The New Pac 12 Admission Agreement is One of a Kind
Utah State Aggie's Admission Agreement includes several unique elements: Raising money, off-ramps to the P4, and performance incentives.
I just received the Utah State Aggie’s admission agreement to the Pac 12. It is attached at the bottom of this post. While I have not received my copy of the agreement signed by the first four members, I have seen screenshots provided by B.J. Rains (@BJRaines) via Don Day (@DonLDay). I don’t find any material differences. Both contain the same redactions which are substantial.
The Unusual Stuff
You can review and download admission agreements associated with other realignment moves on my other substack posts. Here is what stands out to me as unique with this agreement:
Is partnering with private equity or other aggressive financial strategies in play?
The new members agree to work together on a financial plan for the conference. This plan may include assets from member institutions and an extension of the Grants of Rights beyond 2031. Here is the language relating to this unique element:
“Good faith obligation to participate in discussions regarding additional funding models, which could result in extension of GOR term and granting of additional institutional assets to the Pac-12.
Grant of Rights through June 30, 2031 “or a different duration as mutually agreed to amongst the incoming members and OSU/WSU based on good faith discussions prior to the execution of a long-form agreement which will focus on strategic considerations regarding length of a media rights deal.”
Utah State (and the others) agree to a “commitment to good faith discussions on minimum investment level within one year of conference membership.”
Funding models that could extend the life of the GOR could involve conference naming rights, long-term borrowing using institutional assets as collateral, or getting tied up with a private equity partner.
Still hoping for an invite to a bigger table…
The admission agreement allows exits from the conference (with big penalties) if the Big 10, SEC, ACC or Big 12 tender an invite. Teams can exit before the GOR expires (with penalties) if invited by the SEC, Big Ten, Big 12 or ACC (for football only or all sports). Teams can join a P4 conference before the rebuilt Pac 12 starts (July 1, 2026) with a payment of $30 million.
Sharing is caring
The agreement includes a performance-based revenue-sharing model. For example, schools participating in the NCAA MBB tournament keep 50% of the NCAA credits, with the balance shared with other members.
Oregon State and Washington are sharing the value of the former Pac 12 Network (now Pac-12 Enterprises) with all new members. That commitment is characterized as “a material term for the inducement of new members joining the Conference.” (1)
Thank you to Utah State for the prompt response to my public records request!
(1) UPDATE: The “inducement” language is not in the Utah State Agreement. I suspect this is an oversight. It is in the language of the agreement for the first four members.
