Corporations and PE firms to invest in college sports

[Delco Lion]

Well, it was a good run.

Private investment firms partner to potentially cash in following sweeping changes in college sports

Two private investment firms have created a platform to help athletic departments find funding with college sports on the verge of sweeping change that could have long-term financial implications.

apnews.com

 

[lazydave841]

While on the treadmill yesterday, one of the TVs was on CNBC. They were talking about TNT buying the rights to the playoff games that was announced yesterday.

 

[LMTLION]

And no doubt the private equity firms will get involved in NIL to protect their investments.

 

[PSUMATT85]

I

Well, it was a good run.

Private investment firms partner to potentially cash in following sweeping changes in college sports

Two private investment firms have created a platform to help athletic departments find funding with college sports on the verge of sweeping change that could have long-term financial implications.

apnews.com

so we know PE firms will get their money plus a return back out. The question becomes is did they create that value, or are they taking value from the universities.

 

[OKLionFan]

Great! more huge amounts of $$$$$$$$ pouring into college sports. What could go wrong?

 

[Op2]

I don't know the law at all but it wouldn't surprise me if at some point people started suing public universities over stuff like this. How far away from a public university's publicly funded mission can a public university roam before the public starts to object?

 

[stf110]

I don't know the law at all but it wouldn't surprise me if at some point people started suing public universities over stuff like this. How far away from a public university's publicly funded mission can a public university roam before the public starts to object?

How is this all that different from when other private companies donate scabs of money to the schools for non athletic goings on?

 

[Obliviax]

well, CFB is now a business. It is a professional league. Done and toasted.

 

[Op2]

How is this all that different from when other private companies donate scabs of money to the schools for non athletic goings on?

The question is, whatever "goings on" are going on, are they things that should be happening at a publicly funded with a specific mission? And yes, there's probably lots of things that don't fit the mission currently, but as there become more and more then we may get closer and closer to a "That's the last straw" scenario for some people.

 

[91Joe95]

I

so we know PE firms will get their money plus a return back out. The question becomes is did they create that value, or are they taking value from the universities.

And are they getting an artificially low purchase price at the expense of the taxpayer? Which reminds me, I need to go check Nancy's trades again.

 

[PSUMATT85]

And are they getting an artificially low purchase price at the expense of the taxpayer? Which reminds me, I need to go check Nancy's trades again.

Why else would they do it?

 

[heckmans]

I

so we know PE firms will get their money plus a return back out. The question becomes is did they create that value, or are they taking value from the universities.

They provide capital up front to spawn growth, etc which is where they get their return. They only get a return, if the value of the entity increases. PE firms aren't banks.

I don't know how these deals will be structured, but the NFL is considering it and other sports leagues allow it. In most cases, PE firms investments must be passive, meaning they cannot influence the operation of the entity.

 

[Hugh Laurie]

In most cases, PE firms investments must be passive, meaning they cannot influence the operation of the entity.

Really? Tell that to Bill Ackman and other hedge fund and private equity guys like him.

 

[heckmans]

Really? Tell that to Bill Ackman and other hedge fund and private equity guys like him.

Yes. My entire post was specific to Professional sports leagues. PE firms are obviously not passive when they buy a company to manage, invest and sell.

Private equity in the NFL? How team ownership might shift

A move to allow private equity firms to invest in NFL teams would represent a large shift in how the league has historically operated.

www.espn.com

 

[LandoComando]

well, CFB is now a business. It is a professional league. Done and toasted.

Since the 80s...

 

[LandoComando]

"The Big Ten distributed $60.5 million to its 12 longest-tenured members, while Maryland and Rutgers, which joined the conference in 2014, each received $58.9 million. "

Not sure why we're worried about any other money coming in or why anyone has been pretending things are changing. This is how it's always been. College football was a big business with the athlete being used to benefit the school and other athletes of programs that can't generate money. Now the players are RIGHTFULLY being compensated. it's long overdue.

 

[Hugh Laurie]

Yes. My entire post was specific to Professional sports leagues. PE firms are obviously not passive when they buy a company to manage, invest and sell.

Private equity in the NFL? How team ownership might shift

A move to allow private equity firms to invest in NFL teams would represent a large shift in how the league has historically operated.

www.espn.com

 

[Katatonic]

More often than not, PE firms are nothing more than leeches as seen by the demise of Red Lobster, Circuit City, The Sports Authority, Toys-r-Us, Bed Bath & Beyond, etc.

 

[Namazo]

They provide capital up front to spawn growth, etc which is where they get their return. They only get a return, if the value of the entity increases. PE firms aren't banks.

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[WaylonJ]

I like nurses. I married one. She'd trade you an essay for what she does every day in a hot minute.

 

[WaylonJ]

PSU is done. Went from near-relevant to mission impossible in the blink of an eye. $300 parking is next. I don't know why they aren't charging kids 50 or 100 bucks to take their grad pictures at the stadium wall or the lion statue. They're missing a great revenue stream.

 

[87 Penn St8]

I don't know the law at all but it wouldn't surprise me if at some point people started suing public universities over stuff like this. How far away from a public university's publicly funded mission can a public university roam before the public starts to object?

Exactly. If you take "college" out of "college sports" what is left?

The pay for coaches is disgustingly high- but logical if they are the Captains of mighty revenue streams. But what about losing programs with limited attendance? Yeah- there is a market correction but these recycled guys still earn tons more than top professors. "Out of whack" is a term a former coached would"'ve used.

Is it fair for athletes to get some of the action? Again- like JoePa- I'll agree. The fact that the numbers are staggering just shows how big the Cash Cow was and why the NCAA fought so long and hard to avoid the outcomes we are witnessing now.

I'm hoping that this stage of the process quickly evolves into something tangible and unilaterally enforceable. That is unlikely- Don Quixote-esque.

.

 

[LMTLION]

PSU is done. Went from near-relevant to mission impossible in the blink of an eye. $300 parking is next. I don't know why they aren't charging kids 50 or 100 bucks to take their grad pictures at the stadium wall or the lion statue. They're missing a great revenue stream.

I know many here probably think it is an excuse for mismanagement, but PA is one of the worst in the U.S. in terms of per capita funding of higher education. Yes, I am sure there are too many assistants to the assistants of some unknown administrators. That happens in private companies as well. Overall the state’s commitment to higher education is embarrassing. This is why some young people realize there is nothing for them here and go elsewhere in the country.

 

[heckmans]

I know many here probably think it is an excuse for mismanagement, but PA is one of the worst in the U.S. in terms of per capita funding of higher education. Yes, I am sure there are too many assistants to the assistants of some unknown administrators. That happens in private companies as well. Overall the state’s commitment to higher education is embarrassing. This is why some young people realize there is nothing for them here and go elsewhere in the country.

Are you referring to PA funding of the state school system, or just the 4 private, state related universities? Just curious