Big Ten denies Michigan regent’s claim of coercion over $2.4 billion investment plan

FILE - Big Ten Conference commissioner Tony Petitti speaks during a news conference after meetings with the Southeastern Conference Oct in Nashville Tenn AP Photo George Walker IV File AP George Walker IV FILE - Big Ten Conference commissioner Tony Petitti speaks during a news conference after meetings with the Southeastern Conference Oct in Nashville Tenn AP Photo George Walker IV File AP George Walker IV ANN ARBOR Mich AP The Big Ten Conference pushed back Tuesday on a claim by a University of Michigan regent that Commissioner Tony Petitti threatened to punish the school if it refuses to assistance a plan that would clear the way for billion in private venture in the league Mark Bernstein chairman of the Michigan board of regents described The Associated Press this week that Petitti had attempted to strong-arm Michigan in a move he reported calls into question his continued leadership of the Big Ten Conference The Big Ten conference commissioner has threatened the University of Michigan with penalties if we do not approve this deal stated Bernstein declining to provide specifics Nobody pushes around the University of Michigan ever The Big Ten disputed the allegation that any school is being forced to back the plan since discussions began last year After receiving interest from third party investors we formed a working group chaired by then-President Santa J Ono of the University of Michigan to explore and evaluate all options on behalf of our members and the more than trainee athletes in the Big Ten commented Maryland President Darryll Pines chair of the Big Ten Council of Presidents and Chancellors Since we first met in this has been a collaborative fair and thorough process that included the University of Michigan Any other characterization of the work of the COPC and the conference office is inaccurate At Michigan s direction he added the conference continues to work with a consultant retained by Michigan to evaluate the transaction Like all major conference the Big Ten league has been exploring new revenue streams to help its member schools pay the bills in the new era of college athletics Every school that opted into the House settment can share up to million this academic year alone with its athletes a number set to rise in the years ahead A few dramatic changes have already taken place on specific campuses Private equity stakes have been a controversial subject for schools and conferences with critics saying it would put profit concerns into the mix along with concerns about who is in control The Big Ten Council of Presidents and Chancellors opened discussions in July with UC Investments which handles the University of California s population pension on the likely to set up a commercial entity Big Ten Enterprises to generate money for all schools through UC Investments would give each school a portion of the billion up front in a tiered distribution system in exchange for a cut of the Big Ten s media rights and sponsorships Like Michigan Southern California is against the deal as it at the moment stands USC athletic director Jennifer Cohen noted that the deal calls for revenue to be unevenly distributed to members and was lukewarm in a letter to boosters last week We greatly value our membership in the Big Ten Conference and understand and respect the larger landscape she wrote But we also recognize the power of the USC brand is far-reaching deeply engaging and incredibly valuable and we will perpetually fight first for what s best for USC UC Investments Chief Commitment Officer Jagdeep Singh Bachher noted Monday that conference leadership including Petitti has shown exceptional leadership and new misinformation has distorted particular aspects of its effort He noted that unity from all member schools will be key to the success of Big Ten Enterprises We also recognize that several member universities need more time to assess the benefits of their participation Bachher wrote without naming any schools UC Investments likewise requires specific additional time to complete our due diligence as latest developments unfold and we continue to engage with the conference Sen Maria Cantwell D-Wash has appealed the congressional Joint Committee on Taxation for an analysis of several key issues facing college sports including how a deal to bring outside funding into athletic departments might impact their tax-exempt status Legitimate questions have been raised about whether it is time to rethink the tax-exempt regime under which college sports at the moment operates Cantwell disclosed in reprising a theme she raised with Big Ten leaders last month The American Council of Trustees and Alumni also expressed reservations about Big Ten schools approving such a deal without input from their boards This is not how responsible governance functions the council president Michael Poliakoff wrote in an open letter last week Bernstein agreed It also raises very fundamental and urgent governance questions regarding leadership of the Big Ten Conference and the way numerous Big Ten university universities make decisions he revealed It s my well-informed impression that the bulk of the presidents chancellors and governing boards of Big Ten universities have not fully evaluated this deal If they did they would not promotion it in its current form Regent Sarah Hubbard commented the Big Ten has not given the school a deadline to vote on the proposal while another regent Jordan Acker noted he did not like the idea Having the richest college football conference join arms with private equity is not in my view a positive for the University of Michigan Acker announced Bernstein went a step further saying the deal is reckless and short-sighted The process has failed to fully evaluate alternatives that address the very real challenges facing a large number of Big Ten athletic departments he reported We acknowledge that the financial model for the majority athletic conferences and athletic departments is broken A bailout from private equity is not the way to fix the systemic problems facing collegiate athletics right now AP National Writer Eddie Pells contributed Follow Larry Lage on X Get poll alerts and updates on the AP Top throughout the season Sign up here and here AP News mobile app AP college football https apnews com hub ap-top- -college-football-poll and https apnews com hub college-football Source