COLUMBUS, Ohio — The Big Ten is considering a dip into the private equity realm, according to a report Wednesday from ESPN.
The conference has been in discussion with several private capital entities for months about infusing $2 billion into the Big Ten, extending its grant of rights deal until 2046 and consolidating the league’s commercial assets such as naming rights and corporate sponsorships.
Jersey patches have been the prominent example in describing what this means and why it matters.
If teams are allowed to sell advertising via jersey patches, some schools (Ohio State) would find much more lucrative deals than others (Rutgers).
Instead of those schools finding separate deals, the conference — with its new private entity titled Big Ten Enterprises — could sign a league-wide jersey patch deal.
The money would be dispersed in a tiered manner, meaning Ohio State and Michigan would still make more money than, say, Rutgers or Purdue.
However, the profit for the smaller brands would likely still be larger than if those schools signed deals individually.
“Our membership has clearly expressed the need to modernize the operations and structure of our conference to ensure that the Big Ten remains best positioned to offer the highest level of athletic and academic excellence in a rapidly evolving landscape,” the Big Ten said in a statement. “Over a year ago, we initiated a comprehensive evaluation of our practices to identify partnerships that could secure the financial stability of our member institutions and allow us to not only protect, but expand, opportunities for our student-athletes.
“This is an ongoing process, and we remain committed to finding a path that strengthens the conference for the future.”
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Some of the conference’s bigger brands, including Ohio State and Michigan, have yet to sign off on this idea, per the report, while a majority of the Big Ten has voiced its support.
The Big Ten is hoping for unanimous support before going to a vote.
This venture comes amid changing times in college sports. Revenue sharing is now active, meaning schools can pay athletes directly for their name, image and likeness.
Increasing revenue is now of utmost importance for athletic departments. While Ohio State has proven it’s ready for this new era, smaller schools in the conference could use help.
Theoretically, bigger brands in the conference could help the smaller ones through this private capital idea.