$500 Million Claim

The premature notice of withdrawals, delivered by the 10 departing schools of the PAC 12, should result in a $500 million claim against them and the conferences which induced them to so act. The claim should be brought by the PAC 12, controlled solely by OSU and WSU and for the benefit of these two schools.

Unlike the other Power 5 conferences, the PAC 12 does not impose an exit penalty. Instead the PAC 12 bylaws provide:

“No member shall deliver a notice of withdrawal to the Conference in the period beginning on July 24, 2011, and ending on August 1, 2024; …

The Bylaws of the PAC 12 conference constitute a contract between the conference and its members. The departing schools should be held liable for their breach. An entity that induces a party to breach a contract can likewise be held liable.

The exit penalties imposed by the other Power 5 conferences vary between $30 million and $80 million dollars primarily dependent upon the timing of the notice compared to the actual withdrawal. Maryland paid $31 million dollars when it left the ACC for the Big 10, having given two years notice.

A reasonable amount to seek against the departing schools and the conferences which induced them to depart would be $50 million dollars per school - $500 million dollars to be retained by the PAC 12 for its two members, OSU and WSU.

Timothy Esser

Pullman, WA