While unlikely a sign of the times. B12 collaborating with Private Equity, things like this show how creative the landscape can get with economics driving.
I'm very curious as to how the deals would be structured if they do happen.
I don't see how it could be legally possible for a school to sell an athletic program so the consideration returning to the PE firm would have to be a portion of the future cash flows. This is the first part of the arrangement that could be very dangerous for the participating schools as the structure of the waterfall will greatly benefit the PE firm, especially if early returns fall below projections (they always do).
The second part of this transaction that could be very dangerous for the school is the amount of influence over decision making the PE firm would have over the athletic program. Could they force or prevent coaching changes? Could they be involved in recruiting and/or acceptance decisions? Could they be involved in decision making of allocation of NIL money?
I could write paragraphs on how each of those items could lead to severe negative consequences for the school depending on the outcome of the decisions.
A massive influx of cash (hundred of millions of dollars) may appear to be too good to be true on the front end but these firms are very good at receiving a far better return on their investments than most of the general would expect.