USC and Michigan To Leave The B1G

[BigBalls]

Oh boy. This is over the private equity deal that both Michigan and USC have been vocal critics of. USC and Michigan have had talks with ACC about moving all sports except football.

https://x.com/MHver3/status/1988297519399661885?s=20

 

[Butkus51]

Bruddah Ballss what are the key issues for USC and Michigan over the PE deal?  Not familiar with investments.  Why move the other sports but not FB?  Thanxs.  I’m sure other WW members do not understand too…  Cheers

[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

[SC Gator]

The fact that the private equity investors are the people who run the pensions for the UC system ought to be a dealbreaker in and of itself.

I love the payday loan metaphor.

[Butkus51]

$2.4 B payday would tempt even a Saint…  Cheers

[Java]

Except it’s not a payday.  It’s an advance  but you just gave up ownership of a growing revenue stream.  USC and Michigan are right.  Everyone else are idiots

[LA Duck]

“However, a driving factor for USC is the uneven distribution of revenue. Michigan, Ohio State and Penn State stand to earn as much as $190 million in upfront cash from the $2.4 billion — or about $40-50 million more than USC and Oregon. The other 13 schools are expected to receive $100-$110 million.”

Nobody puts USC in a corner with Oregon. lol

Which isn’t even a blue-blood like the other four are….  Yikes!!

https://sports.yahoo.com/college-football/breaking-news/article/sources-big-ten-execs-pressing-to-make-24-billion-investment-deal–without-michigan-and-usc-if-needed-140045573.html

 

[SC Gator]

I’m sure SC is only against this deal to deny UCLA the money it needs to buy its way out of the Rose Bowl lease.

[Java]

I think USC feels like they want to be the ones making money off everyone els w short term thinking.  USC is very financially astute and litigious.  Think if  Hollywood execs ran USC.  No chance would they take bow money and give up equity in tomorrows pot  of gold

 

they probably don’t lease their cars either

[SC Gator]

Agreed.

It’s a Mr. Wonderful Shark Tank deal.  Surprised the investors didn’t demand a royalty on ticket and concession sales.

[GTrojan]

BB, SC should buy into the private equity group and reap the rewards of near sighted BIG can’t see.

[Author]

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