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

[UConnTrumbull]

With the looming $20m+ salary floor coming against the back drop of decreasing student population, wouldn't the Big12 be the expected conference to use private money to invest and have it be via a conference tv/media network? It would seem that of all the power conferences, they'd stand to drive the most accretive revenue with the launch of a Big12 Network. And of course, UConn would be a sugar plum brand of a new Network and it's penetration into the lucrative northeast corridor.

I’ve wondered this too. Every power conference has/had a network.

 

[JMick]

With the looming $20m+ salary floor coming against the back drop of decreasing student population, wouldn't the Big12 be the expected conference to use private money to invest and have it be via a conference tv/media network? It would seem that of all the power conferences, they'd stand to drive the most accretive revenue with the launch of a Big12 Network. And of course, UConn would be a sugar plum brand of a new Network and it's penetration into the lucrative northeast corridor.

That's basically been the rationale for why Yormark and their consulting group find us interesting. There was chatter about sponsorships and potential PE being interested in a more national brand for the Big XII

I don't think PE makes sense in college sports but I do think selling off naming rights and tie ins with sponsors makes a ton of sense.

 

[FfldCntyFan]

Can we get back to the regularly scheduled programming of key tweets or stick with the scintillating commercials around the pros and cons of PE?

Good point. We don't want this thread to get too long and cumbersome.

 

[NowInStorrs]

Good point. We don't want this thread to get too long and cumbersome.

Too heavy, too light, too black or too white, too wrong or too right. Today or tonight, cumbersome.

 

[ZooCougar]

I’ve wondered this too. Every power conference has/had a network.

Yeah because conference networks have worked out so great for everyone but the Big 10 and SEC.

 

[JohnFSilver]

PE is the absolute worst kind of money to take. It is highly exploitive because it is structured to ensure they are 1st money out on any side of the outcome with a guaranteed minimum return of 2x (sometimes 3x and even 4x) plus an interest or dividend accrual. If the company does well they make even more with participation on the upside. The only way a PE deal works for the owners of a business is if the business can generate more value than the cost of capital, which has to happen at a ferocious growth rate. This is how PEs blow-up companies. They mandate fast growth (scaling) and most break while a few do very well which covers their overall return. It’s a we win big if you win, and if you lose, we still win. It’s actually poisonous to free enterprise and PEs and Hedge funds are the reasons driving the increasing wealth divide. They latch on and control new wealth creation, and gamble with it. The unicorn phenomena is a symptom of this behavior. On the whole PEs are run by greedy, amoral people steeped in worshipping money through B schools and social clicks.

I love the show Industry. That’s what Happened this year with Jon Snow’s character.

Anyone who has dealt with bankers laughs their ass off. While it isn’t that simple, it is funny how big a dipstick people are that get thrown gobs of money.

 

[The Yakk]

PE firms are mean. Boo hoo

LOL I get that you're tired of the PE discussion and want it to stop, but you are missing the point a little bit.

PE firms are doing exactly what they are supposed to do. There is no "meanness" about it at all; given the rules of our capitalistic system, it is only natural they should exist and do what they do.

The question here is, why exactly should a not-for-profit educational institution, or athletic conference, let them into the tent?

At first, the PE defenders talked about how these firms would improve the business of college sports and bring more money for everyone.

When that fantasy was blown up, the justification switched to "Well, the colleges are already greedy so the greedy PE firms will be a natural partner for them."

But that makes even less sense than the altruistic-investor fantasy. Yes, the colleges have been made greedy by the massive amounts of money coming to college sports; and yes, the behavior of the P2 and schools like FSU could well kill the golden goose, but none of that explains why financial firms should be allowed in to grab some of the cash with both fists. The money will not stop coming after the schools tell Wall Street to take a hike.

In the end, I doubt there will be any deals done that are of any consequence. I wouldn't put it past some of the school presidents to sign up for the grift; their heads can be way up their own asses. But the Boards of Trustees usually have people who are sufficiently financially astute to avoid these deals.

Here is good rule to live by: if a college ever does a deal like this, do not send your kids there.

 

[The Yakk]

Anyone who has followed CR knows that the customer is already not anywhere close to the center of the business.

College football has become all about profit. If what many of you anti-PE folks say is true, good. Let the PE piranhas come for their pounds of flesh, let them tear apart the system, let it blow up to smithereens, and let college football start all over again. Everyone wins the hard way.



"On the whole PEs are {/ college football is} run by greedy, amoral people steeped in worshipping money through B schools and social clicks." It's a perfect match really.

And for those still insisting on positive results:

Our Portfolio

Everything we do is designed to build better businesses, both for today and for tomorrow

www.cvc.com

It is hilarious to see how your defense of the PE deals has changed over time from "they are going to help everyone make money" to "it's a greedy system and that makes them the perfect partner".

Don't worry Kolumbo, Bain Capital is probably going to hire you for that job. No need to keep auditioning for it here.

 

[The Yakk]

Which is why air travel is about the safest mode of transportation in the world.

LOL, swing and a miss.

Yes, arguably, air travel is the safest form of transportation in the world.

That's completely non-sequitor to the discussion here, which is: did the financial transaction and subsequent takeover of Boeing by bean counters make their products more reliable, or less reliable.

I have no idea whether your comment was meant as some kind of defense of PE deals, or just a random zinger. Either was, you should try harder.

 

[UConnTrumbull]

Yeah because conference networks have worked out so great for everyone but the Big 10 and SEC.

Like I said, just judging based on every other power conference having one. The argument has been made that UConn doesn’t bring the carriage fees for the ACCN. Well, a Big 12 network would certainly help our case, no?

 

[JohnFSilver]

Like I said, just judging based on every other power conference having one. The argument has been made that UConn doesn’t bring the carriage fees for the ACCN. Well, a Big 12 network would certainly help our case, no?

Carriage is so declining growth.

Who starts a business model knowing that your subscriber base is declining. Worst investment ever.

Doesn’t justify startup costs.

These businesses aren’t cash and carry. They have large capital investments they have to show growth over a span of time.

Like, it isn't just, add UConn, get carriage…boom, we make money.

The only reason there is an acc network is it is a pet project of former Espn leader John Skipper. Loved his tar heels, I think he saw growth there when everyone else thought it was meh.

Also, Espn got a little too big for its britches with sec network success they thought they could duplicate it with longhorn and acc network. At end of day, acc network is largely an online entity. That's its future.

 

[ZooCougar]

Like I said, just judging based on every other power conference having one. The argument has been made that UConn doesn’t bring the carriage fees for the ACCN. Well, a Big 12 network would certainly help our case, no?

Maybe if we are in the year 2008.

 

[ZooCougar]

Carriage is so declining growth.

Who starts a business model knowing that your subscriber base is declining. Worst investment ever.

Doesn’t justify startup costs.

These businesses aren’t cash and carry. They have large capital investments they have to show growth over a span of time.

Like, it isn't just, add UConn, get carriage…boom, we make money.

The only reason there is an acc network is it is a pet project of former Espn leader John Skipper. Loved his tar heels, I think he saw growth there when everyone else thought it was meh.

Also, Espn got a little too big for its britches with sec network success they thought they could duplicate it with longhorn and acc network. At end of day, acc network is largely an online entity. That's its future.

Given what's going on with UConn Basketball, I would think ESPN would salivate forcefully over the prospects of UConn/Duke/UNC twice a year. Good lord. And that wouldn't be on the ACCN.

 

[UConnTrumbull]

Maybe if we are in the year 2008.

Again, you’re missing my point. I simply said if there were a Big 12 network it would improve our changes. That’s literally all I mean.

When ACC added SMU/Calford part of the argument was “hey new markets we can make money on through carriage fees”

 

[Kolumbo]

It is hilarious to see how your defense of the PE deals has changed over time from "they are going to help everyone make money" to "it's a greedy system and that makes them the perfect partner".

Don't worry Kolumbo, Bain Capital is probably going to hire you for that job. No need to keep auditioning for it here.

I think it's hilarious how you interpret things when losing an argument. 1. I never said they were going to help everyone make money. I did say it's worth exploring because that could be the case. B. Greed is good. Don't you know that Joel? Very often greed and making money go hand in hand. I guess if you are losing an argument one course of strategy is to make things up.

 

[The Yakk]

I think it's hilarious how you interpret things when losing an argument. 1. I never said they were going to help everyone make money. I did say it's worth exploring because that could be the case. B. Greed is good. Don't you know that Joel? Very often greed and making money go hand in hand. I guess if you are losing an argument one course of strategy is to make things up.

I take it back. There is no way Bain Capital would ever let you in the door. There is a certain level of reading comprehension and basic rational thinking that even the most craven PE firm will require.

But take heart, there is perhaps a future for you issuing drivers licenses at the DMV.

 

[JohnFSilver]

Given what's going on with UConn Basketball, I would think ESPN would salivate forcefully over the prospects of UConn/Duke/UNC twice a year. Good lord. And that wouldn't be on the ACCN.

I would think so, but no movement. UConn owns mens and womens hoops right now.

The women are top 2, men top 3.

You can't be a seriously be the home of college hoops if UConn is not in your portfolio.

 

[Fishy]

Like I said, just judging based on every other power conference having one. The argument has been made that UConn doesn’t bring the carriage fees for the ACCN. Well, a Big 12 network would certainly help our case, no?

There’s going to be little to no appetite from carriers in yet another sports network. Plus, the Big 12 is with ESPN and Fox whereas the three conferences with networks are with one or the other. The network either owns or is a partner in the network…that’s messy when you have the deals that the Big 12 has.

 

[UConnJim]

Like I said, just judging based on every other power conference having one. The argument has been made that UConn doesn’t bring the carriage fees for the ACCN. Well, a Big 12 network would certainly help our case, no?

I think we all understand that linear cable channels are in secular decline. In the near future, the conference channels will morph into streaming services or they will be included within streaming packages like ESPN+, Netflix, Prime, Max... Right now, the BTN, SECN, and ACCN have benefitted from conference expansion which has added subscribers and brought more markets under their in-market rate which has allowed their revenues to grow. In each conferences' traditional markets/states, subscribers are declining.

I don't think the Big 12 will start up a cable channel, but, in the future, they could start up a conference streaming app that would be available on Netflix/Amazon/Max. But, they have already sold their inventory over the next few years.

 

[uconndogs]

LOL, swing and a miss.

Yes, arguably, air travel is the safest form of transportation in the world.

That's completely non-sequitor to the discussion here, which is: did the financial transaction and subsequent takeover of Boeing by bean counters make their products more reliable, or less reliable.

I have no idea whether your comment was meant as some kind of defense of PE deals, or just a random zinger. Either was, you should try harder.

My comment wasn’t meant to assess PE, it simply addressed YOUR comment on safety.