Florida State Taps J.P. Morgan For Institutional Money as Talks Advance With PE Firm | Page 2 | The Boneyard

Florida State Taps J.P. Morgan For Institutional Money as Talks Advance With PE Firm

Going Indy is not an option...unless you have a big indy contract like Notre Dame is pushing.

Indy is another word for non competitive in finances.

And this guy is a UNC radio guy....grain of salt.
 
Just here to drop in and say, all of you who thought the ACC buy out was insurmountable can’t see the bigger picture. Bigger hurdle is going to be state govs (UNC leaving all of the other NC schools for dead as an example)

The coming Power 2 will have payouts that were unimaginable when the ACC signed their deal.

Inside scoop from my boss and major UNC donor, expect UNC plus 1-3 other schools to announce their moves to the SEC within the next year (goal is next summer)
 
goskis2018 said:
Just here to drop in and say, all of you who thought the ACC buy out was insurmountable can’t see the bigger picture. Bigger hurdle is going to be state govs (UNC leaving all of the other NC schools for dead as an example)

The coming Power 2 will have payouts that were unimaginable when the ACC signed their deal.

Inside scoop from my boss and major UNC donor, expect UNC plus 1-3 other schools to announce their moves to the SEC within the next year (goal is next summer)
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So the GOR is gone? Have a link for that?
 
pj said:
Why does FSU need $300 million from private equity? Only if they are planning to buy the ACC network from ESPN and Raycom.

If they control the ACC network, then they control the media rights of their conference peers. They can say: free us from this grant of rights, or the ACC network is all FSU all the time, and your time slot is 4 am Monday morning.

And then they say: UNC, UVa, etc, you can go to B1G or SEC if you pay us $100 mn to buy out your GoR. It makes financial sense for the top ACC teams and the private equity groups get their money back.

I have to say, that would lead to an immensely entertaining negotiation.
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There is not enough popcorn in the world for the spit show that PE owning any part of a college athletics department will become.
 
The GOR is still very much in play...one has never been legally contested but I suspect that will change.

The Texas legislature declared that Texas Tech was an arm of the state and thus had sovereign immunity...to thwart payment to Mike Leach's judgement.
 
billybud said:
The GOR is still very much in play...one has never been legally contested but I suspect that will change.

The Texas legislature declared that Texas Tech was an arm of the state and thus had sovereign immunity...to thwart payment to Mike Leach's judgement.
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The PE firm that plays any part in trying to get a team to illegally break a GOR would be on the hook for treble damages (tortious interference) so no one will do anything until FSU gets out of the GOR first. Good luck with that.
 
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I wonder if any of the decision makers at these schools understand how PE firms work.

Before they hand over a penny of the $300 million to FSU there will be thousands of hours devoted to how this investment will give the firm a desirable return (with the federal funds rate at 5.5% I imagine they'll be looking at a minimum return between 16%-18%) with every potential source of income listed in full detail.

My question: is this a loan or is FSU selling something to the PE firm?

If this is a loan, how does FSU pay the required return and the principal back (more of a concern if rates drop to where they were a couple years ago)?

If the PE firm is purchasing something, what is it that they are purchasing?

This could become quite dangerous for a not for profit, state run institution for higher education.
 
nelsonmuntz said:
The PE firm that plays any part in trying to get a team to illegally break a GOR would be on the hook for treble damages (tortious interference) so no one will do anything until FSU gets out of the GOR first. Good luck with that.
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A PE firm won't try to break it. They'll work out a value to buyout of it, offer a lesser number to the ACC, negotiate to some agreement and then overcharge FSU for their trouble.
 
nelsonmuntz said:
The PE firm that plays any part in trying to get a team to illegally break a GOR would be on the hook for treble damages (tortious interference) so no one will do anything until FSU gets out of the GOR first. Good luck with that.
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Jeez...where did you go to law school ? If a PE is providing a loan, it won't illucidate that it specifically to be used to break a GOR...It will just provide the school the money...and that might make that possible.

A long, long stretch to Tortious Interference.
 
billybud said:
Going Indy is not an option...unless you have a big indy contract like Notre Dame is pushing.

Indy is another word for non competitive in finances.

And this guy is a UNC radio guy....grain of salt.
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Dan Wolken is a national guy.
 
traitor71 said:
Back in the old days of Jan 1 bowl games and voted on titles, I never imagined things would get this insane. I really miss being able to just watch games and not constantly hear about money.
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Except the corruption that took place by local officials running those games was about money. Lots of it. What you didn’t have back then was the internet with its twenty four seven in your face exposure that you have today.
 
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But Wolken was the one who mentioned independence. Northam just reacted to it.
 
goskis2018 said:
Inside scoop from my boss and major UNC donor, expect UNC plus 1-3 other schools to announce their moves to the SEC within the next year (goal is next summer)
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Prayer GIF
 
nelsonmuntz said:
So the GOR is gone? Have a link for that?
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No link, just what I know from a guy in the room tasked to make it happen.

The money is there and the four biggest brands ganging up together is going to bust the door open by force.

Idc if you believe me, this is happening. Too much money on the table
 
goskis2018 said:
Just here to drop in and say, all of you who thought the ACC buy out was insurmountable can’t see the bigger picture. Bigger hurdle is going to be state govs (UNC leaving all of the other NC schools for dead as an example)

The coming Power 2 will have payouts that were unimaginable when the ACC signed their deal.

Inside scoop from my boss and major UNC donor, expect UNC plus 1-3 other schools to announce their moves to the SEC within the next year (goal is next summer)
Expand ...
I was going to speculate prior to this post that with with all the churning going on one of the B12, BIG or SEC has made contact with one or more of the resistant programs in the ACC to let them know if the conference votes to dissolve they have a more profitable landing place.

It will be that easy to get the votes to dissolve the conference.
 
ctchamps said:
I was going to speculate prior to this post that with with all the churning going on one of the B12, BIG or SEC has made contact with one or more of the resistant programs in the ACC to let them know if the conference votes to dissolve they have a more profitable landing place.

It will be that easy to get the votes to dissolve the conference.
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How many votes are needed and are you sure that anyone in the bottom half of the ACC would vote to dissolve?
 
.-.
goskis2018 said:
No link, just what I know from a guy in the room tasked to make it happen.

The money is there and the four biggest brands ganging up together is going to bust the door open by force.

Idc if you believe me, this is happening. Too much money on the table
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Out of curiosity where is this money coming from and what will be required from the schools in return for this money?
 
FfldCntyFan said:
How many votes are needed and are you sure that anyone in the bottom half of the ACC would vote to dissolve?
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To dissolve the ACC as a North Carolina non profit...a majority vote.
 
billybud said:
To dissolve the ACC as a North Carolina non profit...a majority vote.
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As the B1G just went to 18 far sooner than they initially planned can any current ACC schools that appeared to be candidates for the B1G be confident that the B1G will take them on immediately?

Does ND get a full or partial vote?

How does Wake, Syracuse, BC & Pitt vote?

Can you be sure that Duke, NC State, & Va Tech would vote to dissolve?

Even with the new rumor I'm not sure Louisville would be willing and I can see Ga Tech sitting on the fence.

I'm confident that FSU, Miami and Clemson would leave in a heartbeat if possible but is there a better home available for them right now?

I'm very confident that both UVA and UNC will get phone calls seconds after the announcement but are you sure they would be in a rush to end a conference that they started?

I also imagine that if the conference dissolves, the NCAA would get to keep any undistributed credits from prior tournaments (as the conference that they would be due to no longer exists).

This could be a treacherous path.
 
traitor71 said:
Back in the old days of Jan 1 bowl games and voted on titles, I never imagined things would get this insane. I really miss being able to just watch games and not constantly hear about money.
Expand ...
That bowl game and vote was so much better for the sport. They ruined the sport.
 
billybud said:
Jeez...where did you go to law school ? If a PE is providing a loan, it won't illucidate that it specifically to be used to break a GOR...It will just provide the school the money...and that might make that possible.

A long, long stretch to Tortious Interference.
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I know a company that lost a tortious interference suit. All it takes is participation or inducement in a plan to break the contract.

FSU would have to negotiate a buyout first, but the conference has no incentive to sell the media rights back. Every discussion of breaking the GOR ends at the same point. The ACC doesn’t need to do spit.
 
Yeah...the GOR and FSU will come to a head butt...

Adelson said it well....

 
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And it doesn't take much acumen to see what is coming.

This year, FSU has a good team and can compete.

But the future....when programs are getting $30-50 million more per year.

That money will free up booster money to put into NILs....buying the best athletes.
 
If you focus the free up of booster money that the $30-50 million infusion will give into NIL, you can purchase 3-4 top basketball guys, a good QB and receivers, etc.
 
FfldCntyFan said:
As the B1G just went to 18 far sooner than they initially planned can any current ACC schools that appeared to be candidates for the B1G be confident that the B1G will take them on immediately?

Does ND get a full or partial vote?

How does Wake, Syracuse, BC & Pitt vote?

Can you be sure that Duke, NC State, & Va Tech would vote to dissolve?

Even with the new rumor I'm not sure Louisville would be willing and I can see Ga Tech sitting on the fence.

I'm confident that FSU, Miami and Clemson would leave in a heartbeat if possible but is there a better home available for them right now?

I'm very confident that both UVA and UNC will get phone calls seconds after the announcement but are you sure they would be in a rush to end a conference that they started?

I also imagine that if the conference dissolves, the NCAA would get to keep any undistributed credits from prior tournaments (as the conference that they would be due to no longer exists).

This could be a treacherous path.
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I’m sure the remaining schools in the PAC did not believe today’s events would happen last week.
 
ctchamps said:
I’m sure the remaining schools in the PAC did not believe today’s events would happen last week.
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Yeah, but it wasn't as if Oregon State, Washington St and Cal voted to allow it to happen.
 
FfldCntyFan said:
Yeah, but it wasn't as if Oregon State, Washington St and Cal voted to allow it to happen.
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The BIG was forced to make a move because a desperate Oregon and Washington could have gone to the B12 and probably threatened them with that action.

No one can be certain of outcomes when events which have taken place this week unfold.

It’s possible the SEC is contemplating accelerating their timetable. I’m not sure all the dominoes have fallen yet.
 
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