Sources: Big Ten mulling $2B private capital deal
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Dan Wetzel
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Dan Wetzel
ESPN
Dan Wetzel is a senior writer focused on investigative reporting, news analysis and feature storytelling.
The Big Ten is in discussions about a private capital deal that would infuse at least $2 billion into the league and its schools, sources told ESPN on Wednesday.
The discussions include a 10-year extension of the league’s grant of rights until 2046, sources told ESPN, which would ensure long-term stability in the Big Ten.
According to sources, the private capital deal and grant of rights extension have been discussed for months and presented in multiple forms. A deal and the grant of rights extension would also be a distinct blow to the outside entities attempting to form super leagues around college sports.
While there is support from nearly the entire league, according to sources, a few of the league’s biggest brands — including Ohio State and Michigan — are still in discussions with the league. The aim is to have unanimous support before a vote, sources told ESPN.
A decision on the private capital deal is expected in the upcoming weeks from the schools in the Big Ten, sources said, and nothing is considered imminent or certain. There are three different private capital entities being considered by the Big Ten, sources told ESPN, and the league has not taken a vote on any plan.
Like most businesses, athletic departments can always use more money to cover ever-increasing costs. The need is particularly acute now for schools with middle and lower revenues within the league after the NCAA’s recent settlement of legal cases that has led to direct revenue sharing with athletes.
The setup being discussed, sources said, is that this will essentially be the formation of a new commercial entity within the Big Ten that would house all revenue generation such as media rights, sponsorships and league revenue streams.
The working title for the new entity is Big Ten Enterprises, sources told ESPN.
The private capital company would get money back through the new entity through annual distribution in proportion to its financial stake. The Big Ten will essentially have 20 equity shares, comprising the 18 schools, the league and this investor.
Sources told ESPN that this setup eliminates the need to give an outside investor a specific portion of control over decisions or board seats, something that college presidents have generally been uncomfortable with.
“Think of it this way — the conference is not selling a piece of the conference,” a league source told ESPN. “Traditional conference functions would remain 100 percent with the conference office — scheduling, officiating and championships. The new entity being created would focus on business development, and it would include an outside investor with a small financial stake.”
One of the philosophies behind the proposed move, which is being shepherded by Big Ten commissioner Tony Petitti, is that the league believes its ability to generate revenue holistically has been underserved, and it would be sharing a small percentage of greater profits with the outside investor.
It also helps the league potentially better scale and leverage its 18 members.
Another source familiar with the Big Ten’s discussions summed it up this way: “We’re underselling the strength of what we do the way we are structured. This is a way to organize ourselves better.”
As a micro example of that, Nebraska athletic director Troy Dannen was quoted in an Associated Press article last week on the looming discussion of teams wearing corporate logos on their jersey: “If you jump in now, and I’m going to get a little bit [of money] because of the jersey patches. I would really like to see if there’s an opportunity for our conference to put all those jersey patch rights together and, all of a sudden, they’re worth a whole lot more to the institutions when 18 are playing instead of just one.”
The potentially groundbreaking plan, which has been presented across the 18-member conference over the past few months, calls for immediate cash payments to each school, the amount based on a formula that factors in numerous variables including current budgets.
The amount of those payments is still being discussed, but the basic format, sources told ESPN, is believed to be tiered. All schools in the league are expected to receive at least a nine-figure amount up front.
The final financial details are still being discussed as universities with bigger brands are expected to receive more money.
“Our membership has clearly expressed the need to modernize the operations and structure of our conference to ensure that the Big Ten remains best positioned to offer the highest level of athletic and academic excellence in a rapidly evolving landscape,” a Big Ten spokesperson told ESPN in a statement when asked about the private capital.
“Over a year ago, we initiated a comprehensive evaluation of our practices to identify partnerships that could secure the financial stability of our member institutions and allow us to not only protect, but expand, opportunities for our student-athletes. This is an ongoing process, and we remain committed to finding a path that strengthens the conference for the future.”
NEW YORK — Islanders defenseman Alexander Romanov will be out for five to six months following surgery on his right shoulder, the team said Sunday.
The injury to the 25-year-old Romanov occurred Tuesday in Dallas in the final minute of regulation when he was hit from behind by Stars forward Mikko Rantanen.
Romanov, who had to be helped from the ice, was placed on injured reserve Wednesday. He has one assist in 15 games this season. He signed an eight-year, $50 million contract last summer.
“He’s not happy,” Islanders coach Patrick Roy said before Sunday’s 1-0 shootout win over the Seattle Kraken. “We have to move on. We don’t replace a player like that.”
Roy said the team would rely on Adam Boqvist and Marshall Warren in place of the speedy Romanov.
“You hope that the guys coming in will fit it and hopefully that Boqvist will play like he’s been playing,” Roy said of his defense corps, which has been bolstered by 18-year-old rookie standout Matthew Schaefer.
Rantanen received a five-minute boarding penalty and game misconduct, but no additional discipline from the league for the hit on Romanov. He was suspended for one game earlier Sunday following a hit on Calgary‘s Matt Coronato during Saturday’s game.
Roy was furious after Rantanen’s hit on Romanov and yelled at the Dallas player as he went to the locker room through a tunnel between the benches.
Stars coach Glen Gulutzan defended his player because he believed Rantanen’s skate was clipped by Islanders defenseman Scott Mayfield, causing him to raise his arms for balance just before contact with Romanov.
Rantanen said he did not intend to injure Romanov. He is in his first full season with Dallas after getting traded twice last season.
The Associated Press contributed to this report.
Dallas Stars forward Mikko Rantanen received an automatic one-game suspension after getting ejected from his second game in a three-game span.
Rantanen received a game misconduct late in the second period of Saturday’s 3-2 shootout loss to the Flames after boarding forward Matt Coronato from behind. Coronato was able to finish the game, but Calgary coach Ryan Huska called it “a terrible hit.”
The NHL Department of Player Safety chose not to have a hearing for Rantanen following his latest infraction, according to sources, and instead relied on Rule 23.6 of the NHL rulebook which mandates an automatic one-game suspension for any player who receives a total of two game misconduct penalties in the “Physical Infractions Category” within 41 consecutive regular-season games.
The suspension will bench Rantanen for Tuesday night’s matchup in Edmonton against the Oilers, a rematch of last year’s Western Conference final, which the Oilers won in five games.
Rantanen, 29, is tied with Jason Robertson for the team lead with 28 points over 22 games (10 goals, 18 assists). With his two ejections, he now leads the team with a whopping 57 penalty minutes.
Saturday’s hit was the latest in a tough week for Rantanen.
In last Tuesday’s 3-2 loss to the Islanders, the Stars winger was also ejected late in the game after boarding defenseman Alexander Romanov. That play drew the ire of Islanders coach Patrick Roy, who went on a profane tirade as Rantanen left the ice, then later called the hit “disrespectful.”
“I’m going to say is [that] when you see the number, you have to lay off. Everybody knows that. You don’t go through the guy,” Roy said after the game. “I was in Colorado when [Rantanen] was drafted there. It’s not his style. But at the same time, that should not be part of our game.”
Romanov will have shoulder surgery and is expected to be out five to six months, the Islanders said Sunday.
Rantanen has no history of supplemental discipline over his 11-year-career, which has spanned Colorado, Carolina and now Dallas. Rantanen’s only noted history with the NHL’s Department of Player Safety before this suspension was an embellishment fine.
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