Can Private Equity benefit college sports?

[bnoro]

UCLA and PSU are in the game:

BREAKING: UCLA Makes Historic Private Equity Deal to Fund Athletics

UCLA and Penn State have reportedly taken on a historic private equity deal with Elevate, a global sports marketing agency, totaling $500 million to help fund t

www.si.com

Glad to see PSU as a guinea pig. Hope it goes as poorly as I expect it will.

 

[HtownOrange]

It will be interesting to see the real deals. as these are two public schools, the details should be made public.
As much as I hate giving FSU credit right now, but their misfortune and probably closer scrutiny because of the AD's financial mess probably saved them from a worse bargain.

 

[javadoc]

Glad to see PSU as a guinea pig. Hope it goes as poorly as I expect it will.

That was a puff piece. What’s in it for the “investors”? Loan shark throwing $500M at a couple businesses that can’t make payroll? Has to be a pound of flesh here somewhere.

And just wait until the employee stakeholders find out what private equity thinks of them. That means you, players!

 

[gbo]

Do Leveraged Buyout firms help any business at all? Feels like CFB is dead...

 

[HtownOrange]

Do Leveraged Buyout firms help any business at all? Feels like CFB is dead...

They "help" relieve them of all cash, hard assets, credibility, and eventually all employees. That's all the "help" I can think they offer.

 

[Hoo's That]

From our board - PSU and UCLA issue denials.

Penn State, UCLA athletic directors deny involvement with private equity funding amid House v. NCAA settlement

The Big Ten schools were reported to have reached landmark agreements with consulting firm Elevate

www.cbssports.com

 

[0.2 YNdeeR]

From our board - PSU and UCLA issue denials.

"Elevate", lol. What's next, World Liberty Ficancial?

 

[orangefog]

We could sign with Chico's Bail Bonds.

 

[SU68]

We could sign with Chico's Bail Bonds.

Oh, you're on a first-name basis with Chico's?

 

[FloridaCuse]

Utah taking on Private Equity

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frontofficesports.com

 

[FloridaCuse]

Sources: University of Utah nearing landmark private equity deal expected to generate $500 million

The new venture would generate a massive amount of money for the school in a groundbreaking move that may pave the way for more schools and conferences to do the same.

sports.yahoo.com

 

[rocklloyd]

For me, this is like the beginning of the end. PE, while not all bad, has its problems

 

[orangefog]

For me, this is like the beginning of the end. PE, while not all bad, has its problems

This is more like, at least the middle of the end, no?

 

[richmondcuse03]

They're giving up a big minority stake in their AD for an upfront slug of cash. They've also sold off parts of the AD to donors, too. The donors will be minority investors with no rights, of course. But Otro has plenty of rights as the primary minority owner. It'll be interesting to see what happens when there's friction over raising prices, trying not to pay players as much, etc.

 

[HtownOrange]

They're giving up a big minority stake in their AD for an upfront slug of cash. They've also sold off parts of the AD to donors, too. The donors will be minority investors with no rights, of course. But Otro has plenty of rights as the primary minority owner. It'll be interesting to see what happens when there's friction over raising prices, trying not to pay players as much, etc.

Too many people want the fast cash. They forget the concept of "investment" and the required time element. Now, Otro, the PE firm will benefit from UU's effort and reap the rewards over time that UU should be reaping.

 

[721Comstock]

For me, this is like the beginning of the end. PE, while mostly all bad, has nothing but problems

FIFY.

Quick - list any company or industry MADE BETTER by PE getting involved.
Any. Single. One.

We'll wait here.

 

[HRE Otto IV]

Not that they had a great chance but you have to think they don’t get a conference invite now. Who wants to deal with that?

 

[bnoro]

FIFY.

Quick - list any company or industry MADE BETTER by PE getting involved.
Any. Single. One.

We'll wait here.

While we wait another hospital closes because they ran it into the ground

 

[Ozcuse]

Answering the original post:


No.

 

[Cusefan0307]

Rich people will get richer and that’s what this country is about!

 

[OburgOrange]

 

[cusefan88]

What's the saying? Absolute power corrupts absolutely.

True for unrestrained capitalism.

 

[rocklloyd]

FIFY.

Quick - list any company or industry MADE BETTER by PE getting involved.
Any. Single. One.

We'll wait here.

I agree with you. I was trying to be diplomatic.

 

[FloridaCuse]

The risks and rewards of Utah’s private equity plans: Will others around college sports follow?

While other schools like Clemson and Kentucky have spun off similar entities, Utah would be the first to include outside investors.

www.nytimes.com

 

[JKinUtah]

"operational expertise" from the PE firm...this should be interesting