Michigan Board Denounces Big Ten Private Equity Move

The University of Michigan’s governing board has publicly opposed a substantial investment proposal from the Big Ten Conference. This proposal involves a potential $2.4 billion private equity investment. The board’s chair, Mark Bernstein, highlighted their commitment to the Big Ten while emphasizing the necessity to address the financial challenges faced by athletic departments.

Michigan Board’s Stance on Big Ten Private Equity Move

On November 20, 2025, the University of Michigan Board of Regents convened to discuss the ongoing Big Ten Enterprises proposal. The board reaffirmed its opposition to the plan, despite reports of pressure from Big Ten Commissioner Tony Petitti. Bernstein firmly stated, “Nobody pushes around the University of Michigan – ever.”

Big Ten’s Response

The Big Ten Conference refuted claims of coercion, asserting that the process has been collaborative. Maryland President Darryll Pines, chair of the Big Ten Council of Presidents and Chancellors, described the negotiations as fair and thorough since they began in 2024.

Exploring New Revenue Streams

As college athletics navigate financial challenges, the Big Ten is actively seeking new revenue sources. Schools participating in the recent House settlement may share up to $20.5 million with athletes this academic year. This amount is expected to increase over time.

• Some schools have already initiated significant changes. For instance, the University of Kentucky has restructured its athletic department into a limited-liability holding company.
• The Big Ten discussions with UC Investments aim to establish a commercial entity, Big Ten Enterprises, to sustain revenue through 2046.
• The proposal includes an upfront payment of $2.4 billion, alongside a 10% reduction from future media rights and sponsorships.

Concerns from Other Institutions

Southern California’s athletic director, Jennifer Cohen, expressed similar reservations about the deal’s uneven revenue distribution among member schools. “We will always fight first for what’s best for USC,” she stated.

Calls for Congressional Review

In light of these developments, Senator Maria Cantwell has requested the congressional Joint Committee on Taxation to analyze the implications of the investment. She raised concerns over the potential impact on the tax-exempt status of college sports, emphasizing the need to reconsider current regulations.

The American Council of Trustees and Alumni also cautioned against Big Ten schools approving such a significant deal without sufficient board input. As the debate continues, the dynamics of college athletics funding remain a critical topic for stakeholders. The University of Michigan’s firm stance reflects ongoing tensions within the conference regarding private equity investments in college sports.