🏈 🔵 What's The Deal With The 'Pac-2'?
Oregon State and Washington State failed to find conference realignment suitors upon the exit of 10 former league rivals. What will each school do next?
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What’s The Deal With The ‘Pac-2’?
Hey friends,
It’s well-documented that next year’s college football landscape is set to drastically change.
After the Big East’s demise in 2012, the Big Ten, SEC, ACC, Big 12, and Pac-12 became known as the “Power Five” conferences.
The prominent autonomy leagues have provided nearly 98% of all College Football Playoff squads, generate larger revenue figures, increased budgets for more expenses, and garner higher viewership rates.
However, the Power Five is set to inevitably shrink to the Power Four, as only two Pac-12 teams will remain in the conference next fall.
Oregon State and Washington State’s administrations are committed to rebuilding the Pac-12 by recruiting other West Coast institutions to join the storied league for a new era.
But, with less than six months until the start of September, it’s too late for the new-look “Pac-2” to start its reshuffling process ahead of the season’s start.
Let’s take a look at Oregon State and Washington State’s plans for the 2024 slate, including both team’s scheduled opponents and a projected revenue breakdown.
Who Will Oregon State & Washington State Play?
In December, Oregon State, Washington State, and the Mountain West announced a scheduling agreement, giving the two Pac-12 members six opponents each to start.
However, the initial framework has since expanded since December. Washington State now has eight Mountain West opponents on its slate, while Oregon State will face seven of the conference’s teams.
Neither of the Pac-12 teams will be eligible for the Mountain West Championship game.
The deal will allow the two programs to operate as a two-team conference for at least a year.
However, the agreement between both teams and the Mountain West didn’t come at an insignificant cost.
According to the AP, Oregon State and Washington State will pay a combined $14 million to the Mountain West next year.
Here’s the breakdown of expenses owed:
$1 million in administrative fees from both Oregon State and Washington State owed within five days of the contract’s signing (paid in December).
General participation fees of $3 million from the Pac-12 to the Mountain West paid in four installments of $750,000 beginning in October 2024 and spanning until April 2025.
$1.5 million owed from Oregon State and Washington State for each home game played against Mountain West opponents
Both schools will host at least three home games against Mountain West programs, equating to a $9 million payout in total.
Aside from a half-dozen scheduled contests with Mountain West teams, both teams will continue to play historic rivals in 2024.
According to Sports Illustrated, the “Civil War” between Oregon State and Oregon is “on for 2024 and beyond.”
Instead of playing at the beginning of the campaign, the two teams will clash on the Beavers’ home turf in week three on September 7, 2024.
The rivalry series will continue in 2025, with a return to Oregon in Autzen Stadium.
As for the Cougars, the “Apple Cup” with Washington is slated for September 14, 2024, in Seattle.
The agreement to continue the “Apple Cup” currently runs through 2028.
In total, each team will play 12 matchups in 2024, consisting of seven to eight Mountain West foes, one Pac-12 battle against one another, and at least three true non-conference games.
Revenue Breakdown
With the Big Ten’s revenue stream of roughly $1 billion per year, each member is projected to take home $80 to $100 million annually after the 2024 fiscal cycle.
Last year, the SEC hit a record $853 million in revenue, giving all 14 schools about $51.3 million each.
With the additions of Texas and Oklahoma, that figure is set to jump in accordance with the Big Ten’s projected payouts.
As high-level athletic institutions with over 15 varsity sports each, Washington State and Oregon State will need to pull in adequate revenue streams to remain afloat for the foreseeable future.
That’s why each school remained in the Pac-12 — for now.
Oregon State and Washington State are currently in a legal battle with the Pac-12 and the 10 departing schools to determine who has control over the conference from here on out.
The case is significant because it could put both schools in control of “hundreds of millions of dollars” in assets, per the AP.
At the end of last year, a Washington state superior court granted Oregon State and Washington State control of the Pac-12.
According to ESPN, “That ruling was stayed by the state’s supreme court, which determines whether to take the case on appeal.”
If the preliminary injunction holds, Oregon State and Washington State would be in sole control of the conference’s $400 million in total assets.
The break is necessary for each institution to remain intact athletically.
Both schools are expected to lose $25 million annually while they remain without a permanent conference home.
Currently, the joint deal with the Mountain West runs through August 1, 2025, but may be extended to August 1, 2026, if mutually agreed to before September 1, 2024.
In total, the 10 departing schools missed out on $61 million in revenue distribution. Oregon State and Washington State decided to block traditional midseason payouts to the exiting institutions on December 12, 2023.
Nearly a month ago, The Mercury News reported that Washington State president Kirk Schulz said the two remaining schools are “closing to signing a media rights deal,” but financial terms have yet to be disclosed.
The Pac-12’s current 12-year, $3 billion rights deal with Fox and ESPN is set to expire in the fall.
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What Will Each School Do Next?
Despite months of litigation and uncertainty, both Oregon State and Washington State’s administrations are deeply committed to continuing the Pac-12’s tradition.
Oregon State and Washington State sued the Pac-12 and its departing members last September, claiming the exiting members relinquished a right to be on the conference board of directors when they announced updated plans.
If the Pac-12 and Mountain West extend their agreement into the 2025 campaign, the Mountain West would generate $23 million in revenue thanks to the alliance.
In December, Oregon State athletic director Scott Barnes said, “We are still focused on rebuilding the Pac-12.” Washington State athletic director remains committed to the same goal.
Pending the finalization of the court case determining permanent control of the Pac-12’s assets, the conference could poach the Mountain West outright — at a significant cost.
According to Nevada Sports Net, it could cost the Pac-12 $140 million total to buy each Mountain West team’s services.
Below is a cost breakdown of the payment structure per school, which would need to be settled by August 2, 2027 (courtesy of Nevada Sports Net):
While the Pac-12’s future remains in question, plenty of dust needs to settle before Oregon State and Washington State find a permanent solution.
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Shoutout to Connor Krause for helping to write this newsletter and putting it together!
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