Michigan Board of Regents doubles down on opposition to potential Big Ten private capital deal

As discussions continue about the Big Ten’s potential private capital deal, Michigan’s Board of Regents continues to stand in opposition. Board president Mark Bernstein released a statement Thursday doubling down on its stance.

Michigan and USC are two of the best-known schools opposed to the deal, which would infuse upward of $2.4 billion to the conference and extend the Big Ten’s grant of rights through 2046. Ross Dellenger had more details on the proposed agreement and where things stand.

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However, Michigan’s board further talked about the proposal Thursday, Bernstein said in a statement. The group remains against it, and fellow regent Sarah Hubbard posted on X that she agreed. Additionally, the board reiterated its commitment to the Big Ten moving forward.

“The University of Michigan Board of Regents met today to discuss the current Big Ten Enterprises proposal,” Bernstein said. “We remain opposed to this deal. Importantly, we are committed to the Big Ten Conference and will continue to explore opportunities that address the pressing financial challenges facing Big Ten athletic departments.”

The proposed deal would create a new commercial entity, Big Ten Enterprises, which would support the conference while also extending the grant of rights through 2046. Most importantly, it would give the firm – UC Investments – a 10% equity stake in Big Ten Enterprises to infuse roughly $2.4 million, distributed among member schools.

In addition, revenue distribution could change. An uneven distribution model is under consideration, according to Dellenger, as part of the private capital investment deal.

UC Investments head: ‘I hope’ Big Ten deal happens

However, with some pushback from Big Ten programs, UC Investments head Jagdeep Bachher said there is not currently a deal on the table. Speaking with the UC Board of Regents, he reiterated his desire for an agreement to come together.

“The return profile was certainly north of 12-13%,” Bachher said Thursday, via Jon Wilner. “There is no deal on the table thanks to many regental approval processes that need to happen or not. I think college sports is the next attractive opportunity within the whole sports landscape. This was an equity investment to buy 10% of Big ten Enterprises, a new entity being set up by the Big Ten conference.

“We valued the Enterprises at $24 billion, and on day 1 when the entity is set up, its EBIDA is just north of $1 billion. That would have made it one of the top 10 media and entertainment companies in the world in size and scale. I hope it happens and just request you all do a little prayer for us.”

USC AD calls for ‘thorough’ evaluation

In the meantime, both Michigan and USC are making their thoughts clear on the situation. Trojans athletics director Jen Cohen said last week the school needs to “thoroughly evaluate” such agreements and express concern about long-term implications.

“As we continue to evaluate the merits of this proposal or any others, our University leadership remains aligned in our stance that our fiduciary obligation to the University of Southern California demands we thoroughly evaluate any deals that could impact our long-term value and flexibility, no matter the short-term benefit,” Cohen wrote. “We greatly value our membership in the Big Ten Conference and understand and respect the larger landscape, but we also recognize the power of the USC brand is far-reaching, deeply engaging, and incredibly valuable, and we will always fight first for what’s best for USC.

“I want to thank President Kim and our board for their leadership on this matter. With their professional backgrounds, experience, and expertise, our USC leaders are uniquely qualified to assess deals of this structure.”