The California Public Employees’ Retirement System (CalPERS) is one of the groups in contention for a private capital deal with the Big Ten, Front Office Sports has learned.
The league is actively considering an infusion of private capital, FOS confirmed last week, after an ESPN report that surfaced saying the conference is in talks to consider a $2 billion investment deal. CalPERS is one of the funds that was part of the Big Ten’s proposal, a source familiar with the matter tells FOS.
The league has received several private capital pitches, as multiple news outlets have reported. At this point, the Big Ten has put together a proposal for member schools outlining what private capital investment would look like and what investors are in contention—something university presidents would have to approve, the source said, confirming ESPN’s report.
In the proposed deal, the Big Ten would spin off assets into a new entity potentially called Big Ten Enterprises, which would split equity among the 18 Big Ten schools, the conference, and private equity, the source confirmed to FOS. The agreement would also include an extension of the grant of rights deal, which binds all the schools together for a certain number of years and is usually signed in conjunction with a media rights agreement, until 2046.
The source added that up to four firms could invest in the Big Ten.
Three private-equity firms are in contention, the source said: Apollo Global Management (which just launched a sports-focused fund), Sixth Street Partners, and Ares Management (Sports Illustrated first reported the news of the latter three funds’ interest).
Then, there’s CalPERS, a statewide pension fund for California public employees that manages more than $580 billion in assets for more than two million members. The fund, the largest public pension in the U.S., has about 18% of its assets allocated to private equity.
The proposal may include CalPERS investing in the Big Ten as a co-investment alongside any or all of the aforementioned PE firms. (In such a deal, CalPERS would invest in the Big Ten entity alongside a PE firm for a minority stake and less control and lower fees.) Pension funds, including CalPERS, have participated in more co-investments recently. It also has a relationship with at least two of the funds courting the Big Ten: In 2024, CalPERS listed investments in Apollo and Ares funds. Or CalPERS could invest directly into the Big Ten on its own.
If any such deal goes through, it would create an interesting dynamic for CalPERS: Some employees of UCLA, one of the Big Ten’s members, are eligible for reciprocity agreement with CalPERS for their retirement funds (they can move their retirement funds from those offered by the UC system to those offered by CalPERS).
CalPERS declined to comment for this story.
A representative from the Big Ten could not immediately be reached for comment Tuesday. In a statement to FOS and others last week, the Big Ten said: “Over a year ago, we initiated a comprehensive evaluation of our practices to identify partnerships that could secure the financial stability of our member institutions and allow us to not only protect, but expand, opportunities for our student-athletes. This is an ongoing process, and we remain committed to finding a path that strengthens the conference for the future.”
Not everyone is in favor of allowing private capital into the college sports space.
University of Michigan regent Jordan Acker posted on X in response to the proposal: “As a Regent, I believe selling off Michigan’s precious public university assets would betray our responsibility to students and taxpayers. I will firmly oppose any such effort—and I hope colleagues at [Michigan State] and [Ohio State] will stand with me as well.”
Meanwhile, a bill introduced by Rep. Michael Baumgartner (R., Wash.) this week seeks to ban these types of private capital deals, as FOS first reported Tuesday.
