Big Ten considers private equity bids in noted reversal: report

Despite prior hints from the Big Ten chief that his conference was not considering any private equity investment, it appears the conference may be reversing course as NCAA sports prepare to share revenue with players amid the forthcoming House vs. NCAA settlement.

It appears the Big Ten is ready to court investment from the private equity industry ahead of the pending House vs. NCAA settlement. / Aaron Doster-Imagn Images

Amid the major changes across college football and other NCAA sports that includes a revenue-sharing plan with players, conferences have been looking for a way to raise more money, and using private equity investment has been one possible course of action.

Now, it appears the Big Ten will consider doing exactly that, despite previous comments from commissioner Tony Petitti that he would not consider such investments.

The Big Ten is accepting preliminary bids from private equity funds that are interesting in investing money in the conference, according to Sportico.

Investment bank Evercore has been engaged by the Big Ten to listen to the offers, the first round of which the league is believed to have heard this week.

The apparent reversal comes as the Big Ten and other NCAA conferences prepare for a world in which they’ll have to share revenue with athletes ahead of the pending House vs. NCAA settlement.

“To better support its 18 member institutions, the conference is evaluating potential strategic partnerships in order to enhance the conference’s event, sponsorship, and other ancillary business endeavors,” a Big Ten representative told Sportico.

That marks a change of heart from what the Big Ten expressed back in October, when it held what was deemed an “unprecedented” meeting with its SEC counterparts, in which both leagues’ commissioners appeared to push back against the idea of taking private equity investment.

This isn’t the first we’ve heard about a collegiate sports conference entertaining the idea of accepting this kind of cash infusion.

Last summer, it was reported that the Big 12 was considering a private equity investment of up to $1 billion for what would be a 15 to 20 percent stake in the conference.

It was expected that the Big 12 would entertain an outside investment, given its position behind the SEC and Big Ten in terms of revenue and success on the football field.

But the Big Ten earned around $880 million in the 2023 fiscal year, according to Sportico figures, yet it still expressing interest in courting a similar investment could indicate a major sea change.

If the Big Ten does eventually turn to private equity, it would mark a landmark insurgency in the world of NCAA sports, and could inspire other leagues to follow suit.

More ... Big 12 considers big PE investment

(Sportico)

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