Two schools on record. No telling how many actually. It looks like a majority were in favor but no vote taken.
College Sports (Football)
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What is your source that the distribution was not equal?
sbillini
- st petersburg, fl
Proposed Big Ten private capital deal in holding pattern
A decision on the Big Ten's proposed private capital deal does not appear imminent in the wake of a Thursday meeting of the league's presidents and chancellors. Some critics of the proposal labeled it as "reckless" and urged caution before proceeding.
The exact equity amounts per school in Big Ten Enterprises are still being negotiated. There is expected to be a small gap in the percentage of the remaining equity among the schools that would favor the league's biggest athletic brands, but it's likely to be less than a percentage point. There is also expected to be a tier system for initial payments, but with the lowest amount in the nine-figure range. Larger athletic departments could receive an amount above $150 million.
ThanksProposed Big Ten private capital deal in holding pattern
A decision on the Big Ten's proposed private capital deal does not appear imminent in the wake of a Thursday meeting of the league's presidents and chancellors. Some critics of the proposal labeled it as "reckless" and urged caution before proceeding.www.espn.com
The exact equity amounts per school in Big Ten Enterprises are still being negotiated. There is expected to be a small gap in the percentage of the remaining equity among the schools that would favor the league's biggest athletic brands, but it's likely to be less than a percentage point. There is also expected to be a tier system for initial payments, but with the lowest amount in the nine-figure range. Larger athletic departments could receive an amount above $150 million.
I not sure we know how many schools opposed it. We just know that USC and Michigan were against it.
I also don't understand especially if there is only 'small gap in the percentage of the remaining equity' why any school getting a lower share would agree. Once you go down the path of unequal shares the cat's out of the bag.
One percent is not a small gap. That’s the difference between 4% and 5% or $100M and $125M (numbers are approximated)
Also, how do they all agree on percentages? Indiana is a smaller brand than PSU, Michigan and Oregon in 2025? I don’t think so. Illinois going to agree to Indiana getting $25M more than Illinois? I wouldn’t think so. USC gets more than Indiana? Than Illinois? Seems impossible to get 18 teams to agree to different amounts.
lstewart53x3
- Scottsdale, Arizona
I can’t remember where I read it, so someone can correct me if I’m wrong, but I’ve seen somewhere that it was actually the smaller schools who were pushing for the VC money because they’re struggling financially and the only way they could get the bigger schools on board was to offer them a greater share.
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I don't know if it's "smaller schools" as much as it's schools/ath departments with a ton of debt.
lstewart53x3
- Scottsdale, Arizona
Yeah, that’s a better way to describe it.
sbillini
- st petersburg, fl
Wouldn’t Illinois fall in this bucket?
Yes, at the top of the list actually. $312 million in debt and $20 million in annual debt service, per most recent filings. Roughly 1.8x annual DIA revenues.
Illini92and96
- Austin, TX
Wow. Top of the big, or all schools? Any knowledge of how we got here? Facility building?
Actually, just what I have read here from posters who know more than I do. And also I read the links to articles that try to explain the situation also provided by posters here. But then, it looks as if others have provided sources to your question before I got around to answering.
Money from PE seems unlikely to right the ship. Why wouldn’t each school just use it to try to outbid the others, fueling an acceleration of the competitive race while continuing to borrow to the max? It’s tough to put out an overspending fire by pouring more fuel on it.
Nobody wins this race. All schools end up losers with respect to their core mission and reason for being.
Nobody wins this race. All schools end up losers with respect to their core mission and reason for being.
Tops in the B1G. Facility building, for sure. Keeping things at a high level here, here's what the breakdown is as of 6/30/24:
- Memorial Stadium (2006) $70 million
- State Farm Center (2014 and 2020) $120 million
- Smith Center (2018) $31 million
- Ubben (2024) $25 million
- All others (2018-2020) $66 million
It’s like getting a juice loan from the mob. You need the money right away and long term the deal is bad news
I saw it described by one regent as "the biggest payday loan, ever" ha
I thought I read that one of USC's issues with the PC deal was that they were NOT at the top of the distribution. I assume that would be OSU, Michigan, and maybe PSU. USC is used to running the show, so I'm sure they wouldn't be happy not being at the top of the $$ pile.
Kicking the can down the road….
So, does that mean the funds that make up our debt are already committed to us via donations?
Question for anyone who knows: Do we plan for the interest payments within the donation, or do we take, for instance, a $100M pledge over 10 years, borrow for that $100M up front, and then the AD has to pay the interest, with the donation only going toward the principal?
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