Pac-12's new tax return shows devasting fallout from conference realignment

The Pac-12 Conference has filed its first federal tax return as a two-member league – a document that shows just how badly it was decimated by college football realignment in 2024 after the departure of 10 schools to other conferences.

The numbers in it are jarring but also a reminder that this is a league that is building back up soon with seven incoming full members in 2026.

The tax return was obtained from the league by USA TODAY Sports for fiscal year 2025, which runs from July 2024 through June 2025, a year in which Oregon State and Washington State were the Pac-12’s only members.

Here is what it shows:

Pac-12 revenue dropped dramatically as expected

Revenue collapsed from $566.6 million in fiscal 2024 to $111.5 million in fiscal 2025. This is primarily because there was a drastic reduction in television companies wanting to pay for their games. The league’s television rights fees went down to $3 million from $381 million in the previous fiscal year, when the Pac-12 still had 12 members.  Oregon State and Washington State football games in 2024 were televised by The CW Network and Fox Sports.

The depleted revenue stream also led to a deficit of $21.7 million after $133.2 million in expenses.

“FY25 is the first of two build-up years ahead of the Pac-12’s launch as a new conference beginning with the 2026-27 season,” the league said in a news release.

That’s when the league will add Boise State, Colorado State, Fresno State, Gonzaga, San Diego State, Texas State and Utah State.

Pac-12 distributions illustrate Realignment 101

Ten teams left the Pac-12 in 2024 for two big reasons: more money and stability. This and other tax returns show how that played out.

Oregon State and Washington State each received $29 million from the league, down from the $46 million each received in fiscal 2024. The other 10 Pac-12 members received about $30 million in fiscal year 2024 as part of a negotiated settlement.

By comparison, former Pac-12 members UCLA and USC received $76 million and $78 million from the Big Ten in their first year as members of the Big Ten Conference, according to the Big Ten’s tax return for fiscal 2025. Former Pac-12 members Oregon and Washington received $47 million and $48 million – which are only partial shares as new members of the Big Ten. Both eventually will earn full shares as part of their agreements to join that league.

Severance pay for former commissioner George Kliavkoff

Former Pac-12 commissioner George Kliavkoff parted ways with the league in February 2024 and was replaced by new commissioner Theresa Gould.

Kliavkoff earned $6.1 million in compensation in fiscal 2025, which makes him the highest paid commissioner in college sports for that year. But that’s only because it includes about $5 million in severance pay, according to the tax return.

Gould earned $1.4 million in her first full year as commissioner.

By comparison, Southeastern Conference commissioner Greg Sankey earned $4.8 million in fiscal 2025.

Rose Bowl still paying bills for Pac-12

Of the Pac-12’s $111 million in revenue, $74.4 million came from postseason bowl games even though Washington State was the only Pac-12 team to play in a bowl game after the 2024 season when it lost to Syracuse in the Holiday Bowl, 52-35.

About $50 million came from the Rose Bowl as part of the settlement with the league and its 10 departed members. The Pac-12 has a long and lucrative history with the Rose Bowl but this payment arrangement was scheduled to end after the 2025 season. The other bowl revenue comes from the College Football Playoff as part of its previous distribution formula.

No bowl revenue came from former Pac-12 members’ bowl berths after the 2024 season.

The Pac-12 spent $31.6 million on ‘special projects’

This included $10.5 million to the Mountain West Conference for “administrative services” when the Pac-12 had a scheduling agreement to play Mountain West teams in the 2024 football season.

The league said this money also was used to set up and build the new Pac-12 after the departure of Oregon, Washington, UCLA and USC to the Big Ten, Colorado, Arizona, Arizona State and Utah to the Big 12, plus Stanford and Cal to the Atlantic Coast Conference.

Pac-12 Enterprises generates revenue

The league noted that the 2025 fiscal year also marked the first year of operation for Pac-12 Enterprises, the league’s broadcast production arm. This company expanded its operations in fiscal 2025 as a business-to-business broadcast production and technology solutions provider to external clients. It has partnerships with CBS Sports, USA Sports and The CW, with reported revenues of $4.4 million fiscal 2025.

Follow reporter Brent Schrotenboer @Schrotenboer. Email: bschroten@usatoday.com

This article originally appeared on USA TODAY: Pac-12 releases new tax return reveals crushing realignment fallout