Siap pac12 proposes private investors in conference.
Posting from my phone so sorry if already posted or some other social violation
January 1st, 2019 at 11:13 AM ^
Thank you for sharing. This is an interesting time to be alive - what college sports will look like in 10 years is anyone’s guess.
January 1st, 2019 at 11:18 AM ^
Larry Scott is Bernie Madoff in sheep's clothing.
January 1st, 2019 at 11:23 AM ^
Interesting, legally it will be very difficult to maintain any argument for amateur athletics when your conference is paying out dividends to entities other than the schools and related companies.
January 1st, 2019 at 11:28 AM ^
I wonder what the distribution yield for such an investment would be? There's way too many options down in the 1.5% to 2.5% range, so they'd have to pay closer to 4% or higher to attract much capital. And for what? A slice of a media cash flow that's less than certain? The Pac-12 doesn't strike me as a growth industry. Nor does most of college football at this point in time, to be honest.
January 1st, 2019 at 12:19 PM ^
More importantly, PE investors, certainly the big ones generally don’t like minority’s stakes and can’t leverage the PAC12.
i didn’t read the article, so may be menationed there, but I could a pension fund providing capital before PE.
January 1st, 2019 at 12:34 PM ^
Agreed - it must be more than a passive cash flow yield they are looking for. My guess is that it is the first step towards a broader strategy.
Let’s say theoretically they were able to get influential stakes in 3 conferences - they could facilitate all sorts of P&L enhancing ventures: an 8 / 16 team playoff, an image rights partnership with the players, pre-conference season bowls, CFB themed real estate development, enhanced NFL partnerships, and hundreds of other ideas that are beyond my imagination...
January 1st, 2019 at 11:28 AM ^
This is getting crazy. I'd be fine with all the elite HS kids going to an NFL development league, rather than play NCAAFB.
Get the money out of college sports.
January 1st, 2019 at 12:12 PM ^
Sadly, it probably never happens. The NFL doesn't want to incur the cost, and the NCAA doesn't want to give up their cut.
January 1st, 2019 at 12:41 PM ^
The Michigan money cannon is bigger than OSU and multiples bigger than the Clemson, Bamas and Georgias of the world.
i bet the top 3 Michigan alumni boosters have more money to “invest” than the entire fan/alumni bases of Clemson, Alabama and Georgia combined.
They have millionaires, Michigan has billionaires. Texas, Texas A&M and the Oklahoma schools become the competition among universities that care about football.
January 1st, 2019 at 2:12 PM ^
There's no need to create a new development league nobody will watch. Just let them go to the NFL whenever they want.
The NCAA has been very consistent across all sports that it is an amateur athletics organization. Paying players is an artificial problem created by the arbitrary rules of the only professional league in the country.
January 1st, 2019 at 12:16 PM ^
you'd have to think that amateurism is at an end... and it should be imo...Players should be getting some form of compensation beyond the scholarships.
i know people might disagree, but there is probably some middle ground somewhere. Players getting compensated for use of their likeness seems like a no brainer. Same with jerseys with their name and number...
Anyways, if the PAC12 does go this way, they'll be pushing for playoff reforms for sure; you would have to be part of the playoffs if you are going to try attracting investors.
the issue is whether investors cut out the non revenue sports because they are losing money?
January 1st, 2019 at 12:57 PM ^
I'm All for Private Investigators to catch Bama Bagmen.
January 1st, 2019 at 1:45 PM ^
With private investors comes a blizzard of advertising that will make the current marketing look like a flier for 4-year old’s birthday party. We’ll eventually see corporate logos on uniforms and helmets.
January 1st, 2019 at 2:04 PM ^
USC and Oregon have been using this model for years. Good to see the rest of the conference finally catching up.
January 1st, 2019 at 3:40 PM ^
Private investors = stronger "private" recruiting deals too....IMO