Everyone is saying they should expand, but only if it brings in more money. I figure they can have their cake and eat it too. Create a pac 10 east and a pac 10 west. Drop the Pac 12 network, and have the rights for the Pac 10 west and Pac 10 east be different network agreements. So, if ESPN wants to pay less for west than east, then they have the ability to do so. Have the championship game between east and west be the only game where revenue is split equally. Then have any playoff teams split revenue unequally (75% with their division and 25% with the other division). Have games during the season across division lines to allow both teams to get into each others time zones sometimes and big fans will want both the tv for east and west. Create more demand.

Pac 10 west
USC
UCLA
Stanford
CAL
Oregon
Oregon St.
Wash.
Wash. St.
Arizona
ASU

Pac 10 east
Utah
BYU
Colorado
Baylor
Kansas
Kansas St.
Nebraska (steal from big 10 with super conference aspirations and getting to be big dog of the pac 10 east)
TCU
Ok St
Texas Tech

This would also absolve the pac 10 west from having to dirty their hands with being in the same division as those nasty conservative schools and the intellectually inferior (minus wash. st and oregon st.)