The college football landscape is constantly transforming. In one year, we had four teams in the playoffs, and all of a sudden, 12 teams started playing in the postseason. The eligibility rules, the House vs. the NCAA settlement, and the transfer portal have all changed drastically, and college football must adapt to the new playbook. The Big 10 proposed a $2.4 billion private investment plan at the conference to support their ambitions. But Michigan and another Big 10 giant are opposing it vehemently.

Michigan has signaled heavy reluctance to agree to the proposal. The program mainly opposes the grant of rights structure, extending for a whopping 20 years. Not just that, Michigan regent Jordan Acker called the proposal “unnecessary,” calling it a way to “borrow your way out of a spending problem.” In his speech, Acker also outlined how the deal could come back to haunt them five years from now.

“Enough is enough. You can’t borrow your way out of a spending problem and until these soaring expenses are addressed, throwing short term problems is akin to opening another credit card,” said Acker. In a five-minute speech, Acker expressed concerns about the new capital proposal. For the past 15 months, according to reports, Big 10’s commissioner Tony Petitti has worked to devise a private equity plan to inject $2.4 billion in cash into the conference. The proposal came with a grant of the rights extension, the creation of a privatized business entity, and the promise of immediate cash in emergencies.

However, Petitti rejected this characterization of a private equity deal and coined it as a partnership with a not-for-profit entity. It was pretty straightforward, but the proposal to give away a 10% stake of the Big 10 and uneven revenue distribution has become a bone of contention.

Michigan isn’t alone in opposing the proposal, and USC has joined the fold. Without both programs approving the proposal, it’s improbable that it will come to fruition, as it requires a unanimous vote. However, USC’s decision to oppose the deal stems from the uneven distribution that the agreement proposes.

In the 200-plus-page governance document, Tony Petitti’s camp immediately outlined a guaranteed $190 million to Ohio State, Penn State, and Michigan. Other schools like Oregon and USC will earn about $50 million less. The rest of the schools will get around $140 million in upfront money. USC argues that it places the program in a different tier than Penn State and Ohio State, and even expressed concerns about governance issues, where a board will run the business with weighted voting. Apart from Michigan and USC, Ohio State also initially opposed the deal.

Ohio State’s $2.4 billion U-turn

Ohio State, a historic blue blood and a state university, was wary of selling a stake in the conference. The program argued that the move would mean the “commercialization” of public university assets privately. That also could face backlash in the state, where college football reigns supreme.

“Ohio State and Michigan – are, for a variety of reasons, pushing back against the proposal that Big Ten commissioner Tony Petitti has been socializing since the spring,” reported Ross Dellenger. However, it seems Ohio State has finally agreed to the deal, since only USC and Michigan’s support remains.

“Since a story was published Tuesday by Yahoo Sports about USC and Michigan’s issues, officials from the 16 supporting schools — most notably Ohio State — have reached out to those at UM and USC in an effort to encourage them to support the measure,” reported Ross Dellenger. It surely raises some questions as to why Ohio State finally agreed. So much so that they are even trying to encourage the two opposing teams in USC and Michigan. For now, though, at least Michigan’s vocal opposition remains strong.

“We can do this more efficiently than selling assets… We understand the responsibility to lift all boats and to help schools that need money to get that money… it just has to be on the best financial terms possible… The Big Ten does not need to be sold to save college sports. It needs to lead to saving college sports,” said Jordan Acker to the Big 10’s private equity plan.

Despite the two programs’ opposition, the other 16 programs are trying to welcome the two into the fold. But if that doesn’t happen, plans are in place reportedly to go ahead with the deal without USC or Michigan. However, it remains to be seen how that will play out.