calbear93 said:

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BearSD said:

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HoopDreams said:

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I've read a few articles on this but don't know all the facts and law, but based on these articles it seems academic. OSU and WSU will ultimately win.

What I want to know is:

1. How will the Comcast debt be handled?
2. How will the share of Prior Bowl/NCAA tournament payouts be handled?
3. Is the Pac12 Network assets a net positive or net negative, and by how much?

Basically, how much $ benefit could OSU/WSU get once the legal battles end with their victory?

And my final question: how was this risk factored into Cal's budget forecasts?

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Unless all 12 schools enter into a written agreement that confirms each is equally responsible to pay liabilities of the conference that arise before August 2, 2024, OSU and WSU should stash a lot of the Pac revenue, probably more than $100 million, in an account to make sure there's enough money to pay anything that has to be paid after the departing 10 leave.

Otherwise, the departing schools might say next year, "We're not in the Pac any more, so we aren't going to pay any of those Pac debts."

And yes, one would hope that Cal and the other departing schools have already anticipated that, no matter how this lawsuit is resolved, their 2023-24 distributions from the Pac will be far less than normal.

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Just because the departing schools may not have the right to participate in the board or may not have a say on board decisions does not mean they are forsaking their right to their interest in any net assets or can walk away from their liabilities that preceded their departure. If OSU and WSU, as sole members (again not sole owners) engaged in self-dealing and took all the assets for themselves, they would be in breach of their fiduciary duties as members of the board to the owners of the assets. The big debate is who decides how to balance the assets with existing and contingent liabilities and makes decisions on allocation of capital and funding of reserves in escrow.

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Could a federal court somehow set up a third neutral party appointed by the court to control the reserves in escrow.

wifeisafurd said:

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Beaverdreams2 said:

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Of course it'll be appealed. Pac 2 expects that. But legal appeals can't introduce any new or additional evidence/information and must show an error in the original decision. That's probably why he let the former Pac 10 ramble on as long as they wished. I'm pretty sure, under his folksy demeanor, Judge Libey ain't no fool.

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9 of the departing teams were not brought under this court's jurisdiction, and will file for restraining orders in more friendly jurisdictions. The most likely court to decide governance will be in California, as the Pac entity is a California nonprofit, which puts it under the rules set by the CA attorney general and subject to all sorts of statuary fiduciary duties, as I suspect the Judge in Washington may soon find out.

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Your right. I think it is headed here where things are different. What happens if restraining orders are brought up in Utah, Colorado, Arizona, Oregon and California. What if each outcome is different or conflicting? What about statuary issues within each state as you mention. Any legal minds out there if this occurs in different jurisdictions?

Legal stuff somewhat aside:

OSU and WSU apparently are throwing in the towel. There are going with a 2 year deal with MWC. 7 games against MWC teams, not eligible for MWC championship game, one game against each other, no membership in MWC conference, per changes to the CFP last week, they would only be eligible for the playoff thru an at-large berth, which seems unlikely since they will play too few P4 teams (OSU has 2 at best, as they would play Purdue, and have a new spot to fill if Boise State is a MWC opponent, and WSU would have zero, but could get 2 if SDSU and SJSU are MWC opponents and they can find two P4 schools who will play them).s noted by a very smart poster on the public side, this is a death spiral. They needed to fill their schedule with P4 teams or bring teams worth watching into the Pac to get a good TV contract.

This is a death spiral. Football playoff through an at large birth, is not going to happens with a lack of strength of schedule. They are not eligible for a conference championship, likely very limited bowl opportunities, no TV contract of any value, etc. Their end game seems to be to hope they can have a MWC merger into the Pac once they figure out the revenues and liabilities, but the Pac will no longer be a power conference in three years. The college football playoff system dies in two years, so I don't see what this gets them being in the Pac 2 (why does the MWC want to merge? ). I don't see how they retain their better players and even coaches like Smith, who will want to play against better competition and be seen on a national level.

This says nothing about how they handle basketball or non-revenue sports, and money wise, you would think several non-revenue will have go be cut. They are accepting a raw deal. I actually feel bad about that. They got screwed.

I don't see their end game with the Pac 2, unless they say you other 10 teams breached your agreement with us or some fiduciary duty (or some anti-trust claim) and owe us money from this fiscal year's take, or they are going after the deferred NCAA post season basketball revenue share, in which case they probably have a fight in court with the other 10 teams. Why not simply liquidate the Pac and be done with it? Maybe some more tuned in minds can show us the value is in keeping the Pac 2 alive for two years?

There was some rumor that the Big 12 may add them once the Pac 12 litigation is complete.

Its either that or the MW. I would argue that OSU and WSU could do reasonably well in the Mountain West, but obviously you wouldn't see many teams like this years OSU team if thats where they end up