If you are not paying attention to what is happening in the Big 10, then you don't realize how close this sport is to dying

[utvols74]

I know this could go in the NCAA forum, but it really does pertain to Tennessee football in a big way.

Right now, the Big 10 is trying to open up the ability for private equity companies to invest into their conference. Only Michigan and USC are in opposition of this, while the other 14/16 have signed off. Why does this matter to you, your love of Tennessee football, and college athletics in general?

Because once private equity is involved, this sport is dead. It isn't some boogy man either; PE will do everything it can to push profitability to the max so they can get a return on their investment. To this point, college sports have been run on revenue from events/TV, donations, and product partnerships. While companies like Pilot want ROI, it is not a specific number they are looking for. Their ROI is seeing the brand on the field and the skybox by 100k fans a game + the millions at home.

PE will demand profit. This will mean every little thing will be monetized at some point. Vol Walk? Paid admission for the front row. Tickets? Even more expensive. All those extra non revenue generating sports? Dead, useless, because they don't make the almighty dollar for our private equity overlords.

This is a deal with the devil that officially kills this sport. If the Big 10 does this, the SEC will follow as we are in an arms race against them.

Board Members Mount Challenge to Big Ten Investment Deal

There is talk of litigation, and one Big Ten board member suggested state or federal lawmakers could get involved.

frontofficesports.com

I predicted a similar situation to this 1 or 2 years ago on VN. I said it would be a "super-league" funded by billionaires of 14-18 best college football teams which would only play one another in a 8-9 game season with a playoff at the end. The rest of the schools would be "cute", but not a serious contender (for the most part) to send athletes to the NFL. I can see where this Super-League would recruit only sophomore - seniors from the traditional schools. The traditional schools would be the minor leagues (A, AA) while the Super League would be the AAA league in prep for the NFL. Totally agree with you. Total destruction. Sad.

 

[kcvols1]

Midas was undone by his own greed.

Why not us?

 

[Remy]

I recall taking a class at Marymount years ago on the West coast in Advertising. The guy teaching it was then newly named VP of advertising for a Korean car company called Hyundai. They were just beginning to get ready to launch in the US. I recall at the start of the very first class he asked us by a show of hands, how many of us thought advertising was very effective? Not a hand went up. He then asked how many agreed Coca Cola Company spends about a billion dollars per year globally on something not very effective? Not a hand went up then either after some thought. Corporations do not spend money on things ineffective.

PE if allowed and is spent will be done expecting a return on that expenditure. The danger to the sport becomes if allowed imo it devolves into a game of the haves versus have nots again over time. Why? Because who wants to spend lots of dollars on a losing program or one that is not in the playoffs very often? There will be lots of funds for winners to ensure they keep winning less money all around for those not winning very often if allowed.

 

[SubVet676]

I wonder now that the war in Gaza is over if Greta Thunberg's new cause wil be saving college football? Just imagine her leading a flotilla up the Tennessee River to the Calhoun's .

In a time when all of us are at one another bickering over what is, or is not wrong with UT football…this is a very refreshing and funny breath of fresh air.

 

[Sudden Impact]

Does this mean that if I invest in the B1G then when the polls come out because of my investment I am going to vote or influence the vote towards the B!G and not the reality of the situation?
I can see it now sportswriters and coaches being influence because of ROI.
We would have 10 B1G teams in the top 25 some of which would be totally overrated.
Their ADs, Coaches and previous players would be/Should be banned from playoff committee because of a Conflict of interest and the ROI.
Can of Worms.

 

[Sudden Impact]

I predicted a similar situation to this 1 or 2 years ago on VN. I said it would be a "super-league" funded by billionaires of 14-18 best college football teams which would only play one another in a 8-9 game season with a playoff at the end. The rest of the schools would be "cute", but not a serious contender (for the most part) to send athletes to the NFL. I can see where this Super-League would recruit only sophomore - seniors from the traditional schools. The traditional schools would be the minor leagues (A, AA) while the Super League would be the AAA league in prep for the NFL. Totally agree with you. Total destruction. Sad.

Wow only 14-18 teams is not happening. Think more like 32 to 34 with Divisions and the model of the NFL.

All this of course is getting over regulated and what about the Notre Dames of the world.

 

[CAVPUT]

Seems like an absurdly bad idea. And you are right - PE firms only invest when then think they can get a nice return. Hard to imagine this happening to college athletics

Take a look at what's happening with streaming services. The service and channels may change but the wars to appease investors and profit will never cease. They won't stop until they've bled every last dime out of consumers....us, the fans. Same thing with college sports. They're sitting around a table somewhere right now discussing what possible revenue streams they may have missed or that haven't been pushed to the max yet. Don't kid yourself, it's definitely coming. Still say eventually everything will be PPV. Glad I got to see the game at it's very best. It's a mere shadow of what it used to be. Same for pro sports. Heck, throw in gambling and fans can't trust the results they're seeing are legit. And don't get me started on refs. Sad....very sad.

 

[txbo]

Title IX is EXACTLY why UC Investments will suggest splitting traditional (non high revenue) college sports and ROI generating (high revenue) college sports.

Private equity is designed to find and maximize the best parts of a business, ie. the profitable parts, and separate that part from the worst parts of the business, ie., the money losers.

Title IX is a stupid thing for business in college athletics. Getting the revenue generating sports away from having to give money to revenue losing sports is what private equity is all about.

With only a 10% equity stake, they won't be making those calls. Even if they could, they would have to get that through the courts.

 

[onthehill71]

I would like to have a better understanding of how non-profit institutions meld with PE funding.

 

[feathersax]

Pandoras Box was opened with the transfer portal, N.I.L., conference expansion, insane coaches' salaries/contracts, etc. I'm not surprised, just sick of it.

 

[SayUWantAreVOLution]

With only a 10% equity stake, they won't be making those calls. Even if they could, they would have to get that through the courts.

Correct. But private equity doesn't bring lots of money to a company and not expect that company to grow and give some ROI. Even a "woke" investor like UC Investments expects to get a return. I don't think this is venture philanthropy from UC Investments, do you?

They aren't your old rich uncle throwing money at you because you're family; they expect the business to be profitable and grow.

They'll make suggestions. They've likely done their due diligence to understand what's good and what's bad financially in the B1G and they wouldn't be doing their job stewarding their client's retirement portfolios if they don't try to max out the ROI from the B1G by suggesting cuts in losing units.

I'm unsure why you think that won't happen or why you think they'll twiddle their thumbs while the B1G continues investing in money losing areas of the business.

 

[Volz4lif3]

You’re right about that the corruption is going to be exposed and is being exposed. Who in their right minds would bet on pro games after this week in nba mlb and I’m sure it will be exposed here shortly in the nfl.. I’m not naive to understand it’s always been corrupt but it’s getting to a level where it’s gonna destroy it all..

 

[Sheik Yerbouti]

PE will go after the biggest source of funds, which probably means minimizing the athletic departments’ contributions to the academic side of the universities.

 

[zjcvols]

Show me the medium. The TV rights lawsuit was DECADES ago and the schools showed no interest in the "medium" you suggest. They took the victory and pushed it as hard and as far and as financially selfish as possible.

So only the NCAA could demonstrate "looking for the medium?" Getouttahere with that.

Why didn't the schools move toward the "medium?"

That's because the school and the NCAA didn't want to pay players or let them have NIL. Both are guilty of not creating a medium. When I mean NCAA, I am involving the schools too.

 

[Voltopia]

People love to blame the NCAA but the schools sued for the rights to make lucrative TV deals themselves when the NCAA wanted to keep the media deals minimized.

People hated the NCAA for trying to keep the money from the schools and the games from being heavily televised. We cheered being able to fill our Saturdays with great college football on TV after the NCAA lost.

Well, here we are. We have lots of games on TV (after the carriers wrestle over money) and huge costs to attend games live (after the schools realized fans will "pay these prices and much more.")

We all wanted this. Easy access to lots of games. I've loved it. Your Dad probably loved it. We wanted fireworks, light shows, huge arenas, and massive equipment expenditures so recruits want to attend UT. Only the finest locker rooms, training equipment, buffet facilities, etc so we can play great football. Mo' money to win, Sugar Vols and whatever else it takes.

When it is crumbling people want to blame the NCAA for "not doing something" when they have gotten sued by the schools every time they did something.

Find a mirror, fans. Me included. This is what we wanted.

No. I didn't ask for all this. And it's not a binary outcome. Either "no TV deals" or "billion dollar TV deals." There was a balance in the 80s and 90s that was more than sufficient. Moreover, there are ways to create accessibility, especially with technology today. But the people in charge want the money. After all, it's all about the money now. So off they go. The Big 10 pursuing private equity is just the latest step in that endless pursuit.

And I never blamed the NCAA for trying to draw a line against the growing professionalism and commercialism. They did what they could, and frankly, they've never been a real "authority" any more than the schools let them be. There were plenty of ways to do this in a manner that retained some degree of amateur status. They - or perhaps more accurately the people with the money and power - just chose not to do any of those things. They wanted to take college football professional. And, they've succeeded at that. I can't see it going back now.

 

[txbo]

Correct. But private equity doesn't bring lots of money to a company and not expect that company to grow and give some ROI. Even a "woke" investor like UC Investments expects to get a return. I don't think this is venture philanthropy from UC Investments, do you?

They aren't your old rich uncle throwing money at you because you're family; they expect the business to be profitable and grow.

They'll make suggestions. They've likely done their due diligence to understand what's good and what's bad financially in the B1G and they wouldn't be doing their job stewarding their client's retirement portfolios if they don't try to max out the ROI from the B1G by suggesting cuts in losing units.

I'm unsure why you think that won't happen or why you think they'll twiddle their thumbs while the B1G continues investing in money losing areas of the business.

You can quit lecturing me on what private equity funds do. I have years of experience doing business with them.

The mistake you're making is lumping all firms together. Their philosophies, interests and objectives vary widely. Fund managers of pension and retirement accounts like UC Investments are looking for less risk and long term returns. If they want an aggressive internal rate of return or cash on cash return, they'd more likely invest in a portfolio of a private equity firm that specializes in a particular industry. The minority equity stake also signals a more passive investment that is unusual for private equity.

 

[SayUWantAreVOLution]

That's because the school and the NCAA didn't want to pay players or let them have NIL. Both are guilty of not creating a medium. When I mean NCAA, I am involving the schools too.

WAAAAAAY before that, schools sued the NCAA to control media rights and began MAKING the big money that players eventually were determined to be entitled to a piece of by the court.

The schools sued the NCAA to create this massive business of college football and basketball via huge TV exposure and contracts. Without that, lots of us are hoping for the occasional UT game broadcast, chance to attend in person, or listening to the radio.

The NCAA TRIED to keep college athletics from becoming a media cash cow for the schools to TRY to keep the money from becoming the driving force of the sports. The schools sued and now UT is a huge athletics business.

Without all that, NIL isn't an issue. College athletics didn't HAVE to become what it is on Saturday TV and without all that, there's little money for athletes to seek a piece.

As fans, we love and want access on TV to as much football as we can get and the schools sued the NCAA....... who knew that was bad for traditional college athletics.

Blame the fans who want all the games on TV and blame the schools who want all the revenue from that TV exposure. They created the big money business that spawned NIL issues.

 

[SayUWantAreVOLution]

You can quit lecturing me on what private equity funds do. I have years of experience doing business with them.

The mistake you're making is lumping all firms together. Their philosophies, interests and objectives vary widely. Fund managers of pension and retirement accounts like UC Investments are looking for less risk and long term returns. If they want an aggressive internal rate of return or cash on cash return, they'd more likely invest in a portfolio of a private equity firm that specializes in a particular industry. The minority equity stake also signals a more passive investment that is unusual for private equity.

UC Investments IS looking for long-term returns. That's accomplished by due diligence to insure the businesses they invest in aren't continuing to support losing units, right? Feel free to correct me.

If they see something in a business they invest in that looks inefficient and perhaps correctable, they have a duty to their account holders to suggest correction, right? Again, feel free to correct me.

Your suggestion is that you think UC Investments is investing in the B1G to merely sit on it as a stable, reasonably profitable investment, right?

You see college athletics and the financial structure of college athletics as stable? Yes or no.

You don't foresee potential issues like employment status for athletes and further conference realignment disrupting the current business? Yes or no.

I'm just curious why you think UC Investments wants in the business AND would want to be passive as an investor.

 

[SayUWantAreVOLution]

No. I didn't ask for all this. And it's not a binary outcome. Either "no TV deals" or "billion dollar TV deals." There was a balance in the 80s and 90s that was more than sufficient. Moreover, there are ways to create accessibility, especially with technology today. But the people in charge want the money. After all, it's all about the money now. So off they go. The Big 10 pursuing private equity is just the latest step in that endless pursuit.

And I never blamed the NCAA for trying to draw a line against the growing professionalism and commercialism. They did what they could, and frankly, they've never been a real "authority" any more than the schools let them be. There were plenty of ways to do this in a manner that retained some degree of amateur status. They - or perhaps more accurately the people with the money and power - just chose not to do any of those things. They wanted to take college football professional. And, they've succeeded at that. I can't see it going back now.

That balance in the 80s and 90s was destroyed by capitalism, which I assume you like, which created a bidding competition for the ad revenue from folks like you and me watching TV games.

To say it didn't "have to be" million dollar deals is to ignore market economics that led to those big contracts.

So what would you have rather have happened? Lemme guess, some entity should've controlled the TV contracts and limited how big they could get and how much TV exposure could occur.

Yeah, that was the NCAA and it was the schools who sued to blow that up. And fans applauded and loved college football being an all day, massive ad revenue TV event.

And here we are.

 

[TXbenVol]

I’m mentally starting to check out.

I was upset when we lost to OK but after sleeping and waking up, I wasn’t all the bothered by it because every player for every major football program doesn’t really have the same loyalty and passion like they did in the past.

NIL ruined college football, and now the possibility of PE getting involved will be the last nail.

 

[txbo]

WAAAAAAY before that, schools sued the NCAA to control media rights and began MAKING the big money that players eventually were determined to be entitled to a piece of by the court.

The schools sued the NCAA to create this massive business of college football and basketball via huge TV exposure and contracts. Without that, lots of us are hoping for the occasional UT game broadcast, chance to attend in person, or listening to the radio.

The NCAA TRIED to keep college athletics from becoming a media cash cow for the schools to TRY to keep the money from becoming the driving force of the sports. The schools sued and now UT is a huge athletics business.

Without all that, NIL isn't an issue. College athletics didn't HAVE to become what it is on Saturday TV and without all that, there's little money for athletes to seek a piece.

As fans, we love and want access on TV to as much football as we can get and the schools sued the NCAA....... who knew that was bad for traditional college athletics.

Blame the fans who want all the games on TV and blame the schools who want all the revenue from that TV exposure. They created the big money business that spawned NIL issues.

I haven't seen the deal. I have no idea what their strategy or objective is. I see no value creation, only a quick cash infusion that solves no long term revenue problems for any of the schools.

 

[SayUWantAreVOLution]

I haven't seen the deal. I have no idea what their strategy or objective is. I see no value creation, only a quick cash infusion that solves no long term revenue problems for any of the schools.

So, basically, from a quick glance and based on your experience with PE, it looks like UC Investments is just throwing money at the B1G (providing a cash infusion) with no obvious long-term benefit to the schools nor obvious strategy for UC Investments?

O.....kay. Want to hazard an experienced eye's guess on why they might be taking a 10% position in the B1G which seems to be only a band aid for the B1G's revenue problems? Foot in the door, perhaps? Just an incompetent PE move?

You've got lots of experience and seen things, your gut feeling on this?

 

[titansvolsfaninga]

And the current state of the sport isn't all that likable with the NIL portal chaos. I'm slowly trying to ween myself from caring after a lifetime of being too vested in it.

To be honest, sports is a distraction for a lot of people. Especially with what's going on in the world. With that said, sports IS a distraction, so if dying ain't all that bad. You know when people retire and are then forced to spend time together. They realize they don't know whoever they woke up next to everyday for 30 years. They don't even like that person.

 

[BernardKingGOAT]

To be honest, sports is a distraction for a lot of people. Especially with what's going on in the world. With that said, sports IS a distraction, so if dying ain't all that bad. You know when people retire and are then forced to spend time together. They realize they don't know whoever they woke up next to everyday for 30 years. They don't even like that person.

That happens to some couples but not to all. There's a reason the divorce rate is north of 50%

 

[JarFly]

This sport is well and truly disfigured now, and I don't think there'll ever be a way to repair the damage. Not without surrendering the TV money, and I don't think the schools will ever do that. All these athletic departments are being operated by career businessmen who view their jobs soley as profit enterprises. And when you decide that the money is the only thing that matters, then nothing else will ever matter as much. Not the roar of the crowd, not the college degree, not the pageantry, not the history, one bit of it. Hell, how many people even pipe up saying "all that stuff is stupid and never mattered anyway. " Well, here we are, at the tail end of "all of that stuff is stupid." It's all falling away, piece by piece. The Pride of the Southland replaced by "Joker and the Thief." The view of the Tennessee River replaced by the view of a privately owned hotel that gets VIP access to the stadium. Generational fans replaced by, well, whoever's paying. And who cares about any of that stupid crap anyway, right?

The real bitter irony here is that the ONLY thing that has ever made college football valuable as a media product is the unique fan support. The passion has always set college football apart from the NFL. But now schools have taken the support of their fans, something built over generations of integration into communities, integration into families with generational fan investment, and packaged that up for sale right along with everything else. People complain about ESPN buying the SEC, or FOX buying the Big 18, but the reality is they they've bought US so they can wring everything they can out of the fans. And the schools were apparently happy to sell us - along with everything else that made college football unique - to them.

I would nominate this post to be a contender for post of the year. I know it echoes my feelings that I have earned over nearly 60 years of supporting University of Tennessee athletics.