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Big ten closing in on capital deal

Posted on 10/11/25 at 8:57 am
Posted by Adam Banks
District 5
Member since Sep 2009
36477 posts
Posted on 10/11/25 at 8:57 am
LINK


quote:

Those with knowledge of the negotiations spoke to Yahoo Sports under condition of anonymity as they were not authorized to speak about the potential 20-year agreement with the UC pension system’s investment fund, better known as UC Investments — a $190 billion entity responsible for managing the system’s portfolio. UC Investments manages the endowment and retirement savings of the UC system and is independent from the universities within the system, such as UCLA and Cal. The Big Ten’s year-long exploration into the private investment world is at its seminal moment, with a decision expected in a matter of days. Under the proposal, UC Investments will finance the potentially groundbreaking deal with the league to deliver an average of $140 million to each of the conference’s schools in up-front payments. Over the last week, Big Ten executives and commissioner Tony Petitti accelerated their efforts to socialize and finalize deeper details of the concept with presidents, athletic directors and school board members. Stakeholders of the conference’s two biggest brands — Ohio State and Michigan — have warmed to the idea, paving the way for a vote as soon as next week, those with knowledge tell Yahoo Sports.





quote:

The league is expected to introduce a new uneven model for distribution derived from conference media rights and Big Ten Enterprises, featuring a performance and marketing mechanism most similar to the uneven distribution structure recently implemented by the ACC. Specific distribution models are subject to change as negotiations continue through the weekend and, potentially, deep into next week. The up-front payments and uneven annual distribution are not a reflection of a permanent tiering of the schools as they can increase value, such as winning football and basketball championships and drawing more television viewers.




quote:

How the pension fund receives a return on its seed capital is clear. UC Investments earns the annual cut of distribution plus an ability to sell its portion of the league after a 15-year “hold,” when it is prohibited to sell. Any sale must be approved by league members.





Seems like a technicality to not have to call it private equity



Also it’s hilarious that for all those years of virtue signaling the big ten is what has caused this to become professional sports
This post was edited on 10/11/25 at 8:59 am
Posted by Jack Ruby
Member since Apr 2014
26519 posts
Posted on 10/11/25 at 9:02 am to
This post was edited on 10/11/25 at 9:19 am
Posted by Diseasefreeforall
Member since Oct 2012
7211 posts
Posted on 10/11/25 at 9:03 am to
Who had Cal's investment fund buying into the Big Ten on their bingo card?

If you can't join 'em, buy some of 'em.
Posted by TigersHuskers
Nebraska
Member since Oct 2014
14792 posts
Posted on 10/11/25 at 9:08 am to
Gross
Posted by lepdagod
Baton Rouge
Member since Jan 2015
5532 posts
Posted on 10/11/25 at 9:11 am to
This deal will eventually turn into football programs being separated from Universities entirely… some judge will make the call that this is private equity and should be held to the same rules and regulations as any other corporate endeavor
Posted by Diseasefreeforall
Member since Oct 2012
7211 posts
Posted on 10/11/25 at 9:16 am to
15 years is a long lockup period even for a sports league investment but sexy sports deals are in vogue now and I guess the pension fund dorks are doing whatever it takes to slip into one.

If I had a pension, no way would want the guys managing it jumping into the unknown like this even if it's only for less than 2% of their assets.
Posted by TomRollTideRitter
Member since Aug 2016
13173 posts
Posted on 10/11/25 at 9:17 am to
Has any journalist asked what this money is going to be used for?

College athletics have an expense problem, not a revenue problem.

The problem with the university system in the U.S. is they are setup to compete like for-profits, but they are non-profits. This has created a system where everyone is incentivized to focus on only one side of the ledger (revenues).

The executives actually want higher expenses because they are just an expense. The board in most cases should control this, but they get caught up in this arms race of facilities, programs, and athletics success.

I don’t really see a solution other than the feds stepping in. People will shout socialism, but the system is already socialist with no cost controls at all. In every system like this - education, healthcare, housing - we’ve seen runaway inflation.
Posted by Jack Ruby
Member since Apr 2014
26519 posts
Posted on 10/11/25 at 9:18 am to
There is a bill in Congress trying to outlaw this
. So we'll see. My guess is it gets nowhere.
This post was edited on 10/11/25 at 9:20 am
Posted by YStar
Member since Mar 2013
19580 posts
Posted on 10/11/25 at 9:25 am to
B1G conference doing everything they can to not experience another 20 years of SEC dominance even if it means to burn everything down.

Literally hate that conference
Posted by goldennugget
NIL Ruined College Sports
Member since Jul 2013
26286 posts
Posted on 10/11/25 at 9:37 am to
shite like this is why I don't watch college sports anymore

Haven't watched any games this year

Its not college sports anymore its pro sports
Posted by cascadia
Georgia
Member since Jan 2014
2532 posts
Posted on 10/11/25 at 11:04 am to
quote:

B1G conference doing everything they can to not experience another 20 years of SEC dominance even if it means to burn everything down.


SEC hasn’t been relevant for a few seasons now
Posted by mizzoubuckeyeiowa
Member since Nov 2015
39024 posts
Posted on 10/11/25 at 11:10 am to
quote:

B1G conference doing everything they can to not experience another 20 years of SEC dominance even if it means to burn everything down.


yeah, all this money is about a shiny trophy in one sport and a banner hung from Kinkos.

That shows the mindset of SEC fan who thinks Finebaum should get into politics to fix the SEC playoff allotment of teams invited.

Think a little bigger than what fans argue over when it comes to $ and the global Universities.
This post was edited on 10/11/25 at 11:11 am
Posted by ReauxlTide222
St. Petersburg
Member since Nov 2010
88966 posts
Posted on 10/11/25 at 11:11 am to
Jesus Christ
Posted by cascadia
Georgia
Member since Jan 2014
2532 posts
Posted on 10/11/25 at 11:19 am to
quote:

Jesus Christ


Don’t go 1-5 vs the BIG in your bowl games and you won’t have to play pretend
Posted by StansberryRules
Member since Aug 2024
4405 posts
Posted on 10/11/25 at 11:31 am to
If the Big Ten wants to do this they should be taxed at the maximum possible corporate rate.

If they want to be businesses they can be taxed and regulated like one
Posted by BuckI
Grove City, Ohio
Member since Oct 2020
7116 posts
Posted on 10/11/25 at 11:35 am to
quote:



Don’t go 1-5 vs the BIG in your bowl games and you won’t have to play pretend
The battle cry of the SEC is Springsteen's Glory Days.

If this deal goes through, then it will be time for them to throw in the towel.
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
53794 posts
Posted on 10/11/25 at 11:37 am to
frick that. They should never ask for fans to donate again
Posted by Ralph_Wiggum
Sugarland
Member since Jul 2005
11029 posts
Posted on 10/11/25 at 11:42 am to
The SEC will follow suit. I don't know if they can get the same amount of money. But with Texas, Georgia, and Florida in the SEC they could. The one issue is that the Big Ten can claim to be a more national conference than the SEC. The SEC if it only stays in the South has limits.
Posted by JeniverJonez
Maryland
Member since Jul 2021
195 posts
Posted on 10/11/25 at 11:45 am to
This is going to end in the biggest cartel / antitrust case since the trust busting days of early 20th century. Wait until the courts decide all conferences are cartels and they break up the BIG, SEC, etc.

All you need is one college football program that gets left out with a good enough college football history to bring the lawsuit. They will be able to show financial harm by the cartel.

For those who don't know what I am talking about and who think this is all free market, they need to look up cartels in American history. Basically for example Google and Apple cannot form their own leagues of companies, collude together to price fix, only sell to or buy from chosen league members, lock out everyone else, fix salaries (they already got nailed on that one), etc.

The only way this works is if all the teams in the conference become properties of the league. So for example. Michigan football is no longer owned by Michigan, but is now a property of the BIG, and is a franchise. Worse, if they do spin them off from the universities, can they even use the Michigan logos, mascots, etc.? Can the school even profit off them?
This post was edited on 10/11/25 at 11:49 am
Posted by lepdagod
Baton Rouge
Member since Jan 2015
5532 posts
Posted on 10/11/25 at 11:50 am to
quote:

All you need is one college football program that gets left out with a good enough college football history to bring the lawsuit. They will be able to show financial harm by the cartel.


Exactly… a premise of college football has always been that the team (university) was somewhat own (for lack of a better word) by said community and alumni… this deal would make them no different than a professional sports team…
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