Report: Big Ten in talks about private capital deal to infuse upward of $2 billion, extend grant of rights

The Big Ten is in talks about a private capital deal to infuse upward of $2 billion to the conference and to its schools, Yahoo! Sports’ Ross Dellenger reported. It would also extend the league’s grant of rights until 2046.

Discussions have taken place for months, Dellenger reported, as the Big Ten talked with several private capital firms. There would also be a tiered distribution structure put into place for the cash infusion.

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The Big Ten would also create a private entity, Big Ten Enterprises. It would “consolidate some of the schools’ rights to better monetize them,” Dellenger reported. Four private capital firms made presentations during Big Ten spring meetings, as well.

ESPN’s Dan Wetzel and Pete Thamel also reported support is growing around the Big Ten, though Ohio State and Michigan are still in discussions. The league hopes to have unanimous support before taking it to a vote, according to ESPN.

In a statement to Front Office Sports’ Amanda Christovich, the Big Ten addressed the idea of private capital in the conference. The league cited the need to “modernize” and said the situation is an ongoing process.

“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,” the statement read. “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.”

Private capital and private equity has been a hot topic around college athletics as schools and conferences look to find more revenue streams. One notable idea came from the Big 12, which said it was exploring the idea of private equity. However, conference commissioner Brett Yormark recently said while the league is not ready to sell a stake in the league, a “strategic” partnership could happen at some point.

“We’re not going to sell a stake in this conference,” Yormark said. “But do we partner with someone strategically that provides different types of resources, capital, strategic resources? That potentially could happen.”

Private equity is also eyeing FCS, Dellenger recently wrote. FCS conference commissioners met in Chicago last week to explore new models for the postseason and received a presentation from Sequence Equity.