The Big Ten is looking to push through its plan to take billions of dollars in private investment from a California pension fund early next week, multiple sources told Front Office Sports, first reported by Yahoo Sports.
But some high-ranking university officials at Big Ten member schools were still uninformed about key details of the plan, just days before a vote could take place, two sources told FOS.
Officials at member universities were aware the deal would be with a California teacher’s pension fund, the sources told FOS. But as late as Friday morning, some were unaware of which specific pension fund was in consideration.
Presidents of Big Ten schools are potentially voting on the investment Monday or Tuesday. The deal no longer includes private-equity firms, sources told FOS.
On Friday afternoon, Yahoo Sports reported the deal would come from UC Investments, the pension fund within the UC system. UC Investments currently manages a portfolio totaling about $190 billion, including retirement, endowment, and cash assets.
The new deal would see the pension fund invest $2.4 billion—at least $100 million per school—for a 10% equity stake in Big Ten Enterprises, a spin-off of Big Ten conference assets like media rights, Yahoo Sports reported. UC Investments would then receive an annual distribution and the ability to sell off its stake in the future.
Representatives from UC Investments and from the UC Office of the President did not immediately respond to an FOS request for comment.
The chaos began Oct. 2 when ESPN first reported the news of a $2 billion deal and that it could include private-equity funding. The report said a decision would have to include unanimous approval from Big Ten university presidents, and it could happen by the end of October. 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.
Multiple conversations with university and Big Ten officials took place this week after that report was published, the sources said. But a lack of transparency from Big Ten officials has led to confusion about which pension fund would be investing in the league, they said. One source said Friday that it appeared some news reporters were more in the loop than trustees of certain Big Ten universities.
A letter sent to Big Ten schools by Sen. Maria Cantwell (D., Wash.) confirmed this dynamic, saying, “I have been informed by regents and trustees of Big Ten member institutions that they have not been fully briefed on the deal under consideration.”
—Additional reporting by Daniel Roberts
