🤔 Interesting…like eminent domain. Agree to the deal or else!

Sources: Big Ten execs pressing to make $2.4 billion investment deal — without Michigan and USC if needed

In messages sent to Michigan and USC, the Big Ten has signaled that it is moving forward with the deal, even delivering to each program a proposed deadline for their decision. If they don’t agree to the deal, the schools may lose the additional capital as part of the landmark proposal and risk their future within the conference beyond 2036, the current end of the existing grant-of-rights agreement. League officials are socializing a specific date — Nov. 21 — for a vote on the capital investment proposal.

Administrators and board members at both Michigan and USC were informed earlier this week that, if a 16-school agreement is reached, the two programs would be granted a grace period — three to six months — to agree to join the deal if they wish to reap the full financial benefits. That period is only a proposal for now.

This smells on so many levels, kind of the college football equivalent of a payday loan.

I've been confused on how will this affect realignment, I've seen some say it will stop it completely and other say that there's new members being considered but that they will come alongside the deal.

Either way this is hella controversial

This is way over my head! 🤔

I understand why the deal raises some concerns. A $2.4 billion deal is not an under the radar transaction. It could make political waters somewhat choppy for collegiate sports.

To over simplify, it is a high interest loan. The deal looks to sell an “estimated 10% of assets” to a pension fund.

The pension fund now shares media revenue for twenty years. Including participating in any future increases/decreases as media contracts are renegotiated.

My guess is that the fund is expecting the revenue share returns the original 2.4 billion in capital, with another 2 to 3 billion profit.

If capital is needed, this is one way to acquire it. But, it is not the only way.

2 hours ago, Annie said:

This is way over my head! 🤔

This is a seriously BIG club (pun intended).

Give a quiz to all the Ad's for an explanation.

Or, maybe hire Larry Scott to negotiate a deal that exceeds all expectations until the next round of media deals in a couple of years.

All this is a capital ($$$) infusion for college athletic departments.

I would be surprised if Ohio State went along with this proposal (and Oregon should not either, IMO), as one of the largest, wealthiest and most valuable brands in college football. Locking yourself into a long-term grant of rights seems to be the last thing the top brands would want to do right now given the uncertainty and evolving college football landscape. Just look no further than the top ACC programs.

The teams that benefit the most are the B1G bottom dwellers. They are probably paranoid that they will be left out during the next college football realignment (as they should be) and desperately need the money.

Under the proposal, there is also an uneven revenue share, which is one reason USC opposes it, as Ohio State, Michigan and Penn State would get more than they would.

Edited Monday at 02:05 PM4 days by OregonDucks

Just a money grab? Is there any true benefit outside of a cash infusion? $2.4 Billion only once? Thats only about $130 million. Tell me you can't get a bit more creative than negotiating a loan. Is there no end to the muddying of this sport?

USC and Michigan are now threatening to leave the conference over this. I don’t disagree with their positions but this would be a bit extreme - if you don’t get your way, “take your football and go home.”

OutKick

USC, Michigan Reportedly Considering Leaving Big Ten Conf...

USC Trojans and Michigan Wolverines oppose Big Ten's private equity investment, potentially risking departure from conference over financial disagreements.