The Pac-12 has filed a lawsuit against the Mountain West over an alleged "poaching penalty" that would cost the conference over $40 million for adding four Mountain West schools.
The Mountain West imposed a poaching penalty of $10 million, increasing by $500,000 for each additional school the Pac-12 adds from the Mountain West, totaling $43 million.
The Mountain West has exit fees of up to $17 million for departing schools, but the Pac-12 is challenging the poaching fees as unlawful and unenforceable.
The poaching penalty was included in the Mountain West's football scheduling agreement with Oregon State and Washington State, but the Pac-12 argues it has nothing to do with the intent of the deal.
The Pac-12 has filed an antitrust complaint, seeking a declaratory judgment by a judge, and arguing that the poaching penalty is anticompetitive and unlawful.
Mountain West Commissioner Gloria Nevarez said the Pac-12 agreed to the fees and acknowledged they were essential to her conference members, and that the fees were included to protect the Mountain West.
The Pac-12 has extended invitations to Mountain West schools Utah State and UNLV, and Utah State has been admitted, with an announcement made on Tuesday night.
Utah State's addition to the Pac-12 would cost the conference another $12.25 million, and would leave the Mountain West with only six members, two short of NCAA requirements.
The Pac-12 needs at least eight members to be recognized as a conference by the NCAA and College Football Playoff by 2026, and is currently operating with only two teams.
The lawsuit has created uncertainty for both conferences, with the Pac-12's expansion plans and the Mountain West's grant of rights agreement hanging in the balance.