Without the blessing from both Michigan and Southern California, a proposed $2.4 billion private investment deal to acquire 10% of the Big Ten Conference will remain on hold, Front Office Sports reported this week.
UC Investments, the pension fund for the 10-school University of California system, does not want to go through with the massive investment deal unless “the unity of the 18 Big Ten university members,” occurs.
While Michigan and USC want more information on how the partnership would work, UC Investments also has concerns that not all Big Ten member schools are up to speed with the details involved equity stake purchase of the conference, and the benefits for each member school.
Big Ten member UCLA is one of the schools whose employees have their retirement funds run by UC Investments. Cal, referred to in the system as UC Berkeley, is another of those institutions and is a member of the ACC.
The $2.4 billion investment that would bolster both the Big Ten and the pension fund of UC employees, would create a spinoff of the Big Ten called Big Ten Enterprises, according to the report. Big Ten schools would be required to agree to a contract that guarantees the partnership through 2046.
“I think it’s really important for all of us to take a deep breath and figure out how this is going to impact the university,” Michigan regent Jordan Acker told Front Office Sports. “I think there’s no rush in this deal. There should be no rush on any deal that affects the long-term success and integrity of the University of Michigan and of the Big Ten Conference.”
By slowing the deal from moving forward, UC Investments hopes more conference schools can get up to speed on the intricacies of the proposed partnership.
“We also recognize that some member universities need more time to assess the benefits of their participation,” UC Investments said in a statement to FOS.
–Field Level Media
