The Big Ten is exploring a private capital deal that could inject $2 billion into the conference and its 18 schools.
According to ESPN's Pete Thamel and Dan Wetzel, the Big Ten is in discussions about a private capital deal and a 10-year extension of the conference's grant rights, which would run through 2046. The league is seeking unanimous support before proceeding to a vote, but some of the Big Ten's largest brands, including Ohio State and Michigan, have yet to sign on.
Thamel and Wetzel reported on Wednesday that the Big Ten has discussed a private capital deal and a grant of rights extension for months, and that both items have been presented in multiple forms. A deal and the grant of rights extension "would be a distinct blow to the outside entities attempting to form super leagues around college sports," Thamel and Wetzel wrote.
Sources told ESPN that a decision on the private capital deal is expected from Big Ten schools in the upcoming weeks; however, decisions are not considered imminent. The conference is currently considering three different private capital entities, but the league has not voted on any of them, Thamel and Wetzel reported.
The Big Ten's current plan aims to establish a new commercial entity within the conference that would oversee all revenue generation, including media rights, sponsorships and other league revenue streams. The working title for the entity is Big Ten Enterprises, sources told ESPN.
With Big Ten Enterprises, the conference "could eliminate the need to give an outside investor a specific portion of control over decisions or board seats," which Big Ten presidents and chancellors have "generally been uncomfortable with," Thamel and Wetzel wrote.
"Think of it this way — the conference is not selling a piece of the conference," a Big Ten source told ESPN. "Traditional conference functions would remain 100% 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."
Another Big Ten source summarized it like this to ESPN: "We're underselling the strength of what we do the way we are structured. This is a way to organize ourselves better."
The Big Ten's current plan also calls for immediate cash payments to each school, with the amount determined by a formula that takes into account several variables, including current athletic department budgets. The payment format is still being discussed, but it is believed to be tiered, which would favor Ohio State, Michigan and others.
"Our membership has clearly expressed the need to modernize the operations and structure of our conference to ensure that the Big Ten remains best positioned to offer the highest level of athletic and academic excellence in a rapidly evolving landscape," a Big Ten spokesperson told ESPN in a statement.
"Over a year ago, we initiated a comprehensive evaluation of our practices to identify partnerships that could secure the financial stability of our member institutions and allow us to not only protect, but expand, opportunities for our student-athletes. This is an ongoing process, and we remain committed to finding a path that strengthens the conference for the future."
