Get Us Out of This God-Forsaken Conference

[nelsonmuntz]

Utah's private equity deal allows the university to retain a majority ownership of equity and all athletic decisions stay in house.

I think there's a fine balance where UConn could gain some upfront funding without giving away the farm.

My point was that doing nothing isn't a safe option either. I'm concerned will UConn falling further behind.

U.S. Private equity is in one of its worst stretches in its history. I don't think a challenged investment sector pouring money into a failing educational business model is a recipe for success for anyone.

 

[nelsonmuntz]

There's multiple ways a strategic private capital partner could help UConn, including (a) gain-sharing the lift they bring in revenue increases due to their expertise in licensing media rights, merchandising, etc. and (b) helping UConn with gaining membership into a power conference (which was rumored to be the angle Red Bird capital was bringing to the Big12 private capital deal). And there's other angles, too... I think many people get hung up on private equity sharks versus private capital strategic partnerships. UConn would engage the latter as opposed to the former.

The window to do a "strategic partner" deal closed 2-3 years ago. There are still a couple of firms sniffing around with money burning a hole in their pockets, but I would recommend against taking a PE check if there is not a clear path to get them paid out, because that relationship can become very problematic.

 

[CTFAN4LIFE]

The window to do a "strategic partner" deal closed 2-3 years ago. There are still a couple of firms sniffing around with money burning a hole in their pockets, but I would recommend against taking a PE check if there is not a clear path to get them paid out, because that relationship can become very problematic.

As private capital relates to college sports, we have seen deals done recently (e.g. Utah) and there was one mega deal that was a couple of yay votes from happening (Big10). Good deals for both parties still exist and will continue to happen; likely several after bigger issues are resolved (i.e. Score Act, etc.). Money deals on pause until tectonic plates get figured out.

 

[Fishy]

Shame. I was really thinking that with the national brand we have there would be something.

I guess we'll see what happens when the next wave of realignment happens

WE LOSE MILLIONS A YEAR.

What would we be selling? A national brand at pennies on the dollar? We already do that for the Big East. And we would have to apportion a significant percentage of our already strained revenue to a private equity company.

You, Mr. UConn donor, would be donating money to a PE firm.

Guys…this is not hard. Seriously.

 

[Fishy]

The window to do a "strategic partner" deal closed 2-3 years ago. There are still a couple of firms sniffing around with money burning a hole in their pockets, but I would recommend against taking a PE check if there is not a clear path to get them paid out, because that relationship can become very problematic.

This is all you need to read.

I would rather not have to sell Babbidge and lease it back because the athletic department hit a dry spell.

 

[CTFAN4LIFE]

This is all you need to read.

I would rather not have to sell Babbidge and lease it back because the athletic department hit a dry spell.

Stop making stuff up to prove your ignorance.

 

[Fishy]

Stop making stuff up to prove your ignorance.

lol…

You don’t even understand what PE.

It’s like I’m speaking to a child.

 

[CTFAN4LIFE]

lol…

You don’t even understand what PE.

It’s like I’m speaking to a child.

I really feel sorry for you.

 

[nelsonmuntz]

As private capital relates to college sports, we have seen deals done recently (e.g. Utah) and there was one mega deal that was a couple of yay votes from happening (Big10). Good deals for both parties still exist and will continue to happen; likely several after bigger issues are resolved (i.e. Score Act, etc.). Money deals on pause until tectonic plates get figured out.

The Big 10 deal was debt, which is different.

I think the Utah deal was a mistake by both sides, but we will see.

 

[businesslawyer]

There's no scenario where private equity makes any sense for UConn.

You guys realize that PE firms want to be paid back with a profit, right? Right?

Also, PE would have zero interest in us. We're running an awful business. If we were a restaurant chain, they'd come in, sell the real estate and let it all go to hell, but since they can't even do that here, they're not going to be interested.

I am not saying that taking PE money makes sense for UConn. But part of the reason businesses partner with PE is the belief that a good PE firm can run the business better and create more money for all involved,

 

[CL82]

I am not saying that taking PE money makes sense for UConn. But part of the reason businesses partner with PE is the belief that a good PE firm can run the business better and create more money for all linvolved,

And often they can, sometimes, though, to the detriment of the initial stakeholders

 

[CTFAN4LIFE]

Unlike some others on here, I am not saying that taking PE money unconditionally makes sense or doesn't make sense for UConn. Every deal would have its own merits... But part of the reason businesses partner with PE is the belief that a good PE firm can run the business better and create more money for all linvolved.

A reality of the PE industry's reputation is that many businesses/industries that engage it are dying and/poorly managed and so the PE gets associated with said death. Now, I'm not saying everyone that engages PE is dying - there are many industries that owners can exit, gain a windfall, and let an operator leverage scale and expertise. An example is hospitality in the Kennebunk, Maine area, which has seen many legacy, locally-owned hotel and restaurant properties sell to PE firms that bring a more industry-experienced approach to running the properties. The PE firms that got involved there saw a folksy industry that was ignoring revenue opportunities. Now, one can argue it is a bit more soulless from a customer experience standpoint - that's a different argument...

PE gets involved in start-ups and emerging level companies and industries, too. Is it all bad? Not when tech companies create generational wealth for owners and really well paying jobs for more rank and file workers. Again, PE is not totally evil nor totally great - just like most other things in life.

 

[nelsonmuntz]

I am not saying that taking PE money makes sense for UConn. But part of the reason businesses partner with PE is the belief that a good PE firm can run the business better and create more money for all linvolved,

This works with second or third or etc. generation family owned businesses where the kids or grandkids of the founder are dipspits and would be nowhere near a management position if, by an accident of biology, someone just prior to them in their family tree was not an idiot.

This will not work with an athletic department affiliated with a university.

 

[Kolumbo]

I am not saying that taking PE money makes sense for UConn. But part of the reason businesses partner with PE is the belief that a good PE firm can run the business better and create more money for all involved,

That was my thinking. UConn generates $100 million in revenue annually without a football conference affiliation. Whatever happens on the expense side, that's a lot of Benjamins being tossed around and there is no doubt a better way to manage this business. Not saying PE is the answer but who know how much more revenue could be found.

 

[greenday61892]

Follow up post.

The Colonel forgot three time National Champion field hockey, which got to the Elite 8

Three time recent national champions, five time all time iirc (I believe 81 and 85 are the other two)

 

[CTFAN4LIFE]

This works with second or third or etc. generation family owned businesses where the kids or grandkids of the founder are dipspits and would be nowhere near a management position if, by an accident of biology, someone just prior to them in their family tree was not an idiot.

This will not work with an athletic department affiliated with a university.

Ok, if you say so.

 

[ZooCougar]

That was my thinking. UConn generates $100 million in revenue annually without a football conference affiliation. Whatever happens on the expense side, that's a lot of Benjamins being tossed around and there is no doubt a better way to manage this business. Not saying PE is the answer but who know how much more revenue could be found.

“why can’t we afford popcorn at the game mommy?”

 

[JwittersPAC]

That was my thinking. UConn generates $100 million in revenue annually without a football conference affiliation. Whatever happens on the expense side, that's a lot of Benjamins being tossed around and there is no doubt a better way to manage this business. Not saying PE is the answer but who know how much more revenue could be found.

Self generated is around $82 million. Your number is including the the subsidies from the state and school.

 

[Kolumbo]

“why can’t we afford popcorn at the game mommy?”

think outside the popcorn box

Self generated is around $82 million. Your number is including the the subsidies from the state and school.

whatever. it's still significant, can be managed better, and there's more out there