The Big Ten Conference is currently exploring some serious financial options as it looks to secure its future in the fast-evolving world of college athletics. This comes on the heels of prior comments made by Commissioner Tony Petitti, who expressed skepticism about the value of getting involve with private equity firms. It’s a surprising turn of events that might catch some folks off guard, especially considering the landscape of collegiate sports is changing so rapidly.
According to sources familiar with the inner workings of the conference, they’ve enlisted the investment bank Evercore. This week, Evercore has started reaching out to private equity firms to solicit initial bids, just as they prepare for a pivotal moment in the ongoing House v. NCAA antitrust lawsuit. This case could have enormous implications for the economic structure of college sports, so the timing couldn’t be more critical.
In a statement provided to Sportico, a Big Ten spokesperson emphasized that the conference is seeking strategic partnerships to enhance support for its 18 member institutions. This includes initiatives to improve events, secure sponsorships, and bolster other business opportunities. Unfortunately, we didn’t receive any additional details from the conference, and Evercore remained tight-lipped on the matter as well.
For context, the Big Ten is no stranger to financial success, boasting an impressive revenue figure of $880 million for the fiscal year 2023. A significant chunk of that came from a seven-year multimedia rights deal worth $7 billion with television giants Fox, CBS, and NBC that kicked off in July 2023. And let’s not forget that in August 2024, they will be welcoming four former powerhouse Pac-12 schools—UCLA, USC, Washington, and Oregon—into their fold, which will only add to their financial muscle.
Interestingly, the conversation around private equity investments in collegiate sports isn’t entirely new. Florida State University has been at the forefront of these discussions. Back in 2022, FSU began talks with the private equity firm Sixth Street and continued discussions with Arctos Partners under the initiative dubbed Project Osceola. However, these talks seemed to stall by late 2023, leaving observers wondering how the landscape would change moving forward.
This isn’t isolated to the Big Ten, either. Recently, CBS Sports reported that the Big 12 has been eyeing a potential investment of up to $1 billion from CVC Capital Partners for a 15% to 20% stake in the conference. Big 12 Commissioner Brett Yormark has been vocal about his eagerness to collaborate with private equity, sentiments mirrored by Tim Pernetti, the new commissioner of the American Athletic Conference.
What’s noteworthy is that the Big Ten’s recent financial maneuvers have resulted in them outpacing the Big 12 by 72% in revenue for fiscal year 2023. This speaks volumes about the growing acceptance and possibly even eagerness from the Big Ten to consider private equity involvement, despite Commissioner Petitti’s earlier hesitations.
As if that wasn’t enough, last October, top executives from both the SEC and Big Ten came together in Nashville for a summit. The aim? To explore potential collaborative ventures between these two powerhouse athletic conferences. As the conversation developed, reports surfaced about an ambitious proposal for a super league known as “Project Rudy.” This initiative, led by former Disney executives at Smash Capital, envisions a coalition of schools from the Power Four conferences into a framework involving 70 teams, potentially backed by up to $9 billion in private investments.
However, Commissioner Petitti was quick to shoot down the allure of this super league proposal, asserting, “I haven’t seen anything in any of these plans that we couldn’t do ourselves.” He expressed strong confidence that the Big Ten could achieve its goals independently, collaborating effectively with its colleagues in the Power Four.
Earlier this year, a group of key sports team owners, executives, and college administrators threw their weight behind the idea of an intercollegiate Super League. Dubbed College Sports Tomorrow, this collective includes notable figures like David Blitzer, who owns the New Jersey Devils and Philadelphia 76ers, and NFL executive Brian Rolapp. In February 2024, a confidential proposal from this group laid out a vision that involved sharing broadcast revenue with athletes, creating a 40-game spring football “festival,” and distributing 70 member teams across seven leagues based on geography.
At the heart of the College Sports Tomorrow proposal is a model akin to the NFL, where multimedia rights would be pooled into a single entity to enhance market value and potentially increase revenue for the schools involved. With the impending federal court approval of the House settlement, which would allow schools to distribute up to $20.5 million in revenue to athletes each year, there’s a palpable urgency to find new revenue streams. The court is set to hit a deadline for objections to this settlement soon.
And that urgency is apparent as the Big Ten and SEC are gearing up for another summit next month in New Orleans, where discussions will continue and potentially reshape the future of college athletics. As fans and stakeholders watch closely, it remains to be seen how these evolving dynamics will influence not just the Big Ten, but the entire collegiate sports landscape. It’s a changing world out there, and everyone is trying to keep pace with the rapid transformations in college athletics.
