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Can Private Equity benefit college sports?
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[QUOTE="LAorange44, post: 5303603, member: 1436"] I think it would be a lot harder to do for public schools. Public schools have legal safeguards since they are state institutions. A school couldn’t sell its athletic department, or unilaterally turn over the athletic department to a private entity. I imagine any sort of deal with PE would require either a predatory loan backed by school assets or a management services agreement whereby PE provides advisory and administrative services in exchange for a percentage of gross revenue. A public school can buy services on the private market so long as it goes through the proper procurement channels. My concern would be that the parties produce a kosher agreement on paper, but PE is controlling the athletic department behind the scenes. The wink, wink, nudge, nudge aspect of the deal. Look at Trump and Elon. The university’s interests and PE interests are never aligned. The PE bros are like loan sharks who will never back off. As long is there is a way for them to get their money back (guaranteed loan backed by assets or percentage of future revenue) the PE boys will find a way to play ball and take control of the AD office. [/QUOTE]
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