When College Sports Become Big Business: Big Ten’s $2B Proposal Sparks Debate on Priorities

The Big Ten Conference’s proposed $2 billion deal with the University of California’s pension fund has stirred significant debate among its member institutions, with no decision reached after a recent meeting of presidents and chancellors. The plan would create a new entity—Big Ten Enterprises—to house all media and sponsorship rights, with the UC pension fund acquiring a 10% stake in exchange for the cash infusion. Proponents, including commissioner Tony Petitti, see the deal as a way to modernize operations, preserve non-revenue sports, and strengthen conference stability amid rising athletic costs and looming revenue-sharing obligations with athletes. Critics, however, question the long-term implications of extending the league’s grant of rights through 2046 and ceding even limited ownership of future media revenues.

Among the most vocal opponents are leaders at the University of Michigan, who view the proposal as financially shortsighted. Regent Mark Bernstein likened it to a “payday loan,” while Regent Jordan Acker warned against repeating mistakes like the ACC’s long-term media rights deal, which later backfired. Michigan officials said financial experts, including Barclays, advised against the plan, suggesting that schools could address deficits through other means. The proposed structure would reportedly provide each of the Big Ten’s 18 member schools with at least $100 million, though distribution may favor larger programs. While many schools support the deal, its passage remains uncertain without unanimous consent—a reflection of the growing tension between the pursuit of financial stability and the preservation of college sports’ long-term integrity.