By Trey Wallace

Copyright outkick

Is the Big Ten conference nearing a potential deal with a private equity firm for a capital infusion? The ongoing conversations surrounding conferences in college athletics taking money from private equity firms have been ongoing for years, as schools look for different ways to find financial help in this new era. Even with lucrative media-rights deals that conferences like the Big Ten and SEC have signed in recent years, there are plenty of schools that could need the financial help when it comes to running their athletic departments these days. Right now, following the House settlement, schools across the country are looking for different ways to create revenue. Whether that’s sponsorship deals that include placement on fields or renaming stadiums, there is a growing trend that schools are willing to sell just about anything to create additional cash flow. Big Ten Weighs Private Equity Deals To Fund New $20.5M Student-Athlete Payments Over the summer, talks of bringing in a private capital company have tamped up, with the reality starting to set in for athletic departments that being able to contend for championships means additional revenue will be needed, especially for mid to lower-tier schools in a conference like the Big Ten. First reported by ESPN, the conference has seen three separate presentations from firms looking to get into the college athletics business. How much money are we talking about here? Nearly $2 billion to start. But, this would also come with the caveat that each school must also sign a 10-year contract extension for their grant of rights deal, which encompasses television contracts. Get Stitches? College Commission Creates Hotline To Snitch On Opposing Teams Over Shady NIL Deals Big Ten Would Not Give A Stake In The Conference While a cash infusion is great, there are plenty of athletic directors that were nervous about the idea of an outside firm getting a piece of the Big Ten. But, this would not entail the PE firm getting a stake in the Big Ten conference as part of any deal. They would essentially form a business within the Big Ten, which would then be able to combine all revenue generated from sponsorship and media rights deals through partners, along with additional revenue streams founded by schools. One of the biggest obstacles was not allowing an outside party to invest money into the conference, and then get a stake in return for their infusion. If it were to be agreed upon, the private equity firm would seemingly be an additional member of the conference when it comes to revenue splitting. All schools, plus the Big Ten and the firm. “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.” Sure, it’s an ongoing process, but not everyone in the Big Ten is on board with the idea. Some Schools Would Rather Pass On The Capital Injection There will be athletic departments that generate enough money on their own that decide this is not the right move, which is currently a topic of discussion around a potential deal. For programs like Michigan and Ohio State, they don’t see the need to bring in outside revenue from a private equity firm, seeing that they generate enough money on their own right now. “As a Regent, I believe selling off Michigan’s precious public university assets would betray our responsibility to students and taxpayers. I will firmly oppose any such effort—and I hope colleagues at @MSU and @OhioState will stand with me as well,” Michigan regent Jordan Acker posted on social media. For the Buckeyes and Wolverines, they would receive more money upfront than schools like Rutgers or Minnesota, just for example. This could start in the nine-figure range, according to multiple sources familiar with the discussions. And while that financial figure might sound nice, it’s going to take convincing top-tier schools to take the money. While there are a number of schools that want this deal to go through, the Big Ten would like to have everyone on board before taking a vote. Right now, there are still arguments to be made regarding a decision, though the conference would love for a decision to be made over the next month.