The Private Equity College Sports Hellscape Thread | Page 14 | The Boneyard
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The Private Equity College Sports Hellscape Thread

nelsonmuntz said:
I have not seen an analysis of how a private equity investment into college athletics would work that doesn't feel like the logic of the underpants gnomes in South Park.

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I am in the same place I was 3.5 months ago. I don't see how a PE investment works in an industry where the costs just spiked (House payments) and there is downward pressure on revenues (the ESPN salad days are ending).
 
nelsonmuntz said:
I am in the same place I was 3.5 months ago. I don't see how a PE investment works in an industry where the costs just spiked (House payments) and there is downward pressure on revenues (the ESPN salad days are ending).
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The private capital firms believe there is untapped revenue/value and that is why they're sniffing around.
 
nelsonmuntz said:
I am in the same place I was 3.5 months ago. I don't see how a PE investment works in an industry where the costs just spiked (House payments) and there is downward pressure on revenues (the ESPN salad days are ending).
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If so many of these schools are losing money, then how is it that PE can come in make back $2B+ to actually get an ROI?
 
ZooCougar said:
If so many of these schools are losing money, then how is it that PE can come in make back $2B+ to actually get an ROI?
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That's why those Ivy League types make the big bucks. They are smart.

Nothing will happen if you look at the current model. Private Equity would want a pay back period of 5 years and college football would want 50 years. No one is getting shafted. Nothing will happen.

Something will happen if the PE guys can figure out how to millions into spending more for college football than it is actually worth. If you look at pro sports, it's not out of the realm. In my opinion, college football and all of the bowls have more juice than the boring NBA so who knows.
 
Kolumbo said:
That's why those Ivy League types make the big bucks. They are smart.

Nothing will happen if you look at the current model. Private Equity would want a pay back period of 5 years and college football would want 50 years. No one is getting shafted. Nothing will happen.

Something will happen if the PE guys can figure out how to millions into spending more for college football than it is actually worth. If you look at pro sports, it's not out of the realm. In my opinion, college football and all of the bowls have more juice than the boring NBA so who knows.
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Ehhh. I’ll believe it when I see it.

I know this: most Universally Presidents suck business.

But also, streamlined and cost effective college sports would probably be very bland. We love the excess of it all.
 
ZooCougar said:
Ehhh. I’ll believe it when I see it.

I know this: most Universally Presidents suck business.

But also, streamlined and cost effective college sports would probably be very bland. We love the excess of it all.
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It's all a crap shoot. They are ruining rivalries and fans hate it but they are making more money. screw them.
 
Some more rankling going on:
Billionaire booster, conference commishes at odds
The dispute began with an argument Thursday by Cody Campbell, Texas Tech's billionaire head of regents, about how the proposed pooling of college TV rights could feed additional billions into school coffers, but that progress is being held back because "the conferences are all represented by commissioners who are very, very self-interested."

"The commissioners don't really care what happens at the institutional level," Campbell said at a panel discussion held by the Knight Commission, an oversight group that released a survey in which a majority of college executives who responded said Division I sports was headed in the wrong direction. "All they care about is what happens to them. And I think that is fundamentally the problem."
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"The fact that we're bringing private equity into something that is, in my view, owned by the American public in college sports, is outlandish," Campbell said. "We have halfway professionalized this thing. And so we have a professionalized cost model on one side where we pay coaches a lot. We're now paying players a lot. But we have this amateurish media-rights marketing effort that makes absolutely no sense to anybody."
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Campbell portrayed the SCORE Act as too broad a giveaway to the NCAA and the conference commissioners he challenged for wanting to run their own fiefdoms instead of looking out for the good of college sports in general.

"Protecting your position and protecting your importance and your ego, I could not care less about that," Campbell said. "Because I know that if we don't change something and bring more revenue in, a lot of sports are going to be cut, a lot of scholarships are going to be cut, and a lot of kids are going to lose opportunity."
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Hang on a tick, a billionaire who actually seems concerned what happens to schools and sports beyond football...what a time we live in. ^,^
 
KryHavok said:
Some more rankling going on:
Billionaire booster, conference commishes at odds






Hang on a tick, a billionaire who actually seems concerned what happens to schools and sports beyond football...what a time we live in. ^,^
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Well, perhaps I'm a bit cynical, but this is a billionaire booster, whose team will be, essentially, relegated to the second tier. It's in his best interest to restructure the whole system in order to prevent that.
 
If this happens, how would that impact B1G expansion? I'm assuming the B1G would not want to share their influx of money with new members, just as I'm sure the Cal Pension Fund may not want to give more money to pay for new members.
 
huskymedic said:
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Boneyard bus
Rufus said:
If this happens, how would that impact B1G expansion? I'm assuming the B1G would not want to share their influx of money with new members, just as I'm sure the Cal Pension Fund may not want to give more money to pay for new members.
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We were in until this. Rule 1 lives 😀
 
Rufus said:
Would a $2.4 billion deal from the University of California Pension Fund be contingent on the University of California joining the B1G?
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UCLA is part of the University of California system.

As for conference realignment, I think there could be a push to add a couple of members in the near future as it appears the Big 10 will be set for the next 20 years. (Notre Dame, in or out?). Maybe the Big 10 and SEC go to 20 schools?
 
Rufus said:
Would a $2.4 billion deal from the University of California Pension Fund be contingent on the University of California joining the B1G?
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This. If I’m Governor Newsom, I’m making sure that a condition of this deal is Cal and Stanford joining the Big Ten (probably around 2030).
 
Last edited by a moderator:
pick6s said:
This. If I’m Governor Newsom, I’m making sure that a condition of this deal is Cal and Stanford joining the Big Ten (probably around 2030).
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Cal and SDSU is where is where it's at. Big Ten needs to get with the program and head south. Forget about Stanford and the sling blade mofos

 

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