The University of Michigan and USC have been vehemently against the Big Ten accepting capital from a private equity firm, UC Investments, part of the University of California system. With a proposal that would net the conference $2.4 billion in investment capital, U-M has been opposed to the deal, and spoke out about it at a board of regents meeting earlier this month.
There had been reports that the Big Ten was going to move forward with the deal, despite the two defectors, but UC Investments announced on Monday that the deal is on hold as it makes little sense to the firm without all 18 schools on board.
It’s more than just a sticking point that Michigan hasn’t signed on. According to regent Jordan Acker, who spoke on SiriusXM on Monday, if the Big Ten were to push the deal through, U-M could seek to leave the conference in favor of independence.
Via MLive:
“The possibility of independence for football is certainly something that has to be considered,” Acker said. “Not today, but at the end of the grant of rights. I think it’s something that you have to think about.”
As for now, the crisis has been averted. But what for the schools that were in favor of the deal? We’ll see if this hold on ‘Big Ten Enterprises’ will cause some internal furor, if the deal remains on hold, or if Michigan ends up holding the line or folding should it reprise.
This article originally appeared on Wolverines Wire: Michigan threatens independence over Big Ten’s $2.4B private equity deal, now on hold
Reporting by Isaiah Hole, Wolverines Wire / Wolverines Wire
USA TODAY Network via Reuters Connect
