trueblueintexas

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. 

DonAZ

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.

Cranky Dave

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. 

Blue in Paradise

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...

JPC

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. 

Blue_by_U

January 1st, 2019 at 11:46 AM ^

100% agree. The money is the monster in the room and we are just seeing the start of it's end. Kids sitting out bowl games to protect their possible NFL stardom, while reality says 2 years in the league is a normal expectation...assuming they make it that far. Yep a lot of guys go on to play many years making millions...only to be broke due to their agent, the baby mommas, their posse who expects to be lavished with cash, etc. 

So much has already been placed on a money making venture, TV deals are controlling kick offs, matchups, bowls, etc. And if you think for a second the 2016 call seemed biased with 'the spot' wait until investors want a return on their team winning a playoff berth...this will end badly.

The argument of handing legal cash to players is selfish and self serving at the highest level of fanaticism. Thinking money will make YOUR team better is absurd. The bamas and buckeyes of the world will continue paying above and beyond the limits and the grey area created with legalized payments will simply make it impossible to stop. Not to mention paying JUST football will never fly. Women's sports will want their cut. That's why scholarships are already so jacked up. There isn't a women's sport even close to the 85 limit football has, so other smaller revenue men's sports suffer to offset.

Blue in Paradise

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.

Blue_by_U

January 1st, 2019 at 7:04 PM ^

And...even if it were, no chance the NCAA allows MICHIGAN money cannons to upset the current balance. The mentality that allowing football to receive money somehow benefits us is terribly flawed and naive. Above board we can't offset the shit already happening behind the scenes unless the NCAA grows a spine and uses controlled money as a means for death penalty to schools and bagmen if caught...not going to happen and thus this shit of Michigan money helping us win is blind and misguided arrogance.

jgoodman

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.

LabattsBleu

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?

Don

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.