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

#51
#51
SayUWantAreVOLution said:
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.
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UC is getting a 10% stake in something calling Big Ten Enterprises, which is a new entity the Big Ten has created to house their media rights. In exchange for big upfront payments to the member schools, UC gets a cut of the Big Ten's media rights deals. It sounds like it is structured like an annuity, which makes sense, because UC has a bunch of pension obligations to pay out over time. They are not a traditional private equity firm like the Blackstones, KKRs, Carlyles, etc. of the world, and this isn't really best described as a "private equity deal."

This deal gives them no control whatsover over the Big Ten. They could own 100% of Big Ten Enterprises and they'd still have no control over the decision-making authority of the conference itself.
 
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#52
#52
SayUWantAreVOLution said:
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?
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Cash flow. Time value of money. They are trading income today for a higher (potentially) stream of income over time.

They are not taking a 10% ownership stake in the Big Ten. I don't even know how one would "own" the Big Ten or any athletic conference.
 
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#53
#53
05_never_again said:
UC is getting a 10% stake in something calling Big Ten Enterprises, which is a new entity the Big Ten has created to house their media rights. In exchange for big upfront payments to the member schools, UC gets a cut of the Big Ten's media rights deals. It sounds like it is structured like an annuity, which makes sense, because UC has a bunch of pension obligations to pay out over time. They are not a traditional private equity firm like the Blackstones, KKRs, Carlyles, etc. of the world, and this isn't really best described as a "private equity deal."

This deal gives them no control whatsover over the Big Ten. They could own 100% of Big Ten Enterprises and they'd still have no control over the decision-making authority of the conference itself.
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Correct. While this deal itself wouldn't necessarily be a disaster, the ramifications of the deal being approved opens up massive problems down the road.
 
#54
#54
zjcvols said:
Correct. While this deal itself wouldn't necessarily be a disaster, the ramifications of the deal being approved opens up massive problems down the road.
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Yes - to be clear, I am not saying that this is some great deal. There's just a lot of misunderstandings as to what it actually is.
 
#55
#55
Danny Dollars said:
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.

frontofficesports.com

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 frontofficesports.com
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Danny Dollars, you are correct.
I spent 30 years on Wall Street trading and underwriting PE deals. Many positive results from PE buying businesses. However, this would be the final 10% death of the already 90% death of college athletics.
 
#56
#56
SayUWantAreVOLution said:
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?
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Just because I don't see it doesn't mean anything. My guess is many schools see this as a way to catch up to the schools with better resources. Jumpstart there program. From the UC Investments standpoint, it's an opportunity to get a slice of a really big pie.
 
#57
#57
05_never_again said:
UC is getting a 10% stake in something calling Big Ten Enterprises, which is a new entity the Big Ten has created to house their media rights. In exchange for big upfront payments to the member schools, UC gets a cut of the Big Ten's media rights deals. It sounds like it is structured like an annuity, which makes sense, because UC has a bunch of pension obligations to pay out over time. They are not a traditional private equity firm like the Blackstones, KKRs, Carlyles, etc. of the world, and this isn't really best described as a "private equity deal."

This deal gives them no control whatsover over the Big Ten. They could own 100% of Big Ten Enterprises and they'd still have no control over the decision-making authority of the conference itself.
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This makes sense and explains why PE would invest in athletics. The media rights are the meat and capitalism should continue to drive up the media deals.

Even if the B1G and SEC split from the NCAA, the media rights ARE a good investment.

Thx. That makes it a lot clearer.
 
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#60
#60
dobre_shunka said:
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 .
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There's no tangible benefit in that fight for Greta, and if there's one thing certain about her it's that it's only about attention and money.
 
#62
#62
Voltopia said:
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.
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Well said.
 
#63
#63
Volz4lif3 said:
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..
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Are you serious? The answer to that question is that most gamblers aren't in their right mind and will continue to think they can game the system, which is exactly what the system counts on.
 
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#64
#64
Vol in Buckeye Land said:
Pro sports are a better product, and lower divisions will have more of what made college football special once this is all done. The writing is on the wall that it's time for the average fan to move on from big time D1.

These players, coaches, and especially conference and tv execs and their ilk do not deserve your hard-earned money, people.
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Totally disagree about pro sports a better product than cfb!
 
#68
#68
I think that the large universities evolve into limited partners of the franchises or passive entities that license their IP and lease their facilities to sports clubs.

The term student-athlete is obsolete with the big programs. NIL/revenue sharing and unlimited transfers has made the toothpaste that ain’t going back into the tube. And there are issues with players being employees of the state schools.

The games are simply content for video distributors. College sports are going the way of NASCAR or minor league sports with college branding.
 
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#69
#69
Agree with the OP. I can’t fathom why Ohio St and Michigan would want to sign onto this. The lesser resourced schools in the Big - sure I can see them selling their souls like this - but I’m shocked OSU would be on board with this. They basically give up their autonomy.
 
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#70
#70
McDad said:
This is what, the 27th or 28th "death of college football" over the last 50 to 60 years?
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Do you like the product? Do you like our freshman qb last year practically holding out before the playoff game because he technically signed up to play 12 games and only agreed based on remuneration for 12 so more money was needed for a playoff run? You like that?
 
#72
#72
SayUWantAreVOLution said:
Private Equity is going to do what it always does: search for ways to maximize ROI.

The tennis team, track team, etc aren't reasonable units of the business to continue to invest money in. PE suggests either shuttering all the units in the athletic dept which are a drain on ROI or spinning off the profitable into a separate entity which can provide ROI.

Private Equity is EXACTLY the type of business which knows how and has lots of experience in splitting up companies in financial difficulty so the profitable part goes with them and the unprofitable part stays with the losers or closes.

Watch and see.
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Even worse -- they will split off the football team into an LLC, which will isolate it from any sort of reporting or oversight. (Not that there’s a lot now.) They’ll charge the university a fee to run the program, but there will be no way for anyone -- not you, not reporters, not even the administration -- to know where that money is going or how it’s being used.

Or, they will leverage the value of the football team to take out large loans (through the LLC), then take their $$$ and give the football program back to the university with a ___-load of debt.

Surely anyone with (a) a love of college football and (b) a brain can see what a bad idea this is.
 
#74
#74
The sport died when they agreed to pay Nick Sabin 7 million per year. What you see now is the death spiral. After that the price for coaches started skyrocketing and the players started saying, "coaches are getting millions while we get scholarships". Might last 3 more years then it will evolve into a pro sports format.
 
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#75
#75
zjcvols said:
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.
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They are guilty of not having a plan and regulations in place before they allow or implemented before they put NIL, Transfer Portal into place.
 
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