Reply to thread

Message: [QUOTE="The Yakk, post: 5048660, member: 9988"] The reason PE investors are interested is for a chance at a piece of [B]every single dime of revenue[/B] that passes through the school. It is not obvious to you because your thinking is constrained by a basic ethical sense that is completely lacking among the PE crowd. The PE investor looks at one these big P4 state schools--or maybe a conference full of these schools--and sees 25,000 undergrads times $20,000 average annual tuition = $500,000,000 coming in every year. Hopefully in perpetuity, since these schools are [B]institutions[/B]. That's before even counting the athletic department revenue. Why not grab 5% or 10% of that and let the schools worry about how to keep running on what's left? Mundane stuff like attracting and paying top faculty; maintaining state-of-the-art facilities; keeping class sizes small--none of that is any concern to the PE investor. The reason there is PE interest in these conferences is [B]definitely not[/B] because of the great economic potential of their football programs. It's because these particular schools are the ones most likely willing to be swindled into putting their entire revenue streams in play. So yes, the deals will be sold/presented as investments in a school's athletic program. But if a school has a few years of poor performance, or declining ticket sales, or a reduction on their media payments, does anyone really believe that the investor [B]will not[/B] have access to the school's tuition stream as compensation? This might end up being one of the safest/most lucrative investment opportunities ever, at least until the public realizes that the school has been gutted and we stop sending our kids there. The PE crowd is betting that will take a very long time, and that's probably a good bet. [/QUOTE]

Verification: First name of men's bb coach

Forum statistics

Threads: 164,486

Messages: 4,398,184

Members: 10,212

Latest member: MurrDog