Pac-12 survival: WSU, OSU on brink of competing as two-team conference after clarity comes from the NCAA

The schools would use conference assets to fund athletic operations

Washington State and Oregon State have cleared a major hurdle in their plans for next season and, barring an unexpected hiccup, will compete as a two-team conference even if their legal battle worsens.

According to information gathered from multiple sources who requested anonymity, the schools recently received word from the NCAA that they have correctly interpreted the bylaws on conference membership requirements, clearing the way for the Pac-12 to continue as the ‘Pac-2’ for the 2024-25 seasons.

According to NCAA bylaw 20.02.9, conferences must have at least eight members to be classified in the Football Bowl Subdivision, but the bylaw appears to allow for a two-year grace period:

“A conference shall continue to be considered a Football Bowl Subdivision conference for two years following the date when it fails to satisfy the eight full Football Bowl Subdivision member requirement due to one or more of its member’s failure to comply with the bowl subdivision membership requirements.”

In order to avoid misinterpreting any aspect of the bylaw, WSU and OSU sought clarification from the NCAA, which responded “in the last several weeks,” according to a source.

“We have confirmation from the NCAA that we are reading the bylaws appropriately,” a source familiar with the matter said.

The Pac-12’s two remaining schools want to “keep the conference open,” according to another source, because the assets and intellectual property value are estimated to be worth more than $100 million after the conference’s ten departing schools leave next summer. (Among these assets are NCAA Tournament revenue as well as contracts with the Rose Bowl and the College Football Playoff.)

If the Cougars and Beavers win the ongoing court battle for control of the Pac-12’s governing board, they do not intend to hoard the entire Pac-12’s current-year revenue (about $420 million).

“The notion that (WSU and OSU) would take all the money and divide it between the two — that would put everyone right back in gridlock,” according to a third source. “And the hope is to get out of this gridlock.”

A Whitman County (Washington) Superior Court judge handed over control of the Pac-12 board to the two schools earlier this week. However, Washington, the defendant representing all of the departing schools, petitioned the Washington Supreme Court for an emergency stay.

If the lower court ruling is overturned and the ten outbound schools are appointed to the board, they could vote on how to split the revenue. However, a source stated that this would not necessarily change WSU and OSU’s strategy.

“It’s independent of the NCAA situation,” the source explained.

(According to multiple sources, a settlement through mediation is still possible.)

Neither WSU nor OSU intend to use their cash reserves to poach Mountain West schools, which have significant buyout clauses in their conference bylaws, and rebuild the Pac-12 in the next two years.

Instead, WSU president Kirk Schulz and OSU president Jayathi Murthy intend to use Pac-12 assets to fund their athletic departments at current levels for as long as possible.

“They’re being reasonable about it,” said one source. “The assets are not about buying out (Mountain West) schools.”

Meanwhile, WSU and OSU are planning their teams’ competition schedules for 2024-25, with football taking precedence.

They are close to finalizing a deal with the Mountain West in which WSU and OSU would each play six or seven Mountain West games.

The rest of their days would be filled with:

— Contracts for non-conference games are currently in place.

— At least one, and possibly two, games (in a home-and-home format).

— Their traditional in-state rivalries: Oregon State vs. Oregon and Washington State vs. Washington.

According to a source, those century-old matchups are valuable to media partners and are nearing completion.

According to JohnCanzano.com, Oregon is working to clear its schedule to play Oregon State on September 14, 2024, while Washington currently has an opening on the same day.

If the agreement with the Mountain West falls through — which has yet to be finalized and is heavily dependent on financial terms — the Cougars and Beavers have a backup plan for their football schedules.

A competitive support structure for their other sports, including men’s and women’s basketball, is central to the overall strategy. The Mountain West would be an ideal partner, but the West Coast Conference and Big West could also be viable options.

“They are in as good a spot as they could be under the circumstances,” a person familiar with the situation said.