Big Ten Discussing $2 Billion Private Capital Deal

[OrangePA]

A truly astounding headline on ESPN.com.

Next thing you know, oligarch, Jeff Bezos will purchase a controlling interest in the SEC.

College athletics is becoming more and more of a turn-off.

 

[richmondcuse03]

Article doesn’t sell the vision very well. You don’t need PE eating another share to do an advertising deal on uniforms. You also don’t need it to organize your efforts better. That’s what your conference is for. What is all the upfront capital going to be used for? Where is the upside for adding another mouth to feed? Something is missing.

 

[OrangeXtreme]

Sources: Big Ten mulling $2B private capital deal

The Big Ten is in talks about a private capital deal, which includes a 10-year grant of rights extension through '46, that would infuse at least $2 billion into the league and its schools, sources told ESPN.

www.espn.com

 

[OttosShoes]

What is all the upfront capital going to be used for?

There's two big ways to make more money.

1. Grow the market
2. Root out the competition

No. 1 doesn't seem feasible. It's not like $2B will invent a stadium or a ruleset that can double the sport for the B1G.

Rather, I have to imagine it will be used to pull the B1G away from the rest of FBS in some capacity. Bury the competition and take their lunch. Say, for example, they offer 5x the player salary and 10x the coaches salary of any other conference offers, now those other conferences can't compete. Then they're a super league, and as the only top option they're not just making B1G money, they're making 4*P4+5*G5 money. If they can establish that, then they no longer have to pay those loss-leading salaries because they own the market.

That said, *if* is a key word. While I'm guessing that's what they're aiming for, I also think they're investment banker types who don't fully appreciate how diehard CFB fans are.

 

[orange79]

A truly astounding headline on ESPN.com.

Next thing you know, oligarch, Jeff Bezos will purchase a controlling interest in the SEC.

College athletics is becoming more and more of a turn-off.

Get your Alabama shirt THE NEXT DAY with Amazon Prime!

 

[qdawgg]

Rather, I have to imagine it will be used to pull the B1G away from the rest of FBS in some capacity. Bury the competition and take their lunch. Say, for example, they offer 5x the player salary and 10x the coaches salary of any other conference offers, now those other conferences can't compete. Then they're a super league, and as the only top option they're not just making B1G money, they're making 4*P4+5*G5 money. If they can establish that, then they no longer have to pay those loss-leading salaries because they own the market.

And then they force the government to definitely get involved which would then potentially blow everything up in their face.

 

[Cuseregular]

A truly astounding headline on ESPN.com.

Next thing you know, oligarch, Jeff Bezos will purchase a controlling interest in the SEC.

College athletics is becoming more and more of a turn-off.

yep, its part of the reason I've already pulled back. Not tailgating this year, cut my ticket amounts in half, and kept the three only when Fran essentially asked us all to hang in there.

As long as he's here I will, as it takes a one in a million rare personality to keep us even being competitive with someone who can successfully or at least competitively/competently negotiate the perils of NIL/Portal world to help overcome the challenges unique to Syracuse here to get and keep us competitive. And maybe just maybe put us in a position to be invited to the big boy party some day.

If not and/or Once he's gone, and once these SOB's ruin "college" football even more to if and when we can't even compete I'm gone, out to pasture for good.

 

[richmondcuse03]

There's two big ways to make more money.

1. Grow the market
2. Root out the competition

No. 1 doesn't seem feasible. It's not like $2B will invent a stadium or a ruleset that can double the sport for the B1G.

Rather, I have to imagine it will be used to pull the B1G away from the rest of FBS in some capacity. Bury the competition and take their lunch. Say, for example, they offer 5x the player salary and 10x the coaches salary of any other conference offers, now those other conferences can't compete. Then they're a super league, and as the only top option they're not just making B1G money, they're making 4*P4+5*G5 money. If they can establish that, then they no longer have to pay those loss-leading salaries because they own the market.

Honestly I can see it being two. The big ten is so desperate to keep their perceived advantage that they’d blow up what’s better for the sport and torpedo their own members down the road just to prevent something else from being better like a super league.

Something tells me they’ll build in ways to boot the less desirable schools down the road too. No way they keep equal footing.

 

[oldpinepoint]

Article doesn’t sell the vision very well. You don’t need PE eating another share to do an advertising deal on uniforms. You also don’t need it to organize your efforts better. That’s what your conference is for. What is all the upfront capital going to be used for? Where is the upside for adding another mouth to feed? Something is missing.

An extra $10mil going to NIL?

 

[orange79]

Sources: Big Ten mulling $2B private capital deal

The Big Ten is in talks about a private capital deal, which includes a 10-year grant of rights extension through '46, that would infuse at least $2 billion into the league and its schools, sources told ESPN.

www.espn.com

Unless I missed it, I didn't see how this benefits the PEF. What is their cut? And where does it come from?

 

[OttosShoes]

And then they force the government to definitely get involved which would then potentially blow everything up in their face.

I mean we'd all hope so, but Pro sports tend to already have monopolies in the US. And a PE Super-B1G would actually add some competition to the NFL.

Something tells me they’ll build in ways to boot the less desirable schools down the road too. No way they keep equal footing.

I agree. Silver lining is Rutgers would get the boot in that scenario!

Unless I missed it, I didn't see how this benefits the PEF. What is their cut? And where does it come from?

PE likes to buy stuff and then pump it up and then sell it for more. They'd be buying the media rights here, pumping up the B1G (presumably by taking marketshare from competitors as above), and then selling those media rights to ABC or Fox or whatever for more than they paid.

But again, fandom isn't fungible. I don't care how much money they pump into Ohio State or whatever, I'm never going to root for them over 'cuse. It's not like buying a car or a laptop or whatever where I want the best one.

 

[Chip]

Imagine PE digging into the B1G.

“Why exactly are Rutgers and Maryland in this league and why is everyone sharing the otherwise same amount of revenue with them?”

“Well, sir, they are near big cities so they have a lot of cable boxes. Yeah, I’ll show myself out.”

 

[javadoc]

There's two big ways to make more money.

1. Grow the market
2. Root out the competition

No. 1 doesn't seem feasible. It's not like $2B will invent a stadium or a ruleset that can double the sport for the B1G.

Rather, I have to imagine it will be used to pull the B1G away from the rest of FBS in some capacity. Bury the competition and take their lunch. Say, for example, they offer 5x the player salary and 10x the coaches salary of any other conference offers, now those other conferences can't compete. Then they're a super league, and as the only top option they're not just making B1G money, they're making 4*P4+5*G5 money. If they can establish that, then they no longer have to pay those loss-leading salaries because they own the market.

That said, *if* is a key word. While I'm guessing that's what they're aiming for, I also think they're investment banker types who don't fully appreciate how diehard CFB fans are.

Congress is now involved with fixing player salaries and putting enforcement mechanisms in place to police NIL. I don’t think coaching salaries are it, either. Has to be another angle.

 

[HRE Otto IV]

From the sounds of it they are creating the college football equivalent of SUM. While I am sure that will maximize the revenue, it isn't what the misleading title of the article is making it out to be.

 

[richmondcuse03]

From the sounds of it they are creating the college football equivalent of SUM. While I am sure that will maximize the revenue, it isn't what the misleading title of the article is making it out to be.

What’s SUM?

 

[Cheriehoop]

I mean we'd all hope so, but Pro sports tend to already have monopolies in the US. And a PE Super-B1G would actually add some competition to the NFL.



I agree. Silver lining is Rutgers would get the boot in that scenario!



PE likes to buy stuff and then pump it up and then sell it for more. They'd be buying the media rights here, pumping up the B1G (presumably by taking marketshare from competitors as above), and then selling those media rights to ABC or Fox or whatever for more than they paid.

But again, fandom isn't fungible. I don't care how much money they pump into Ohio State or whatever, I'm never going to root for them over 'cuse. It's not like buying a car or a laptop or whatever where I want the best one.

PE usually liked to break things up not consolidate to make maximum $ on their prime holdings. They might go back to 10 teams and sell off the bottom 8 to the highest bidding conference. Oh oh Rutgers, Maryland etc.