OSU, WSU agree to revenue distribution deal with departing Pac-12 schools

Oregon State and Washington State announced Thursday they have reached an agreement with 10 departing Pac-12 schools on revenue distribution for 2023-24 that ends a legal battle sparked by conference realignment.

Last week, Oregon State and Washington State were given control of the Pac-12 and assets when the state Supreme Court of Washington declined to review a lower court’s decision to grant the schools a preliminary injunction.

Financial terms of the settlement were not released, but in a joint statement

Washington State and Oregon State said the departing members will forfeit a portion of distributions for this school year and guarantees to cover a specific portion of “potential future liabilities.”

“This agreement ensures that the future of the Pac-12 will be decided by the schools that are staying, not those that are leaving. We look forward to what the future holds for our universities, our student-athletes, the Pac-12 Conference and millions of fans,” Oregon State President Jayathi Murthy and Washington State President Kirk Schulz said in a statement.

The conference, which Oregon State and Washington State intend to keep alive and hope to rebuild, will retain its assets and all future revenues.

“We are pleased to have reached an agreement in principle that ends litigation,” the 10 departing schools said in a joint statement.

Oregon State and Washington State are in line to receive tens of millions in revenue over the next two years from current agreements the Pac-12 has with the College Football Playoff and Rose Bowl.

There are also potential liabilities. The Pac-12 is named as a defendant in an antitrust lawsuit along with the NCAA and other power conferences that could cost billions in damages.