Sources: USC, Michigan question proposed Big Ten private capital deal

Michigan and USC have expressed skepticism and raised questions about a proposed private capital deal for the Big Ten conference. In a joint meeting, representatives from both universities shared concerns that the deal, which involves spinning off a new entity holding the league's television rights and sponsorship contracts, does not address the underlying issue of soaring costs in athletic departments. They also noted the uncertainty of federal legislation and apprehension about selling equity in university assets. Both Michigan and USC believe there are alternative funding options that could offer better terms and want to slow down the process to explore them. Their goal is to secure financial assistance for Big Ten schools in need without giving up equity in the conference's media rights. While the influence of the university trustees on this ongoing negotiation is unclear, having two major athletic brands oppose the deal is significant. The proposed deal would inject at least $100 million into each Big Ten school in exchange for a stake in a new entity, Big Ten Enterprises, which would manage conference media rights and sponsorship contracts until 2046. The University of California pension system would receive a 10% stake in this entity. The distribution of remaining equity and initial payments are still being negotiated, with larger athletic departments potentially receiving over $150 million. The deal would also extend the league's grant of rights through 2046, hindering expansion and preventing schools from forming a "super league." A conference call with league presidents and athletic... download the app to read more