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

[jostar1]

And here is Flugaur's take on it:

 

[Fishy]

According to Flugaur, the other schools Pitt, BC, Syracuse, Wake Forest, will go along with it because they want private equity investment. The Big 12 and now the Big 10 are looking into getting private equity buy-in. The ACC can't do that until the FSU and Clemson lawsuits are settled. UNC will go along with it because they want out of the ACC so they want the exit fees reduced, just like Clemson, Miami, and FSU want them reduced.

Someone will need to explain to me how a public university goes about selling any part of their interests to private equity.

 

[Exit 4]

The merry-go-round is nuts and when will it end? I have no idea. Still speeding up for now.

 

[nelsonmuntz]

Someone will need to explain to me how a public university goes about selling any part of their interests to private equity.

The first PE firm that invests in a college athletic program will become a magnet for every dipspit deal in America.

 

[upstater]

The first PE firm that invests in a college athletic program will become a magnet for every dipspit deal in America.

What else are you going to invest in? A purple grape ape painting?

 

[The Viking]

Everytime I open this thread I'm reminded of how two California teams and a Texas team are in the Atlantic Coast Conference and we are not.
It's just incredible. Especially when the power broker is sitting right in our backyard this whole time.
It would have been nice if when decidng to extend it, ESPN could have found a way to roll us in somehow. Alas.

 

[Patman]

Someone will need to explain to me how a public university goes about selling any part of their interests to private equity.

More of a lease. Either case i think fans who hope that PE will lead to better times are in for a shock because somebody will have to milked to make a profit

 

[Fishy]

More of a lease. Either case i think fans who hope that PE will lead to better times are in for a shock because somebody will have to milked to make a profit

It reminds of Chicago selling their parking meters to a private entity. They sold them for 1.5B or something like that….15 years into the 75 year deal, the equity company has made back the initial sale, plus $500,000,000 and Chicago is destitute.

Going to be amazing when the Big Ten announces that Ohio State and Michigan are playing four times a year because Fahad AlSaif wants his money back.

 

[Jimdish255]

Everytime I open this thread I'm reminded of how two California teams and a Texas team are in the Atlantic Coast Conference and we are not.
It's just incredible. Especially when the power broker is sitting right in our backyard this whole time.
It would have been nice if when decidng to extend it, ESPN could have found a way to roll us in somehow. Alas.

ESPN doesn't care about UConn. I don't understand why the State of Connecticut puts up with it. Having them here has resulted in only bad outcomes.

 

[CL82]

Someone will need to explain to me how a public university goes about selling any part of their interests to private equity.

GOR, possibly? They wouldn't be selling state owned assets, but instead would be selling the rights to future earnings. The only way that would work is if the immediate cash payment had a lower value than the pv of the potential cash stream. (Think JG Wentworth and the purchase of structured settlements.) That's not a huge leap from current GORs which as we've seen from the ACC traded optimized value for certainty and immediate stability.

 

[Stinger92860]

GOR, possibly? They wouldn't be selling state owned assets, but instead would be selling the rights to future earnings. The only way that would work is if the immediate cash payment had a lower value than the pv of the potential cash stream. (Think JG Wentworth and the purchase of structured settlements.) That's not a huge leap from current GORs which as we've seen from the ACC traded optimized value for certainty and immediate stability.

Any item owned by the entity, in this case the U of whatever, would be state owned. No?

 

[Ha Who]

ESPN doesn't care about UConn. I don't understand why the State of Connecticut puts up with it. Having them here has resulted in only bad outcomes.

I don’t disagree with you but there is a reason Hartford is a ghost town, building a bunch of apartments where I don’t know where these people are going to work. A state of emergency should’ve been declared to determine what could be done to bring a couple fortune 500 companies into the city. But look at people like looney tunes and you have your answer

 

[upstater]

It reminds of Chicago selling their parking meters to a private entity. They sold them for 1.5B or something like that….15 years into the 75 year deal, the equity company has made back the initial sale, plus $500,000,000 and Chicago is destitute.

Going to be amazing when the Big Ten announces that Ohio State and Michigan are playing four times a year because Fahad AlSaif wants his money back.

This is how it is all over the world.

I did a thorough history of the Greek financial crisis a while back and it was Goldman Sachs deal that sunk them. GS fronted them a bunch of money for currency conversions that reduced their deficit from 3% to 1% (on paper, because the EU stats office deliberately doesn't count certain liabilities as debt). Then GS took a ballon lump sum payment of $10b right when the 2008 crisis was kicking in, and their deficit skyrocketed to 10%+. Ironically, Greece didn't even need to do the deal since they were under the 3.5% budget deficit threshold required to convert to the euro. They just wanted to look better and curry favor with the EU countries who eventually voted them in. And the biggest catastrophe for them is that with a strong currency, light manufacturing fled the country.

This was an "everything went wrong" dance with private equity.

#1. Crap deal with private equity
#2. "Creative accounting" to make the books look good
#3. Strong currency makes businesses close and a lot of job loss
#4. Worldwide financial crisis means no one is going to buy your bonds

 

[uconnric]

ESPN doesn't care about UConn. I don't understand why the State of Connecticut puts up with it. Having them here has resulted in only bad outcomes.

Because they are a major employer?

 

[CL82]

Any item owned by the entity, in this case the U of whatever, would be state owned. No?

Yup, but I'm pretty sure they can encumber future revenue streams, because they do that right now, just to a lesser extent.

 

[ZooCougar]

Everytime I open this thread I'm reminded of how two California teams and a Texas team are in the Atlantic Coast Conference and we are not.
It's just incredible. Especially when the power broker is sitting right in our backyard this whole time.
It would have been nice if when decidng to extend it, ESPN could have found a way to roll us in somehow. Alas.

They don’t want us. It’s so simple.

 

[KryHavok]

They don’t want us. It’s so simple.

I can't like this post enough. For anyone advocating or hoping for the all cretins crew to take us, it's never going to happen...doesn't matter that ESPN resides in CT, doesn't matter we shared historical rivalries, doesn't matter we share similar educational culture...in my head I see that conference as the Always Cancels Connecticut because this is what they've done for 13 years, the buzzing of flies has more importance to them than us. Private equity can find value in us, doesn't matter insofar as that conference is concerned (hopefully it's a different story for the Big 12). Despite what ESPN recently announced for the cretins, it's akin to a band-aid on a severed femoral artery and eventually they will bleed out their upper teams to the P2. I don't like independence for our football team (yes, our schedule is better now than in the AAC, but having something other than pride to play for would help), but it's better than pathetically pining for some partner who just isn't into us. With that said, I'm declaring for the need of key tweet or a piece of key lime pie.

 

[noeynox]

They don’t want us. It’s so simple.

I've wanted UConn to look into the Big12 going back to when WVU got in and Sue Herbst was saying publicly that putting athletes on a bus to Ames, Iowa was a bad idea.

Not because I loved the idea, but because the ACC has always been the girl that is just not into you. We were obviously the best fit in every sense and have been passed over repeatedly. When they take Cal, before you, you just gotta say fluck em.

Big12 or bust.

 

[ZooCougar]

I've wanted UConn to look into the Big12 going back to when WVU got in and Sue Herbst was saying publicly that putting athletes on a bus to Ames, Iowa was a bad idea.

Not because I loved the idea, but because the ACC has always been the girl that is just not into you. We were obviously the best fit in every sense and have been passed over repeatedly. When they take Cal, before you, you just gotta say fluck em.

Big12 or bust.

The ACC should have went on the warpath and raised the Big 12. Add UConn, Cincy and WVU.

Then they basically do have a de facto Big East merger because they would have had everything from the old Big East that people still cared about.

But as we know the ACC is reactive and petty; also they don’t think strategically and here we are.

 

[CL82]

They don’t want us. It’s so simple.

 

[Fishy]

GOR, possibly? They wouldn't be selling state owned assets, but instead would be selling the rights to future earnings. The only way that would work is if the immediate cash payment had a lower value than the pv of the potential cash stream. (Think JG Wentworth and the purchase of structured settlements.) That's not a huge leap from current GORs which as we've seen from the ACC traded optimized value for certainty and immediate stability.

That is a state-owned asset.

 

[Fishy]

The ACC should have went on the warpath and raised the Big 12. Add UConn, Cincy and WVU.

Then they basically do have a de facto Big East merger because they would have had everything from the old Big East that people still cared about.

But as we know the ACC is reactive and petty; also they don’t think strategically and here we are.

No. What they should have done is add UConn and Rutgers and left the flotsam - UL, WV and Cincy - to the Big 12.

Seal up the east coast, remain a manageable travel league and lock up NYC.

 

[CL82]

That is a state-owned asset.

And yet they have already been transferred on multiple occasions to ESPN, fox, etc. What do you see preventing private equity firms from utilizing exactly the same model and acquiring rights for a term of years?

 

[CTFAN4LIFE]

And yet they have already been transferred on multiple occasions to ESPN, fox, etc. What do you see preventing private equity firms from utilizing exactly the same model and acquiring rights for a term of years?

Exactly. There's many ways to set up a contract/licensing deal with a strategic partner - see Learfield, Nike, etc etc.

 

[Fishy]

And yet they have already been transferred on multiple occasions to ESPN, fox, etc. What do you see preventing private equity firms from utilizing exactly the same model and acquiring rights for a term of years?

There’s a difference between licensing and selling.

PE is not licensing, they’re buying.