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By sharing in the increased revenue they bring in. And presumably off of a loan aspect of the deal.
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The Private Equity College Sports Hellscape Thread
- Thread starter ZooCougar
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Wouldn’t it have to be a very large sum for it to be worth it to them? Seems like the risk vs reward isn't really worth it, but i don't know the potential "increased revenue". Where is that increase coming from?
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Sponsorship deals, media rights deals, licensing arrangements, etc - universities aren't exactly marketing and sales powerhouses, so partner with people that are and let the new monies flow in and share it with them. Pretty basic. I'm sure there'll be a loan aspect as well - just not an equity based deal.
Great non answer
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Thanks. See above, bud.
nelsonmuntz
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That is not what private equity firms do. They invest and own. Some lend, but it is 15-20% money for the lenders, which doesn’t work here.
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Yeah, I know what PE firms typically do. This deal is going to be atypical - have you looked at the latest reporting on this? It's going to be capital lending, expertise involvement, deal making, revenue share.
Is college football undervalued? America's second-most popular game still leaving billions on the table
Ripe for venture capitalists and mega streaming deals down the line, college football's bottom line is getting astronomical