Key tweets, and it's all gone to Hell.

[king conn]

Imagine a PE telling a football coach his offense is boring and to make it more fun so we can market it?

Lol.

It certainly could have helped us the past decade

 

[jostar1]

 

[upstater]

Of course the SEC is more lucrative than the old Big 12.

Obviously the Big 12 has something up their sleeve with FOX or FSU and Clemson are using it to call the B1G and the SEC’s bluff.

Either way I am not talking in circles. We will revisit this and I am ready to laugh at you either way.

Youve been hanging out with the Dude of WV too much

 

[CL82]

It certainly could have helped us the past decade

Well, it wouldn't of hurt anyway.

 

[huskymedic]

LOL..

 

[ninety-nine]

LOL..

Are these key tweets or April Fools' leftovers?

 

[CL82]

ACC commissioner reacts to rumors of Syracuse, Boston College, SMU and Wake Forest departing for the big 12

 

[The Yakk]

Do the math. It's not going to work when you have payouts to the ACC. No matter the higher payout in the B12. And the B12 would encumber them on the backend.

Especially now that the B12 has a zillion members in it.

Why would Colorado or Arizona or Utah agree to their buy-in while Clemson is given heaps of money more? And Clemson isn't going to sign a GOR or have huge exit fees?

None of that makes any sense.

Very true.

What makes even less sense is this fantasy that a private equity deal will make these schools the "richest in college football."

 

[CL82]

Very true.

What makes even less sense is this fantasy that a private equity deal will make these schools the "richest in college football."

Well, I guess it does in the same way that pulling all the equity out of your home via a home equity loan makes you "richer".

(For what it's worth, the big 12s current flirtation with private equity makes it a less attractive option for expansion, in my opinion.)

 

[upstater]

Well, I guess it does in the same way that pulling all the equity out of your home via a home equity loan makes you "richer".

(For what it's worth, the big 12s current flirtation with private equity makes it a less attractive option for expansion, in my opinion.)

So many gov'ts that got involved in these "investment" deals ended up crying to the IMF later. Goldman Sachs used to give new ministers a lot of sugar up front, and the balloon payment came do years later when the next minister took office.

 

[Kolumbo]

Well, I guess it does in the same way that pulling all the equity out of your home via a home equity loan makes you "richer".

(For what it's worth, the big 12s current flirtation with private equity makes it a less attractive option for expansion, in my opinion.)

Some people get rich by pulling all of the equity out of their homes in order to start new businesses. If they are successful entrepreneurs, then yes, it does in fact make them richer. The risk-reward tradeoff.

 

[billybud]

Texas and Oklahoma only ended up paying $50 million a piece as a negotiated exit fee from the Big 12...but Texas didn't pay all of that..

ESPN breaks out the checkbook for Texas - ESPN makes Texas whole for leaving the Big 12 early by making a transition payment to Texas (that shall pass through the SEC) which is above and beyond what ESPN was scheduled to pay the SEC.​

Notable provisions in the agreement: ESPN will make a transition payment to Texas (that shall pass through the SEC) which is above and beyond what ESPN was scheduled to pay the SEC. That payment should be made sometime between July 2024 and July 2025.Mar 20, 2024

 

[upstater]

Texas and Oklahoma only ended up paying $50 million a piece as a negotiated exit fee from the Big 12...but Texas didn't pay all of that..

ESPN breaks out the checkbook for Texas - ESPN makes Texas whole for leaving the Big 12 early by making a transition payment to Texas (that shall pass through the SEC) which is above and beyond what ESPN was scheduled to pay the SEC.​

Notable provisions in the agreement: ESPN will make a transition payment to Texas (that shall pass through the SEC) which is above and beyond what ESPN was scheduled to pay the SEC. That payment should be made sometime between July 2024 and July 2025.Mar 20, 2024

But that has nothing to do with the Exit Fee.

It's a fee for Texas being in the SEC.

It's not making them whole at all. It's their 2024-2025 media rights fee.

 

[CL82]

Some people get rich by pulling all of the equity out of their homes in order to start new businesses. If they are successful entrepreneurs, then yes, it does in fact make them richer. The risk-reward tradeoff.

True, but the big 12 isn't proposing to invest PE funds. Instead they are proposing to use PE funds to supplement their current earnings so that they are more competitive with the P2. That isn't an investment strategy, that's a death spiral.

 

[Kolumbo]

True, but the big 12 isn't proposing to invest PE funds. Instead they are proposing to use PE funds to supplement their current earnings so that they are more competitive with the P2. That isn't an investment strategy, that's a death spiral.

Perhaps but I don't see how it's a death spiral. The critical component today is survival and you just typed it, make them more competitive. It could help solidify the Big 12's position as clearly the 3rd best conference, which could help its programs become more successful, which would make them more valuable. That's a solid long term investment if it plays out that way. The bigger the gap between the Big 12 and the ACC, the bigger the win.

 

[Hoophound]

Perhaps but I don't see how it's a death spiral. The critical component today is survival and you just typed it, make them more competitive. It could help solidify the Big 12's position as clearly the 3rd best conference, which could help its programs become more successful, which would make them more valuable. That's a solid long term investment if it plays out that way. The bigger the gap between the Big 12 and the ACC, the bigger the win.

How does the investor make money in these scenarios? It’s not like you can sell the company once it increases in value.

 

[Kolumbo]

How does the investor make money in these scenarios? It’s not like you can sell the company once it increases in value.

Cash flow

 

[billybud]

But that has nothing to do with the Exit Fee.

It's a fee for Texas being in the SEC.

It's not making them whole at all. It's their 2024-2025 media rights fee.

Not my words...Farley's reporting.

 

[noeynox]

How does the investor make money in these scenarios? It’s not like you can sell the company once it increases in value.

I try to think of ways they can achieve a return on investment when most athletic programs LOSE money and all i can think of is these people must be multiple times smarter than me cause i just don't see it.

 

[CL82]

Perhaps but I don't see how it's a death spiral. The critical component today is survival and you just typed it, make them more competitive. It could help solidify the Big 12's position as clearly the 3rd best conference, which could help its programs become more successful, which would make them more valuable. That's a solid long term investment if it plays out that way. The bigger the gap between the Big 12 and the ACC, the bigger the win.

Converting capital to cash to fund current operating expenses is virtually always a losing play. You often see it with failing businesses as a last ditch effort to keep the lights on enough for things to turn around. The problem is you have to have a solid plan to actually turn things around. Just hoping it'll happen is the kind of "magic thinking" that is typical of toddlers.

 

[Kolumbo]

Converting capital to cash to fund current operating expenses is virtually always a losing play. You often see it with failing businesses as a last ditch effort to keep the lights on enough for things to turn around. The problem is you have to have a solid plan to actually turn things around. Just hoping it'll happen is the kind of "magic thinking" that is typical of toddlers.

You think college football is a failing business?
If you don't see college football as an extremely lucrative business for its owners, I'm not sure what else to tell you. Especially if there are 3 power conferences going forward.

 

[Patman]

You think college football is a failing business?
If you don't see college football as an extremely lucrative business for its owners, I'm not sure what else to tell you. Especially if there are 3 power conferences going forward.

You think that certain players can't make failing moves in a bid to keep up?

 

[Kolumbo]

You think that certain players can't make failing moves in a bid to keep up?

what the H are you talking about?

 

[huskidork]

A&M mad they have to be with Texas every year, was forced to vote yes

South Carolina and Florida don't want FSU and Clemson, get their way and force them to play in the Big 12

that's HILARIOUS

 

[upstater]

I think college football is in a massive bubble right now and all this realignment crap is just somebody blowing into the straw blowing it bigger and bigger. Conferences are cannibalizing conferences. Teams are foregoing years of distribution payments just for a seat at the table.

edit: posted before I finished my thought.... The more this goes on, it's going to alienate teams that are in these power conferences i.e. Indiana, Vanderbilt, Illinois .. all the schools that have no shot at a national championship. With the new movements that could include schools like Oregon and Washington now.. That will lead to disengagement from fans. Once that happens the advertising money goes away and where do we think the money from these media networks that are funding these conference deals come from.

Now lawyers are getting involved because the money is too big. Now there is 20% revenue sharing on the table. It's happening in front of us.

The one thing never taken into account is the massive liabilities of the schools. They are funding the AD and everything looks good, but 99.9% of the ADs have no outstanding debt for stadiums and facilities because the schools have fronted all of that with bonds. We've seen this blow up on presidents at a number of places, but it's a hidden cost that no one ever talks about. And it's not only hidden, it is THE major cost.

In pro sports, the billionaires get the taxpayers to foot most of the bill. Which I guess is also true for the public colleges. But the costs are astronomical.