In this week’s column, California Sports Lawyer® CEO, Founder, and Managing Attorney Jeremy M. Evans writes about UC Investments, the representative entity for retirement and related funds for California teachers in the University of California system, that is seeking approval to send $2.4 billion dollars to the Big Ten conference in exchange for a 10% stake.
The move by UC teachers and their financial representatives to invest billions of dollars into an athletic conference is not only a sign of the NIL times, but an unprecedented move that raises political sensitivity in college sports as well as raising the risk and growth factor for their fund.
You can read the full column below. (Past columns can be found, here).
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The day has arrived. The University of California (“UC”) education system that includes the University of California, Los Angeles (“UCLA”) is now embracing college sports. In a stunning revelation, according to Yahoo Sports and Front Office Sports, “UC Investments, the pension fund within the UC system [that] currently manages a portfolio [for teachers and employees] totaling about $190 billion, including retirement, endowment, and cash assets” is seeking to invest $2.4 billion dollars in the Big Ten conference where UCLA is a member. UCLA is the only UC member institution playing Division 1 football except for the University of California, Berkeley (“Cal”) and of course the sole UC member in Big Ten athletics.
In the past, the UC Board of Regents that oversees the ten UC schools (if including UC San Francisco-a graduate school only member) was pushing against UCLA leaving the Pac-12 conference to the point of forcing UCLA to pay Cal $30 million dollars, a former Pac-12 conference member as well (now with Atlantic Coast Conference, “ACC”), to allow the move. UCLA’s move did not require UC Regents approval as it is related to sports, but to avoid litigation and delays UCLA paid the “fine” or into the “save-yourself-from-litigation-fund.” Ironically, the UC Regents did not see an issue with adding more schools to the Pac-12 when the University of Colorado at Boulder and University of Utah were added to the athletic conference.
The move by UC teachers and their financial representatives to invest billions of dollars into an athletic conference is not only a sign of the NIL times, but an unprecedented move that raises political sensitivity in college sports as well as raising the risk and growth factor for their fund. Is the investment sage or short-sighted? The California teachers investment would provide $100 million dollars per school in exchange for a for a 10% equity stake in Big Ten Enterprises, a subsidiary of the Big Ten conference that houses media rights assets and is essentially the for-profit entity and vehicle for its eighteen member institutions. UC Investments would be paid a yearly distribution for its investment based on its 10% stake.
The deal removes the private equity option in the Big Ten conference for now with a public investment fund like the UC system. The deal highlights potential UC trustee impropriety and transparency that will need to be moderated closely. UC Investments will be able to sell its stake in the future, which may provide for some interesting investments, owners, and parties that may indeed become private equity investment.
It is interesting to note that $100 million dollars per school could help pay for significant debt for several schools in the Big Ten conference, including UCLA. By comparison, in 2024, twelve of the longest-standing Big Ten members were paid $63.2 million dollars. In 2025, that figure will rise to $75 million dollars per member school (all eighteen) based on a new television deal. However, the $75 million dollars does not account for the $20.5 million revenue split being paid to student-athletes nor other collective and NIL dollars.
What is the narrative now that teachers are investing in college sports? The UC Investments-Big Ten deal represents a turning point in college sports financing. Assuming the investment is approved by UC and Big Ten vote, the Big Ten’s decision will set a precedent for other conferences.
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About Jeremy M. Evans:
Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.
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