Sources: USC, U-M question Big Ten capital deal

"The two schools discussed their shared skepticism during the call. One sticking point: The deal doesn't address the root issue -- soaring costs -- that have made the need for cash so imperative for athletic departments. Just providing short-term money, sources said, does not solve that issue. The schools also noted pending federal legislation that makes predicting the future of college athletics difficult, as well as a general apprehension at selling equity in a university asset (the conference media rights)."

"Both Michigan and USC believe there are funding options that can provide superior terms and would like to slow the process and explore them, sources said. The goal, the meeting agreed, should be to help the Big Ten schools that need money but at the most favorable terms imaginable without giving up equity. While the questions are numerous, it is not certain how much influence the trustees can yield on the proposal, let alone change or even stop the process. The complicated agreement remains fluid and continues to be negotiated and worked on, meaning despite the current opposition, a deal still may be worked out."

The Big Ten's proposed $2 billion-plus private capital deal faces headwinds after trustees at Michigan and USC raised unified questions. The schools argued the plan fails to address soaring costs that have made cash necessary and warned that short-term funding does not solve structural spending issues. They cited pending federal legislation and expressed apprehension about selling equity in conference media rights. Both institutions favor exploring alternative funding options that deliver superior terms without giving up equity and prefer slowing the process. The deal would spin off Big Ten Enterprises to hold leaguewide media and sponsorship rights through 2046.

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