12 for the 2024 football season.
The MW was never getting the entire $155 million as full exit fees are rarely paid and the poaching penalty was unprecedented in college athletics and would have had to hold up to legal rigor. Former FOX Sports executive Bob Thompson said history indicates the settlement at 55 cents on the dollar, which would pencil out to the MW landing at $82.5 million, although given the lack of precedent for the poaching penalty, it’s hard to say.
Let’s assume that $82.5 million mark for now. How much will each MW school get?
The MW grant of media rights, which every school in the rebuilt league has signed, included incentive payments to remain in the conference. UNLV and Air Force get 24.5 percent each of the collected money; Nevada, New Mexico, San Jose State and Wyoming get 11.5 percent each; and Hawaii 5 percent. None of the new members — UTEP, Grand Canyon, UC Davis, Northern Illinois (football only) and North Dakota State (football only) — get any of that money.
The contract states the initial $61 million collected would be paid out with an additional $18 million held in reserve to recruit new members and the next $21 million after that following the same distribution formula. The MW did not burn through that $18 million held in reserve for future members as new schools UTEP, Grand Canyon, UC Davis, Northern Illinois and North Dakota State paid more than $15 million in entry fees to join the MW.
Assuming the estimated $82.5 million collection mark, UNLV and Air Force would be due $20.2125 million each; Nevada, New Mexico, San Jose State and Wyoming would get $9.4875 million each; and Hawaii would get $4.125 million. Those numbers are likely high, especially when including legal costs. But some of that entry fee money from the new members could also go to the retained schools, perhaps in the form of media-rights “make goods” as the MW agreed to use best efforts to maintain the annual per-school media-rights distribution of $3.5 million annually if the new deal didn’t hit that mark.
The initial payment from the first $61 million collected is due to members as soon as practicable and no later than July 1, 2026, per the grant of media rights, which added motivation for the MW to settle rather than go to court and miss that deadline. The MW withheld the conference distribution owed the departing schools last fiscal year and are in line to do so again this fiscal year, which ends June 30. That should make both sides whole and allows the MW to distribute the money on time.
There’s been rampant speculation the Pac-12, denied by members of the American Conference, remains desirous of adding UNLV, which, along with Air Force, already turned down an invitation from the league. Is this deal enough to keep UNLV in the MW for the short term? I would think so. Contrary to some reports, there was not a set amount of money the MW had to collect to enforce the grant of media rights, which ties each member’s home broadcast rights to the league through 2032.
Not only is UNLV in line for the roughly $20 million estimated above, it also got the MW to move its conference offices to Las Vegas; hold the MW basketball tournaments at Thomas & Mack through 2032; and allow the Rebels (or any other MW school) to regain its media rights if joining a Power 4 conference, something the Pac-12 is not offering its schools due to its punitive “A4 Exit Fee.” UNLV may also have a clearer path to the College Football Playoff in the MW than the Pac-12.
Throw in the fact UNLV would still be bound by the grant of media rights, which it would have to sue to get out of, and be required to pay the MW exit fee — currently around $20 million, although as seen with this settlement there is now precedent for reducing that fee — and I don’t see the Rebels super motivated to leave the MW and join the Pac-12 for an extra $3 million or so (another estimation) in media-rights money per year.
So, things appear settled. UNLV gets around $20 million. Nevada gets around $9 million. The lawsuits end. But the animosity does not. The Pac-12 was not rebuilt to the glory imagined when it poached five schools from the MW and turned away by just about everyone else. But it is the stronger of the two conferences entering the 2026-27 athletic season. Both leagues have some stability given their grant of media rights — the Pac-12’s extends through 2031 while the MW’s goes through 2032.
Instead of facing off in court, the conferences will now face off on the court (and field, diamond and pool) starting next season as they battle for the title of top FBS conference in the West. Let the games begin.
Sports columnist Chris Murray provides insight on Northern Nevada sports. Contact him at [email protected] or follow him on Twitter @ByChrisMurray.
