The Private Equity College Sports Hellscape Thread

[FfldCntyFan]

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.

My concern is the return the PE firm wants and the structure of cash distributions on an ongoing basis.

Carried interest can turn into a nightmare for the borrower, and often in the agreements, the language allows the lender to delay receipt of payments (framed as a good thing for the borrower) in order to increase returns.

 

[CTFAN4LIFE]

How do you know?

Because they were the potential partners previously reported about.

 

[Fishy]

It’s not private equity.

It’s just a line of credit at a rate that is more expensive than any school wanting $30M could get on their own.

The $12.5M “infusion” into the conference office is just bizarre. The whole thing screams that it’s just a deal to be able to announce a deal. It’s the LCD glass floor of capital deals.

 

[ZooCougar]

Because they were the potential partners previously reported about.

They seem very light weight. Again, I am wondering what good it will do to anyone. If nobody wants the $30M per school then how does that influence anyone to vote for UConn.

 

[Hamms30]

They seem very light weight. Again, I am wondering what good it will do to anyone. If nobody wants the $30M per school then how does that influence anyone to vote for UConn.

think they're affiliated with CBS and BigXII has a new media contract coming up.