Two Schools Are Reportedly Considering Leaving The Big Ten

The Big Ten is reportedly considering investment from private equity and would essentially be selling off part of the new corporate enterprise to an outside investor. According to reports, the deal would be a 20-year, $2.4 billion investment from the California Pension Fund. Two major schools are reportedly opposed to the plan: Michigan and USC...

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According to reports, the Wolverines and Trojans are so opposed to the private equity deal, that they are considering a nuclear option of leaving the conference.

Yahoo! Sports reported this week that Michigan and USC have received an ultimatum from the conference.

“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,” the story reads.
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According to reports, Michigan believes that the deal is essentially an unnecessary “payday loan” that would bail certain schools out for poorly managing their finances.

Meanwhile, USC, as a new member to the conference, would receive less upfront than schools like Ohio State and Penn State.

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(The Spun)