Earlier this month, a report surfaced the Big Ten was considering a private capital deal totaling more than $2 billion, but some of the conference’s bigger brands, Ohio State and Michigan, were still in discussions with the league before voicing support.
On Friday, Yahoo Sports’ Ross Dellenger reported Ohio State and Michigan have warmed to the idea, which could pave the way for a vote as soon as next week so long as the league has unanimous support. Per the report, around $2.4 billion of immediate cash would be infused into the league’s 18 schools through a California pension fund called UC Investments.
If passed, the league’s Grant of Rights would be extended another 10 years to make it a 20-year deal, meaning it would expire in 2046. Each of the conference’s 18 teams would receive at least $100 million in upfront payments, but several programs’ payouts (likely the Ohio State’s and Michigan’s of the world) could exceed $150 million. UC Investments would benefit by earning an annual cut of distribution and the ability to sell its portion of the league after 15 years.
Most importantly as far as Ohio State is concerned, per the report, the Big Ten is expected to introduce a new uneven model for distribution derived from conference media rights and what would be the league’s new subsidiary, Big Ten Enterprises. It would feature a performance and marketing mechanism most similar to the uneven distribution structure recently implemented by the ACC, which uses team performance and television ratings to determine payouts. What specific distribution models the Big Ten would use are currently being discussed and negotiated by league personnel, as negotiations could continue into next week. Per the report, the up-front payments and tiering isn’t permanent, as schools can increase their value by winning football and basketball championships and increasing their television ratings.
Obviously, Ohio State would be in a great position to cash in early and continue to do so assuming it maintains its success in football.