Big Ten Reportedly Close to Taking $2.4 Billion Capital Deal Despite Objections

Michigan and USC do not support the move, but the conference appears to be plowing ahead anyway.

The Big Ten appears close to taking a $2.4 billion private investment despite objections from two member schools. / Talia Sprague-Imagn Images

The Big Ten is on the verge of completing a $2.4 billion capital investment deal with a California pension fund, whether or not USC and Michigan are on board.

Yahoo!’s Ross Dellenger is reporting that the conference is pushing ahead with the deal despite USC and Michigan’s objections. The 20-year, $2.4 billion deal would include an extension of the conference grant of rights for another 10 years. The Wolverines and Trojans do not support the measure, but it may not matter.

From Dellenger’s report:

In messages sent to Michigan and USC, the Big Ten has signaled that it is moving forward with the deal, even delivering to each program a proposed deadline for their decision. If they don’t agree to the deal, the schools may lose the additional capital as part of the landmark proposal and risk their future within the conference beyond 2036, the current end of the existing grant-of-rights agreement. League officials are socializing a specific date — Nov. 21 — for a vote on the capital investment proposal.

Each school would receive an average of $135 million each in up-front payments.

Earlier this week, officials at Michigan and USC were informed that if the 16 other member schools agreed to the deal, the two programs would be given a few months' grace period to agree to join the deal and receive full benefits.

California pension fund to invest in Big Ten

The conference would be accepting money from the University of California pension system, a $190 billion entity responsible for managing the system’s investment portfolio. UC Investments manages the endowment and retirement savings from the UC system and operates independently from the associated universities.

As part of the deal, UC Investments would buy a 10% stake in the conference’s new offshoot, Big Ten Enterprises. The 10-year extension of the grant of rights would be required to complete the deal.

The Big Ten has been exploring a private investment for about a year and it seems a deal is on the table, and close to being completed.

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