Cohen: USC wants long-term benefits of private equity deal - ESPN

In a letter to the USC fan base Friday, athletic director Jen Cohen addressed the school's stance on the pending Big Ten private capital deal that could infuse the conference with up to $2.4 billion.

«As we continue to evaluate the merits of this proposal or any others, our University leadership remains aligned in our stance that our fiduciary obligation to the University of Southern California demands we thoroughly evaluate any deals that could impact our long-term value and flexibility, no matter the short-term benefit,» Cohen said in the letter.

The proposed deal would extend the league's grant of rights an extra 10 years to 2046 and create a new business entity, Big Ten Enterprises, that would house all leaguewide media rights and sponsorship deals. Each school, as well as the league office, would get shares of ownership to Big Ten Enterprises while an investment fund that is tied to the University of California pension system would receive a 10% stake in the new entity in exchange for an infusion of over $2 billion to conference athletic departments.

USC and Michigan are the two schools within the Big Ten that have pushed back on the deal, which has otherwise been supported by a majority of the programs in the conference as well as Big Ten commissioner Tony Petitti.

In a call last month between USC and Michigan trustees, sources told ESPN's Dan Wetzel that both programs shared skepticism of the deal and talked about how it does not address the root issue — soaring costs — that has 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