Big Ten considers private equity investment amid changing college sports landscape

Investment bank Evercore, retained by the conference, has received initial offers from private equity firms, though details remain undisclosed.

A conference spokesperson confirmed Evercore’s inquiries, stating that the Big Ten is assessing strategic partnerships to expand its business ventures, including events and sponsorships. This move follows earlier opposition from Commissioner Tony Petitti and SEC Commissioner Greg Sankey, who previously resisted private equity’s entry into intercollegiate athletics. The Big Ten and SEC first met on the issue in October and will convene again next month in New Orleans.

Although no major conferences currently have private equity partnerships, the Big 12 explored this route in 2023. The financial landscape of college sports could shift further if the House v. NCAA lawsuit reaches a settlement this spring. The case could open the door for schools to share revenue directly with athletes and allocate $2.8bn in compensation to former players.

In 2023, the Big Ten generated $880m in revenue, the highest among all conferences. This also marked the beginning of its seven-year, $7bn media rights agreement with CBS, Fox, and NBC. As financial demands in college sports evolve, private equity could become a more viable funding source for major conferences like the Big Ten.

Source: Reuters

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