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[QUOTE="Cuse181, post: 4724836, member: 8295"]
There will not be a PE backer. Where is the source of return for them? They likely cant lever up the school, no conference will agree to pay for FSU's rights, and Florida State wont payout a significant share of their media earnings to the PE firm because they are already concerned with the cash gap today.

So what value is there? IF a PE firm ends up covering 250M of FSU's expected costs then they would expect at least 375M in total returns within (at most) 7 years. Where does FS find that $80+/year. There are some dumb people in private equity, but they aren't dumb enough to think this deal has any upside value. Add to the fact they you will never be able to sell the rights again because the SEC/BIg Ten partner will own them going forward and you have an idea that is dead in the water.

This response isn't directed at you as much as the general internet ether, talking heads are freaking out but there is no deal here. JPMorgan is advising on this because it gets press and gives an MD an excuse to get in the ear of school presidents but the people acting like this is as good as Apollo or KKR coming in with a blank check are smoking crack.
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