Is it possible the Big Ten could secure funding from a privately managed investment fund?
According to information shared by Ross Dellenger of Yahoo Sports, discussions have taken place “over several months” regarding investments from private capital, totaling a minimum of $2 billion.
ESPN reports that this investment would be accompanied by a decade-long extension to the conference’s media rights arrangement, lasting until the 2046 season. The Big Ten boasts one of the most financially rewarding media rights agreements in collegiate athletics, partnered with CBS, Fox, and NBC.
“Our constituent members have made it clear that they feel a need to update our conference’s operational methods and framework, ensuring the Big Ten continues to provide exceptional levels of athletic and scholarly opportunities amid a constantly changing environment,” a Big Ten statement to multiple outlets said. “More than a year ago, we began a thorough assessment of our protocols to find potential collaborations capable of guaranteeing the monetary soundness of our member institutions, allowing us to not only safeguard but also broaden opportunities for our student-athletes. This process is ongoing, and we are dedicated to identifying a strategy that strengthens the conference moving forward.”
Extending the media rights deal would, in theory, bind the Big Ten’s 18 institutions for the long term, though we’ve come to understand that predicting future conference expansions is difficult.
Schools currently receive annual payments based on their share of the conference’s media rights agreements; institutions received over $63 million for the 2024 fiscal year. Reportedly, the private capital arrangement would divide the league’s annual disbursements into 20 segments: 18 shares for each team in the conference, one for the Big Ten itself, and one for the investor.
Should the deal proceed, it’s suggested Big Ten schools could each receive an upfront payment in the nine-figure range.
According to ESPN:
“Consider that the conference isn’t trading away ownership of any portion,” a source from within the league shared with ESPN. “The usual operations of the conference will remain fully under the control of the conference office—scheduling, officiating, and championships. The focus of the new body being created would be business development, and it would include a minority financial stakeholder from outside.”
Given the increasing prevalence of private equity deals in the sports sector in recent years, it seems inevitable that an athletic department or a league will eventually enter into a similar arrangement with an investment firm. This past spring, the Big 12 stated they had looked into private equity investment but were “not prepared” at that point.
Recently, the State Street private equity firm finalized an agreement for a 3% ownership stake in the New England Patriots, valuing the franchise at $9 billion. The previous year, NFL owners voted in favor of allowing a select group of private equity investors to acquire shares in teams.
Should the Big Ten’s proposal gain momentum, other conferences are likely to explore similar avenues. As athletic departments strive to maintain financial stability in college sports’ evolving revenue-sharing landscape, and as conferences attempt to match the media rights deals of the Big Ten and SEC, the quest for additional sources of funding appears unending.
