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

The Private Equity College Sports Hellscape Thread

B1GEast said:
The private equity is going to monetize everything fans experience

Ticketing, pricing etc
Concessions
Corporate sponsorships
Brand licensing and trademarks
Fan engagement

I should clarify, it is a risk for the equity but for Utah it's a win

So my response is changed a bit. It's not win win

The equity firm might make a return, but in order to achieve this, the University has to turn that money into winning programs and win big.
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It's going to be a win for The PE, and a loss for UTAH.
 
nelsonmuntz said:
Increasing prices will reduce the number of customers. Demand is elastic. And most schools have seen modest declines in attendance over the last 10+ years without big ticket price increases.

College athletics is a mature market where most of the price increases have already occurred. And if there are more price increases to push through, Utah didn't need the PE firm's involvement to do it. Now Utah has a partner that is expecting a 20%+ return on its investment, and I don't see where that is coming from other than out of Utah's pocket. Or Otro takes a bath on this investment. I do not see a magical third option.
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At a lot of P2 schools ticket prices have increased over 10%. Has not impacted attendance at most of these schools. All it has done has increased the distance from the haves- Ohio State, Alabama, Georgia, Texas, and Michigan and the have nots - BC, Syracuse, Wake Forest, Rutgers, and Maryland, etc.
 
Forte said:
Someone explain to me BC at 54...???
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"The value of college athletic programs is being fueled in large part by escalating media rights deals for football and basketball."
 
Forte said:
Someone explain to me BC at 54...???
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On squawk box this morning when they released these, they went over the numbers by conference payout. I’m sure that’s where most of this is coming from. I forgot if the ACC payout was 40 million I was half asleep.
 
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Hoophound said:
At least we made it. Stupid list though. Just call it "highest revenue".
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These numbers for the schools’ are silly for revenue. They include subsidies and block grants from the university or the state. For example UConn’s self-generating revenue is $62.7 million for 2024.
 
The calls for PE along with prior shenanigans of NIL, payouts, etc. have brought congress into the party. Should be fun to watch.
 
Ha Who said:
www.cnbc.com

CNBC's Official College Sports Valuations 2025: Top 75 athletic programs

The programs are worth a combined $51.22 billion, 13% more than the top 75 in last year's rankings.
www.cnbc.com www.cnbc.com
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This site is stupid. You should be able to sort it as you wish. If you sort by 2024 Revenue, UCF comes in first at $98M because it begins with a 9. If these numbers mean anything, it is very impressive for non P4 programs to be included since they don't have the media funding. I suppose the decision makers don't understand this list so back to CR#1

Multiples start at 4
UConn's multiple is only 2.4 while bcu's is 3.9 and su is 4.0 so the methodology is highly suspect

71 UConn
68 SDSU
72 USF
74 Boise St
75 UNLV
 
A cautionary tale on this should be Sally's Apizza (it's being discussed on the pizza thread). The PE firm that took over played nice for quite a while, slowly expanding, one location at a time, strategically placed to ensure the look and feel needed to be a Sally's restaurant.

Now the plan is to blast out 200 locations throughout the country. The thing is they need to get their targeted return and will do whatever is necessary to get there.
 
.-.
Forte said:
Someone explain to me BC at 54...???
Expand ...

To determine the rankings, CNBC and Belzer incorporated the expertise of several people knowledgeable about athletic program valuations who asked not to be named in order to freely discuss details of the programs.
 
FfldCntyFan said:
A cautionary tale on this should be Sally's Apizza (it's being discussed on the pizza thread). The PE firm that took over played nice for quite a while, slowly expanding, one location at a time, strategically placed to ensure the look and feel needed to be a Sally's restaurant.

Now the plan is to blast out 200 locations throughout the country. The thing is they need to get their targeted return and will do whatever is necessary to get there.
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It’s crazy when folks try to make money from running a business.
 
Kolumbo said:
This site is stupid. You should be able to sort it as you wish. If you sort by 2024 Revenue, UCF comes in first at $98M because it begins with a 9. If these numbers mean anything, it is very impressive for non P4 programs to be included since they don't have the media funding. I suppose the decision makers don't understand this list so back to CR#1

Multiples start at 4
UConn's multiple is only 2.4 while bcu's is 3.9 and su is 4.0 so the methodology is highly suspect

71 UConn
68 SDSU
72 USF
74 Boise St
75 UNLV
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It's absurd. No one can possibly believe that N
BC, just because it's tied to the ACC is more valuable than UConn.

It's shoddy journalism boiled down to such simplicity. They should be ashamed to even post this stuff.

Value is intrinsic and BC doesn't move the needle. They are just basing this off of revenue generated by the ACC contract.

I'm surprised that big media personalities haven't disparaged this article yet
 
Kolumbo said:
This site is stupid. You should be able to sort it as you wish. If you sort by 2024 Revenue, UCF comes in first at $98M because it begins with a 9. If these numbers mean anything, it is very impressive for non P4 programs to be included since they don't have the media funding. I suppose the decision makers don't understand this list so back to CR#1

Multiples start at 4
UConn's multiple is only 2.4 while bcu's is 3.9 and su is 4.0 so the methodology is highly suspect

71 UConn
68 SDSU
72 USF
74 Boise St
75 UNLV
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I think the methodology places additional value when the TV contract has numerous years remaining. So, the ACC benefits from their 2036 duration and UConn is penalized by our short term and low value football tv contract. So, the UConn multiple suffers as opposed to every other school.
 
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Drew said:
Has to be good news for a Northeast based public school looking to gain entry into this league. IIRC Flug was spewing that PE wanted UConn in the league last summer
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I wonder if it's the same PE group.
 
Sounds like RedBird is getting a taste, wetting its beak. Perhaps see how a small investment works out while getting the relationship going. beware of Don Fanucci. Maybe Yormark IS Don Corleone. Is RedBird Larry Wildman or Gordon Gekko
 
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PE rarely makes things better. They do not improve your sandwiches at Panera and they will not improve the quality of the Big 12.

They are there to make money. The teams are the expense. This is a tread carefully moment IMHO.
 
Purple Stein said:
PE rarely makes things better. They do not improve your sandwiches at Panera and they will not improve the quality of the Big 12.

They are there to make money. The teams are the expense. This is a tread carefully moment IMHO.
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I think the Big 12 is desperate and on its last legs.
 
I looked RedBird up due to curiosity.

One review site claimed they had $10 billion assets under management, another claimed $14 billion. Either way that is kind of small foe a PE firm.

They have been involved with many sports (or sports related) investments, including Fenway Group; YES Network; AC Milan; FC Liverpool and Lebron's venture with Maverick Carter.

The managing partner is a Villanova grad for whatever that may be worth.

I still maintain that those who partner with PE firms are agreeing to swim with sharks. I'm not sure there are many in the academic world who would realize exactly what they are signing up for when they take PE money.
 
FfldCntyFan said:
I still maintain that those who partner with PE firms are agreeing to swim with sharks. I'm not sure there are many in the academic world who would realize exactly what they are signing up for when they take PE money.
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This. It is certainly possible to structure a mutually beneficial deal with private equity. I don't know that I expect university presidents to be able to fairly evaluate the risks and returns. Presumably the other professionals involved will inform them of the risks and advantages and they will fairly evaluate them.
 
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