Michigan Leads Opposition to Big Ten Investment Deal, Sparking Conference Debate & Tax Scrutiny
ANN ARBOR, Mich. – Nov 20, 2025, 06:37 PM ET – The University of Michigan Board of Regents has publicly opposed a proposed $2.4 billion investment deal involving the Big Ten Conference, raising significant questions about the future of collage athletics revenue and tax status.
Chair Mark Bernstein stated Thursday, “the University of Michigan Board of Regents met today to discuss the current Big Ten Enterprises proposal.We remain opposed to this deal.” He emphasized the university’s continued commitment to the conference while seeking solutions to financial challenges facing Big Ten athletic departments.
The dispute escalated earlier this week when Bernstein alleged that Big Ten Commissioner Tony Petitti threatened penalties against Michigan for refusing to support the plan. The conference refuted this claim, with Maryland President Darryll Pines, chair of the Big Ten council of Presidents and Chancellors, stating the process has been “collaborative, fair and thorough” and any other characterization is “inaccurate.”
The proposed deal, initiated in July with UC Investments, would establish Big ten Enterprises, a commercial entity designed to generate revenue for all 18 schools through 2046.UC Investments would provide an upfront investment to each school, distributed in tiers, in exchange for 10% of the Big Ten’s media rights and sponsorships.
While the Big Ten explores new revenue streams to cover increasing costs – including athlete compensation stemming from the House settlement which could provide up to $20.5 million per school this academic year - the proposal has met with resistance. Southern California also expressed concerns, with athletic director Jennifer Cohen stating the deal’s revenue distribution is “uneven.”
UC Investments Chief Investment Officer Jagdeep Singh Bachher acknowledged the need for time for some universities to assess the benefits and stressed the importance of “unity” for the deal’s success.
The debate extends beyond financial considerations. Senator Maria Cantwell (D-Wash.) has requested a tax analysis from the Joint Committee on Taxation, questioning whether the influx of private investment warrants a re-evaluation of the tax-exempt status currently enjoyed by college sports. “Legitimate questions have been raised about whether it is time to rethink the tax-exempt regime under which college sports currently operates,” Cantwell stated.
The American Council of Trustees and Alumni has also voiced concerns about the lack of board input into the deal.
