Big Ten private equity dispute explained, why Michigan, USC oppose $2.4 billion deal Kevin Skiver, USA TODAY NETWORKNovember 15, 2025 at 3:05 AM 0 Big Ten commissioner Tony Petitti is going to leave his mark on the conference one way or another, and the latest controversy swirling around the league could have ramifications for decades to come. As the college sports landscape continues to shift — with teams attempting to raise massive amounts of money for not only players but also coaches with lucrative contracts and buyout clauses if they underperform — Petitti has lined up a $2.
- - Big Ten private equity dispute explained, why Michigan, USC oppose $2.4 billion deal
Kevin Skiver, USA TODAY NETWORKNovember 15, 2025 at 3:05 AM
0
Big Ten commissioner Tony Petitti is going to leave his mark on the conference one way or another, and the latest controversy swirling around the league could have ramifications for decades to come.
As the college sports landscape continues to shift — with teams attempting to raise massive amounts of money for not only players but also coaches with lucrative contracts and buyout clauses if they underperform — Petitti has lined up a $2.4 billion investor that would mire the conference in the muddled world of private equity.
HAYES: Big Ten is letting the wolf in the door and selling its soul. For what?
The possible deal is very much in its fledgling stages, with negotiations ongoing and no votes scheduled. But the mere idea of it is sending ripples throughout college sports. The epicenter of those ripples lies in Ann Arbor, Michigan, where the University of Michigan has not been shy in voicing its opposition to the deal.
Michigan — which of course has its own past with Petitti after the commissioner's response to the Connor Stalions sign-stealing scandal — spoke out against the proposed deal last month via its Board of Regents. "The U-M Board opposes this private equity deal and urges others to do the same," said board chair Mark Bernstein.
Regent Jordan Acker also pleaded the university's case. "The Big Ten does not need to be sold to save college sports," he said. "It needs to lead. ... We can't cry poverty while spending tens of millions on buyouts. We can't have college sports, the collegiate experience, dictated by private equity."
Southern California is the other school to oppose the proposed deal, uniting two classic Rose Bowl foes against the massive investment.
Proposed Big Ten private equity deal
Something important about this $2.4 billion: It's not a loan. Rather, it is a direct investment into the conference. The transaction would create a standalone company called Big Ten Enterprises, in which the investor — UC Investments, the University of California's portfolio manager — would get shares. Big Ten Enterprises would also control the conference's media and sponsorship rights.
The deal would lock the 18 Big Ten schools together until 2046. In that sense, it's easy to see why the smaller schools with less athletic prestige would be drawn in. It would protect them from realignment while also guaranteeing their share of the revenue pie.
Then, however, the other shoe drops. UC Investments would get 10% of the Big Ten's media and sponsorship rights earnings for 15 years, at which point it could sell its stake. The other 90% would be divided among the schools involved in the deal (unevenly, based on those schools' earning potentials).
For a smaller scale comparison, think of Fernando Tatis Jr.'s deal with Big League Advance. Tatis got $2 million from BLA up front in exchange for 10% of his future earnings. And, to see where that road ends, Tatis is now suing BLA after his 14-year, $340 million contract put him on the hook for $34 million with BLA, citing the deal as "predatory."
What is UC Investments?
UC Investments is not a private equity firm. Rather, it is the portfolio manager for the University of California.
According to the UC Investments website, its portfolio of investments is currently $190 billion, "which includes retirement, endowment, and cash assets."
Will this push Michigan, USC to leave Big Ten?
If the Big Ten decides to go through with this investment, there is a good chance it would lose at least one pillar.
Michigan helped to found the Big Ten and, indeed, the very idea of conferences in 1895 when it stood in for Lake Forest. In 1908, Michigan withdrew in protest of new rules imposed by the conference until 1917, and the Wolverines have been a member since.
Even so, Michigan could well go independent or join another conference if this proposed deal goes through. While it would be a drastic step, it is entirely viable for the school. The same is true of USC, on the other end of the spectrum. USC is new to the conference, having just joined in 2024, but it immediately brought a recognizable brand to the fold.
Without Michigan and USC, the valuation of the conference changes. But it doesn't close the door on the other 16 teams reaching a deal. While Michigan and USC could join at a later date, they would likely find homes elsewhere.
What are Big Ten media rights worth?
For better or worse, media rights are part of the college football conversation. If the Big Ten goes through with its marriage with UC Investments, that will hold even more true.
In its last TV deal with Fox, CBS, and NBC, the Big Ten locked itself in through 2030 at over $1 billion per year.
This article originally appeared on USA TODAY: Big Ten private equity deal has USC, Michigan-sized hurdles
Source: "AOL Sports"
Source: Sports
Published: November 15, 2025 at 01:27PM on Source: RED MAG
#ShowBiz#Sports#Celebrities#Lifestyle