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The Big Ten Conference rejected a university’s claim Tuesday michigan The Regents said Commissioner Tony Petti threatened the school if it refused to support a plan that would pave the way for $2.4 billion in private investment in the league.
Michigan Board of Regents Chairman Mark Bernstein told The Associated Press this week that Petti had attempted to “strengthen” Michigan, adding that “his continued leadership of the Big Ten Conference is in question.”
“The Big Ten Conference commissioner has threatened University of Michigan If we don’t approve this deal, fines could be imposed,” Bernstein said, declining to provide specifics. “Nobody ever gets anywhere near the University of Michigan.”
The Big Ten has denied allegations that any schools are being forced to support the plan since discussions began last year.
“After receiving interest from third-party investors, we formed a working group chaired by then-President of the University of Michigan (Santa J.) Ono to explore and evaluate all options on behalf of our members and the more than 12,000 student athletes in the Big Ten.” maryland President Daryl Pines, Chairman of the Big Ten Council of Presidents and Chancellors. “Since we first met in 2024, this has been a collaborative, fair, and thorough process that includes the University of Michigan. Any other characterization of the work of COPC and the conference office is inaccurate.
“At Michigan’s direction,” he added, “the Conference continues to work with a consultant retained by Michigan to evaluate the transaction.”
Like all major conferences, the Big Ten League is searching for new revenue streams to help its 18 member schools pay the bills in the new era of college athletics. Each school that chooses to join the House settlement could share up to $20.5 million with its athletes this academic year alone, with that number set to increase in coming years. Some dramatic changes have already occurred on some campuses.
The private equity stake has been a controversial topic for schools and conferences, with critics saying it would add to profit concerns as well as concerns about who is in control. The Big Ten Council of Presidents and Chancellors decided in July to begin discussions with UC Investments, which handles the University of California’s public pensions, on the potential to establish a commercial entity, Big Ten Enterprises, to generate funds for all 18 schools through 2046.
UC Investments will give each school a share of $2.4 billion in a tiered distribution system in exchange for a 10% cut of the Big Ten’s media rights and sponsorships.
like michigan, Southern California Is against this deal as it currently stands. USC Athletic director Jennifer Cohen said the deal requires revenue to be “distributed unequally to members” and was lenient in a letter to boosters last week.
“We greatly value our membership in the Big Ten Conference and understand and respect the bigger picture,” he wrote. “But we also believe that the power of the USC brand is far-reaching, deeply engaging and incredibly valuable, and we will always fight for USC to be first and foremost.”
Jagdeep Singh Bacher, chief investment officer of UC Investments, said Monday that conference leadership, including Pettit, has shown “extraordinary leadership” and that “recent misinformation has distorted some aspects of its effort.” He said the “unity” of all 18 member schools will be “key to the success of Big Ten enterprises.”
“We also recognize that some member universities need more time to assess the benefits of their participation,” Bacher wrote without naming any schools. “UC Investments similarly required some additional time to complete its due diligence as recent developments have unfolded and as we continue to attend the conference.”
Sen. Maria Cantwell, D-Wash., has asked Congress’ Joint Committee on Taxation to analyze several key issues facing college sports, including how a deal to bring outside funding into athletic departments could affect their tax-exempt status.
“Legitimate questions have been raised about whether it is time to reconsider the tax-exempt arrangement under which college sports currently operate,” Cantwell said, echoing a topic raised with Big Ten leaders last month.
Another outside organization, the American Council of Trustees and Alumni, also expressed objection to Big Ten schools approving such a deal without input from their boards.
“Responsible governance doesn’t work like this,” council President Michael Poliakoff wrote in an open letter last week.
Bernstein agreed.
“It also raises very important and urgent governance questions regarding the leadership of the Big Ten Conference and the way decisions are made by many Big Ten university universities,” he said. “It is my informed belief that the majority of presidents, chancellors and governing boards of Big Ten universities have not fully evaluated this deal. If they did, they would not support it in its current form.”
University of Michigan Regent Sarah Hubbard said the Big Ten has not given schools any deadlines to vote on the proposal, while another regent, Jordan Acker, said she did not like the idea.
“The richest college football conference associating itself with private equity is not a positive for the University of Michigan in my view,” Acker said.
Bernstein went a step further, saying the deal was “reckless” and “short-sighted.”
“The process failed to fully evaluate options that address the real challenges facing many Big Ten athletic departments,” he said. “We acknowledge that the financial model for most athletic conferences and athletic departments is broken. A bailout from private equity is not the way to fix the systemic problems facing collegiate athletics right now.”
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AP National Writer Eddie Pels contributed. Follow Larry Ledge on X
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