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Post by sdaztec4life on Jun 13, 2024 8:24:22 GMT -8
x.com/dennisdoddcbs/status/1801267488929296390?s=46&t=FTMOMGCZ7YcJxwrpR6--IgPer Dennis Dodd: x.com/dennisdoddcbs/status/1801267488929296390?s=46&t=FTMOMGCZ7YcJxwrpR6--IgBig 12 members are considering a first-of-its kind private equity investment to ensure the league's long-term financial and competitive security, multiple sources tell CBS Sports. On the table is a possible cash infusion of $800 million to $1 billion from Luxembourg-based CVC Capital Partners in exchange for a 15% to 20% stake in the league, those sources said. A portion of the money would go directly to the 16 conference members, and the partnership would give the conference access to CVC's investment services and clients. Big 12 teams are currently earning $31.7 million each with Fox and ESPN in a media rights deal that ends in 2031. Add in the cash infusion from private equity, and the two revenue streams would combine to move the Big 12 "much closer" to the Big Ten media rights deal, according to a person with intimate knowledge of the proposal. The Big Ten leads all conferences with its schools set to earn approximately $75 million per year after it signed a new media rights agreement with Fox, CBS and NBC. (Oregon and Washington are not receiving full shares initially as they enter the league July 1.)
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Post by sdmotohead on Jun 13, 2024 8:38:02 GMT -8
WTF?!!!
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Post by laaztec on Jun 13, 2024 8:48:29 GMT -8
Going to get into that lucrative Ames Iowa market.
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Post by AzTex on Jun 13, 2024 8:51:06 GMT -8
I guess it should have been expected. A natural progression from corporate naming of stadiums and arenas to corporate naming of bowl games. Now conferences will probably get corporate naming as well with individual athletic programs following shortly.
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Post by mactec on Jun 13, 2024 9:02:57 GMT -8
Stupid question, but how does a private equity company expect to profit by just giving these schools cash?
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Post by AZTEC4LIFE1992 on Jun 13, 2024 9:23:18 GMT -8
Stupid question, but how does a private equity company expect to profit by just giving these schools cash? They are receiving 20% equity in conference, so I image they get 20% of revenue. But not totally sure. If Big 12 has 16 teams, and they pay 20m/yr to students, money will be spent in 3 years |
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Post by aztecm on Jun 13, 2024 9:37:25 GMT -8
Stupid question, but how does a private equity company expect to profit by just giving these schools cash? By shoving more advertisements down our throats while also actively trying to cut any and all traditions that don't lead to a profit. Usual PE stuff. |
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Post by 01aztecgrad on Jun 13, 2024 10:06:23 GMT -8
Stupid question, but how does a private equity company expect to profit by just giving these schools cash? They'll claim they will make money fronting the Big-12 $1b to invest in upgraded facilities and better coaches leading to their next contract being on par with the SEC/B1G and both the schools and the private equity firm coming out ahead with the next contract. How they'll really make money is by writing the contract so that they get 20% of the conference with a guaranteed annual rate of return of 10%+ that is backstopped by the school's general fund if the 20% of the conference doesn't meet the minimum return. This isn't an investment, it's a loan shark trying to sell schools left out of the B1G/SEC duopoly hope, knowing that the people that run athletic departments are easy marks backed by taxpayers. |
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Post by wakelaunch on Jun 13, 2024 11:33:34 GMT -8
Private Equity literally ruins everything it touches.
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Post by PAC12 Aztec on Jun 13, 2024 14:29:56 GMT -8
My concern would be when/if the NCAA changes the rules, wises up and figures out we need to get back to the old ways. Or what if the BIG12 is not included with the break away big conferences and is relegated to Tier2 (very likely). How does the BIG12 get out of the contract, how do they buy out the PE if they need to. Wasn't it GCU who needed to move away from "For Profit" a few years back, and now we are seeing entire conferences going in that direction. This is all going to end so badly if they agree to this.
They are going to have so many corporate logos on their fields, uniforms, helmets, etc. The BIG12 is going to look like NASCAR. I know this is extreme, but it does make you wonder how far it can go.
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Post by sdsustoner on Jun 13, 2024 14:35:29 GMT -8
Stupid question, but how does a private equity company expect to profit by just giving these schools cash? By shoving more advertisements down our throats while also actively trying to cut any and all traditions that don't lead to a profit. Usual PE stuff. PEs are great for taking things people love and then making them suck |
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Post by AzTex on Jun 13, 2024 14:37:12 GMT -8
My concern would be when/if the NCAA changes the rules, wises up and figures out we need to get back to the old ways. Or what if the BIG12 is not included with the break away big conferences and is relegated to Tier2 (very likely). How does the BIG12 get out of the contract, how do they buy out the PE if they need to. Wasn't it GCU who needed to move away from "For Profit" a few years back, and now we are seeing entire conferences going in that direction. This is all going to end so badly if they agree to this. They are going to have so many corporate logos on their fields, uniforms, helmets, etc. The BIG12 is going to look like NASCAR. I know this is extreme, but it does make you wonder how far it can go. Sadly it's not extreme. It's already under consideration.
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Post by PAC12 Aztec on Jun 13, 2024 14:47:57 GMT -8
My concern would be when/if the NCAA changes the rules, wises up and figures out we need to get back to the old ways. Or what if the BIG12 is not included with the break away big conferences and is relegated to Tier2 (very likely). How does the BIG12 get out of the contract, how do they buy out the PE if they need to. Wasn't it GCU who needed to move away from "For Profit" a few years back, and now we are seeing entire conferences going in that direction. This is all going to end so badly if they agree to this. They are going to have so many corporate logos on their fields, uniforms, helmets, etc. The BIG12 is going to look like NASCAR. I know this is extreme, but it does make you wonder how far it can go. Sadly it's not extreme. It's already under consideration. I can't wait to blast my OnlyFans account on the Snapdragon stadium. I am gonna be so rich! |
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Post by AzTex on Jun 13, 2024 15:57:52 GMT -8
Sadly it's not extreme. It's already under consideration. I can't wait to blast my OnlyFans account on the Snapdragon stadium. I am gonna be so rich! Be sure to include a trigger warning if you do. Some of us may not be able to handle your account content. |
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Post by aztecdan8 on Jun 13, 2024 18:08:00 GMT -8
Private Equity literally ruins everything it touches. I've experienced it 3 times. Just terrible. Now, that said ... playing devil's advocate... Wouldn't we rather be in the B12 and part of this than on the outside looking in? Would this be a better problem to have than what we are up against being outside of the P4? |
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Post by FULL_MONTY on Jun 13, 2024 18:29:21 GMT -8
If PE is buying into College Sports Properties, then it would very inefficient to buy into the whole league.
In fact, why would Alabama be cool giving up 20% of future revenue so that Vanderbilt can get access to capital?
Wouldn’t it be more prudent for the transaction to be between the University and PE? I don’t see how this has legs, which I’m sure means it will happen.
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Post by gocoaztec on Jun 13, 2024 18:37:14 GMT -8
There is no way for anyone on this board to determine if this is a good deal or not for the B12. It is obvious that they are a forward thinking conference and that they are looking at any and all options to stay competitive - something that many on this board have condemned the MWC for not doing.
If they get $1b, and the conference takes 10% off the top, then each school will get around $75m. Is that enough to generate more than 20% more revenue? That’s something the B12 will have to decide, but it’s certainly not out of the question.
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Post by zurac315 on Jun 13, 2024 19:40:51 GMT -8
My concern would be when/if the NCAA changes the rules, wises up and figures out we need to get back to the old ways. Or what if the BIG12 is not included with the break away big conferences and is relegated to Tier2 (very likely). How does the BIG12 get out of the contract, how do they buy out the PE if they need to. Wasn't it GCU who needed to move away from "For Profit" a few years back, and now we are seeing entire conferences going in that direction. This is all going to end so badly if they agree to this. They are going to have so many corporate logos on their fields, uniforms, helmets, etc. The BIG12 is going to look like NASCAR. I know this is extreme, but it does make you wonder how far it can go. I can hear the radio guy right now, "The Tide, Wonder bread linebacker #58 just sacked the Coca Cola QB #10 for an 8 yard loss!" |
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Post by LostAztec on Jun 14, 2024 3:48:43 GMT -8
Private Equity literally ruins everything it touches. I've experienced it 3 times. Just terrible. Now, that said ... playing devil's advocate... Wouldn't we rather be in the B12 and part of this than on the outside looking in? Would this be a better problem to have than what we are up against being outside of the P4? No, State would bot be better off. It was revealed that if we had joined the PAC,we would have been the red-headed step child. |
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Post by AZTEC4LIFE1992 on Jun 14, 2024 6:00:48 GMT -8
There is no way for anyone on this board to determine if this is a good deal or not for the B12. It is obvious that they are a forward thinking conference and that they are looking at any and all options to stay competitive - something that many on this board have condemned the MWC for not doing. If they get $1b, and the conference takes 10% off the top, then each school will get around $75m. Is that enough to generate more than 20% more revenue? That’s something the B12 will have to decide, but it’s certainly not out of the question. The big 12 has 16 members. If the conference takes 10% off the top each school gets 56m or enough to pay players for 2 years. The Big 12 is screwed. They are at the big boy table, but without big boy money. The P2 make substantially more from media and get a much bigger percentage of the CFP payouts. They are desperately trying to come up with the 20-30m to pay players, but the p2 will always have substantially more money to pay players. Unless the school has tons of NIL cash (Ybu) you will never compete. This will be like old school mlb when the World Series was the NY teams ( Yankees, dodgers, giants). Or St. Louis It might be better to be in a position where you know you can’t win vs the position where Lucy will never let you kick the ball |
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