Big Ten contemplating $2 billion private equity deal, grant of rights extension with decision on horizon

The Big Ten is contemplating an enormous equity deal, upwards of $2 billion, CBS Sports’ John Talty confirms. The deal would also extend the Big Ten’s grant of rights until 2046, but it may take come convincing to get Michigan and Ohio State on board. Discussions have been going on for months now, going back as far as May when conference leaders hosted firms at spring meetings, according to ESPN, but a decision on private equity investment is still weeks away. 

If a deal does come to fruition, the extension of the grant of rights would be a setback for those hoping to form super leagues in college sports. The issue is that Michigan and Ohio State may not be as open to the private equity deal as other member institutions. The league would like to have unanimous support on any deal involving private capital, per ESPN. 

Some insight into Michigan’s opposition to the private equity proposal was provided by Jordan Acker, a member of the university’s Board of Regents. On social media, Acker expressed concerns about a public university getting so deeply involved with private capital.

According to ESPN, the deal would be based around the formation of a private commercial entity within the conference called Big Ten Enterprises. The league’s commercial interests would then be divided up into 20 parts, with each of the 18 member schools, the league itself, and the private equity firm each getting a share.

“Think of it this way — the conference is not selling a piece of the conference,” a source told ESPN. “Traditional conference functions would remain 100 percent with the conference office — scheduling, officiating and championships. The new entity being created would focus on business development, and it would include an outside investor with a small financial stake.”