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As conversations continue between Big Ten presidents about a $2 billion capital investment proposal that would flood the league with cash, Michigan took aim at the league on Thursday over what it feels is a short-sighted plan.
According to a report from ESPN’s Pete Thamel, the league’s presidents and chancellors met on Thursday to discuss a reported investment plan that would sell a 10% stake in the conference to a University of California pension fund in exchange for more than $2 billion in cash. The plan would extend the league’s grant of rights to 2046 and establish a new entity called “Big Ten Enterprises,” which would oversee all league-wide media rights and sponsorship deals.
No vote was taken during the meeting, according to Thamel.
The Big Ten said in a statement Thursday afternoon that it is “committed to modernizing the operations” of the league, “preserving Olympic and women’s sports,” and providing added stability to the conference.
“The conference has provided an option from a nonprofit partner — not private equity — that meets those objectives,” the league’s statement read. “Ultimately, it is the decision of the Big Ten member institutions’ presidents and chancellors to decide if it’s the right opportunity and those conversations are ongoing.”
USC and Michigan stand in opposition to the deal.
At a previously scheduled meeting of Michigan’s Board of Regents, the plan was blasted.
“Who would have thought the Big Ten Conference would need a bailout of this?” Michigan Regent Mark Bernstein said, per ESPN’s Dan Wetzel. “It is the job of the board to protect the future from the present.”
Bernstein went on to characterize the Big Ten’s plan as “reckless,” saying that there are other “viable alternatives” that should be considered. The league, he said, should “slow down” and other member schools should oppose the plan.
Another Michigan trustee referenced the ACC’s recent infighting that stemmed, in part, from the long-term grant of rights the schools locked themselves into.
“The ACC once thought a long-term deal was a good idea,” Regent Jordan Acker said, per ESPN. “Within a few years, they were suing each other.”
Earlier this week, regents from both Michigan and USC emerged from a joint meeting unified in opposition to the capital investment plan. Their stance: A plan to address soaring operational costs should not include selling off conference assets.
The Big Ten is in the middle of a 7-year, $7 billion media rights deal that began in 2023. The deal runs through the end of the 2029-30 athletic year.
Derek Peterson does a bit of everything, not unlike Taysom Hill. He has covered Oklahoma, Nebraska, the Pac-12, and now delivers CFB-wide content.