Stevens says Big Ten’s private equity deal marks ‘dangerous expansion’ of influence

Reports that the Big Ten Conference could sell a stake of its media rights to a private equity group have led Michigan U.S. Rep. Haley Stevens (D-Birmingham) to send a letter to the conference’s commissioner stating her opposition to the deal and requesting additional information. 

Publicly reported details show the Big Ten would sell 10% of its media rights to UC Investments, a group affiliated with the University of California system pension fund, for $2.4 billion.

The conference roster includes the University of Michigan, Michigan State University, University of Illinois, Indiana University, The University of Iowa, University of Maryland, University of Minnesota, University of Nebraska, Northwestern University, The Ohio State University, The Pennsylvania State University, Purdue University, Rutgers University, University of Oregon, University of California Los Angeles, University of Southern California, University of Washington, University of Wisconsin.

In her letter to the conference commissioner Tony Petitti, Stevens warned the deal would be a “dangerous expansion of private equity influence over our nation’s universities, harming the quality of college sports and the integrity of university governance.”

The influence of wealthy non-university interests has already created issues for college sports, Stevens said, pointing to the role of television networks in eliminating the regional nature of conferences through realignment.

The deal would open the door for other conferences to seek investment from private enquiry groups, Stevens said, arguing it would further undermine regional cohesion. She also warned that giving private investment firms control of sports television revenue would create undue influence over university decisionmaking.

Big Ten member universities should be focused on their mission to educate and prepare young people for fulfilling and productive lives instead of maximizing television revenue in partnership with wealthy financial institutions.

Stevens requested Petitti respond with an answer to the following questions by Dec. 12. Stevens asked if a conference media rights agreement is reached, how will the commissioner  ensure that UC Investments, or any subsequent private equity investor, will not impact the independence and internal governance of member universities? 

She also asked if a conference media rights agreement is reached, how will the commissioner ensure that efforts to promote large revenue-generating sports does not come at the expense of support for Title IX and non-revenue sports that have provided a path to college and meaningful experiences for generations of students? 

The representative further asked if an agreement is reached, how will the commissioner ensure confidence amongst athletes, students, faculty, staff, alumni, and the local communities of member universities that the profit seeking motives of UC Investments, and any subsequent private equity investors, are not superseding the overall public serving mission of Big Ten member universities?