No, the trial would not be in Delaware. Thousands of corporations register there for various reasons. But, venue would be where the principal place of business resides or where the material parts of the claims arose.
Another factor that any court would take into account is ... mitigation of damages.
An aggrieved party under a breach of contract has the duty to take reasonable action to mitigate its damages. So, if a university can make up for some of the expected lost revenue by aggressively pursuing being absorbed into another conference, it must take those steps or risk the likelihood of having its pay day reduced ... perhaps significantly so.
Along those lines, does Bowlsby have a conflict of interest? If all 8 members can be absorbed elsewhere then while that is going on, negotiations are underway to make sure that new larger conference (AAC perhaps) be included in the expanded playoffs and have a larger television contract, but that would mean Bowlsby loses his job, he would be forced to negotiate himself out of a job. That testimony would be epic!
Mouthpiece Shark: So, Bowlsby, did you negotiate with other conferences to have all 8 teams absorbed as a package deal?
Bowlsby: Uh .......
Mouthpiece Shark: So, Bowlsby, with a new TV contract which the Mouse or the Fox said they would have done, that would have increased each of the 8 schools' revenue by X amount. Did you consider that Sport?
Bowlsby: Uh .....
Mouthpiece Shark: So, Bowlsby, records indicate the Conference was paying you $6 million a year plus incentives. If a new conference was formed, you would be out of a job. You certainly took that into account didn't you Old Boy?
Bowlsby: Uh... well... uh....
Mouthpiece Shark: And you were the one, just days before those fine institutions of higher learning, Texas and ... well, Texas anyway, announced they were departeering, you said, It's ok, nothing to see here.... move along. Correct?
Bowlsby: Uh....