The Axe Capital 12 Conference

[JRHEETER]

Who cares, NASCAR does it and makes a ton of money off of it

If this gets more $$$$ into the schools hands I’m all for it

 

[Killdozer]

Who cares, NASCAR does it and makes a ton of money off of it

If this gets more $$$$ into the schools hands I’m all for it

Me too, but of course the ACC will be the last conference to do this. Phillips is just horrible as a commissioner

 

[Stern]

Who cares, NASCAR does it and makes a ton of money off of it

If this gets more $$$$ into the schools hands I’m all for it

I think the fear is that it's not like NASCAR with sponsors buying in on these conferences to just slap their name on it, but some uber-rich Hedge Fund guy buying to stroke his own ego and just so he can say it's part of his "portfolio." But the minute the wind changes, and he loses a nickel, he pulls the plug and tears the conference apart, as these Hedge Fund guys are kind of fickle.

 

[javadoc]

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

Please help me understand who these people are that would be getting into the mix, what they hope to achieve, and what influence they would have on the operation of the conferences & teams considering it.

I am at a loss for why anyone would sink $1bn (from the link above) to get into college sports (football) for one conference. What is the play? This makes no sense to me.

 

[Stern]

Please help me understand who these people are that would be getting into the mix, what they hope to achieve, and what influence they would have on the operation of the conferences & teams considering it.

I am at a loss for why anyone would sink $1bn (from the link above) to get into college sports (football) for one conference. What is the play? This makes no sense to me.

Ego, brother ego. When you are a multi-billionaire, it is all about ego

 

[Toga]

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

The BAC as presented by Budweiser.

 

[HRE Otto IV]

Please help me understand who these people are that would be getting into the mix, what they hope to achieve, and what influence they would have on the operation of the conferences & teams considering it.

I am at a loss for why anyone would sink $1bn (from the link above) to get into college sports (football) for one conference. What is the play? This makes no sense to me.

It makes sense to invest in the B18 or SEC, but the potential benefit seems small for the other conferences. And what is in it for the schools in the other conferences? Sure having money now is better than later, but after 5 years you are worse off for as long as the conference exists. Short term thinking.

Another point, the conferences are non profit. How can they keep that status if they have investors taking an equity position looking for a profit? This seems like a major question mark for both the conferences and the investors.

 

[Cuse181]

Why the number? Just do Allstate conference

 

[Dinkyspond]

carolina ford dealers and Mellow Mushroom

Popeye's - the new PACC 17

 

[lincolncuse]

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

 

[FloridaCuse]

Food Lion is on the clock!

Bojangles! Has to be.

 

[HouClone]

Maybe unequal revenue naming rights could be a plan for the ACC. FSU and Clemson with a good majority and split the rest. FSU and Clemson would be much closer to the Big 10 and SEC considering the success based initiatives.

 

[dasher]

Maybe unequal revenue naming rights could be a plan for the ACC. FSU and Clemson with a good majority and split the rest. FSU and Clemson would be much closer to the Big 10 and SEC considering the success based initiatives.

Screw that. FSU doesn't deserve more than their other members. Just because they can complain.

 

[Orangepace]

I’m calling the ACC to bid for conference naming rights, with the express opinion it should be Penn State Swallows.

 

[tep624]

It makes sense to invest in the B18 or SEC, but the potential benefit seems small for the other conferences. And what is in it for the schools in the other conferences? Sure having money now is better than later, but after 5 years you are worse off for as long as the conference exists. Short term thinking.

Another point, the conferences are non profit. How can they keep that status if they have investors taking an equity position looking for a profit? This seems like a major question mark for both the conferences and the investors.

I really don't understand the investment side of this either...

 

[WoadBlue]

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

The high number I've seen for this for the Big 12 is 50 million dollars per year. For a 16 member league, that is only 3 million per school per year with 2 million left for the league office. That aint much. What do you give away for that pittance?

 

[SWC75]

Unfortunately,

Billy Fuccillo dead at 65; built car sales chain with a huge TV persona

Auto dealer was well known for his TV ads

www.syracuse.com

 

[orangemass]

Food Lion is on the clock!

It’s bo time

 

[kcsu]

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

They receive 20% of the revenue? 20% off the top for the life of the conference. So at 500m they get 100m a year. 10 year return of principal if annual revenue is flat.
Maybe it's a 20 year deal. No idea but it's basically a way to front load an increase and hope that future increases in revenue cover it down the road.

 

[kcsu]

Maybe the ACC should go public.

 

[kcsu]

Or take 20% of the annual revenue generated by the league and invest it in Bitcoin and an AI fund.

 

[kcsu]

Or Enter into a league based NIL agreement with DraftKings Casino to provide every ACC football and basketball player with 50k in free plays for sponsorship.

 

[kcsu]

And Enter into a league wide NIL deal with Nugenix to have Jim Phillips and each of the schools ADs promote their product in return for Nugenix paying 10m to place their Logos in each end zone along with Nugenix Yard sticks and end zone pylons during the ACC conference championship game.

 

[HRE Otto IV]

They receive 20% of the revenue? 20% off the top for the life of the conference. So at 500m they get 100m a year. 10 year return of principal if annual revenue is flat.
Maybe it's a 20 year deal. No idea but it's basically a way to front load an increase and hope that future increases in revenue cover it down the road.

I would think that if they are an 20% "owner" they would get their share of the "dividend" that the conference pays out. There are a few problems with this:

-While the schools are non profit, what happens if the government comes in and says the conference is no longer non profit due to PE ownership? Now the profits are taxed which lowers the dividend amount for everyone.

-Now that you are getting less money, you can no longer accurately project when you will get your money back. It will take longer and you could see schools leave the conference in that time. Even if everyone stays, you don't know what the next TV contract will be. While it could be better, it also could be worse. There is no stability, which makes an "investment" high risk.

-If you own a pro sports team there is very little risk that stake in the team won't appreciate in value over time. There will also be plenty of potential future buyers. That isn't the case with a conference. There is a risk the conference will not even exist. What good is owning 20% of the P12 if it only contains two schools? And if it does exist, you are only "leasing" those athletic programs. You do not own them. There is no real "asset" behind the conference. So I would not expect there to be many potential buyers, if any, of that stake.

 

[MadNY3]

The Commissioner of the Conference is a PT Barnum-type hustler. He had a career of doing a lot of wince-worthy things to make a buck, but in many ways, he's a good fit for a challenger brand like the Big XII. He's acted fast (e.g. stealing teams to start the Pac 12 demise) and looking to helps his members secure a war chest to compete with the SEC/Big Ten with the thought of raising the overall value of the league from an assumed jump in football performance.

The Pac 12 looked to raise capital years ago because of its debt issues. This is an attempt to go on offense. Reality is I'd feel better with someone like him heading the ACC, than Phillips, who is too traditional and seemingly playing scared.