BIG Seeking Private Capital?

[BugsAreQualityProtein]

Sources: Big Ten discussing $2 billion private capital deal

The Big Ten is in talks about a private capital deal, which includes a 10-year grant of rights extension through 2046, that would infuse at least $2 billion into the league and its schools, sources told ESPN.

www.espn.com

Ingenious power play by the BIG or knee jerk reaction to House vs NCAA?

 

[BugsAreQualityProtein]

Here is a video that I think explains it well.

 

[BleedRed89]

I sure as **** hope it doesnt happen. From the sounds of it, Ohio State and Michigan are completely opposed to it. I dont see it happening if theyre both against it.

 

[Shimmer003]

Private equity kills anything it touches. They add nothing, cut everything and quality goes down. I fail to see how their investment would help the conference.

 

[BugsAreQualityProtein]

Private equity kills anything it touches. They add nothing, cut everything and quality goes down. I fail to see how their investment would help the conference.

It’s essentially a bailout for the universities in the BIG that are in massive debt and can’t keep up with NIL.

 

[king_kong__]

It’s essentially a bailout for the universities in the BIG that are in massive debt and can’t keep up with NIL.

Given the current rights deal + this extension it amounts to $5.5M/member/year

aka mouse nuts

the fact this leaked wreaks of B1G desperation with the SEC’s new media deal neigh

 

[BugsAreQualityProtein]

Given the current rights deal + this extension it amounts to $5.5M/member/year

aka mouse nuts

the fact this leaked wreaks of B1G desperation with the SEC’s new media deal neigh

Hilarious they’ll gamble the next two decades away instead of waiting five more years for a new deal.

 

[Shimmer003]

Given the current rights deal + this extension it amounts to $5.5M/member/year

aka mouse nuts

the fact this leaked wreaks of B1G desperation with the SEC’s new media deal neigh

It’s such a short sighted move. Initial investment gets made…then they want it back. Plus profit. They sell you on their ability to increase revenue which will make everyone money, but turns out they have no knowledge in most fields and are bound to no legal guarantee that they can follow through with anything to uphold the promises of increased revenue. Then, when they get impatient, they sell off capital and reduce distributions to other share holders. They’re leaches. I hope someone at the big 10 is smart enough to put an end to this

 

[litespeedhuskerfan]

Is there any irony in the most liberally run confrence.... they're entertaining this? Ever notice how they want everyone else to sacrafice? But they get to do the cash grab.

 

[Nuts McClanahan]

Hilarious they’ll gamble the next two decades away instead of waiting five more years for a new deal.

You've successfully explained the playbook of 90% of all publicly traded companies. Live for today.

 

[BleedRed89]

You've successfully explained the playbook of 90% of all publicly traded companies. Live for today.

Drives me nuts. "We must show increases every quarter" is destroying corporate America and the products they serve to us.

 

[Nuts McClanahan]

Drives me nuts. "We must show increases every quarter" is destroying corporate America and the products they serve to us.

Agreed. Find a gimic or a quick fix to drive up the value of those shares so that execs can unload some of their stock options.

 

[Man Woman & Child]

Didn't the Big 12 float something like this last year? They were pretty much on life support and seemed desperate though. Wouldn't think the almighty amazing B1G B1G B1G would need it.

 

[OxfordComma]

The money infusion is acutely needed at a number of Big Ten schools that are struggling with debt service on new construction, rising operational expenses and providing additional scholarships and direct revenue ($20.5 million this year and expected to rise annually) to athletes.

The Big Ten has argued that the deal would alleviate financial strain and help middle- and lower-tier Big Ten schools compete in football against the SEC.

….

The deal has not been without detractors, with both Michigan and Ohio State -- the league's two wealthiest athletic programs -- expressing skepticism initially, per sources. Each school has been hit with significant lobbying not just from the league office but also other conference members to come to an agreement.

Politicians in a number of states have also voiced opposition, including United States Senator Maria Cantwell (D-WA) who stated Thursday, "You're going to let someone take and monetize what is really a public resource? ...That's a real problem."

Cantwell followed up Friday by sending a letter to each Big Ten president warning that any deal involving private equity could invite review, including impacting the schools' tax-exempt status.

https://www.espn.com/college-sports...ses-private-equity-agreement-vote-per-sources

 

[Charlie Marlow]

Didn't the Big 12 float something like this last year? They were pretty much on life support and seemed desperate though. Wouldn't think the almighty amazing B1G B1G B1G would need it.

I remember the K State wonk on here going on and on about it and we all made fun of him for it.

 

[Shimmer003]

The money infusion is acutely needed at a number of Big Ten schools that are struggling with debt service on new construction, rising operational expenses and providing additional scholarships and direct revenue ($20.5 million this year and expected to rise annually) to athletes.

The Big Ten has argued that the deal would alleviate financial strain and help middle- and lower-tier Big Ten schools compete in football against the SEC.

….

The deal has not been without detractors, with both Michigan and Ohio State -- the league's two wealthiest athletic programs -- expressing skepticism initially, per sources. Each school has been hit with significant lobbying not just from the league office but also other conference members to come to an agreement.

Politicians in a number of states have also voiced opposition, including United States Senator Maria Cantwell (D-WA) who stated Thursday, "You're going to let someone take and monetize what is really a public resource? ...That's a real problem."

Cantwell followed up Friday by sending a letter to each Big Ten president warning that any deal involving private equity could invite review, including impacting the schools' tax-exempt status.

https://www.espn.com/college-sports...ses-private-equity-agreement-vote-per-sources

It’s a short sighted move. Yes there is initial capital investment. But then what? What do they bring to the table to increase revenue beyond what the B1G can do without them to justify their long term siphon? I argue the answer to that is nothing. This is a short term cash grab that will ultimately hurt the league. I really hope they don’t do it. I’ve seen this happen in other industries and ultimately it’s never a good thing for anyone but the capital investors.

 

[OxfordComma]

It’s a short sighted move. Yes there is initial capital investment. But then what? What do they bring to the table to increase revenue beyond what the B1G can do without them to justify their long term siphon? I argue the answer to that is nothing. This is a short term cash grab that will ultimately hurt the league. I really hope they don’t do it. I’ve seen this happen in other industries and ultimately it’s never a good thing for anyone but the capital investors.

Michigan and OSU were against it, as they should be. How about we don’t borrow from the future and instead see who can sink or swim on their own? Those that drown don’t get invites to the super conference.

I wonder where NU stands on this.

 

[Cruel Halo]

Michigan and OSU were against it, as they should be. How about we don’t borrow from the future and instead see who can sink or swim on their own? Those that drown don’t get invites to the super conference.

I wonder where NU stands on this.

 

[Poster FKA schuele]

I remember the K State wonk on here going on and on about it and we all made fun of him for it.

Yeah it's too bad His Majesty Averitas isn't around to mansplain to all of us why this was a fabulous idea for the Big 12 but a greedy money grab for the evil Big Ten.

Kind of like how he always despised conferences trying to poach new members, unless of course when it was being done by his hero Brett Yormark.

(And just to be clear, I thought it was a stupid idea in both cases.)

 

[BleedRed89]

Sounds like it's happening. With the caveat that it isn't actually an investment firm, but a California pension fund?

I still don't like the idea of selling any bit of the pie to outside entities. But I suppose that would at least be a marginal improvement over a bona fide firm coming in to drive short term revenue regardless of long term value. A pension fund would, one would assume, like to see those gains continue for a long time as well (The contract was stupidly long IIRC?)

 

[Shimmer003]

Sounds like it's happening. With the caveat that it isn't actually an investment firm, but a California pension fund?

I still don't like the idea of selling any bit of the pie to outside entities. But I suppose that would at least be a marginal improvement over a bona fide firm coming in to drive short term revenue regardless of long term value. A pension fund would, one would assume, like to see those gains continue for a long time as well (The contract was stupidly long IIRC?)

Wtf are the schools and league thinking? A pension fund? Lol.

 

[king_kong__]

PE will hold 100% of B1G media rights through the terms of the deal

guess this is what happens when you already don't own a controlling interest in your biggest asset (thanks to cancelling football during COVID)

brutal stuff from the heads of our beloved conference

 

[Truewooper]

The money infusion is acutely needed at a number of Big Ten schools that are struggling with debt service on new construction, rising operational expenses and providing additional scholarships and direct revenue ($20.5 million this year and expected to rise annually) to athletes.

The Big Ten has argued that the deal would alleviate financial strain and help middle- and lower-tier Big Ten schools compete in football against the SEC.

….

The deal has not been without detractors, with both Michigan and Ohio State -- the league's two wealthiest athletic programs -- expressing skepticism initially, per sources. Each school has been hit with significant lobbying not just from the league office but also other conference members to come to an agreement.

Politicians in a number of states have also voiced opposition, including United States Senator Maria Cantwell (D-WA) who stated Thursday, "You're going to let someone take and monetize what is really a public resource? ...That's a real problem."

Cantwell followed up Friday by sending a letter to each Big Ten president warning that any deal involving private equity could invite review, including impacting the schools' tax-exempt status.

https://www.espn.com/college-sports...ses-private-equity-agreement-vote-per-sources

Maybe this article getting floated out will mean adults will step up and put a stop to the wild wild west this sport has become. PE would be the nail in the coffin of this once great sport. We need to get all the conferences together and hash out how to make things more fair. Or are all the conferences going to need to declare bankruptcy before it finally happens?

 

[Truewooper]

PE will hold 100% of B1G media rights through the terms of the deal

guess this is what happens when you already don't own a controlling interest in your biggest asset (thanks to cancelling football during COVID)

brutal stuff from the heads of our beloved conference

This will almost certainly guarantee bottom feeders team get kicked. Well Northwestern doesn't really bring in x return.

 

[Man Woman & Child]

This is quintessential how things go when people don't know how to STAY IN YOUR LANE!!!