I have been saying for quite awhile that Commissioner Brett Yormak is one of the most innovative and aggressive commissioners of any conferences in the landscape
HUGE NEWS for Big 12
- Thread starter Harvard Gamecock
- Start date
Schools can opt in for a $30 million line of credit. I don't imagine many schools will sign up for $30 million in debt, will they?
The conference gets $12.5 million in capital, which is good for the conference, but I don't know about the line of credit. I'm not a financial person...at all...so someone would have to explain how that makes sense. I'd say maybe they could take the line of credit and invest, but the line of credit is at 10%. And a school can burn through $30 million in no time at all. Won't get any serious facility upgrades for that.
I'm sure RedBird Capital would be like the govt. and once they provided any money, they would want to be able to dictate how the money was spent and how the school and conference acted.
Does Commissioner Brett Yormak have a ''friend'' at Redbird Capital?
Private equity destroys restaurants.
There are schools that will be desperate enough to wade in, but will face a real dilemma when much of their revenue has to go toward this additional debt retirement.
And raises prices. That's what they've done to the apartment market.
It is a line of credit, that does not mean that any school has to go to the 30 million limit..
Not any different than any line of credit any business or individual borrows from. There is a limit, but one can always borrow a lesser amount.
I understand how a line of credit works, but some schools won't be able to keep it all together without availing themselves. Costs are spiraling.
BYU has recently stated they will not be using capital funding.
However,BYU is in a very good financial position and has a fiercely independent mindset.
According to a new report from On3's Pete Nakos, top 2027 high school football recruits are making some wild demands, including:
'Programs now face a fixed pie. The floor for a Power Four roster budget sits at $15 million. The ceiling is pushing $50 million. Top recruits are eating a bigger slice than ever, and schools only have so many dollars to spend.
"It's insanity," one SEC staffer told On3. "You can actually pay for five or 10 top guys you actually want, and then you're trying to put together the rest of your 18 to 25-person class with the rest of the cash you have on hand."
sports.yahoo.com
- Seven-figure guaranteed offers right out of high school
- Massive multi-year deals
- One prospect even asked for a sauna to be built at his parents' house
'Programs now face a fixed pie. The floor for a Power Four roster budget sits at $15 million. The ceiling is pushing $50 million. Top recruits are eating a bigger slice than ever, and schools only have so many dollars to spend.
"It's insanity," one SEC staffer told On3. "You can actually pay for five or 10 top guys you actually want, and then you're trying to put together the rest of your 18 to 25-person class with the rest of the cash you have on hand."
Nick Saban thinks that urgent changes are needed
"One team shouldn't have a $40 million roster and another team have a $5 million roster, and they're out there playing each other. There should be some kind of -- every league, NFL, basketball, hockey -- they all have a salary cap or something that creates parity in the league so everybody has an equal opportunity to win," he told Paul Finebaum.Report: Top 2027 Football Recruits Are Making Wild Demands
The recruiting cycle for the Class of 2027 is underway, as college football programs are doing what they can to secure commitments from the top players in the country. While some of the top 2027 college football recruits have already announced their commitments, several top players remain ...
sports.yahoo.com
How do you see it working to a school's benefit to take advantage of the private capital funding? I ask b/c I'm not a financial guy.
The one article I read said it was up to $30 million at 10%. How does that compare to what they could get in a loan/funding from other sources?
To me, it seems like an infusion of debt, not cash. However much a school borrows, they're now in debt, so they haven't strengthened their financial position. Do you borrow capital to fund NIL? That doesn't seem wise. I guess I could see if you wanted to do something regarding facilities.
Again, not a financial guy. To me, I just see debt.
The numbers being mentioned are somewhat beyond my knowledge of the nuances of high capital funding and/or how it would apply in this situation. This is truly uncharted territory.
