Reply To: USC and Michigan To Leave The B1G

[Butkus51]

Bruddah Ballss, no need to reply and explain.  I found this explanation.

USC and Michigan oppose the Big Ten’s private equity deal due to concerns that it prioritizes short-term cash over long-term financial health, creates an inequitable revenue distribution, and involves selling equity in the conference. They believe the deal doesn’t address the root causes of athletic department costs and question the governance structure and secrecy surrounding the agreement. They also feel the proposed terms are less favorable than other potential funding options and are concerned about selling a portion of the conference’s media rights.

Financial and structural issues

Short-term solution: Critics view the deal as a “payday loan” that provides quick cash without fixing the underlying problem of soaring athletic department costs.

Inequitable revenue distribution: The deal would likely result in some schools receiving more revenue than others, potentially creating further division within the conference.

Selling equity: Both schools are hesitant to give up a stake in the conference’s media rights and question the wisdom of selling a portion of a university asset.

Questionable terms: USC and Michigan believe there are other funding options that could provide better terms and want to explore them before committing to the private equity deal.

Governance concerns: USC has raised objections about the governance of the new business arm, which would have a board with weighted voting, and both universities have expressed frustration over the lack of transparency in the process, according to Yahoo Sports and Front Office Sports.

Uncertain future: The schools also cite uncertainty from pending federal legislation as a reason to be cautious about making such a long-term commitment, notes ESPN.

Sources: USC, U-M question Big Ten capital deal – ESPN
Oct 14, 2025 — Dan Wetzel is a senior writer focused on investigative reporting, news analysis and feature storytelling. Open Extende…
ESPN

Sources: Big Ten execs pressing to make $2.4 billion …
Nov 9, 2025 — In public comments made last month, University of Michigan trustees described the deal as a “payday loan” and called it…

Yahoo Sports·Ross Dellenger
2:47
Big Ten’s consideration of private capital plan ‘ongoing’ despite …
Oct 16, 2025 — The proposed investment comes from UC Investments, the investment fund of the University of California pension system,
The New York Times