Players getting paid isn't going to kill college sports...

[bnoro]

Private equity will kill it, just like everything else.

With college sports at critical juncture, private equity groups pushing for their piece

College administrators are bracing for the new reality of sharing revenue directly with athletes as part of the terms of the House settlement agreement.

sports.yahoo.com

This is the nightmare scenario for the sport. There's no coming back if this happens.

 

[richmondcuse03]

Agree -- there will be a real focus on large returns if that happens. Or perhaps, some PE may just want to back their favorite schools in a preferred manner.

The unspoken part about PE in professional sports is that most do it for the substantial tax breaks associated with owning teams and passing off generational wealth without incurring any tax bills. Huge write offs on the real estate and other aspects, as Pro Publica has reported on.

Also, college endowments have been cozy with PE for years. Most invest in them. It'll be interesting to see if the tune changes at all.

 

[OttoinGrotto]

Remember, private equity acquisitions NEVER benefit the customer.

If you consider the fan to be the customer, you're screwed by PE looming.

 

[CIL]

Me thinks a lot of folks on this board do not understand private equity very well.

 

[UpstateSM]

Me thinks a lot of folks on this board do not understand private equity very well.

Sounds like something private equity would say

 

[Newhouser]

Private equity will kill it, just like everything else.

With college sports at critical juncture, private equity groups pushing for their piece

College administrators are bracing for the new reality of sharing revenue directly with athletes as part of the terms of the House settlement agreement.

sports.yahoo.com

This is the nightmare scenario for the sport. There's no coming back if this happens.

Kill college sports or kill SU's role in it?

 

[CIL]

Sounds like something private equity would say

Remember that when you go to Panera, enjoy a Pillsbury cake, or type on a Dell.

 

[LeMoyneCuse]

Remember that when you go to Panera, enjoy a Pilsner’s cake, or sip on a Dr Pepper.

Google "Panera Quality" and there's all kinds of stuff about how much worse Panera food has become in the last decade.

 

[OttoinGrotto]

Me thinks a lot of folks on this board do not understand private equity very well.

I work in an industry notorious for having companies gutted by PE.

 

[bnoro]

Me thinks a lot of folks on this board do not understand private equity very well.

I think a lot of people have a better idea after Red Lobster declared bankrupcy last week.

 

[cusefan88]

The details are horrible. They are going to pick 5-10 programs and invest anywhere between 50-200 million. Ridiculous. Hate hate hate.

 

[CIL]

Remember, private equity acquisitions NEVER benefit the customer.

If you consider the fan to be the customer, you're screwed by PE looming.

Not really. Going public isn’t exactly a panecea for the consumer. CEO pay tethered to stock prices rather than executing on long term, constructive decisions to benefit the company (remember, the capital comes for the shareholder, stock price doesn’t really move, have to take on debt).

I also don’t think PE really has a place on college athletics.

 

[OttoinGrotto]

Not really. Going public isn’t exactly a panecea for the consumer. CEO pay tethered to stock prices rather than executing on long term, constructive decisions to benefit the company (remember, the capital comes for the shareholder, stock price doesn’t really move, have to take on debt).

I also don’t think PE really has a place on college athletics.

I'm not arguing against your paragraph above.

The whole shareholder value as top priority model is fraught.

 

[UpstateSM]

Remember that when you go to Panera, enjoy a Pillsbury cake, or type on a Dell.

I have had a single bad meal at Red Lobster in my life and it just happened to be after private equity was involved. They will destroy college sports and blame it on NIL and the portal just like they destroyed Red Lobster and blamed it on endless shrimp.

 

[CIL]

I think a lot of people have a better idea after Red Lobster declared bankrupcy last week.

Wonder why Darden had to sell it off???? It’s been a zombie brand since 2015, struggling to be profitable and was an anchor around Darden’s neck.

I’m trying to be combative here. I don’t work at a PE firm, but you most likely have no idea how PE, venture, or growth equity really work.

PE doesn’t equal bad. Public doesn’t equal good. Family run doesnt equal good.

Different PE firms have very different objectives, specialities, etc. Some focus on distressed “zombie” assets that most likely would be belly up if PE didn’t come and save the day.

 

[CIL]

I have had a single bad meal at Red Lobster in my life and it just happened to be after private equity was involved. They will destroy college sports and blame it on NIL and the portal just like they destroyed Red Lobster and blamed it on endless shrimp.

Say no more. You changed my mind because a MD of a PE firm was back there whipping up a bad meal at a random Red Lobster in upstate NY.

Or maybe it was because you were eating at a Red Lobster?

 

[Shrmdougluvr]

Or maybe it was because you were eating at a Red Lobster?

Sounds like Wall Street (or Greenwich) looking down on Main Street again.

I always thought Red Lobster had sneaky-good music playing.

 

[HRE Otto IV]

The details are horrible. They are going to pick 5-10 programs and invest anywhere between 50-200 million. Ridiculous. Hate hate hate.

I think that would be great. That means those programs go off on their own and everyone else goes back to the purity of the sport. I rather the sport go back to being regional and nothing on TV. Take the money out of the game.

 

[Dcuse]

Kill college sports or kill SU's role in it?

Yes, I'm sure SU would be the only school affected by this transgression.

 

[UpstateSM]

Say no more. You changed my mind because a MD of a PE firm was back there whipping up a bad meal at a random Red Lobster in upstate NY.

Or maybe it was because you were eating at a Red Lobster?

Dying on the private equity hill is hilarious. I genuinely hope that you are wealthy. And if I can afford the $300 bill at Red Lobster than I could afford it at whatever steakhouse you think I should have taken my family to on Mother's Day.

Keep licking them boots!

 

[Cusefan0307]

Say no more. You changed my mind because a MD of a PE firm was back there whipping up a bad meal at a random Red Lobster in upstate NY.

Or maybe it was because you were eating at a Red Lobster?

Give me an example of a product PE has made better.

 

[CIL]

Sounds like Wall Street (or Greenwich) looking down on Main Street again.

I always thought Red Lobster had sneaky-good music playing.

The reality behind the Red Lobster issue is a publicly traded seafood conglomerate took majority ownership of Red Lobster and blew it right up.

Google it.

 

[OttoinGrotto]

I don’t work at a PE firm, but you most likely have no idea how PE, venture, or growth equity really work.

I'm close professionally to all of those circles.

PE is the one I avoid for my personal career opportunities for whatever that's worth.

It's great if you can become part of the PE family and hop around the portfolio as an efficiency specialist and like that kind of work. I think it's awful focusing on value extraction rather than value creation, but to each their own.

 

[bnoro]

Not sure if there are any vinyl collectors in here. But discogs used to be an incredible site for cataloguing, buying, and selling vinyl, with very small fees to cover discogs operating costs.

Of course, private equity came in, decided it wasn't making enough money to be profitable, jacked up the fees, and ruined small businesses and pop up shops that specialized in certain categories.

They're about to ruin bandcamp too. It's horrible stuff.

 

[CIL]

Give me an example of a product PE has made better.

Probably everything you have ever used or consumed. 200,000 companies in the US are private. Don’t like it, don’t watch Shark Tank.

Apple was backed by venture. Google was. Google has a venture capital arm to invest in small companies.

Don’t equate all PE to the Blackstones and KKRs of the world who buy massive companies, lever them up, and then sell them to a static or IPO the damn thing.

PE is most likely responsible for getting your favorite brand into the store you bought it at (Harry’s Razors, etc)

My god.