Big Ten Discussing $2 Billion Private Capital Deal | Page 10 | Syracusefan.com

Big Ten Discussing $2 Billion Private Capital Deal

HtownOrange said:
I was not able to read the article, I found the following to support the premise, though:


www.fox32chicago.com

Chicago’s parking meter deal still haunts the city’s finances 16 years later

On this day, Chicago marks the anniversary of a financial deal so contentious it’s often referred to as one of the city’s biggest blunders—the infamous 75-year parking meter lease.
www.fox32chicago.com www.fox32chicago.com

Will the B1G learn?
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Good. Thanks for the follow-up. I didn't have a chance to look. On my phone I was able to get through the first 2 paragraphs before the wall up.
 
Scooch said:
Big time college athletics is a cesspool of greed, corruption and...
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Interesting rant when considering it is and has been the American way for some time.

I mean, the wealthiest 10% of US households today holds approximately 70% of ALL wealth. Furthermore, those top 10% of Americans own approximately 90% of US corporate equities and mutual funds.
 
www.insidehighered.com

Secretive Big Ten Deal Riles Trustees

The Big Ten is weighing a $2.4 billion private equity deal. But multiple trustees at member institutions say they aren’t getting enough information and the proposal has been rushed.
www.insidehighered.com www.insidehighered.com

It appears Petitti has been less than open with at least several University BoTs.

Elsewhere, I read that Petitti was attempting to strong arm USC into approving the deal. (Sorry, cannot find the article right now for the link).

This is not good for Petitti. He has made a few errors and is only looking at life through his lens not the overall academic mission of universities. His aggressive deals may be fine on the business side but athletics is still a minor side of each university's budget, purpose, revenue, etc. Plus, most if the B1G are big state universities that can pay their debt off relatively quickly (Rutgers and UMD excepted, of course). While most suffer from recent AD mismanagement, it has not risen to the level or perfection of Rutgers mismanagement. Simply applying basic budgeting principles to the AD's processes can eliminate the debt.

Back to Petitti. Why keep him around long when he lacks any foresight from the university perspective? ADs exist to enhance the academic experience, create loyalty and comraderie, to market the school for recruiting new students, etc. The athletics department is not the end purpose of a university. It should NOT drive the university bus.

I would not be surprised it Petitti is gone in a year or two. Maybe a lot sooner.
 
HtownOrange said:
www.insidehighered.com

Secretive Big Ten Deal Riles Trustees

The Big Ten is weighing a $2.4 billion private equity deal. But multiple trustees at member institutions say they aren’t getting enough information and the proposal has been rushed.
www.insidehighered.com www.insidehighered.com

It appears Petitti has been less than open with at least several University BoTs.

Elsewhere, I read that Petitti was attempting to strong arm USC into approving the deal. (Sorry, cannot find the article right now for the link).

This is not good for Petitti. He has made a few errors and is only looking at life through his lens not the overall academic mission of universities. His aggressive deals may be fine on the business side but athletics is still a minor side of each university's budget, purpose, revenue, etc. Plus, most if the B1G are big state universities that can pay their debt off relatively quickly (Rutgers and UMD excepted, of course). While most suffer from recent AD mismanagement, it has not risen to the level or perfection of Rutgers mismanagement. Simply applying basic budgeting principles to the AD's processes can eliminate the debt.

Back to Petitti. Why keep him around long when he lacks any foresight from the university perspective? ADs exist to enhance the academic experience, create loyalty and comraderie, to market the school for recruiting new students, etc. The athletics department is not the end purpose of a university. It should NOT drive the university bus.

I would not be surprised it Petitti is gone in a year or two. Maybe a lot sooner.
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Agree. I don't see how they keep Petitti in the job after his lack of full disclosure on the deal, trying to eliminate input from the various schools' BoT, and trying to strongarm and threaten USC and Michigan. I've been wondering for awhile how much he is pushing this plan for his own long-term job security. I expect we'll see more articles like this. I wonder how desparate schools like Maryland and Rutgers are if they think this deal will not go through.
 
FloridaCuse said:
Agree. I don't see how they keep Petitti in the job after his lack of full disclosure on the deal, trying to eliminate input from the various schools' BoT, and trying to strongarm and threaten USC and Michigan. I've been wondering for awhile how much he is pushing this plan for his own long-term job security. I expect we'll see more articles like this. I wonder how desparate schools like Maryland and Rutgers are if they think this deal will not go through.
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I did a short search to discover the schools pushing hard for the equity deal and cannot find any who are leading the charge. This does not mean that none are or that Petitti is operating solo but it begs the question of who are the primary motivators.

As To Rutgers and Maryland, that is a good question. One one hand they are both weak and lack influence in the conference; on the other hand, desperation calls for desperate measures. It would be good to know.
 
HtownOrange said:
I did a short search to discover the schools pushing hard for the equity deal and cannot find any who are leading the charge. This does not mean that none are or that Petitti is operating solo but it begs the question of who are the primary motivators.

As To Rutgers and Maryland, that is a good question. One one hand they are both weak and lack influence in the conference; on the other hand, desperation calls for desperate measures. It would be good to know.
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One of the articles we've posted quotes the President of Maryland (I think) who chaired (chairs?) the initial committee that looked into outside investments. I recall that he denied that schools weren't being informed of all of the details. One strange thing to me is that either that committee or Petitti have insisted that the university BoTs has NO role in approving or signing onto the deal. That seems strange to me. Who are they to tell a member university whether their President/Chancellor has to consult his BoT. What may be unique about USC/UM is that their current president's are only "acting".

I've also been wondering why all of the universities so apparently easily and readily signed on to the great disparity in the uneven distribution of the investment by UC Investments. I would have thought that some at least would have argued that it should be equal, even if down the road the revenue is unevenly split like the new ACC model.
 
FloridaCuse said:
One of the articles we've posted quotes the President of Maryland (I think) who chaired (chairs?) the initial committee that looked into outside investments. I recall that he denied that schools weren't being informed of all of the details. One strange thing to me is that either that committee or Petitti have insisted that the university BoTs has NO role in approving or signing onto the deal. That seems strange to me. Who are they to tell a member university whether their President/Chancellor has to consult his BoT. What may be unique about USC/UM is that their current president's are only "acting".

I've also been wondering why all of the universities so apparently easily and readily signed on to the great disparity in the uneven distribution of the investment by UC Investments. I would have thought that some at least would have argued that it should be equal, even if down the road the revenue is unevenly split like the new ACC model.
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I am beginning to think the "agreement" by the universities may be more of the result of the strong arming pressure than by informed decision.

I agree with you and others that there is no substance to the committee/Petitti telling presidents/chancellors and BoTs that they have no part in the decision. That is plainly wrong. If the BoT authorizes the AD or HC to negotiate a deal and sign without further approval, maybe, but even then, most BoTs would want the full details and opposing perspectives before moving forward. Plus, the size of the deal, the changes in property ownership, and the watering down of the value of the shares screams BoT involvement should be mandatory for fiduciary reasons.
 
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HtownOrange said:
I am beginning to think the "agreement" by the universities may be more of the result of the strong arming pressure than by informed decision.

I agree with you and others that there is no substance to the committee/Petitti telling presidents/chancellors and BoTs that they have no part in the decision. That is plainly wrong. If the BoT authorizes the AD or HC to negotiate a deal and sign without further approval, maybe, but even then, most BoTs would want the full details and opposing perspectives before moving forward. Plus, the size of the seal, the changes in property ownership, and the watering down of the value of the shares screams BoT involvement should be mandatory for fiduciary reasons.
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agree. Plus the fact that the UC Pension Investment entity can, after a period of time, sell its interest to a private equity firm, with, I believe, no input or consent of or by the B1G or its members.
 
Ohio State's stance on the deal:

www.dispatch.com

The $2.4B Big Ten equity deal is on pause. Where does Ohio State stand?

A multibillion-dollar deal that could dramatically change the future of the Big Ten is on ice for now after pushback from two conference members.
www.dispatch.com www.dispatch.com

"We have been assessing the proposal and have not made a final decision."

This makes one believe that the con was on. That Petitti believed he had 16 votes when at least six schools admit that they were still under consideration or opposed tends to show he was less than accurate, probably stretching the truth to persuade the fence sitters. O.K., he was lying through his teeth!

I wish I had the time to perform real research.
 
I have performed some quick searches for the Big Ten schools that openly support the equity plan. There is nothing to affirm a specific school's support of the plan, analysis of the plan's benefits to the school, the BoT's review and analysis.

This looks more and more like Petitti's plan to make a fast buck, take credit and move on without regards to the long term impacts. As no Big Ten school openly is attempting to convince other schools, it appears that everyone was "going along to get along" until UM and USC took their stand.

If anyone finds documented opposing view points or can identify the schools that support the equity plan, please link any information here.
 
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orange79 said:
www.nytimes.com

Texas Tech considering not signing House enforcement agreement

It's unclear what repercussions there are if schools do not agree to the enforcement terms.
www.nytimes.com www.nytimes.com

Not sure what happens if they don't sign...
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Ive heard the agreement may conflict with state rules in certain states and is likely unenforceable in some areas. So even if a school signed it, could be meaningless. And then, there may schools that sign it, but the collectives will ignore the rules. It’s a mess. And it’s not getting better because the usual suspects won’t follow the rules.
 
richmondcuse03 said:
Ive heard the agreement may conflict with state rules in certain states and is likely unenforceable in some areas. So even if a school signed it, could be meaningless. And then, there may schools that sign it, but the collectives will ignore the rules. It’s a mess. And it’s not getting better because the usual suspects won’t follow the rules.
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That could add an element not many want: Congressional involvement.
 
FloridaCuse said:
awfulannouncing.com

It's not going well for Big Ten commissioner Tony Petitti

Between his private equity deal falling apart and lack of support for his CFP format, it's been a tough run for Big Ten commish Tony Petitti.
awfulannouncing.com awfulannouncing.com
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thats a shame3.gif
 

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