Since when is it a thing to be a division "champion"?
The divisions exist to determine who plays for the conference championship. Not only should yewta not hang any banners about this "championship", but neither should USC. There is one championship--the Pac-12 championship.
You can brag about the standings in your division--nothing wrong with that. You can even say that you were tied with USC atop the division in the loss column. That is fine. But it should end there. Any banner or trophy is about as cool as winning the Deseret Dual trophy.