Sports
Senator warns Big Ten of private equity risks
Sen. Maria Cantwell, D-Wash., sent a letter to Big Ten presidents Friday, warning that a move into private equity could have negative consequences, including impacting the schools’ tax-exempt status.
“The primary goal of these companies is to make money for the firm, which is unlikely to align with the academic goals of your university or its obligations as a not-for-profit organization,” Cantwell said.
The Big Ten has been exploring a partnership with private equity firms, with reports saying it could be looking at a $2 billion investment that would involve placing the sale of its media rights and other assets under a new entity partially owned by the equity investors.
Big Ten commissioner Tony Petitti was short on specifics at the conference’s basketball media days this week.
“Whether or not we need strategic investment to help us, we’ll determine,” he said. “It will be done by all 18 leaders. I think it’s no different than looking at the other buckets that we have to maximize resources. Just one other avenue that may or may not be available to us.”
Cantwell, the ranking member of the Senate Commerce Committee whose state has a Big Ten school, said in her letter she had been told that not all regents and trustees in the conference had been fully briefed on the deal.
“It is unclear from my conversations with these regents and trustees whether the athletic-focused Conference has fully considered the potential impact of the deal on your university and its overall educational mission,” she wrote.
Her letter comes a day after the senator spoke at a Knight Commission seminar that looked into the changes occurring in college sports, which settled a long-running lawsuit that now allows schools to pay players for their name, image and likeness.
Cantwell spoke in favor of her recently introduced SAFE Act, which proposes rewriting a 1961 law that would make it legal for conferences to pool their TV rights. She was followed at the event by Texas Tech regent chair Cody Campbell, who is a proponent of changes to the law and who blasted the Big Ten idea of looking into private equity.
“The fact that we’re bringing private equity into something that is, in my view, owned by the American public in college sports, is outlandish,” Campbell said.
Campbell estimates pooling of TV rights could bring an additional $7 billion to schools — a figure he did not back with any data and that conference commissioners disagree with.
“I have never stated — publicly or privately — that pooling media rights would increase revenue, nor do I believe that it would,” the Southeastern Conference’s Greg Sankey said.
Among the issues involved in pooling TV rights is that each conference has an assortment of deals with different expiration dates, which would make it hard to sync the deals and bring them under one umbrella.
Petitti acknowledged a private equity move for the Big Ten could create the same challenges.
“If we’re going to do something different, we’re going to respect everything we’ve set up in our current deals,” Petitti said. “There’s nothing being contemplated that would change anything in our current media relationships.”
One Michigan regent, Jordan Acker, recently posted on social media that “selling off Michigan’s precious public university assets would betray our responsibility to students and taxpayers.”
In her letter, Cantwell was blunt in outlining the stakes a private equity investment could have.
“Your university’s media revenues currently are not taxed because they are considered ‘substantially related to’ your tax-exempt purpose,” she wrote. “However, when a private, for-profit investor holds a stake in those revenues it raises questions whether the revenue loses its connection to your institution’s educational purpose.”
The Big Ten is closing in on voting on a capital agreement that will infuse league schools with more than $2 billion, industry sources told ESPN.
There’s been momentum within recent days for the deal to push forward, and the structure of the complicated agreement is coming together. A vote is expected in the near future, per sources.
The framework calls for the formation of a new entity, Big Ten Enterprises, which would hold all leaguewide media rights and sponsorship contracts.
Shares of ownership in Big Ten Enterprises would fall to the league’s 18 schools, the conference office and the capital group — an investment fund that’s tied to the University of California pension system. Yahoo Sports first reported the involvement of the UC investment fund.
The pension fund is not a private equity firm, and the UC fund valuation proved to be higher than other competing bids. This has been attractive to the Big Ten and its schools, according to sources.
A source familiar with the deal said there’s been momentum in recent days, but the league is still working with leadership to make a final decision.
The exact equity amounts per school in Big Ten Enterprises is still being negotiated. There is expected to be a small gap in equity percentage between the biggest brands and others, however it is likely to be less than a percentage point.
ESPN reported last week that a tiered structure is expected in the initial allocation of the $2 billion-plus in capital, with larger brands receiving more money. Each school, however, would receive a payout in at least the nine-figure range, sources said.
The deal would call for an extension of the league’s Grant of Rights through 2046, providing long-term stability and making further expansion and any chance league schools leave for the formation of a so-called “Super League” unlikely.
Traditional conference functions are expected to remain with the conference. Any decision-making within Big Ten Enterprises would be controlled by the conference. The UC pension fund would receive a 10% stake in Big Ten Enterprises and hold typical minority investor rights but no direct control.
The money infusion is acutely needed at a number of Big Ten schools that are struggling with debt service on new construction, rising operational expenses and providing additional scholarships and direct revenue ($20.5 million this year and expected to rise annually) to athletes.
The Big Ten has argued that the deal would alleviate financial strain and help middle- and lower-tier Big Ten schools compete in football against the SEC.
ESPN first reported last week that the league was in detailed conversations about the deal.
Big Ten Enterprises would be tasked with not just handling the league’s valuable media rights (the current seven-year, $7 billion package runs through 2030) but trying to maximize sponsorship and advertising deals leaguewide such as jersey patches or on-field logos.
“Think of it this way — the conference is not selling a piece of the conference,” a league source told ESPN last week. “Traditional conference functions would remain 100 percent with the conference office — scheduling, officiating and championships. The new entity being created would focus on business development, and it would include an outside investor with a small financial stake.”
The deal has not been without detractors, with both Michigan and Ohio State — the league’s two wealthiest athletic programs — expressing skepticism initially, per sources. Each school has been hit with significant lobbying not just from the league office but also other conference members to come to an agreement.
Politicians in a number of states have also voiced opposition, including United States Senator Maria Cantwell (D-WA) who stated Thursday, “You’re going to let someone take and monetize what is really a public resource? …That’s a real problem.”
Cantwell followed up Friday by sending a letter to each Big Ten president warning that any deal involving private equity could invite review, including impacting the schools’ tax-exempt status.
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Cleveland Browns head coach Kevin Stefanski announced Friday that Shedeur Sanders will be the team’s backup quarterback for their game against the Pittsburgh Steelers.
The Browns traded Joe Flacco to the Cincinnati Bengals on Tuesday, opening the door for Sanders to be added to the active roster for the first time in his career. In the team’s first five games, he was the emergency third-string quarterback.
Flacco struggled as the Browns went 1-3 in his four starts while he completed just over 58% of his passes for 815 yards with two touchdowns and six interceptions before being benched for Dillon Gabriel. Flacco served as the team’s backup in the team’s loss to the Minnesota Vikings in Week 5.
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Shedeur Sanders, No. 12, of the Cleveland Browns, warms up before an NFL football game against the Detroit Lions at Ford Field on Sept. 28, 2025, in Detroit, Michigan. (Todd Rosenberg/Getty Images)
Stefanski did not commit to Sanders being the backup quarterback on Wednesday, making fans wonder if they would have opted to promote practice squad quarterback Bailey Zappe instead. Zappe started the team’s season finale in 2024.
Sanders said he was excited about the possibility of backing up Dillon Gabriel on Thursday.
SHEDEUR SANDERS RESPONDS TO REX RYAN’S ‘EMBARRASSMENT’ CRITICISMS, EXPLAINS RECENT ‘MIME’ ACT
Cleveland Browns quarterback Shedeur Sanders (12) runs the offense during training camp at CrossCountry Mortgage Campus. (Ken Blaze/Imagn Images)
“I’m in a great mental space overall,” Sanders said. “I would say you tend to get a little bit more excited when you see a light at the end of the tunnel, for sure. … Whatever my role is here, I’m thankful. I’m happy just to do that.”
Gabriel made his first career start in the team’s 21-17 loss to the Vikings last week in London. The 24-year-old completed 57.6% of his passes for 190 yards and two touchdowns in the loss.
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Cleveland Browns quarterback Shedeur Sanders (12) warms up before the game against the Detroit Lions at Ford Field in Detroit, Michigan, on Sept. 28, 2025. (David Reginek/Imagn Images)
The Browns (1-4) take on the Pittsburgh Steelers (3-1) on the road Sunday at 1 p.m. ET.
The Associated Press contributed to this report.
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The Big Ten is closing in on voting on a private capital agreement that will infuse league schools with more than $2 billion, industry sources told ESPN.
There’s been momentum within recent days for the deal to push forward, and the structure of the complicated agreement is coming together. A vote is expected in the near future, per sources.
The framework calls for the formation of a new entity, Big Ten Enterprises, which would hold all leaguewide media rights and sponsorship contracts.
Shares of ownership in Big Ten Enterprises would fall to the league’s 18 schools, the conference office and the capital group — an investment fund that’s tied to the University of California pension system. Yahoo Sports first reported the involvement of the UC investment fund.
The pension fund is not a private equity firm, and the UC fund valuation proved to be higher than other competing bids. This has been attractive to the Big Ten and its schools, according to sources.
A source familiar with the deal said there’s been momentum in recent days, but the league is still working with leadership to make a final decision.
The exact equity amounts per school in Big Ten Enterprises is still being negotiated. There is expected to be a small gap in equity percentage between the biggest brands and others, however it is likely to be less than a percentage point.
ESPN reported last week that a tiered structure is expected in the initial allocation of the $2 billion-plus in capital, with larger brands receiving more money. Each school, however, would receive a payout in at least the nine-figure range, sources said.
The deal would call for an extension of the league’s Grant of Rights through 2046, providing long-term stability and making further expansion and any chance league schools leave for the formation of a so-called “Super League” unlikely.
Traditional conference functions are expected to remain with the conference. Any decision-making within Big Ten Enterprises would be controlled by the conference. The UC pension fund would receive a 10% stake in Big Ten Enterprises and hold typical minority investor rights but no direct control.
The money infusion is acutely needed at a number of Big Ten schools that are struggling with debt service on new construction, rising operational expenses and providing additional scholarships and direct revenue ($20.5 million this year and expected to rise annually) to athletes.
The Big Ten has argued that the deal would alleviate financial strain and help middle- and lower-tier Big Ten schools compete in football against the SEC.
ESPN first reported last week that the league was in detailed conversations about the deal.
Big Ten Enterprises would be tasked with not just handling the league’s valuable media rights (the current seven-year, $7 billion package runs through 2030) but trying to maximize sponsorship and advertising deals leaguewide such as jersey patches or on-field logos.
“Think of it this way — the conference is not selling a piece of the conference,” a league source told ESPN last week. “Traditional conference functions would remain 100 percent with the conference office — scheduling, officiating and championships. The new entity being created would focus on business development, and it would include an outside investor with a small financial stake.”
The deal has not been without detractors, with both Michigan and Ohio State — the league’s two wealthiest athletic programs — expressing skepticism initially, per sources. Each school has been hit with significant lobbying not just from the league office but also other conference members to come to an agreement.
Politicians in a number of states have also voiced opposition, including United States Senator Maria Cantwell (D-WA) who stated Thursday, “You’re going to let someone take and monetize what is really a public resource? …That’s a real problem.”
Cantwell followed up Friday by sending a letter to each Big Ten president warning that any deal involving private equity could invite review, including impacting the schools’ tax-exempt status.
Sources: Big Ten closes in on $2 billion capital deal
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