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Message: [QUOTE="HtownOrange, post: 5520714, member: 622"] Whether a loan or a buy-in, with PE the effect is the same. They will expect an high rate of return to get back more then their investment. Would you "buy-in" to a business that would never pay back your investment? PE does not do so. Unless they can sell off pieces, which they cannot do with universities, especially state universities. To your point that the B1G is not cash strapped, agreed. They neither need a loan nor a buy-in. A measly $5MM/year per team is not likely to sway anyone other than Rutgers because they will have to give up too much. Further, there has been no disclosure of the true expected revenues and plan, let alone the expectations that PE will demand. There is a reason the big boys in the conference are not convinced, they smell a rat and don't need another mouth to feed. Your second point does not address how the revenue will be raised. Additional TV revenue is unlikely because the B1G has performed well in raising TV revenue. How will PE do a better job? UM and tOSU don't believe they will. Further, there is simply insufficient market to support a $100MM/year in merchandise sales. It's not there, if it was, the schools would be tapping into that market without PE. You can advertise all you want, most people on this site will not buy a Rutgers jersey, a Northwestern sweatshirt, or a UNL cap, unless t hey have a tie to the school, which if they have a tie to the school they likely have purchased their limit from them because we are SU fans! Likewise, most B1G fans are not buying Orange gear, same reasons. Plus, TV revenue will require at least at least a $256.4MM new money as the B1G only owns 39% of the BTN, Fox owns 61%. [URL="https://en.wikipedia.org/wiki/Big_Ten_Network"]Big Ten Network - Wikipedia[/URL] For any merchandise, service or anything else, the revenue must cover expenses and generate the profit on top of the expenses to pay the $5MM per team per year. This issue is far more complex than what has been reported. Sure, PE can demand some cost savings measures but players and coaches are not likely to give up any more than they have to, coaches like larger staffs, etc., there is not much cost savings the PE firm will generate as the academic side has already pushed hard down that road. Besides, is UM going to fire their coaching staff and reset to $1MM/year for the HC and another $1MM for the staff in football? My guess is that will be "NO!" I am not convinced selling sponsor patches for the uniforms will raise significant funds. I'm also not convinced that PE will be content with a 12.5% total ROI over 20 years, that is less than 1% annually, not compounded. High yield savings accounts pay better than that. Take FSU's dalliance with PE. It went nowhere fast once the PE firm realized there was no assets to secure their investment, essentially making the investment a loan with no collateral, or credit card debt. [/QUOTE]

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