The Private Equity College Sports Hellscape Thread

[Fishy]

My real question with PE is what is it they think they'll deliver they can't do now... and what i think it's going to be is basically an advertising hellscape. Your parking lots will be brought to you by your local supermarket and they'll lay down road markers for it

Nothing. Seriously, nothing.

If you look at the various super league proposals, their big idea is “schedule better games, make more money.” The PE presence adds no value.

 

[WestHartHusk]

Nothing. Seriously, nothing.

If you look at the various super league proposals, their big idea is “schedule better games, make more money.” The PE presence adds no value.

So, typical PE?

 

[Kolumbo]

My real question with PE is what is it they think they'll deliver they can't do now... and what i think it's going to be is basically an advertising hellscape. Your parking lots will be brought to you by your local supermarket and they'll lay down road markers for it

Despite the negative press, the PE folks know how to maximize revenue. Universities and conferences don't. It's pretty evident when Ohio State and Michigan make the same as Rutgers. I'm not saying I support PE, but they would take a cash cow and squeeze more milk out of it for the whales.

 

[uconndogs]

Despite the negative press, the PE folks know how to maximize revenue. Universities and conferences don't. It's pretty evident when Ohio State and Michigan make the same as Rutgers. I'm not saying I support PE, but they would take a cash cow and squeeze more milk out of it for the whales.

Good PE firms know how to maximize returns on capital. For the most part they are not operators and when they pretend to be they usually get themselves into trouble.

Are there revenue streams in college athletics to monetize? I'm sure there are........but why you would need PE to do that is a mystery to me.

 

[Kolumbo]

Good PE firms know how to maximize returns on capital. For the most part they are not operators and when they pretend to be they usually get themselves into trouble.

Are there revenue streams in college athletics to monetize? I'm sure there are........but why you would need PE to do that is a mystery to me.

There would be a huge cost for the conference members to hire the right experts to come in, figure it out, and implement the right measures, and it would take time. The PE cash can be used to cover those costs whatever they are. And yes, the PE wants a great return for their efforts. I can see why the conference would consider it if they could significantly increase their revenues.

 

[uconndogs]

There would be a huge cost for the conference members to hire the right experts to come in, figure it out, and implement the right measures, and it would take time. The PE cash can be used to cover those costs whatever they are. And yes, the PE wants a great return for their efforts. I can see why the conference would consider it if they could significantly increase their revenues.

That's advisory work as I see it, not PE, at least in the conventional sense. I've always suspected that most athletic departments and the conferences lacked the skill sets for all of this. Awhile ago college athletics was primarily focused on the student athlete and fan (alumni) experience, so this shift to professional athletic models is very dramatic.

It's ruining college athletics for me.......but that's another matter........

 

[ZooCougar]

Despite the negative press, the PE folks know how to maximize revenue. Universities and conferences don't. It's pretty evident when Ohio State and Michigan make the same as Rutgers. I'm not saying I support PE, but they would take a cash cow and squeeze more milk out of it for the whales.

LOL. The fact that they can rob from Rutgers doesn’t increase the size of pie, it just changes the size of the slices.

The squeeze is the problem.

PE will look at everything from a P&L perspective and want their return. And that comes with an element of pain and loss of autonomy and very few schools will like that.

 

[Kolumbo]

That's advisory work as I see it, not PE, at least in the conventional sense. I've always suspected that most athletic departments and the conferences lacked the skill sets for all of this. Awhile ago college athletics was primarily focused on the student athlete and fan (alumni) experience, so this shift to professional athletic models is very dramatic.

It's ruining college athletics for me.......but that's another matter........

I agree. The PE firms mentioned specialize in sports and if they don't, I think they'd find the right folks to work the deal. My main point is college sports could probably bring in much more revenue than it does. PE would provide the resources (financial, advisory, commitment) to make it happen. I think.

LOL. The fact that they can rob from Rutgers doesn’t increase the size of pie, it just changes the size of the slices.

The squeeze is the problem.

PE will look at everything from a P&L perspective and want their return. And that comes with an element of pain and loss of autonomy and very few schools will like that.

Actually, the idea is that the pie gets much bigger. Even Rutgers would probably get more, but Ohio State and Michigan get a lot more.

 

[ZooCougar]

I agree. The PE firms mentioned specialize in sports and if they don't, I think they'd find the right folks to work the deal. My main point is college sports could probably bring in much more revenue than it does. PE would provide the resources (financial, advisory, commitment) to make it happen. I think.


Actually, the idea is that the pie gets much bigger. Even Rutgers would probably get more, but Ohio State and Michigan get a lot more.

Actually there are no untapped revenue streams. So the pie isn’t getting bigger.

I know you are a big PE Stan but the only plan out there is to play more games and play “bigger” games. It’s vaporware.

The PE thing is a big waste of time.

 

[Fishy]

Despite the negative press, the PE folks know how to maximize revenue. Universities and conferences don't. It's pretty evident when Ohio State and Michigan make the same as Rutgers. I'm not saying I support PE, but they would take a cash cow and squeeze more milk out of it for the whales.

Hmmmm....do they?

Fire a lot of people, sell off the real estate, give us the proceeds, and lease it back.

There you go.

There's no secret sauce.

 

[Kolumbo]

Actually there are no untapped revenue streams. So the pie isn’t getting bigger.

I know you are a big PE Stan but the only plan out there is to play more games and play “bigger” games. It’s vaporware.

The PE thing is a big waste of time.

Crazy. There is always untapped revenue streams. Surely you've seen the growth in revenue. You just have to be smart enough to find it and actually tap into it. The general population is willing to pay more and more. Some just have to be sold. The people currently running the multi-billion-dollar industry are more or less doing it by accident.

Millions of small business owners bust their tails trying to succeed while getting by. Sometimes a business coach or advisor helps them break through and be very successful if they are willing to make the investment. It happens.

 

[ZooCougar]

Hmmmm....do they?

Fire a lot of people, sell off the real estate, give us the proceeds, and lease it back.

There you go.

There's no secret sauce.

It’s ridiculous how people think this is free money.

 

[ZooCougar]

Crazy. There is always untapped revenue streams. Surely you've seen the growth in revenue. You just have to be smart enough to find it and actually tap into it. The general population is willing to pay more and more. Some just have to be sold. The people currently running the multi-billion-dollar industry are more or less doing it by accident.

Millions of small business owners bust their tails trying to succeed while getting by. Sometimes a business coach or advisor helps them break through and be very successful if they are willing to make the investment. It happens.

Why do they need PE to find it if they are finding it without them?

It’s ridiculous. There is nothing to gain by letting PE come in and take your autonomy.

 

[baggerbob]

Crazy. There is always untapped revenue streams. Surely you've seen the growth in revenue. You just have to be smart enough to find it and actually tap into it. The general population is willing to pay more and more. Some just have to be sold. The people currently running the multi-billion-dollar industry are more or less doing it by accident.

Millions of small business owners bust their tails trying to succeed while getting by. Sometimes a business coach or advisor helps them break through and be very successful if they are willing to make the investment. It happens.

And more and more businesses are going under each year. The only people getting rich are the PE people when they liquidate these national chains.

 

[Kolumbo]

Why do they need PE to find it if they are finding it without them?

It’s ridiculous. There is nothing to gain by letting PE come in and take your autonomy.

Apparently you think the PAC 12 was smart enough to find it on their own. The PAC 12 for forks sake. I don't know why you give these NCAA folks so much credit but go ahead. They know best.

 

[ZooCougar]

Apparently you think the PAC 12 was smart enough to find it on their own. The PAC 12 for forks sake. I don't know why you give these NCAA folks so much credit but go ahead. They know best.

They’d rather die than sell their assets to the finance bros.

 

[JohnFSilver]

Finance bros are the worst. Like, u suck, all you bring is the money to this equation. Don't act like you know something.

 

[The Yakk]

Crazy. There is always untapped revenue streams. Surely you've seen the growth in revenue. You just have to be smart enough to find it and actually tap into it. The general population is willing to pay more and more. Some just have to be sold. The people currently running the multi-billion-dollar industry are more or less doing it by accident.

Millions of small business owners bust their tails trying to succeed while getting by. Sometimes a business coach or advisor helps them break through and be very successful if they are willing to make the investment. It happens.

PE firms are not in any way business coaches or advisors. They may have some ideas about untapped revenue, but that is going nowhere other than their own pockets.

And even business coaches or advisors are useless leeches for the most part. The next Mckinsey engagement that benefits anyone other than McKinsey will be the first.

 

[Kolumbo]

PE firms are not in any way business coaches or advisors. They may have some ideas about untapped revenue, but that is going nowhere other than their own pockets.

And even business coaches or advisors are useless leeches for the most part. The next Mckinsey engagement that benefits anyone other than McKinsey will be the first.

Completely disagree but that's fine. Obviously everyone has to make more money or it's a no-go so I don't think you understand the intended link between college football and PE.

 

[ZooCougar]

Completely disagree but that's fine. Obviously everyone has to make more money or it's a no-go so I don't think you understand the intended link between college football and PE.

LOL.

It’s very simple. PE invests in programs exchange for ownership stake. The funding is likely tranched.

But even still letting them own a stake is a massive risk and they don’t bring anything to the table to make it worth it.

 

[Kolumbo]

LOL.

It’s very simple. PE invests in programs exchange for ownership stake. The funding is likely tranched.

But even still letting them own a stake is a massive risk and they don’t bring anything to the table to make it worth it.

I suppose you know best, mr. chuckles. "But it's college football. It's different."

WTA announces strategic partnership with CVC to accelerate growth of women's sports

Commencing in 2023, CVC will be WTA’s commercial partner, investing capital indirectly via its managed funds and acting as a catalyst to drive growth of the sport.

www.wtatennis.com

"CVC brings 25 years of experience investing in sports to this new partnership, with former and current investments in Formula One, Moto GP, Rugby, the French Football League, La Liga, Volleyball and IPL Cricket. CVC also brings access to a broad international network of 25 local offices across Europe, Australasia and the Americas, which will be available to support the accelerated commercial growth of the sport."

 

[ZooCougar]

I suppose you know best, mr. chuckles. "But it's college football. It's different."

WTA announces strategic partnership with CVC to accelerate growth of women's sports

Commencing in 2023, CVC will be WTA’s commercial partner, investing capital indirectly via its managed funds and acting as a catalyst to drive growth of the sport.

www.wtatennis.com

"CVC brings 25 years of experience investing in sports to this new partnership, with former and current investments in Formula One, Moto GP, Rugby, the French Football League, La Liga, Volleyball and IPL Cricket. CVC also brings access to a broad international network of 25 local offices across Europe, Australasia and the Americas, which will be available to support the accelerated commercial growth of the sport."

If I am a taxpayer I would lose my mind if the the local state U sold a piece of the AD to the finance bros.

Yeah. It is different.

 

[Ha Who]

If I am a taxpayer I would lose my mind if the the local state U sold a piece of the AD to the finance bros.

Yeah. It is different.

Not talking the athletic department, but you can bet there wouldn’t be 1000 vice deans, etc

 

[Kolumbo]

If I am a taxpayer I would lose my mind if the the local state U sold a piece of the AD to the finance bros.

Yeah. It is different.

Now that is funny! Put down the helium. No one is selling their AD department and it takes money to make money.

All those insane knuckleheads borrowing from credit unions to buy their homes. Insanity!!

 

[The Yakk]

Completely disagree but that's fine. Obviously everyone has to make more money or it's a no-go so I don't think you understand the intended link between college football and PE.

I'm certain I understand the INTENDED link as well as you do. Based on your cheerleading for the PE firms, I doubt you understand the way they operate.