The Private Equity College Sports Hellscape Thread | Page 15 | The Boneyard
.

The Private Equity College Sports Hellscape Thread

It seems to me that any private equity deal would only come after a conference is done expanding and has all of its wanted members for at least a generation. Signing this deal would complicate adding Notre Dame, Miami, UNC, FSU, or anyone else for the B1G. How would the new members receive private equity to match their conference peers if the deal was already signed before expansion?

Unless the B1G plans to stop at its current 18 members.
 
It seems to me that any private equity deal would only come after a conference is done expanding and has all of its wanted members for at least a generation. Signing this deal would complicate adding Notre Dame, Miami, UNC, FSU, or anyone else for the B1G. How would the new members receive private equity to match their conference peers if the deal was already signed before expansion?

Unless the B1G plans to stop at its current 18 members.
I would think that the private equity investment would set the Big 10 valuation for expansion candidates. In other words if the Big 10 revenue rights are worth $2 billion for 10%, or $20 billion total, it may cost an expansion candidate $1 billion to join the Big 10. So, pay $1 billion and get a revenue stream of $75 million growing say 8% per year.
 
One note on the Big Ten potentially taking Stanford and Cal. Unexpectedly, it could mark the end of the ACC as a relevant conference due to lack of a significant television contract. Here's why:

Remember how the PAC 12 died partially because the Big 12 had taken the last remaining tv slots and there were none left for the PAC 12? There may be a similar situation coming where no significant networks will broadcast a substantial number of ACC games on tv (after the ACC GOR expires in 2036), because all the main networks are already taken. The Big Ten has gobbled up FOX (and FS1), CBS, and NBC (which they share with Notre Dame). The SEC has taken ESPN, ESPN2, and ABC. What's left?

The only available slots I see remaining are during the late night hours. The Big Ten will take that slot on FS1 since they now have western teams; none of FOX, CBS, or NBC are likely to broadcast 10pm football games nationally. Meanwhile, ESPN has late night openings since the SEC won't have any 10pm games. The question is whether they'd rather broadcast Big 12 or ACC games during that time.

The Big 12 currently has five teams out west: Utah, BYU, Arizona, Arizona State, and Colorado. Meanwhile, the ACC only has two teams out west: Stanford and Cal. If those two get invited to the Big Ten, the ACC will have no western teams and thus no value for ESPN, in terms of filling its late night slots. In this scenario, ESPN would pick the Big 12 over the ACC, leaving the ACC with no significant tv contract. To make matters worse, that'll likely lead to the main remaining ACC schools bolting for the Big 12, and then the ACC is really screwed. Remember that they're already going to lose UNC and one or all of UVA/FSU/Clemson to the SEC. They can't afford to lose all of them plus Miami and more to the Big 12 on top of that.

However, if Cal and Stanford remain in the ACC, the conference will likely add a few western teams- probably Boise State and one or more of UNLV/San Diego State/Washington State- and then it becomes unclear whether ESPN would prefer the Big 12 or ACC. So unexpectedly, it seems to me like the key to the ACC having a shot at survival as a relevant and main conference hinges on keeping Stanford and Cal.
 

Online statistics

Members online
304
Guests online
4,915
Total visitors
5,219

Forum statistics

Threads
164,713
Messages
4,407,452
Members
10,225
Latest member
Tempo101


.
..
Top Bottom