A proposed private capital plan that would have injected $2.4 billion into Big Ten athletic departments has been paused after strong opposition from Michigan and USC. The deal, led by UC Investments, was designed to reshape the financial future of the conference. Instead, it has created one of the biggest internal battles the Big Ten has seen in years.

What the $2.4 Billion Deal Was Supposed to Do

The plan called for the Big Ten to create a new entity called Big Ten Enterprises. All league wide media rights and sponsorship deals would be moved into this new arm of the conference. In return for the $2.4 billion infusion, UC Investments would receive a ten percent ownership stake.

Each Big Ten program would receive a major payout. Every school was expected to earn more than $100 million, with some larger brands receiving even higher distributions. The proposal also included a significant Grant of Rights extension that would have locked members into the conference until 2046.

For schools dealing with rising operating costs, athlete revenue sharing, and large stadium debt, this deal promised short term financial relief.

Why Michigan and USC Said No

While as many as sixteen Big Ten schools supported the plan, Michigan and USC refused to move forward. Both schools argued that selling equity in the conference was financially irresponsible.

Michigan Regent Mark J. Bernstein previously compared the deal to taking out a pay day loan. Regent Jordan Acker echoed similar concerns, saying it made no sense to commit to a Grant of Rights extension that would last twenty one years when the landscape of college sports is changing so quickly.

USC leadership felt the same way. Both schools emphasized long term financial stability over short term cash.

The Threat of Michigan Leaving the Big Ten

As reports surfaced that the Big Ten might move ahead without Michigan and USC, the situation escalated. Regent Jordan Acker said Michigan would be forced to consider all options for its future, including the idea of going independent in football once the current Grant of Rights ends in 2036.

This would be a seismic shift in college athletics. Michigan is a founding member of the Big Ten and one of its most valuable brands in both football and basketball.

Why the Deal Was So Important for Some Schools

Many athletic departments in the Big Ten are facing significant financial pressure. Illinois spent more than 11 percent of its entire athletic budget on debt service last year. Ohio State spent more than 33 million dollars on similar costs. With athlete revenue sharing expected to rise annually, schools are searching for new revenue sources.

For those schools, the $2.4 billion investment looked like a lifeline.

What Happens Next

UC Investments is not walking away. In its statement, the group emphasized that unity among all Big Ten schools is essential before the plan can move forward. They also said they need additional time for due diligence as they continue talking with conference leadership.

Big Ten commissioner Tony Petitti strongly supported the deal. Most of the conference was prepared to move ahead. Yet without Michigan and USC, two powerful and influential members, the plan cannot gain full approval.

Why This Matters for the Future of College Sports

This situation highlights a growing challenge in major conferences. Revenues continue to climb, but expenses are rising even faster. Realignment has expanded the Big Ten from coast to coast, yet schools still feel financial pressure.

The debate over this deal signals a larger discussion about sustainability, athlete compensation, and the long term model of college athletics.

For now, the Big Ten is stuck between two realities. Most schools need the money. Two schools with major influence do not trust the deal. Until the conference finds common ground, the future of Big Ten finances remains uncertain.