The Big Ten is discussing a deal that could infuse at least $2 billion into the conference, according to a report from ESPN on Wednesday.
The agreement would involve a private capital deal for the conference and would include a 10-year extension of the league's grant of rights until 2046. The deal and rights extension have reportedly been discussed for months, and the proposed forms had different structures during that time. If consummated, it would remove teams in the conference from being involved in any proposed super leagues that have been discussed around college athletics.
According to the report, virtually the entire conference supports the proposal, but the league's top two brands, Michigan and Ohio State, are not fully on board yet. Unanimous support for the deal is preferred if it is going to move forward. It's worth noting, the bigger brands are expected to receive a bigger cut of the money.
A decision on the deal is expected in the next few weeks, but nothing is considered imminent. Three different private capital entities are reportedly being considered.
From the report:
The set-up being discussed, sources said, is that this will essentially be the formation of a new commercial entity within the Big Ten that would house all revenue generation such as media rights, sponsorships and league revenue streams.
The working title for the new entity is Big Ten Enterprises, sources told ESPN.
The private capital company would get money back through the new entity through annual distribution in proportion with its financial stake. The Big Ten will essentially have 20 equity shares, comprising the 18 schools, the league and this investor.
Perhaps most importantly, the conference would not surrender any decision-making to the outside entity.
The Big Ten responded to the news in a statement published by p's Ben Portnoy:
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. 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.
We'll see whether a deal goes through and whether other conferences follow the Big Ten's lead.
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This article was originally published on www.si.com as Big Ten Considering Massive Private-Capital Infusion, Novel Revenue Format.
