With Pac-12 losing P5 status, $420 million is at the disposal of the forgotten four to cover "additional costs and damages": Reports

The Pac-12 appears to be on the brink of collapse after five teams left the conference last week. Even though the conference finally secured a new media deal after months of negotiations, it has seen six teams depart in two weeks.

This practically brings the conference's membership down to four with no clear path to the future. However, according to college football insider John Canzano, the four remaining teams are set for a substantial financial windfall in the upcoming season.

The four remaining schools have access to a substantial reserve of funds. They might receive a considerable portion of media rights and postseason payments initially intended for the conference's upcoming distributions.

According to Canzano, the total distribution amount is estimated at $420 million. Stanford, Oregon State, Cal, and Washington State are entitled to utilize the funds to cover "additional costs and damages" resulting from the departures of the other schools.

While the four schools may not receive the entirety of the funds, they do stand to gain some benefit from them. It is to be noted that each school remains entitled to the fund provided they do not leave the conference.

Pac-12's Power Five status is up in the air

Irrespective of its current composition, the Pac-12 remains a member of the Power Five but might not be for long. The Power Five conferences represent the foremost and most financially successful athletic conferences in college football within the United States.

The NCAA Division I board would have to remove that status from the conference, which could potentially be perceived negatively given the recent fallout. Notably, each conference within the Power Five is required to have a minimum of six competing teams.

This is another major blow for the conference in its bid to survive the ongoing turmoil and chaos. Members of the Power Five receive preferential distributions from the College Football Playoff, and the Pac-12 teams will be denied this if it loses their status.

Going through an expansion procedure appears to be a way for the conference to ensure its survival in the college sports landscape. However, the timing makes it difficult as the conference needs potential new members to join by 2024.

Mountain West teams are obviously the primary target of the Pac-12, with San Diego State on the frontline. However, if any MWC teams were to join promptly, they would have to pay $34 million, double the conference's $17 million exit fee.

The Pac-12 continues to find itself in a difficult situation as it struggles to survive and preserve its 100 years of history. We wait to see how the situation develops with the 2023 college football season fast approaching.