From the link:
After all, they do have an incentive to see increases in a department’s revenue: They earn a percentage on any new annual growth. Over a 10- to 20-year period, that percentage decreases from, perhaps, 22% in the first few years to 2% by its end, as the firm meets its original principal investment. Weatherford describes this as taking a “revenue royalty.”
If there is no growth, the firm does not take a cut.
“They are not mandated to pay us back the money we give them,” Weatherford said.
These capital firms are built around investing wisely in revenue-generating entities. Why take a risk on the unstable situation in college sports if you aren’t guaranteed a profit?
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“It’s basically like going and taking out a loan and repaying it over 15-20 years,” said another power conference athletic director. “Here’s the thing: How desperate are you? Because you’ve got to pay off that note.”