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UConn Athletics
Conference Realignment Board
The Private Equity College Sports Hellscape Thread
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[QUOTE="Rufus, post: 5343178, member: 7277"] If I understand it correctly, the investor is paying for a share of future B1G revenue. So the B1G gets all this money upfront, in exchange, B1G revenues will be split 20 ways ---- 18 shares to each school, 1 share to the conference itself, and 1 share to this outside investor. And new revenue streams will be created that currently do not exist, such as sponsor patches on team uniforms, but the sponsors would have to pay to sponsor on all 18 team uniforms and can't pick and choose who they want. Sounds like they are going to leverage the B1G brand to increase revenue for all members. However, it also said these new revenues will not be shared equally between the 18 schools, so the bigger brands will get more money. This could be a way to keep all media rights revenues split evenly like is tradition, while giving the bigger brands more of the pie through these new revenue streams. This sounds much better than the original concept of private equity entering college sports that was talked about in the past. Having said that, I still don't feel comfortable with any investors entering college sports. This will help the B1G separate itself from the other conferences because no other conference can generate the revenue the B1G can. The SEC can keep it close if it goes a similar route. The ACC and Big 12 will fall further behind. [/QUOTE]
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