URGENT UPDATE: The Big Ten Conference has swiftly denied allegations from a University of Michigan regent claiming that Commissioner Tony Petitti attempted to coerce the university regarding a controversial $2.4 billion investment plan. The situation escalated on Tuesday, October 10, 2023, highlighting tensions as the conference seeks new revenue streams in a rapidly changing college athletics landscape.
In a statement to the Associated Press, Mark Bernstein, chairman of the Michigan Board of Regents, accused Petitti of trying to “strong-arm” the university into supporting the plan, which he claims calls into question Petitti’s leadership. Bernstein asserted, “Nobody pushes around the University of Michigan — ever,” reflecting deep-rooted pride and resistance against outside pressure.
The Big Ten responded, stating that no member school is being forced to back the proposal. Darryll Pines, president of the University of Maryland and chair of the Big Ten Council of Presidents and Chancellors, emphasized that discussions about the investment have been ongoing since 2024 and characterized the process as “collaborative” and “thorough.”
As the Big Ten aims to secure private funding to benefit its 18 member schools and their student-athletes, the stakes are high. Each member school could receive up to $20.5 million this academic year alone. The proposal involves establishing a commercial entity, Big Ten Enterprises, in partnership with UC Investments, which would distribute funds while taking a cut of media rights and sponsorships.
Critics, including USC Athletic Director Jennifer Cohen, have also expressed concerns about the uneven distribution of revenue, indicating that the deal could compromise the interests of member schools. Meanwhile, Bernstein’s comments have raised alarms about governance and the decision-making processes within the Big Ten.
Sen. Maria Cantwell, D-Wash., has urged for a thorough review of how such funding arrangements might affect the tax-exempt status of athletic departments. She remarked, “Legitimate questions have been raised about whether it is time to rethink the tax-exempt regime under which college sports currently operates.”
The Big Ten’s leadership is now facing pressure as several regents, including Jordan Acker, voice concerns about aligning with private equity interests. Acker stated, “Having the richest college football conference join arms with private equity is not in my view a positive for the University of Michigan.”
As discussions unfold, the Big Ten is stressing the importance of unity among its member schools. Jagdeep Singh Bachher, chief investment officer at UC Investments, acknowledged the need for more time to finalize evaluations and emphasized that “unity” is crucial for the success of the proposed deal.
With the future of the investment plan hanging in the balance, all eyes will be on the Big Ten as it navigates these urgent and complex challenges in collegiate athletics. The outcome could significantly reshape the financial landscape for its member institutions and set a precedent for the involvement of private equity in college sports.
Stay tuned for more updates as this story develops.
