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The MAC come sniffing around every once in a while
I don’t think they ever have?
The MAC come sniffing around every once in a while
That was largely sarcasm on my part. There have been talking heads that have mentioned it, but I am not aware of any actual conversations between the MAC and Connecticut.I don’t think they ever have?
In the Ross Dellenger article linked to in the key tweets thread, he states:
"The latest example was a recent clandestine call that several ACC and Big 12 school presidents and high-ranking athletic administrators held with leaders of a private-equity backed super league. The call, earlier this month, was had without the involvement of ACC and Big 12 commissioners and was the second such Big 12-ACC joint meeting since December with those from Smash Capital, a venture capital firm proposing a super league model that features a $9 billion promise of cash infusion to college sports.
The ACC and Big 12 schools are not alone in their foray into this world.
While they are against these super league ideas, both the SEC and the Big Ten are exploring a private equity or private capital infusion. Big Ten administrators received presentations last week at their spring meetings from four firms jockeying to purchase a piece of the conference.
SEC officials are using Goldman Sachs, a multinational investment bank and financial services company, to further examine the concept."
Flugaur talks about this in his video. He says that he was told some of the deals that the Big12 was looking at were going to include UConn because those firms are all New York companies with New York money. I hope he is right because we need something to push us over the finish line. Starts at 1:19:08.
I don’t understand why teams want private equity. The firms are looking to turn a profit, so I don’t understand how that can happen without taking money away from the schools in the long run. I could see the Big 12 and ACC being foolish/desperate enough to try it just to keep pace, but why would the SEC or B1G want involved?
In today's show, Flugaur says that realignment was always a two-legged table determined by the conference's media partner and the school Presidents. Now the third component involved is going to be private capital/ equity. He talks about UConn as a potential Big 12 candidate starting at 46:00.
You cant believe this? In this age of reality tv?Can’t believe this guy built an empire off fiction.
He has been extremely accurate with information on a number of occasions. He has receipts.Can’t believe this guy built an empire off fiction.
Here's what we know:I don’t understand why teams want private equity. The firms are looking to turn a profit, so I don’t understand how that can happen without taking money away from the schools in the long run. I could see the Big 12 and ACC being foolish/desperate enough to try it just to keep pace, but why would the SEC or B1G want involved?
In the Ross Dellenger article linked to in the key tweets thread, he states:
"The latest example was a recent clandestine call that several ACC and Big 12 school presidents and high-ranking athletic administrators held with leaders of a private-equity backed super league. The call, earlier this month, was had without the involvement of ACC and Big 12 commissioners and was the second such Big 12-ACC joint meeting since December with those from Smash Capital, a venture capital firm proposing a super league model that features a $9 billion promise of cash infusion to college sports.
The ACC and Big 12 schools are not alone in their foray into this world.
While they are against these super league ideas, both the SEC and the Big Ten are exploring a private equity or private capital infusion. Big Ten administrators received presentations last week at their spring meetings from four firms jockeying to purchase a piece of the conference.
SEC officials are using Goldman Sachs, a multinational investment bank and financial services company, to further examine the concept."
Flugaur talks about this in his video. He says that he was told some of the deals that the Big12 was looking at were going to include UConn because those firms are all New York companies with New York money. I hope he is right because we need something to push us over the finish line. Starts at 1:19:08.
He got lucky and jumped on twitter rumors.He has been extremely accurate with information on a number of occasions. He has receipts.
I don't want to give Flugaur credibility, but Goldman formed a Sports group in 2023 and they have a PE business. They used to be involved in sports in a piecemeal manner.The SEC is using Goldman Sachs. It’s hilarious to me that they are using Goldman for this. That conference loves the perception of them being so big time. There is zero chance Goldman is the best bank for them to utilize for this and to figure out valuation and structure. They require a more boutique agency.
But, they are so smitten with perception that they only use the most famous investment bank in USA. It’s hilarious.
If that’s the case then we should just start calling you Rip Van Winkle.Wake me up when something actually happens.
There is a bridge across the Hudson below Albany with that name.If that’s the case then we should just start calling you Rip Van Winkle.
If I had to guess (and its purely a guess) - the play essentially is:Still dont see how PE makes money without absolutely gorking the fans in ways colleges dont have the leverage to do. For instance, ending students tickets or putting them up to an auction
I was out in LA last week and the TV sports news personalities there are already talking about a P2 as if it was a done deal. I suspect that if that happens that only a few B12 and ACC are pulled into that.If I had to guess (and its purely a guess) - the play essentially is:
Buy equity into league with some upside language around future league revenues (likely need an extended hold period to realize gains)
Finance expansion (in Big 12’s instance, add Clemson/FSU or something similar) or other similar initiative (pay $ to SEC/B1G teams for them to play on the road at Big 12 teams?) to increase media rights deal payout
Potential to add other “events” to conference schedules (mid-year conference tournament at MSG?) that would give them additional revenue streams. Maybe they create a separate media function or buy/leverage a streaming service for exclusive rights to showcase Big 12 games and other content?
Option to sell equity at some pre-determined rate back to the conference they buy into (or another buyer) after the hold period (typically 3-7 years)
Regardless, traditional PE investment models don’t make a ton of sense for college sports given their return requirements, traditional hold periods, and how they make money from deals. If you’re going to fund the Big 12 buying FSU and Clemson as an example, they can’t even join the league until 5 years from now, which more or less takes up the entirety of a traditional hold period before they’d exit. I just don’t see how it makes a ton of sense
When all is said and done, if PE gets involved they'll end up bending the fans, the schools and anyone else with any interest in the games over and have their way with them.Still dont see how PE makes money without absolutely gorking the fans in ways colleges dont have the leverage to do. For instance, ending students tickets or putting them up to an auction