The Axe Capital 12 Conference

[OrangeXtreme]

 

[OrangeXtreme]

 

[Stern]

I really hope the ACC isn't asleep at the wheel and is talking about something like this and it hasn't been leaked yet.

We can all debate how much private equity coming into college sports stinks, and its not right and it's gonna be evil. That's fine, but its also the new reality we are living in and I hope the ACC is ahead of this curve not behind it

 

[upperdeck]

how does the firm make money off this deal? Oh I know throw teams out they don't think are performing well.

 

[SkyTopBus44]

I really hope the ACC isn't asleep at the wheel and is talking about something like this and it hasn't been leaked yet.

We can all debate how much private equity coming into college sports stinks, and its not right and it's gonna be evil. That's fine, but its also the new reality we are living in and I hope the ACC is ahead of this curve not behind it

Food Lion is on the clock!

 

[cuseincincy]

how does the firm make money off this deal? Oh I know throw teams out they don't think are performing well.

They make money by taking some of the profits. But primarily their income comes from re-selling the property in 3-5 years at an increased value. My firm went private equity about 8 years ago and we're on our 3rd Private Equity partner. Definitely a double edge sword depending on how involved the PE wants to get. The B12 is wise to limit the investment to a non-controlling interest.

 

[orange79]

Food Lion is on the clock!

ACCuweather!

 

[upperdeck]

They make money by taking some of the profits. But primarily their income comes from re-selling the property in 3-5 years at an increased value. My firm went private equity about 8 years ago and we're on our 3rd Private Equity partner. Definitely a double edge sword depending on how involved the PE wants to get. The B12 is wise to limit the investment to a non-controlling interest.

Right so they give a billion spread out over like 15 schools spread out over say 5 yrs. thats like 13 million a yr to the schools? Now if the firm wants to make money they take out 200 million a yr from tv money for 5 years. thats a break even for the schools and the company unless the tv contract goes up the firm sells off the league.

This isnt a profit driven thing unless the league generates more revenue which it could in a small way.

 

[rocklloyd]

Food Lion is on the clock!

carolina ford dealers and Mellow Mushroom

 

[OrangeXtreme]

The Mayhem Conference...

 

[HRE Otto IV]

I don't get it. Isn't 20% of the B12 payout around $125M a year? Why would anyone be willing to give $1B now for $125M a year not knowing how much TV money there will be 5 years from now, or which schools will still be in the conference? There has to be more to it.

 

[All4SU]

I see Coca Cola in our future.

 

[AAM62]

I can see a consortium buying the B12 and ACC up in tranches and merging to a super league.

 

[sutomcat]

I see Coca Cola in our future.

Coca Cola Conference?

 

[JarHeadJim]

The Waffle House conference!

 

[OttoinGrotto]

Brought to you by Carl's Jr.

 

[Cuse12]

F this

 

[Frozen]

Carrier presents the

Air
Conditioning
Conference

 

[HouClone]

Coca Cola Conference?

I'm a Pepsi guy myself. Pepsi Max 12 Conference.

 

[OburgOrange]

ACCuweather!

Speaking of that. Getting any rain down there?

 

[HRE Otto IV]

As to the league sponsorships, if it is done like in soccer who cares? As long as you don't actually change the name.

 

[orange79]

Speaking of that. Getting any rain down there?

a LOT!

 

[texascpa]

As to the league sponsorships, if it is done like in soccer who cares? As long as you don't actually change the name.

Everyone wants European-style relegation but no one wants European-style commercialization of teams. How does everyone think European countries are able to field so many teams at so many levels?

 

[OrangeXtreme]

I see Coca Cola in our future.

Plastics.

 

[sutomcat]

Plastics.